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Hook : 37�8 Page : 1�8 <br /> 2. INCENTIVES �i <br /> The Municipality shall pay directly or reimburse the Developer for Eligible <br /> Redevelopment Project Costs permitted by the Act from Incremental Taxes, including <br /> Real Estate Tax Increment and Municipal Sales Taxes (generated solely and only from <br /> the Development Project within the Development Area, and not otherwise) and deposited <br /> into the Special Account of the Fund but only to the extent of applicable percentage <br /> provided for in EXHIBIT A, and only for the term of the Redevelopment Plan or such <br /> other period as provided in this Agreement. <br /> In consideration for the Developer purchasing the land and commencing development, <br /> the Municipality agrees to extend to developer the following incentives to assist <br /> Developer's Development Project. <br /> From the incremental increases in real estate and municipal sales taxes generated from <br /> the Developer's Development Project: <br /> a. Sales Tax Rebate. The Municipality shall refund to the Developer fifty (50) <br /> percent of the Municipality's proceeds of the Retailers Occupation Tax, in addition to <br /> fifty (50)percent of the Home Rule Food & Beverage Tax, for retailers or restaurants <br /> established on the Premises to be acquired by Developer from the Municipality after the <br /> effective date of this Agreement, to be used for reimbursement to Developer for payment <br /> of Eligible Redevelopment Project Costs incurred by the Developer. However, any <br /> individual or entiry that relocated its business from an existing location within a 900 foot <br /> circumference surrounding the Premises (as described in the map attached hereto as <br /> Exhibit F) t shall not be eligible for the Sales Tax Rebate. The refund shall be payable to <br /> the Developer immediately upon the Municipaliry's receipt of sales tax reimbursements <br /> from the State of Illinois. <br /> b. Real Estate Tax Increment. Seventy-Five percent(75%) of the incremental <br /> real estate taxes not to exceed two-hundred thousand dollars($200,000.00) annually shall <br /> be placed in the Special Account beginning in the first year a Real Estate Tax Increment <br /> is generated and shall be used for reimbursement to Developer for payment of Eligible <br /> Redevelopment Project Costs incurred by Developer for the Development Project or <br /> applied to the interest and principal of the Notes until such time as all Eligible <br /> Redevelopment Project Costs are reimbursed. <br /> c. Municipality agrees that no Real Estate Tax Increment generated by Developer's <br /> Development Project shall be paid to other taxing districts as surplus funds or payments <br /> in lieu of taxes as deftned under the Act or under any intergovernmental agreements until <br /> all of Developer's Eligible Redevelopment Project Costs are reimbursed. <br /> d. The Sales Tax Rebate, when combined with the Real Estate Tax Increment, shall <br /> not exceed Three Million Eight Hundred Thousand Dollars and No Cents <br /> ($3,800,000.00). <br /> e. For the purposes of this section 2, all payn�ents of Sales Tax Rebates and Real <br /> Estate Tax [ncrement shall be applied to the Note provided far in Section 3.c.(1) hereof <br /> so long as any principal balance of said Note remains outstanding. Any payment by the <br /> Municipality, regardless of frec�uency, shall be deemed to be a payment against the sums <br /> RDLLC 20060926 v 1 j 0 <br />