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<br /> � $5, 000, 000 expended on new, privately owned, taxable building or
<br /> buildings in development on Phase I in addition to the initial,
<br /> ' � Bachrach project, and 50, 000 square feet or more of new, privately
<br /> owned building or buildings in development on Phase II; provided,
<br /> however, that, if the foregoing conditions are not met by December
<br /> 31, 1996, the $1, 250, 000 additional Developer Advances reimbursement
<br /> shall be reduced by $250, 000; and, thereafter, annually, so long as
<br /> such conditions remain unmet, the additional Developer Advances,
<br /> required to be reimbursed by this Agreement, shall be reduced by the
<br /> amount of $250, 000 until either the conditions are met or January 1,
<br /> 2001, at which time the City's obligation hereunder would be fully
<br /> extinguished.
<br /> 4 . Payment of Real Estate Taxes.
<br /> a) The Parties acknowledge that certain assumptions have
<br /> been made relative to the future assessed valuation of the Subject
<br /> Property when the Area is improved pursuant to this Agreement. The
<br /> Parties further acknowledge that attaining and maintaining said
<br /> assessed valuation will have a material effect on the revenue
<br /> available to reimburse the City for amounts paid to Developer
<br /> hereunder. Accordingly, neither the Developer nor its agents,
<br /> representatives, successors, assigns or transferees in connection with
<br /> the Redevelopment Project shall initiate, take or perform any acts
<br /> attempting to reduce real property tax assessments on the Subject
<br /> Property below the greater of (1) an amount at which comparable
<br /> industrial park properties, as appropriately adjusted by
<br /> vacancy/occupancy factors, if any, are assessed, or (2) an amount
<br /> sufficient to service any municipal debt obliqations issued pursuant to
<br /> this Aqreement. The foregoing covenant shall be in effect only for so
<br /> long as the City is entitled to reimbursement from its special tax
<br /> increment allocation fund for Developer Advances made hereunder. This
<br /> restriction shall be binding upon the Developer, and its agents,
<br /> representatives, successors, assigns or transferees.
<br /> b) The Developer further agrees that, to the extent it is
<br /> obligated to pay any portion of the real estate tax bills for the
<br /> Redevelopment Project Area, it shall pay such taxes promptly before the ,
<br /> date of delinquency of such tax bills and shall, at the request of the I
<br /> City, exercise its authority as landlord to encourage its tenants
<br /> promptly to pay state and local sales taxes. �
<br /> 5. Assignment.
<br /> Until the later of the time that the City has been fully
<br /> reimbursed out of its special tax increment allocation fund for payment
<br /> of Developer Advances made hereunder or the completion of construction
<br /> and substantial occupancy of the Redevelopment Project, any transfer of
<br /> all or any interest in the Redevelopment Project, any improvements
<br /> thereon, and this Agreement (including the beneficial interest under a
<br /> land trust that takes title thereof and stock ownership in the
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