O-2010-3261 reimbursement of advance funding/Sylvan Beach Shoreline Protection & Beach Nourishment Project

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maintenance and annual reporting required by Article 4.03 (B) and (C) of the Special Document No. SD 2008-0002. ARTICLE 5 PROJECT FINANCING AND FUNDING 5.1 The Development Corporation and County Advances. (a) (i) The Development Corporation has advanced the City $700,000 to be used by the City for the Project. (ii)The County, pursuant to the provisions of the Interlocal Agreement, has advanced the City, $600,000 to be used by the City for the Project. (iii)To the extent possible, the City will expend the moneys described in subparagraphs (i) and (ii) above on the Project on a equal dollar for dollar basis between the Development Corporation and the County up to the County's maximum contribution of $600,000.00. After completion of the Project, the City agrees to return respective funds of the Development Corporation and the County remaining after the City has met the funding obligations contained in the Project Cooperation Agreement. - (b) Interest on each Advance shall accrue at a rate equal to the prime commercial lending rate of Chase Manhattan Bank, National Association, or any successor to its commercial banking activities, plus one percent per annum, compounded semiannually, whether such costs, fees, or expenses are paid or incurred before or after the effective date of this Agreement. Interest shall be calculated on the basis of a year of 360 days and the actual days elapsed (including the first day but excluding the last day) occurring in the period for which such interest is payable, unless such calculation would result in a usurious rate, in which case interest shall be calculated on the per annum basis of a year of 365 or 366 days, as applicable, and the actual days elapsed (including the first day but excluding the last day). 5.2 Repayment of Advances. (a) In consideration of the construction of the Project, the Authority shall begin repaying the Advances, and shall continue such repayment until repaid in full, on the earliest date that funds are available from any of the following sources, and solely from such sources: (i) proceeds from the sale of the Authority Bonds, as set forth in subsection (c), and (ii) the Net Tax Increment, subject to the limitations set forth in subsection (d). (b) To the extent that funds from the sources listed above are insufficient on any scheduled date for the repayment of Advances to repay all outstanding Advances in full, repayment of Advances shall be made on a pro rata basis between the Development Corporation and the County on the basis of monies available for repayment. ,- Page 5 of 11