2001-07-09 Regular Meeting and Special Called Workshop Meeting

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.. .,~ C. Limitation of Source of Payment. The City and the Zone shall have no financial obligation to the Authority other than as provided in this Agreement or in other agreements between the City, the Zone and the Authority. The obligation of the City and the Zone to the Authority under this Agreement is limited to the Tax Increments and PID Assessments that are collected by the City. This Agreement shall create no obligation on the City or the Zone that is payable from taxes or other moneys of the City other than the Tax Increments and PID Assessments that are collected by the City. The obligation of the City and the Zone to the Authority under this Agreement shall be subject to the rights of any of the holders of Bonds or other obligations that have heretofore or are hereafter issued by the City, the County, and any other Taxing Units that aze payable from or secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of the City, the County, and the other Taxing Units. D. Collection and Payment of Tax Increments b the City and the Zone. Inconsideration of the services and TIRZ Projects to be provided by the Authority, the City and the Zone covenant and agree that they will, as authorized under the TIRZ Act and other applicable laws, continuously collect the Tax Increments from the Taxing Units whose participation in the Zone is reflected in the TIRZ Plan during the term of this Agreement in the manner and to the maximum extent permitted by applicable law. To the extent the City and the Zone may legally do so, the City and the Zone also covenant and agree that they will not permit a reduction in the Tax Increments paid by the Taxing Units except to the extent provided in the agreement with the Taxing Unit executed at the time the Taxing Unit agrees to participate in the Zone. In addition, the City covenants and agrees that it will not dissolve the Authority unless the provisions of Article XVIII, Pazagrapl~ C, are met and that any repeal of the right and power to collect the Tax Increments will not be effective until all the TIRZ Bonds or other TIRZ-related Authority Obligations have been paid in full or until they aze legally defeased. The City and the Zone further covenant and agree that they will make all payments asset forth in Article V below, by a direct deposit into the TIRZ Revenue Fund, without counterclaim or offset, but minus any expenses incurred by the City in connection with the collection of the Tax Increments and minus any amount retained pursuant to the provisions set forth in Article V below. E. Collection and Payment of PID Assessments by the City. In consideration of the services and PID Proj ects to be provided by the Authority, the City covenants and agrees that it will, as authorized under the PID Act and other applicable laws, continuously collect the PID Assessments as reflected in the PID Plan during the term of this Agreement in the manner and to the maximum extent permitted by applicable law. In addition, the City covenants and agrees that it will not dissolve the Authority and that any repeal of the right and power to collect the PID Assessments will not be effective until all the PID Bonds or other PID-related Authority Obligations have been paid in full or until they are legally defeased. The City further covenants and agrees that it will make all payments as set forth in Article V below, by a direct deposit into the PID Revenue Fund, without counterclaim or offset, but minus any expenses incurred by the City in connection with the collection of the PID Assessments, and minus any amount retained pursuant to the provisions set forth in Article V below. Houaton:367966.2 9