COMMUNITY REDEVELOPMENT AGENCY (44)

Home Browse Search

Building Agency on the effective date of this Agreement; and. 2) the applicant for the building permits for the Development is First American, or a controlled or related entity. The parties hereto recognize and acknowledge that First American has an interest in this Agreement and thus the parties acknowledge and agree that (1) First American is an express third party beneficiary of this Agreement, and (2) no amendment or modificationto this Agreement that materially affects First American shall be effective without First American's prior written consent. 2. AGENCY INDEBTEDNESS; SUBORDINATION Until such time as the Agency reimburses the City for The Fees, the amount due to the City shall bear interest at the rate of the average City return on investment, as the same may change from time to time. Except as may be otherwise provided (1) by separate agreement between the City and the Agency, or (2) by budget appropriations or appropriation adjustments approved by the City and the Agency, the amount to be paid by the Agency hereunder shall be paid as follows: upon the expiration of the redevelopment plan for a redevelopment proj ect, the amount due with regard to that project shall be paid in annual installments thereafterto the extent tax increment from the subj ect proj ect area is available for such purpose. The Agency recognizes and agrees that the commitments under this Agreement constitute an obligation to pay the City and, as such, create debt for which taxincrement revenues maybe allocated to the Agency. Said indebtedness shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of Orange pursuant to Health and Safety Code Section 33675. The indebtedness of the Agency to the City created by this Agreement is subordinate to any pledge of tax increments to the bondholders of any tax increment bonds which are or may be issued by the Agency and to any obligations of the Agency incurred pursuant to any agreement entered into with any person or entity other than the City. The City and Agency hereby agree to execute any and all ancillary documents as may reasonably be requested by any bondholder or other purchaser of bonds. notes or other forms of indebtedness of the Agency or any other person entitled to receive the tax increment revenues of the Proj ect area for the repayment of any other indebtedness of the Agency for which the tax increment revenues of the Project area have been or may hereafter be pledged or promised. 3. FINDINGS By their approval of this Agreement, the City Council of the City and the governing board of the Agencv find and determine as follows: A. That the infrastructure to be funded by The Fees are of benefit to the Project Area, in that new development is dependent upon the provision of adequate infrastructure and community facilities. B. That no other reasonable means of financing the publicly owned improvements to W,