G-1, I-1 - Amended Development Agreement - DERS Development

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 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 G. 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 Johnson County, above and beyond the Base Valuation; and (4) deducting any property tax credits which shall be available with respect to the incremental valuation of the Property. Upon request, the City staff shall provide reasonable assistance to the Developer in completing the worksheet required under this Section A.4. 5. Sewer Connection Fee. The Developer agrees to pay a connection fee to theCity (the “Connection Fee”) in the amount of $201,000 in order to connect the Development Property to the City’s existing sewer line on North Park Road. The Developer agrees that the City shall withhold $201,000 (the “Connection Fee Withholding Amount”) from the initial Payments, as defined in section B.1 of this Agreement, in order to recover the Connection Fee from the Developer. 6. Ground for Future Water Tower. The Developer agrees to undertake the platting process for and dedicate to the City at least four acres of ground in the Urban Renewal Area for a future water tower site by December 31, 2022. 7. Legal Fees and Administrative Costs. The Developer hereby acknowledgesthat the City covered the initial payment of legal fees and administrative costs (the “Actual Admin Costs”) incurred by the City in connection with the drafting, negotiation and authorization of the Original Agreement, including the necessary amendments to the Urban Renewal Area. Furthermore, the Developer acknowledges that the City withheld an amount (the “Admin Withholding Amount”) equal to the lesser of (1) $25,000 or (2) the Actual Admin Costsfrom the initial Payments, as hereinafter set forth, in order to recover some or all of the Actual Admin Costs. -4-