I-1 - Development Agreement - Park 3 - Boardwalk

the Developer’s business operations if the Commercial Units are being used as part of the ongoing business operations of one or more commercial enterprise(s) or if the Commercial Units are actively available for lease to commercial enterprise(s) at a reasonable market rate. The Developer further agrees to maintain, preserve, and keep the Property, including but not limited to the Project, useful and in good repair and working order, ordinary wear and tear excepted, and from time to time to make all necessary repairs, replacements, renewals, and additions. Further, the Developer agrees to maintain compliance with local zoning, land use, building and safety codes and regulations. 2. Developer’s Operational Certifications. At the request of the City, the Developer agrees to certify (the “Operational Certification”) to the City that the Developer is in compliance with the Operational Requirement. Each Operational Certification shall be accompanied by documentation demonstrating, to the satisfaction of the City, that the Developer is in compliance with the Operational Requirement. 3. Property Taxes. The Developer agrees to ensure timely payment of all property taxes as they come due with respect to the Property with the completed Project thereon and to submit a receipt or cancelled check in evidence of each such payment. 4. Triggering Certification. The Developer agrees to provide a written notification (the “Triggering Certification”) to the City of its intent for the Payments (as defined in Section B.1 of this Agreement) to commence in a particular fiscal year. Such Triggering Certification shall be due by no later than October 15 of the calendar year immediately preceding the start of the fiscal year in which the initial Payments are intended to be made. The Developer hereby acknowledges that the submission of the initial Worksheet (as defined in Section A.5 of this Agreement) will satisfy the requirements of this Section A.4. In any event, the Triggering Certification shall be made by no later than October 15, 2028. (It is hereby acknowledged that the City’s fiscal year begins on July 1 and ends on the following June 30.) 5. Property Tax Payment Certification. The Developer agrees to certify to the City by no later than October 15th of each year, commencing October 15th of the year in which the Triggering Certification is made, an amount (the “Developer’s Estimate”) equal to 80% (the “Annual Percentage”) of the estimated Incremental Property Tax Revenues (as hereinafter defined) anticipated to be paid in the fiscal year immediately following such certification with respect to the assessed taxable valuation of the Property. In submitting each such Developer’s Estimate, the Developer will complete and submit the worksheet (the “Worksheet”) attached hereto as Exhibit C. The City reserves the right to review and request revisions to each such Developer’s Estimate to ensure the accuracy of the figures submitted. For purposes of this Agreement, Incremental Property Tax Revenues are calculated by: (1) determining the consolidated property tax levy (city, county, school, etc.) then in effect with respect to taxation of the Property; (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, as shown on the property tax rolls of -2- 4910-7132-5999\1