I-1 - Development Agreement for Clear Creek Dog Resort

(iv) Failure by the Company to observe or perform any other material covenant on its part, to be observed or performed hereunder. b. Notice and Remedies. Whenever any Event of Default described in this Agreement occurs, the City shall provide written notice to the Company describing the cause of the default and the steps that must be taken by the Company in order to cure the default. The Company shall have thirty (30) days after receipt of the notice to cure the default or to provide assurances satisfactory to City that the default will be cured as soon as reasonably possible. If the Company fails to cure the default or provide assurances, the City shall then have the right to: (i) Pursue any action available to it, at law or in equity, in order to enforce the terms of this Agreement. (ii) Withhold the Payments provided for under Section B.1 below. (iii) Terminate this Agreement. 6. Legal and Administrative Costs. The Company hereby acknowledges that the City will cover the initial payment of legal fees and administrative costs (the “Actual Admin Costs”) incurred by the City in connection with the drafting, negotiation and authorization of this Agreement, including the necessary amendment to the Urban Renewal Area. Furthermore, the Company agrees that the City shall withhold an amount (the “Admin Withholding Amount”) equal to the lesser of (1) $6,000 or (2) the Actual Admin Costs from the Incremental Property Tax Revenues received by the City to make the Payments before making any Payments to the Company, as hereinafter set forth in order to recover some or all of the Actual Admin Costs. B. City’s Obligations 1. Payments. In recognition of the Company’s obligations set out above, the City agrees to make twelve (12) semiannual economic development tax increment payments (the “Payments” and individually, each a “Payment”) to the Company during the Term of this Agreement, pursuant to Chapters 15A and 403 of the Code of Iowa, provided however that the aggregate, total amount of the Payments shall not exceed $90,000 (the “Maximum Payment Total”), and all Payments under this Agreement shall be subject to annual appropriation by the City Council, as provided hereunder. The Payments shall not constitute general obligations of the City, but shall be made solely and only from the Annual Percentage Incremental Property Tax Revenues received by the City from the Johnson County Treasurer attributable to the taxable valuation of the Property with the completed Project thereon. Prior to funding any Payments under this Agreement, the City will first withhold from the Incremental Property Tax Revenues an amount equal to the Admin Withholding Amount. Once an amount equal to the Admin Withholding Amount has been withheld by the City, the Payments shall be made as set forth herein. This Agreement assumes that the taxable value of the Project went on the property tax rolls as of January 1, 2024. Accordingly, Payments will be made on June 1 and December 1 of each fiscal year, beginning December 1, 2025, and continuing through and including June 1,