I-2 - Resolution 2025-065 - Approval of Amended Development Agreement with 80-380 - Village Drive

4. RISE Grant Compliance. The Developer acknowledges that the City used the proceeds of a RISE Grant from the Iowa Department of Transportation to pay a portion of the Public Improvements Costs. The Developer further acknowledges that the City must maintain compliance with the contract (the “RISE Contract”) that the City entered into with the Iowa Department of Transportation in order to receive such RISE Grant, including a commitment by the City that certain property will be developed with RISE eligible activities. The Developer has agreed to undertake or cause to be undertaken a project (the “RISE Eligible Project”) that meets the definition of a RISE eligible activity on certain property that has been benefited by the Public Improvements Project. The Developer agrees to assist the City in preparing reports required by the RISE Contract. Further, if the City is required to repay any amount of the RISE Grant under the RISE Contract because the Developer does not cause the completion of the RISE Eligible Project, then the Developer agrees to pay the City an amount equal to the amount the City is required to repay under the RISE Contract terms (the “RISE Grant Reimbursement Payment”). The City shall give reasonable written notice to the Developer of the Developer’s obligation to make any such RISE Grant Reimbursement Payment, and the Developer shall pay the RISE Grant Reimbursement Payment to the City no later than thirty (30) days after the City’s written request. 5. Legal Fees and Administrative Costs. The Developer hereby agrees to cover the legal fees and administrative costs incurred by the City in connection with the drafting, negotiation and authorization of this Agreement up to an amount not in excess of $10,000. The Developer agrees to remit payment to the City within thirty (30) days of the submission of reasonable documentation by the City to the Developer evidencing such costs. 6. Payments to the Developer. In recognition of the Developer’s obligations set out above, the City agrees to make eight (8) semiannual economic development tax increment payments (the “Payments” and, individually each, a “Payment”) to the Developer 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 to be made in any fiscal year during the Term shall not exceed $175,000, and the aggregate, total amount (the “Maximum Payment Total”) of the Payments made under this Agreement during the Term shall not exceed $500,000. 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 unencumbered Incremental Property Tax Revenues (as hereinafter defined) received by the City from the Johnson County Treasurer which are attributable to the Urban Renewal Area. Incremental Property Tax Revenues are determined by: (1) determining the consolidated property tax levy (city, county, school, etc.) then in effect with respect to taxation of the property in the Urban Renewal Area; (2) subtracting (a) the debt service levies of all taxing jurisdictions, (b) the school district instructional support and physical plant and equipment levies and (c) any other levies which may be exempted from such calculation by action of the Iowa General Assembly; (3) multiplying the resulting modified consolidated levy rate times any incremental growth in the taxable valuation of the property situated in the Urban Renewal Area, as shown on the property -2- 4938-7064-7118\2