Res 2021-087/making findings as to the advisability of the improvements proposed in the Whisper South Public improvement District

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TERMS AND CONDITIONS The City acknowledges and agrees that PID Bonds shall be issued to directly finance the initial construction of the PID Improvements, and that Developer shall not be required to first separately fund initial construction of the PID Improvements and seek reimbursement from PID Bond issuance. No PID Bonds will be issued without the approval by the City Council of a Service and Assessment Plan ("SAP") for the District. 2. No General Obligation or Certificate of Obligation bonds will be utilized by the City to fund the PID. 3. The Appraiser preparing the appraisal required in connection with the PID Bonds shall be selected by the City in consultation with the Developer and all reasonable fees shall be paid by the Developer. 4. PID Bonds shall be issued by the City upon request by the Developer and approval by the City Council concurrently with (1) annexation of the portion of the Project currently located in the City's extra -territorial jurisdiction, (ii) submission of a formal request for inclusion in the City's water and wastewater CCN, (iii) zoning approvals of the NOB Parcel, and (iii) a Development Agreement for the Hopson and Nicolai Parcels. 5. The City acknowledges the location and configuration of the Parcels shown on the Concept Plan attached hereto as Exhibit "C" are preliminary and approximate, and changes, subject to approval of the City, may be made by the Developer. 6. The City acknowledges a portion of the PID revenue will fund water improvements in the CCN of Maxwell SUD, a special utility district formed under the Texas Water Code and serving as local governmental entity; provided that, however, the City and Developer agree that no more than seven percent of PID revenue will be expended upon Maxwell SUD Improvements. In the event Developer seeks to exceed the cap, it will require approval of the City of San Marcos City Manager. 7. The Developer acknowledges no other City revenue will fund improvements in Maxwell SUD CCN. 8. The Developer and the City agree that each PID Bond issue will be subject to approval by the City Council but the terms outlined in this term sheet will apply until a Whisper South PID Financing Agreement (the "PID Financing Agreement") is approved by the City Council. Upon approval of the PID Financing Agreement, the terms and conditions thereof, shall replace and supersede this term sheet, and this term sheet shall be of no further force or effect; provided, however, that all terms of this term sheet shall be addressed in the PID Financing Agreement unless the parties otherwise agree, in which case the terms of the PID Financing Agreement shall control. 9. Special assessments on any given portion of the Project maybe adjusted in connection with subsequent bond issues as long as the maximum annual assessment rate as described in Financing Criteria #2 is not exceeded, and the adjustments to the special assessments are PID Petition 15