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November 19, 2007 (Regular Meeting) Page 615 of instruments issued by another unit that is a party to the interlocal agreement; and WHEREAS, Castle & Cooke North Carolina, LLC, a Delaware limited liability company (the "Developer") is undertaking a development project, located entirely within the City, known as the North Carolina Research Campus (the "Development Project") and has advised the City that the Development Project reguires significant public improvements in order for the Development Project to proceed as planned; and WHEREAS, the City Council of the City (the "City Council") has determined to undertake to assist the Development Project by providing certain public improvements (the "Public Improvements") under the Development District Act, and by resolution adopted 2006, has (i) determined the boundaries of the proposed development financing district and established the "North Carolina Research Campus District" (the "Development Financing District"), (ii) found that the proposed Development Financing District is in the central business district of the City and (iii) directed that a public hearing be held regarding the plan for the Development Financing District; and WHEREAS, the City has notified the County that it plans to adopt a resolution (the "Plan Resolution") to approve a development financing plan (the "Development Financing Plan") for the Development Financing District; and WHEREAS, the City has determined that it will issue project development financing debt instruments in an amount not to exceed $168,400,000 (the "Bonds") to provide funding for all or a portion of the costs of the Public Improvements as identified on Schedule A hereto (the "Bond Public Improvements"); and WHEREAS, the County wishes to provide assistance to the Development Project as provided in the Bond Act and by resolution duly adopted on November 19, 2007, has authorized the execution and 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 l.l. 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