I-2 - Second Amended Development Agreement - DERS

valuation of the Development Property exceeds $55,000,000, the Maximum Payment Total shall be increased to $15,000,000. 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 Incremental Property Tax Revenues received by the City from the Johnson County Treasurer attributable to the taxable valuation of the Development Property. Each Payment shall not exceed an amount which represents the Incremental Property Tax Revenues available to the City with respect to the Development Property during the six (6) months immediately preceding each Payment date. Prior to funding any Payments under this Agreement, the City will first withhold from the Incremental Property Tax Revenues a sum equal to the Admin Withholding Amount, the Additional Admin Withholding Amount plus the Connection Fee Withholding Amount. Once a sum equal to the Admin Withholding Amount, the Additional Admin Withholding Amount plus the Connection Fee Withholding Amount has been withheld by the City, the Payments shall be made as set forth herein. Assuming the Triggering Certification is made October 1, 2019, then Payments will be made on December 1 and June 1 of each fiscal year, beginning December 1, 2020, and continuing through and including June 1, 2040, or until such earlier date upon which total Payments equal to the Maximum Payment Total have been made. 2. Annual Appropriation. The Payments shall be subject to annual appropriation by the City Council. Prior to December 1 of each year during the Term as hereinafter defined, beginning in the fiscal year in which the Triggering Certification is filed, the City Council of the City shall consider the question of obligating for appropriation to the funding of the Payments due in the following fiscal year, an amount (the “Appropriated Amount”) of Incremental Property Tax Revenues to be collected in the following fiscal year equal to or less than the most recently submitted Developer’s Estimate. In any given fiscal year, if the City Council determines to not obligate the then-considered Appropriated Amount, then the City will be under no obligation to fund the Payments scheduled to become due in the following fiscal year, and the Developer will have no rights whatsoever to compel the City to make such Payments or to seek damages relative thereto or to compel the funding of such Payments in future fiscal years. A determination by the City Council to not obligate funds for any particular fiscal year’s Payments shall not render this Agreement null and void, and the Developer shall make the next succeeding submission of the Developer’s Estimate as called for in Section A.4 above, provided however that no Payment shall be made under this Agreement after June 1, 2040. 3. Payment Amounts. The aggregate Payments to be made in a fiscal year shall not exceed an amount equal to the corresponding Appropriated Amount (for example, for the Payments due on December 1, 2021 and on June 1, 2022, the aggregate maximum amount of such Payments would be determined by the Appropriated Amount determined for certification by December 1, 2020), provided, however, that no Payment shall exceed the amount of Incremental -5-