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75B - TAX SHARING TACENERGY
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75B - TAX SHARING TACENERGY
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Last modified
2/27/2020 4:51:22 PM
Creation date
2/27/2020 4:50:35 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Community Development
Item #
75B
Date
3/3/2020
Destruction Year
2025
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ININ:11:1ifi <br />3.1.3 No Acceleration. It is acknowledged by the parties that any payments by <br />City provided for in this Agreement may only be paid for those periods in which City receives the <br />performance of TAC pursuant to this Agreement. Therefore, the failure of City to make any <br />payments or the failure by City to perform any of its other obligations hereunder shall not cause <br />the acceleration of any anticipated future City Consideration payments by City to TAC. <br />3.2 Conditions Precedent to City's Obligations. City's obligation to perform hereunder, <br />including without limitation its obligation to pay the City Consideration pursuant to Section 3.1 of <br />this Agreement, shall be contingent and conditional upon TAC's full and satisfactory performance <br />of its obligations set forth in this Agreement. Notwithstanding the foregoing, any delay by TAC in <br />sending reports or other information to the City, or the existence of inadvertent errors in reports or <br />information sent by TAC to the City, shall not constitute either a breach of this Agreement or a <br />waiver of TAC's right to receive the City Consideration payable under this Agreement. However, <br />such delay or error by TAC may result in a delay in the City's payment of City Consideration to <br />TAC to the extent that such delay or error by TAC causes the City to be unable to meet its payment <br />obligations on a timely basis. <br />3.3 Disclosure of Payments. TAC agrees that the City Consideration payments and the <br />amounts thereof do not constitute a violation of Revenue and Taxation Code Section 7056 or any <br />other provision of law pertaining to the disclosure of sales tax information, shall be a matter of <br />public record, may be disclosed to any person, and may be included on the City's warrant register. <br />TAC waives any law that is contrary to any of the agreements in this Section 3.3. <br />4. TERMINATION RIGHTS. <br />4.1 City Termination Rights. Subject to the force majeure provisions of Section 5.11 <br />below, City shall have the right to terminate this Agreement if, following the Commencement <br />Date, Required Operations are not conducted within the City fora period of ninety (90) consecutive <br />days. <br />4.2 TAC Termination Rights. After TAC has been conducting Required Operations in <br />the City for five (5) continuous years from the Commencement Date, TAC may terminate this <br />Agreement for any reason (or no reason) upon one hundred eighty (ISO) days written notice to the <br />City. <br />4.3 Mutual Termination Rights. City makes no representation or warranty to TAC as <br />to the legality of the City Consideration payments or the City's authority to make such payments. <br />In the event that a final, non -appealable judgment or decree is rendered against City invalidating <br />its payment obligations set forth in this Agreement, either City or TAC may terminate this <br />Agreement by delivery of written notice of termination to the other party. <br />GENERAL PROVISIONS. <br />5.1 Entire Agreement, and Amendments. This Agreement incorporates all of the terns <br />and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previous <br />75B-9 <br />
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