2024-63 Ordinance Authorizing a TIF Redevelopment Agreement between the City of Decatur and Merchant Street South, LLC

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EXECUTION COPY ($886,160.80) as reimbursement for eligible Project Costs incurred or upon the expiration of this agreement, whichever occurs first. (c) The obligation for the annual reimbursement of 112 N. Merchant Project Costs from both Real Estate Tax Increment shall terminate upon the receipt by the Redeveloper of an amount not to exceed Three Hundred and Thirty-Three Thousand and Eight Hundred and Forty-Two Dollars and Forty Cents ($333,842.40) as reimbursement for eligible Project Costs incurred or upon the expiration of this agreement, whichever occurs first. 4.2 Limitations on Public Investment for Construction Financing Interest Costs. In no event will the Redeveloper seek nor be eligible for Public Investment for construction financing costs obtained from an affiliated entity owned or controlled by the Redeveloper or a majority of the owners of the Redeveloper. ARTICLE V: CONDITIONS PRECEDENT TO CITY OBLIGATIONS AND ONGOING BENEFITS 5.1 Conditions Precedent to Transaction. The City's obligations under this Agreement (including, without limitation, the obligation for Public Investment) shall,for the Projects, be subject to: (a) Insurance. Proof that the policies of insurance of the types and coverages specified in Section 2.13 hereof have been obtained and are in force with regard to the Projects. (b) Plans. Approval of the Plans and construction plans for the pursuant to Article II hereof. 5.2 Conditions Precedent to Public Investment. The City's obligations with regard to the Real Property Tax Increment of the Public Investment are subject to the adoption by the City of Tax Increment Financing for the Redevelopment Area. ARTICLE VI: OPERATION OF THE PROJECT 6.1 Operation and Maintenance of the Project. The Redeveloper for itself and its successors and assigns to the extent it retains ownership covenants that it will maintain the Projects in good condition (reasonable wear and tear excepted) during the term of this Agreement. The Redeveloper shall operate the Projects in a professional manner and will do all things reasonably necessary to operate the Project in substantial compliance with Applicable Law. ARTICLE VII: REDEVELOPER COVENANTS AND RESTRICTIONS 7.1 Project Subject to Redevelopment Plan and Agreement. The Redeveloper agrees to comply with the terms and conditions of this Agreement and to use its -8-