Res 2015-146/Trace PID Finance Agreement

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(b) It is hereby acknowledged that Special Assessments can be used for the following purposes: (i) after completion of the applicable Public Improvements, but prior to the issuance of PID Bonds for those Public Improvements, Owner will be reimbursed for Actual Costs associated with those Public Improvements from Special Assessments collected by the City and held by the City pursuant to an applicable Acquisition and Reimbursement Agreement and (ii) after PID Bonds are issued with respect to any given completed Public Improvements, the Special Assessments will be used first to secure such PID Bonds and second, to the extent any such Special Assessments are remaining after payments are made on the PID Bonds, to reimburse Owner for any Actual Costs not reimbursed by the PID Bonds. Any reimbursement obligation to Owner under an Acquisition and Reimbursement Agreement or as provided above will be subordinate to payment of the applicable Major Public Improvement PID Bonds and Additional Improvement PID Bonds. Reimbursements to Owner from Special Assessments will be made only if the City fails to issue PID bonds within six (6) months of receiving a Bond Issuance Request in accordance with Section 5.01(a) of this Agreement. Owner agrees to reduce the amount of PID bonds to be issued by an amount equal to the reimbursements received. (c) Notwithstanding anything to the contrary contained herein or in the Service and Assessment Plan, once PID Bonds have been issued the Special Assessment Revenues collected annually from the Property will be deposited in the Pledged Revenue Fund and thereafter transferred in the priority as set forth in the Indenture. (d) Further notwithstanding anything to the contrary contained herein, the City covenants and agrees to use best efforts to contract with the Hays County Tax Collector for the collection of the Special Assessments such that the Special Assessments will be included on the ad valorem tax bill(s) for the Property and will be collected as part of and in the same manner as ad valorem taxes. Section 2.04. Approval and Recordation of Special Assessments through Landowner Agreement Concurrently with the levy of the Special Assessments for any portion of the Property, the Owner shall execute (and shall cause any other owner of any of the Property that will be subject to the future special assessments to execute) a Landowner Agreement (herein so called) in which the Landowner shall approve and accept the apportionment of assessments in the Service and Assessment Plan and the levy of the Special Assessments by the City. The Landowner Agreement further shall (a) evidence the Owner's intent that the Special Assessments be covenants running with the land that (i) will bind any and all current and successor owners of the Property to the Special Assessments, including applicable interest thereon, as and when due and payable thereunder and (ii) provide that subsequent purchasers of such land take their title subject to and expressly assume the terms and provisions of the Special Assessments; and (b) provide that the liens created by the levy of the Special Assessments are a first and prior lien on the Property, subject only to liens for ad valorem taxes of the State, County, City, or school district. Section 2.05 Reimbursement Of Owner - Expended Costs