I-2 - Second Amended Development Agreement - DERS

The City shall retain all rights to inspect the Public Infrastructure Project – Phase I and Phase I Alternates for quality of work and full compliance with City Code. Costs of inspections of the Public Infrastructure Project – Phase I and Phase I Alternates shall be paid by the City, and the City shall be reimbursed by the Developer for such costs within thirty (30) days of receipt by the Developer of notification from the City that such inspections have been completed. Nothing in this subsection shall be interpreted as limiting the City’s rights to not accept the work if the Public Infrastructure Project – Phase I and Phase I Alternates is not completed to the satisfaction of the City, as determined ty the City staff. Upon completion of the Public Infrastructure Project – Phase I and Phase I Alternates, provided that (i) such improvements are of the type ordinarily dedicated to the City; (ii) the City confirms to the Developer in writing that such completed improvements meet City requirements; and (iii) the City accepts such Public Infrastructure Project – Phase I and Phase I Alternates in accordance with State law, the Developer will provide the City with either a deed or permanent easement to the improvements and related right-of-way comprising the Public Infrastructure Project – Phase I and Phase I Alternates, which shall thereafter be maintained by the City. 3. Property Taxes. The Developer agrees to ensure timely payment of all property taxes as they come due with respect to the Development Property, titled in Developer’s name, with the completed Commercial Development Project thereon throughout the Term, as hereinafter defined, and to submit receipts, cancelled checks or certification based on public records as evidence of each such payment. Developer shall also certify to the payment or nonpayment of taxes on the remainder of the Development Property regardless of ownership or responsibility for payment of the property taxes. 4. Property Tax Payment Certification. The Developer agrees to certify (the “Triggering Certification”) to the City of its intent for the Payments, as hereinafter defined, to commence. The Triggering Certification shall be made by no later than October 15 of the year immediately preceding the fiscal year in which the Developer intends for the Payments to begin, provided, however, that in no event will the Triggering Certification be submitted later than October 15, 2025. Furthermore, the Developer agrees to certify to the City by no later than October 15 of each year, commencing October 15 of the year in which the Triggering Certification is made, an amount (the “Developer’s Estimate”) equal to the estimated Incremental Property Tax Revenues anticipated to be paid in the fiscal year immediately following such certification with respect to the taxable valuation of the Development Property factored by eighty percent (80%) (the “Annual Percentage”). In submitting each such Developer’s estimate, the Developer will complete and submit the worksheet attached hereto as Exhibit F. 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 Development 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 Development Property, as shown on the property tax rolls of Johnson County, above and beyond the Base Valuation; and (4) deducting -3-