02-10-14 Regular Meeting of La Porte City Council

Browse Search

(2)proceeds from the sale of applicable Authority Bonds; or (3)PledgedAvailable Tax Increment. (F)Subject to the limitations described in Section 6.1(B) hereof, interest on each Developer Advance shall accrue at the prime rate of JPMorgan Chase Bank. 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). In no case shall the interest rate exceed one percent per month. (G)The Authority’s obligation to pay the Developer Advances or reimburse the Developer for Project Costs is limited to any Pledged Available Tax Increment. The rights of Developer in and to the Pledged Available Tax Incrementgranted herein are subject only to (i)the rights of any holders of bonds, notes or other obligations that have been heretofore or are hereafter issued by the City or any other participating taxing unit that are payable from and secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of the City or any other participating taxing unit, (ii)the rights of any of the holders of bonds and notes that are hereafter issued or incurred by the Authority and which are secured by a pledge of the Tax Increment Revenue Fund, and (iii)the rights of any of the holders of notes that are hereafter issued or incurred by the Authority, which are secured by a pledge, all or a part, of the Tax Increment Revenue Fund,the proceeds of which are used solely to fund the annual operating and administration budget of the Authorityapproved by the Authority Boardand the City Council of the City. Except in the event that (i) the cumulative average sales price (documented at the time Developer sells a finished home to aninitial end-user) of all homes within the Project Site is less than $175,000, or(ii) sufficient tax increment increase does not occur within the term of the Zone or within the Project Site to generate sufficient revenue to repay the Developer Advance(s), it shall be the obligation of the Authority to repay the Developer Advances and accrued interest thereon as set forth in this Agreement from the Pledged Available Tax Incrementuntil such time as the Developer Advances and accrued interest thereof incurred pursuant to this Agreementhave been fully repaid or provision for payment thereon to Developer shall have been made in accordance with this Agreement. The Developer Advances constitute a special obligation of the Authority payable solely from the Pledged Available Tax Incrementas and to the extent provided in this Agreement. The Developer Advances do not give rise to a charge against the general credit or taxing powers of the Authority, the Zone, the City, the County or any other Taxing Unit and is not payable except as provided in this Agreement. Developer, its successors and assigns, shall not have the right to demand payment thereof out of any funds of the Authority other than the Pledged Available Tax Increment or sources described in Section 6.1(E). (H)The Authority will evaluate and consider bond issues to reimburse the Developer upon the following circumstances: 10 HOU:3372249.1