Ord 2018-051/approving an amended and restated Ordinance of the City of San Marcos approving an update to the service and assessment plan for the Trace Public Improvement District

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D.Mandatory Reduction of Assessments Pursuant to the PID Financing Agreement, the Landowner is required to prepay $2,600,000 in Assessments levied against the business park and retail parcels bythe earlier of i) the issuance of Additional PID Bonds, and ii)August 31, 2022. Ifthe $2,600,000 prepayment described above has not been received on or before August 31, 2022, then the Assessment levied against all property in the PID shall be reduced by $2,600,000,allocating such reductionto each Parcel pro rata based on the amount of outstanding Assessmentlevied against each Parcel. E.Reduction of Assessments If after all Public Improvements to be funded with PID Bondshave been completed and the Actual Costs for the Public Improvements are less than the costs used to calculate the Assessments, then the City may reduce the Assessmentfor each Assessed Property pro rata such that the sum of the resulting reduced Assessments for all Assessed Properties equals the reduced Actual Costs. Additionally, the City may, at its discretion use such excess bond proceedsto fund additional Public Improvements in the PID. The Assessments shall not be reduced to an amount less than the outstanding principal amount of the PID Bonds. Similarly, if the City does not undertake some of the Public Improvements, then the City may, at its discretion, reduce the Assessmentfor each Assessed Property pro-rata to reflect only the Actual Costs that were expended. The Assessments shall not be reduced to an amount less than the outstanding principal amount of the PID Bonds. F.Payment of Assessments 1.Prepayment in Fullor in Part The Assessmentfor any Parcel or Lot may be paid in full, plus interest through the date of prepayment,at any time in accordance the PID Act. If an Annual Installment has been billed prior to payment in full of anAssessment, the Annual Installment shall be due and payable and shall be credited against the payment-in-full amount upon payment. Upon payment in full of anAssessment, the City shall deposit the payment in accordance with the related Indenture; whereupon, the Assessmentfor the Parcel or Lot shall be reduced to zero, and the Parcel or Lot owner’s obligation to pay the Assessmentand Annual Installments thereof shall automatically terminate. The City shall provide the owner of the affected Assessed Property a recordable “Notice of PID Assessment Termination.” At the option of a Parcel or Lot owner, the Assessmenton any Parcel or Lot may be prepaid in part in an amount equal to the amount of prepaid Assessments plus 18