AG 2007 11 19 - Laserfiche WebLink

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delivery of an Interlocal agreement pursuant to which the County will pledge a portion of its ad valorem taxes, (the "County Contribution") actually received by it on the incremental valuation (as described in the Bond Act) of property in the Development Financing District in support of the Bonds to be issued by the City; and WHEREAS, the County will allow its incremental ad valorem tax revenues to be used for the payment of no more than one-half of the annual payments of principal and interest due on the Bonds; and WHEREAS, the Developer is entering into a Minimum Assessed Value Agreement (the "Minimum Assessed Value Agreement") pursuant to which the Developer will agree that the value, for purposes of taxation by the City, of the real property described therein will be determined in accordance with the Minimum Assessed Value Agreement; and WHEREAS, the City is making application to the Local Government Commission for an order approving the Development Financing District and the issuance by the City of bonds to be designated as the City of Kannapolis, Project Development Financing Bonds (North Carolina Research Campus Project); and NOW, THEREFORE, in consideration of the premises, the benefits to be derived by the City and the County from the investment being made in the Development Financing District, the City and the County desire to provide in this Interlocal Agreement for the basis on which the County Contribution will be made for the benefit of the holders of the Bonds to be issued by the City, the City and the County do hereby covenant, promise, agree and represent as follows: ARTICLE I GENERAL PROVISIONS SECTION 1.1. Purpose of the Interlocal Agreement. This Interlocal Agreement is being entered into as a means for the County to provide assistance to the Development Project from the County's Incremental Revenues actually received by the County from the Development Financing District by pledging the County Contribution as security for the Bonds. SECTION 1.2. Duration of the Interlocal Agreement. This Interlocal Agreement shall become effective immediately upon the adoption by the Local Government Commission of an order approving the Development Financing District and the issuance of the Bonds and shall remain in effect until the Bonds have been paid in full or fully defeased or terminated in accordance with the provisions hereof. Upon the issuance of any Additional Bonds under the Indenture over and above the amount of not exceeding an aggregate of $168,400,000 (which amount may be issued in one or more series) the City and the County agree that the provisions of this Interlocal Agreement shall not apply to such Additional Bonds unless consented to by the County. SECTION 1.3. Method of Financing the Public Improvements; Apportionment of Costs. The cost of the Public Improvements will be paid from the proceeds of the Bonds and the City's available Incremental Revenues. Under the Bond Act and the Development District Act, the cost of the Public hmprovements are to be paid from Incremental Revenues. The Incremental Revenues from the City and the County will be applied as provided in Section 2.2 hereof. Contemporaneously with the execution and delivery of this Interlocal Agreement, and subject to the action of the Local Government Commission, the City will arrange for the issuance of the Bonds. If the Bonds are issued in more than one series and at sepazate times, prior to issuing any series of the Bonds subsequent to the initial issue, the City shall provide the County and any advisors designated by the County with the details of the proposed offering -2- E- ~ C~~