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

The Developer hereby acknowledges that the City will cover the initial payment of legal fees and administrative costs (the “ActualAdditional Admin Costs”) incurred by the City in connection with the drafting, negotiation and authorization of this Agreement, including the necessary amendment to Urban Renewal Plan for the Urban Renewal Area. Furthermore, the Developer agrees that the City shall withhold an amount (the “Additional Admin Withholding Amount”) equal to the lesser of (1) $25,00015,000 or (2) the Actualactual Additional Admin Costs from the initial Payments, as hereinafter set forth, in order to recover some or all of the ActualAdditional Admin Costs. 8. Remedy. The Developer hereby acknowledges that failure to comply with the requirements of this Section A, will result in the City having the right to withhold the Payments under Section B of this Agreement at its sole discretion, until such time as the Developer has demonstrated, to the satisfaction of the City, that such non-compliance has been cured. B. City’s Obligations 1. Payments. In recognition of the Developer’s obligations set out above, the City agrees to make forty (40) semiannual economic development tax increment payments (the “Payments”) to the Recipient during the Term, as hereinafter defined, pursuant to Chapters 15A and 403 of the Code of Iowa, provided however that the aggregate, total amount (the “Maximum Payment Total”) of the Payments shall not exceed the lesser of (i) the Accepted Infrastructure Costs, or (ii) $5,000,000. However, if the incremental growth in the taxable valuation of the Property exceeds $30,000,000, the Maximum Payment Total shall be increased to the lesser of (i) the Accepted Infrastructure Costs, or (ii) $12,000,000; and if the incremental growth in the taxable valuation of the Property exceeds $55,000,000, the Maximum Payment Total shall be increased to the lesser of (i) the Accepted Infrastructure Costs, or (ii) $12,000,00015,000,000. 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 JohnsonCounty Treasurer attributable to the taxable valuation of the Property. Each Payment shall not exceed an amount which represents the Incremental Property Tax Revenues available to the City with respect to the 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 -5-