10-12-05 La Porte Redevelopment Authority Meeting minutes

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legal fees and out-of-pocket expenses incurred on behalf of the Authority in connection therewith. City Advances shall further include any amounts advanced by the City in connection with the administration of the Authority and the Zone and the design and construction ofthe City Improvements. (b) Interest on each City 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). (c) The City shall act as guarantor of the obligations of the Authority with respect to any contracts awarded in the name of the Authority as provided in Section 4.3, above, and any such contract shall provide that the contractor may look for payment only to the City, or to funds provided to the Authority by the City specifically for the purpose of making payments to such contractor. The City agrees to timely make such payments to allow for payment in accordance with the terms of the applicable construction contract. 5.2 Repayment ofCitv Advances. (a) In consideration of the construction of the City Improvements, the Authority shall begin repaying the City 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 (b), and (ii) the Net Tax Increment, subject to the limitations set forth in subsection (c). (b) As provided herein, the Authority shall issue one or more series of Authority Bonds at the earliest feasible date, which Authority Bonds will be secured by a pledge of the Revenue Fund. The net proceeds of the Authority Bonds shall be deposited to a special fund of the Authority, and shall be used by the Authority to reimburse the City for the full amount (or such portion thereof as is deemed by the Authority as supportable by available Tax Increment as provided below) eligible City Advances, plus interest. Such Authority Bonds shall be sold within 120 days (or such other period as may be agreed by the Parties) of a written request therefor from the City; provided that the City's Net Tax Increment (based upon the tax valuation of the Zone as certified or estimated by the Harris County Appraisal District, or its successor) expected to be generated with respect to available Tax Increment is sufficient to support the applicable Authority Bonds bearing interest at the then-current rate of interest as determined by the Authority's financial advisor for comparable issues, after taking into account the portion of the City's Net Tax Increment required to pay any outstanding Authority Bond issued for any