G-1, I-1 - Resolution 2025-064 - Approval of Development Agreement for 80-380 LLC - Village Drive

(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.2 below. (iii) Terminate this Agreement. B. City’s Obligations 1. Review of Costs Documentation. The City staff will review the Costs Documentation upon receipt from the Developer. If the City determines the Public Infrastructure Costs set forth in the Costs Documentation are costs reasonably incurred in the construction of the Public Infrastructure Project, the City shall record a summary of the date, amount and nature of the costs (the “Accepted Public Infrastructure Costs”) on the Summary of Accepted Public Infrastructure Costs attached hereto as Exhibit C, and such summary shall be the official record of the Accepted Public Infrastructure Costs for purposes of tallying the Maximum Payment Total, as defined in Section B.2 of this Agreement. If the City determines that the Public Infrastructure Costs set forth in the Costs Documentation are not costs reasonably incurred in the construction of the Public Infrastructure Project, the City shall notify the Developer of such determination within fifteen (15) days of such determination in order to allow an opportunity for the Developer to cure the noted deficiencies. 2. Payments. In recognition of the Developer’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 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 one-sixth (1/6) of the Maximum Payment Total (as hereinafter defined), and the aggregate, total amount (the “Maximum Payment Total”) of the Payments made under this Agreement during the Term shall not exceed the lesser of (i) the Accepted Public Infrastructure Costs; or (ii) $600,000. 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 tax rolls of Johnson County; and (4) deducting any property tax credits which shall be available with respect to the property. Subject to annual appropriation by the City Council as set forth in Section B.3 below, the Payments will be made on December 1 and June 1 of each fiscal year, beginning on December 1, -3- 4926-8680-3790\2