08-03-05 La Porte Redevelopment Authority Meeting minutes

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Tax Increment as 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 La Porte Authority, the La Porte 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 La Porte Authority other than the Pledged Available Tax Increment or sources described in Section 6.1(E). (H) The La Porte Authority will evaluate and consider bond Issues to reimburse the Developer upon the following circumstances: (1) Proj ected incremental revenue generates 1.25 times coverage for the bonds over projected annual debt service; (2) Projected incremental revenue will be calculated by multiplying estimated or certified incremental value from the appraisal district by the participant(s) tax rate(s) divided by 100 times one minus a reasonable historical tax collection factor times one minus the City set aside percentage; (3) A reserve fund equal to maximum annual debt service must be funded from the bond proceeds; ,.....-. (4) Adequate cash or capitalized interest must be set aside to assure payment of the bonds through the date ofthe next increment payment; (5) The minimum bond size will be that size that after funding the Reserve Fund, any capitalized interest and any costs of issuance will allow fora reimbursement to the developer of at least $1.5 million plus developer interest. (I) The La Porte Authority shall not issue obligations in accordance with this Article unless the resulting debt service requirements on all La Porte Zone obligations may be paid in full when due from all money then on deposit in or thereafter required to be deposited to the Property Account during the term of such Zone obligations, assuming that (a) the rates at which property taxes are levied by all taxing units required to make deposits to the Tax Increment Fund do not change from the rates at which they most recently levied property taxes, (b) the assessed value of taxable property (net of exemptions) within the Property does not change from the amount then most recently estimated or certified by the Harris County Appraisal District, (c) all amounts deposited (or required to be deposited) to the Property Account bear interest at the City's investment rate until expended, (d) proceeds of such obligations are deposited to and set aside in the Property Account as capitalized interest in the amount requested by the Developer and approved by the City Manager, and (e) the Property Account is expended in each year to pay administrative expenses of the La Porte Zone in an amount equal to the product of (i) the total amount of such expenses budgeted in the La Porte Zone's most recent operating budget and (ii) a fraction, the numerator of which is the current Tax A-ll Hnll."~""71 Sl ~