Res 2016-149/Approving an Acquisition and Reimbursement Agreement between the City of San Marcos and Highpointe Trace, LLC for the Trace Public Improvement District (PID)

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Reimbursement Agreement solely as described herein. No other City funds, revenue, taxes, income, or property shall be used even if the Unpaid Balance is not paid in full at the Maturity Date. The City acknowledges and agrees that until the Unpaid Balance is paid in full, subject to the Maximum Repayment Amount authorized in Section 3, the obligation of the City to use the MPI Project Fund to pay the Unpaid Balance to the Owner is absolute and unconditional and the City does not have, and will not assert, any defenses to such obligation. 5. City Collection Efforts. The City will use all reasonable efforts to receive and collect, or cause to be received and collected, MPI Special Assessment Revenue (including the foreclosure of liens resulting from the nonpayment of the MPI Special Assessments created by the Major Improvement PID Bonds, the MPI Special Assessments or other charges due and owing under the SAP), and upon receipt and collection, immediately deposit the same into the MPI Project Fund. Notwithstanding its collection efforts, if the City fails to receive all or any part of the MPI Special Assessments, such failure and inability shall not constitute default by the City under this Reimbursement Agreement. This Reimbursement Agreement and/or the Major Public Improvement PID Bonds shall never give rise to or create: a. a charge against the general credit or taxing powers of the City or any other taxing unit; or b, a debt or other obligation of the City payable from any source of revenue, taxes, income, or properties of the City other than from the MPI Special Assessments or from the net proceeds of the Major Public Improvement PID Bonds. 6. Process for Payment of the Repayment Amount. After completion of construction of the Major Public Improvements, the Owner may submit (but not more frequently than monthly) to the City a written request for payment from the MPI Project Fund in the form attached hereto as Schedule 1 (each a "Payment Request ") to disburse a portion of the Repayment Amount to pay for the cost of constructing the applicable Major Public Improvements. Each Payment Request shall designate the Major Public Improvements (or portion thereof) to which the Payment Request pertains. This process will continue until the Unpaid Balance is paid in full, whether through the issuance of Major Public Improvement PID Bonds or not, subject to the Maximum Repayment Amount authorized in Section 3. 7. Issuance of Major Public Improvement PID Bonds. Upon completion of the Major Public Improvements, the City intends to issue Major Public Improvement PID Bonds to reimburse the Developer for the Unpaid Balance. If the Major Public Improvement PID Bonds are not sufficient to fully reimburse the Developer for the Unpaid Balance, then, in addition to receiving the net proceeds of the Major Public Improvement PID Bonds, the Owner may continue to receive Unpaid Balance, subject to the Maximum Repayment Amount authorized in Section 3.