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HomeMy WebLinkAboutOrd.3834.07-09-2007 BILL NO. 07-107 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A DEVELOPMENT AGREEMENT WITH GREATER MISSOURI BUILDERS, INC., AND THE COUNTY OF CAPE GIRARDEAU, MISSOURI; AND CONTAINING A SEVERABILITY CLAUSE, FOR THE TOWN PLAZA REDEVELOPMENT PROJECT WHEREAS, on April 2, 2007, in response to a development proposal from Greater Missouri Builders, Inc. (the "Developer") and following duly noticed public hearings held on March 5, 2007, the City Council of the City of Cape Girardeau, Missouri (the "City") adopted (a) Ordinance No. 3802 finding certain property located at Kingshighway and William Streets (the "353 Project Area") to be a "blighted area" pursuant to Chapter 353 of the Revised Statutes of Missouri, as amended ("Chapter 353"); (b) Ordinance No. 3803 approving a development plan (the "Development Plan") for the development of the 353 Project Area; and (c) Ordinance No. 3804 establishing the Town Plaza Community Improvement District (the "District') and authorizing certain activities within the boundaries thereof(the"CID Project Area"); and WHEREAS, the City adopted a resolution of intent setting forth the terms and conditions pertaining to the development and financing of the 353 Project Area and CID Project Area; and WHEREAS, the City now desires to enter into a development agreement with the Developer memorializing the terms and conditions set forth in the resolution of intent. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI AS FOLLOWS: Section 1. The City Council hereby ratifies and affirms that the Development Plan adopted by Ordinance No. 3803 and the establishment of the District pursuant to Ordinance No. 3804 are necessary for the preservation of the public peace, property, health, safety, morals and welfare of the community. Section 2. The City Council hereby finds, determines and declares that there exists a necessity for granting tax abatement to the Developer in such amounts and for such term as are set forth in the Development Agreement between the City and the Developer, its successors and assigns, attached hereto as Exhibit A and incorporated herein by reference (the "Development Agreement'), and that the granting of such tax abatement is in the public interest and serves the public purposes expressed in Chapter 353. Section 3. The City Manager of the City shall be and is hereby authorized and directed to enter into the Development Agreement in form substantially similar to Exhibit A attached hereto. In the event of any conflicts or differences between the provisions of the Development Plan, the CID Petition and the Development Agreement executed by the City Manager, the Development Agreement shall govern and said Development Plan and CID Petition shall be deemed to be amended accordingly. Section 4. The sections of this ordinance shall be severable. In the event any section of this ordinance is found by a court of competent jurisdiction to be invalid, the remaining sections of this ordinance are valid, unless the court finds the valid sections of this ordinance are so essentially and inseparably connected with, and so dependent upon, the void sections, that it cannot be presumed that the City Council would have enacted the valid sections without the void ones; or unless the court finds that the valid sections, standing alone, are incomplete and are incapable of being executed in accordance with the legislative intent. If any part of this ordinance regarding the rights of Developer are found invalid or unconstitutional, Developer shall thereafter at its election have the right to be released from the Development Agreement herein contained. Section 5. This ordinance shall take effect and be in full force 10 days after its passage by the City Council. PASSED by the City Council of the City of Cape Girardeau Missouri, this U day of /� � � 2007. / A Jay dtson, Mayor (Seal) ATTEST: "A Gayl . Conrad City Clerk Page 2 EXHIBIT A DEVELOPMENT AGREEMENT (attached hereto) A-1 DEVELOPMENT AGREEMENT by and among the CITY OF CAPE GIRARDEAU,MISSOURI, CAPE GIltARDEAU COUNTY,MISSOURI, and GREATER MISSOURI BUII.DERS,INC. dated as of �.� � ,2007 � TOWN PLAZA REDEVELOPMENT PROJECT Version 8 dated 06/28/07 TABLE OF CONTENTS Pa�e Article I. DEFINITIONS 1.1 Definitions............................................................................................................................2 Article II. ACCEPTANCE OF PROPOSAL 2.1 Developer Designation.........................................................................................................5 2.2 Developer to Advance Costs................................................................................................ 5 Article III. ACQUISITION OF PROPERTY; SCHEDULE; AND CONSTRUCTION OF REDEVELOPMENT PROJECT 3.1 Acquisition of Property by Negotiation...............................................................................5 3.2 Condemnation...................................................................................................................... 5 3.3 Relocation............................................................................................................................. 5 3.4 Developer to Construct the Work.........................................................................................5 3.5 Governmental Approvals..................................................................................................... 5 3.6 Construction Plans; Changes................................................................................................5 3.7 Certificate of Substantial Completion..................................................................................5 3.8 Community Improvement District.......................................................................................5 3.9 Pledge of CID Revenues...................................................................................................... 5 3.10 Performance Bond................................................................................................................ 5 Article IV. REINIBURSEMENT OF DEVELOPER COSTS 4.1 District's and City's Obligations to Reimburse Developer..................................................S 4.2 Reimbursements Limited to Reimbursable Project Costs; Developer's Right to Substitute..............................................................................................................................5 4.3 District's Obligations L'united to Special Trust Fund and Obligation Proceeds..................5 4.4 Collection of CID Sales Tax................................................................................................5 4.5 Segregation and Investment of CID Revenues.....................................................................5 4.6 Use of CID Revenues...........................................................................................................5 4.7 Repeal of the CID Revenues................................................................................................ 5 Article V. OBLIGATIONS 5.1 Payment Term and Interest Rate of Municipal Contribution...............................................5 5.2 Disbursement of Municipal Contribution.............................................................................5 5.3 Annual Appropriation of Municipal Contribution............................................................... 5 5.4 CID Notes.............................................................................................................................5 5.5 CID Bonds............................................................................................................................5 5.6 Pledge of CID Revenues......................................................................................................5 5.7 Annual Accounting of Municipal Contribution and Tax Savings........................................5 5.8 Covenant to Appropriate CID Sales Tax..............................................................................5 5.9 Repayment of the Obligations..............................................................................................5 5.10 No Issuance of Other Obligations........................................................................................ 5 5.11 Cooperation in the Issuance of the Obligations....................................................................5 Article VI. SPECIAL TRUST FUND; COLLECTION AND USE OF CID REVENUES AND MLTNICIPAL CONTRIBUTION 6.1 Creation of Special Trust Fund............................................................................................ 5 6.2 Establishment of Base for Municipal Contribution..............................................................5 63 Cooperation in Deternuning CID Revenues......................................................................... 5 6.4 Obligation to Report CID Revenues.....................................................................................5 Article VII. TAX ABATEMENT 7.1 Tax Abatement.....................................................................................................................5 7.2 Abatement Contingent Upon Compliance with Redevelopment Plan................................. 5 7.3 Expiration.............................................................................................................................5 7.4 Earnings Limitation on Redevelopment Project...................................................................5 7.5 Financial and Annual Reports.............................................................................................. 5 7.6 Accounting Practices............................................................................................................5 Article VIII. GENERAL PROVISIONS 8.1 Developer's Right of Terniination.......................................................................................5 8.2 City's Right of Termination................................................................................................. 5 8.3 Successors and Assigns........................................................................................................5 8.4 Remedies..............................................................................................................................5 8.5 Force Majeure......................................................................................................................5 8.6 Notices..................................................................................................................................5 8.7 Damage or Destruction of Redevelopment Project..............................................................5 8.8 Inspection.............................................................................................................................5 8.9 Choice of Law...................................................................................................................... 5 8.10 Entire Agreement; Amendment............................................................................................5 8.11 Counterparts.........................................................................................................................5 8.12 Severability...........................................................................................................................5 8.13 Representatives Not Personally Liable.................................................................................5 8.14 Actions Contesting the Validity and Enforceability of the Redevelopment Project............ 5 8.15 Release and Indemnification................................................................................................5 8.16 Survival................................................................................................................................ 5 8.17 Costs and Expenses.............................................................................................................. 5 8.18 Recording of Agreement......................................................................................................5 Article IX. REPRESENTATIONS OF THE PARTIES 9.1 Representations of the City.................................................................................................. 5 9.2 Representations of the Developer.........................................................................................5 ii EXHIBITS EXHIBIT A-1 Legal Description of the 353 Project Area EXHIBIT A-2 Legal Description of the CID Project Area EXHIBIT B Estimated Reimbursable Project Costs EXHIBTT C Form of Certificate of Reimbursable Project Costs EXHIBIT D Form of Certificate of Substantial Completion EXHIBTT E Redevelopment Area Boundary Map EXHIBIT F Concept Project Site Plan EXHIBIT G Municipal Contribution Approvals iii DEVELOPMENT AGREEMENT �, THIS DEVELOPMENT AGREEMENT(this "Agreement") is made and entered into as of this day of ,�; _,��- , 2007, by and between the CITY OF CAPE GIRARDEAU, MISSOURI (the "City' , a city anl political subdivision duly organized and existing undcr its charter and the Constitution and laws of the State of Missouri, the COiJNTY OF CAPE GIRARDEAU, MISSOURI (the "County"), a first-class county and political subdivision duly organized and existing under the Constitution and laws of the State of Missouri and GREATER MISSOURI BUILDERS, INC. (the "Developer"), a corporation duly organized and existing under the laws of the State of Missouri. (All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in Article I of this Ageement.) RECITALS WHEREAS, the City is authorized and empowered pursuant to the Community Improvement District Act, Sections 67.1401 to 67.1571 of the Revised Statutes of Missouri, as amended (the "CID Act"), to establish a community improvement district as proposed by a verified petition; and WHEREAS, on February 12, 2007, a "Petition for the Creation of a Community Improvement District"(the"CID Petition")was filed with the Clerk of the City pursuant to the CID Act, the boundaries of which are legally described on Exhibit A-1,attached hereto and incorporated herein by reference; and W��REAS, a Tax Impact Analysis for the Town Plaza Redevelopment Area was prepared and mailed to all affected taxing jurisdictions on February 23, 2007 in accordance with applicable provisions of Chapter 353 of the Revised Statutes of Missouri,as amended("Chapter 353"); and WHEREAS, on February 27, 2007, the Developer submitted a Development Plan (the "Development Plan") for an area located at the comer of South Kingshighway and William Streets, legally described on Exhibit A-2 attached hereto and incorporated herein (the "353 Project Area" and with the CID Project Area, the "Redevelopment Area") prepared by Development Dynamics, L.L.C. in accordance with Chapter 353; and WHEREAS, the City Clerk, in accordance with Chapter 353 and the CID Act, did cause to be published notices, in a paper of general circulation and in a paper authorized to publish legal notices, of the public hearings to be held by the City Council on March 5, 2007, at which time all members of the public were given the opportunity to be heard; and WHEREA5, pursuant to Ordinance No. 3802, adopted on Apri12, 2007, the City Council found and designated the 353 Project Area to be a blighted area within the meaning of and as defined in Section 353.020 of Chapter 353; and WHEREAS, pursuant to Ordinance No. 3803, adopted on April 2, 2007, the City Council approved the Development Plan for the 353 Project Area; and WHEREAS, pursuant to Ordinance No. 3804, adopted on April 2, 2007, the City Council also established the Town Plaza Community Improvement District (the "District") as set forth in the CID Petition; and WHEREAS, subject to and in accordance with the CID Act and the CID Petition, and upon the approval of the qualified voters of the District, the District intends to impose a sales tax at a rate not to exceed one percent (1%) on all eligible retail sales within the boundaries of the District pursuant to Section 67.1545 of the CID Act;and WHEREAS, the City Council hereby deterirunes that fulfiliment of the Development Plan, the CID Petition and this Agreement are in the best interests of the City, and the health, safety and welfare of its residents, and in accord with the public purposes specified in the Development Plan and the CID Petition; and WHEREAS, in connection with the construction of the 353 Project, the Developer will incur significant costs including costs for items that involve the remediation of blight within the 353 Project Area and are therefore for a public purpose; and WHEREAS, in order to make it economically feasible for the Developer to construct the 353 Project, the City and the County have agreed to reimburse the Developer for a portion of the costs related thereto; and WHEREAS, the City and the County are authorized pursuant to Section 70.220 of the Revised Statutes of Missouri, as amended, to contract for the plamiuig, development and construction of any public improvement or facility, and the City and the County have authority to appropriate revenue for the construction of public improvements; and WHEREAS, the City Council has passed Ordinance No. approving this Agreement and the County Commission has passed Ordinance No2�c�1•�Zapproving this Agreement, which Ordinances are attached hereto as Exhibit G and incorporated by reference; and WHEREAS, pursuant to provisions of Chapter 353, the CID Act and Ordinance No. , the City is authorized to enter into this Agreement, to pledge the Municipal Contribution to reimburse the Developer,and to grant tax abatement as set forth herein. AGREEMENT NOW,THEREFORE, in consideration of the premises and promises contained herein and other good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: ARTICLE I. DEFINITIONS 1.1 Definitions. As used in this Agreement, the following words and terms shall have the following meanings: "3S3 Ordinance" means Ordinance No.3803 designating the 353 Project Area, approving the Development Plan and approving the 353 Project. "3S3 Project"means the development project set forth in the Development Plan. "353 Project Area" means that area legally described on E�ibit A-1 in which the 353 Project will be constructed. 2 "353 Project Costs"means those costs necessary to complete the 353 Project. "Agreement" means this Development Agreement, as the same may be from time to time modified, amended or supplemented in writing by the parties hereto. "Approved Investor" means (a) the Developer or a Related Entity, (b) an "accredited investor" under Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, (c) a "qualified institutional buyer" under Rule 144A promulgated under the Securities Act of 1933 or (d) any general business corporation or enterprise with total assets in excess of fifty million dollars($50,000,000). "Authorizing Ordinance" means Ordinance No. [ � authorizing the City to enter into this Agreement with the Developer. "Bond Counsel" means Gilmore & Bell, P.C., or an attorney at law or a firm of attorneys acceptable to the City of nationally recognized standing in matters pertaining to the tax-exempt nature of interest on obligations issued by states and their political subdivisions duly admitted to the practice of law before the highest court of any state of the United States of America or the District of Columbia. "Certificate of Reimbursable Project Costs" means a document substantially in the form of Exhibit C, attached hereto and incorporated herein by reference, provided by the Developer to the City and the District in accordance with this Agreement which, upon acceptance by the City and the District, will evidence Reimbursable Project Costs incurred by the Developer. "Certificate of Substantial Completion"means a document substantially in the form of Exhibit D, attached hereto and incorporated herein by reference, issued by the Developer to the City and the District in accordance with this Agreement and which,upon acceptance or deemed acceptance by the City and the District, will evidence the Developer's satisfaction of all obligations and covenants to construct the Work in accordance with the Development Plan,the CID Petition and this Agreement. "Chapter 353" means Chapter 353 of the Revised Statutes of Missouri, as amended, also known as The Urban Redevelopment Corporations Law. "CID Act" means the Missouri Community Improvement District Act, Sections 67.1401 through 67.1571 of the Revised Statutes of Missouri,as amended. "CID Administrative Costs" means overhead expenses of the District for administration, supervision and inspection incurred in connection with the CID Project and paid initially by the Developer subject to reimbursement in accordance with this Agreement and paid by the District out of the proceeds of the CID Sales Tax and CID Special Assessment in an amount of up to $20,000 annually, which expenses include without limitation the following: (a)reimbursement (in an amount not to exceed one and one-half percent (1'h%) of the CID Revenues collected in the applicable year) of expenses incurred by the City pursuant to Section 67.1461.3 of the CID Act to establish the District and review the District's annual budgets and reports; (b)reimbursement of the Petitioner for the costs of filing and pursuing the CID Petition to establish the District and all publication and incidental costs incurred therewith; (c) reimbursement of the District's Board of Directors for actual expenditures in the performance of authorized duties on the behalf of the District; (d) costs related to any authorized indebtedness of the District, including the issuance and repayment of Obligations; and (e) any other administrative costs or expenses incurred by the District in the exercise of the powers granted under the CID Act and the CID Ordinance. 3 "CID Notes" means those notes issued by the District to reimburse the Developer for eligible costs advanced to construct the CID Project. "CID Ordinance"means Ordinance No. 3804 establishing the District. "CID Petition" means any petition filed with the City to establish the District, and any amendments thereto. "CID Project" means those public improvements identified in the CID Petition and eligible for reimbursement in accordance with the CID Act and as further authorized by the District, including the 353 Project. "CID Project Area" means that portion of the Redevelopment Area, legally described on E�ibit A_2 attached hereto and incorporated herein by reference, on which the CID Project will be constructed. "CID Project Costs" means those costs incurred in the construction and financing of the CID Project,which include the 353 Project Costs. "CID Revenues" means, collectively, the CID Sales Tax Revenues and the CID Special Assessment. "CID Sales Tax" means the community improvement district sales tax levied by the District in accordance with the CID Act and Section 3.8 of this Agreement. "CID Sales Tax Revenues" means the appropriated CID Sales Tax revenues, after deducting the cost of collection of one percent (1%) of the total amount received. CID Sales Tax Revenues shall not include (a) any amount paid under protest until the protest is withdrawn or resolved against the taxpayer or any sum received by or on behalf of the District that is the subject of a suit or other claim communicated to the District,which suit or claim challenges the collection of such sum, until such suit or other claim is withdrawn or resolved against the taxpayer; or(b)the amount deducted by the District for the District's reasonable and actual costs of administering, collecting, enforcing and operating the CID Sales Tax or CID Special Assessment as provided in the CID Act, including CID Administrative Costs. "CID Sales Taz Revenues Account" means the account in the Special Trust Fund receiving CID Sales Tax Revenues to be created in accordance with Section 6.1 of this Agreement. "CID Special Assessment" means the community improvement district special assessment levied by the District in accordance with the CID Act,the CID Petition and Section 3.8 of this Agreement. "CID Special Assessment Revenues" means the revenues generated by the CID Special Assessment levied annually against each tract, lot or parcel of real property within the District in an amount determined by the Board of Directors of the District, the net proceeds of which CID Special Assessment shall be applied to debt service on the Obligations funding Redevelopment Project Costs paid or incurred in connection with the CID Project within such District. "CID Special Assessment Revenues AccounP' means the account in the Special Trust Fund receiving CID Special Assessment Revenues to be created in accordance with Section 6.1 of this Ageement. 4 "City" means the City of Cape Girardeau, Missouri, a constitutional charter city and political subdivision duly organized and existing under its charter and the Constitution and laws of the State of Missouri. "City Council"means the City Council of the City. "Concept Project Site Plan" refers to the site development plan attached hereto as Exhibit F, which is on file at the City and which depicts the conceptual program for the Work and the Redevelopment Project to be constructed in accordance with the Development Plan, the CID Petition and this Agreement. "Construction Plans" means plans, drawings, specifications and related documents, and construction schedules for the construction of the Work, together with all supplements, amendments or corrections, submitted by the Developer and approved by the City in accordance with applicable law. "County" means Cape Girardeau County, a first class county and political subdivision duly organized and existing under the laws of the State of Missouri. "County Commission"means the County Commission of the County. "Developer" means Greater Missouri Builders, Inc., a corporation duly organized and existing under the laws of the State of Missouri, or its pernutted successors or assigns in interest. "Developer's Counsel"means Armstrong Teasdale LLP or such other legal counsel as is engaged by the Developer. "Development Plan" means the plan titled "Town Plaza Redevelopment Corporation Urban Development Plan" dated as of February 27, 2007, as approved by the City pursuant to the 353 Ordinance,as such plan may from time to time be amended in accordance with Chapter 353. "District" means the Town Plaza Community Improvement District created and operated pursuant to the CID Act and Section 3.8 of this Agreement. "Governmental Approvals" means all plat approvals, approvals of rezoning or other zoning amendments, site or development plan approvals, special use pernuts, resubdivisions or other subdivision approvals, variances, sign approvals, building pernuts, grading pernuts, occupancy pernuts or other similar approvals required for the implementation of the Redevelopment Proj ect related to the Redevelopment Area and consistent with the Development Plan,the CID Petition and this Agreement. "Gross Rental Contribution" means, beginning in the sixth year of the term set forth in Section 5.2, fifty percent (50%) of the gross rental revenues received by the Developer from NARS or any other such tenant occupying the NARS Site, which gross rental revenues will be applied to reduce the principal and accrued interest outstanding on the Municipal Contribution; provided, however, that the ratio of common area maintenance expenses to rent per square feet in any subsequent lease with NARS or any other such tenant occupying the NARS Site shall not exceed 10%. On or before January 15 during each year of this Agreement and any time a new lease or an amendment to an existing lease is entered into, the Developer shall provide to the City and the County(1) a copy of the lease agreement with NARS or any other tenant occupying the NARS Site, and (2) a calculation of the estimated Gross Rental Contribution for the forthcoming calendar year and the actual Gross Rental Contribution for the prior calendar year. 5 "Interest Rate" means a fixed rate per annum equal to (a) seven and one-half percent (7.5%), if the interest on the CID Notes (in the opinion of Bond Counsel) is not exempt from federal income taxation (the"Taxable Rate"), or(b) six percent (6%), if the interest on the CID Notes (in the opinion of Bond Counsel)is exempt from federal income taxation(the"Tax-Exempt Rate"). "Issuance Costs" means the amounts that are incurred in furtherance of the authorization, issuance and delivery of Obligations, including without limitation the City's expenses referred to in Section 2.2 of this Agreement, and the fees and expenses of fmancial advisors and consultants, the City's attorneys (including issuer's counsel and Bond Counsel), the fees and expenses of Developer's Counsel (not to exceed $10,000), counsel to the underwriter, engineering and feasibility studies, the City's administrative fees and expenses, underwriters' discounts and fees, the costs of printing any Obligations and any official statements relating thereto, the costs of credit enhancement, if any, capitalized interest, debt service reserves and the fees of any rating agency rating any Obligations. "Maturity Date" means the date that is twenty (20)years after the date of issuance of the Obligations. "MDOR"means the Missouri Department of Revenue. "Municipal Contribution" means (a) from the City, an amount equal to the incremental increase in net sales tax received within the Redevelopment Area attributable to the City's 1.0% general sales tax and the City's two 0.25% capital improvement sales taxes, and (b)from the County, an amount equal to the incremental increase in net sales tax received within the Redevelopment Area attributable to one-half of the County's 0.50%general sales tax,under the terms and corzditions set forth in Section 4.1 hereto,the proceeds from which will be used to reimburse the Developer for certain eligible costs related to the 353 Proj ect. "NARS"means National Asset Recovery Services,a tenant of the Sears Site. "NARS Site" means that portion of the Sears Site which will be converted into a 40,000 square- foot call center to be operated by NARS. "Note Resolution" means the resolution(s) of the District to be adopted by its Board of Directors authorizing the Obligations, any trust indenture relating thereto, and all related resolutions and proceedings. "Obligation Proceeds" means the gross cash proceeds from the sale of Obligations before payment of Issuance Costs,together with any interest earned thereon. "Obligations" means bonds, notes or other obligations issued by the District pursuant to applicable state law,the CID Act and this Agreement. "PILOTs" means those payments in lieu of taxes payable in accordance with Chapter 353 and Article VII of this Agreement. "Project Fund"means the Project Fund created in the Note Resolution relating to Obligations. "Property" means all interests in the real property (including without limitation all options held by third parties, fee interests, leasehold interests, tenant-in-common interests and such other like or similar interests) and existing improvements in the Redevelopment Area as set forth in the Development Plan and the CID Petition necessary to undertake and complete the Redevelopment Project. 6 "Redevelopment Area" means collectively the 353 Project Area and the CID Project Area as depicted on Exhibit E, attached hereto and incorporated herein by reference. "Redevelopment Corporation" means the Town Plaza Redevelopment Corporation, a redevelopment corporation duly organized and existing under the laws of the State of Missouri. "Redevelopment Project"means collectively the 353 Project and the CID Project. "Redevelopment Project Costs" mean the sum total of all reasonable or necessary costs incurred or estimated to be incurred, and any such costs incidental to the Redevelopment Project, as applicable, including, but are not limited to: site preparation, roadway and parking facilities, lighting, signage, paving, landscaping, roof reconstruction, HVAC, electrical installation, environmental remediation, fa�ade improvements,monuments and related professional fees. "Reimbursable Project Costs"means those Redevelopment Project Costs as described in Exhibit B, attached hereto and incorporated herein by reference, for which the Developer is eligible for reimbursement in accordance with this Agreement,Chapter 353 and the CID Act. "Related Entity" means Town Plaza, Inc., a wholly-owned subsidiary of Greater Missouri Builders, Inc., and any other party or entity related to the Developer by one of the relationships described in Section 267(b)of the Internal Revenue Code of 1986, as amended. "Relocation Plan" means the relocation plan of the City for the 353 Project Area as contained in the Development Plan. "Sears Site" means the facility located within the 353 Project Area, which will be converted into a 40,000 square-foot call center to be operated by NARS, and 25,000 square feet of additional retail space. "Special Trust Fund" means the Town Plaza Special Trust Fund, created by the District in accordance with the CID Act, and including the accounts and sub-accounts for the Redevelopment Project into which CID Revenues, the Municipal Contribution and the Gross Lease Contribution are from time to time deposited in accordance with the CID Act and this Agreement. "Tax Savings" means those savings realized by the Developer as a result of the tax abatement granted under Article VII of this Agreement and applied to the debt service on the CID Notes. "Trustee"means the trustee or fiscal agent for any issue of Obligations. "Worl�' means all work necessary to prepare the Redevelopment Area and to construct or cause the construction and completion of the site improvements as specifically described in the Development Plan, the CID Petition and this Agreement, including, but not limited to: (1)demolition and removal of all existing buildings, structures and other improvements within the Redevelopment Area; (2) site preparation, including clearing and grading of the Redevelopment Area; (3)construction, reconstruction, renovation and/or rehabilitation of related infrastructure and/or improvements, including without limitation surrounding roads, sidewalks, utilities, installation of lighting, screening and site landscaping and as further set forth in Exhibit F hereto; (4)environmental remediation; and (5) all other work - described in the Development Plan, the CID Petition and this Agreement, or reasonably necessary to effectuate the intent of this Agreement. 7 ARTICLE II. ACCEPTANCE OF PROPOSAL � 2.1 Developer Designation. The City hereby selects the Developer to perform or cause the performance of the Work in accordance with the Development Plan, the CID Petition and this Agreement and all Governmental Approvals. To the extent of any inconsistency among the foregoing, the parties agree that this Agreement shall govern. 2.2 Developer to Advance Costs. The Developer agrees to pay for all Redevelopment Project Costs as necessary to acquire the Property located in the Redevelopment Area and to complete the Work, all subject to the Developer's right to abandon the Redevelopment Project and to ternunate this Agreement as set forth in Section 8.1 of this Agreement. Any amounts paid by the Developer for Reimbursable Project Costs shall be reimbursed exclusively from the proceeds of Obligations as provided in and subject to Articles IV and V of this Agreement. ARTICLE III. ACQUISITION OF PROPERTY; SCHEDULE; AND CONSTRUCTION OF REDEVELOPMENT PROJECT 3.1 Acquisition of Property by Negotiation. 3.1.1 The Developer represents to the City that as of the date of this Agreement, Developer owns all of the Property within the Redevelopment Area. All of the Property acquired by the Developer, subject to the rights of assignment under Section 83 hereof, shall be held in the name of the Developer and shall be subject to the terms, conditions and covenants contained herein and in the Development Plan immediately upon acquisition and prior to any encumbrances placed thereon; provided, however, that nothing in this Section shall be construed to prohibit or otherwise limit the Developer from conveying fee ownership or leasehold interests in any portion of the Property. 3.1.2 Notwithstanding anything contained in this Agreement to the contrary, the City acknowledges that the District may acquire an ownership interest in a portion of the Property for the purpose of constructing and fmancing the CID Project. 3.2 Condemnation. None of the Developer, the Redevelopment Corporation or the District are authorized to exercise the power of eminent domain pursuant to Chapter 353 or the CID Act to acquire any portion of the Property in the Redevelopment Area. 3.3 Relocation. There are no individuals or businesses eligible for relocation assistance within the Redevelopment Area. 3.4 Developer to Construct the Work. The Developer shall commence and complete each of its obligations under this Agreement with respect to the acquisition,construction and completion of the Work following the execution of this Agreement. The Developer shall, subject to extensions resulting from force majeure as set forth in Section 8.5 of this Agreement, use good faith efforts to commence the Work no later than one hundred and eighty (180) days following execution of this Agreement and to complete the Work no later than eighteen(18)months thereafter. The Developer may enter into or cause to be entered into one or more construction contracts to complete the Work. Prior to the commencement of construction of any portion of the Work, the Developer shall obtain or shall require that any of its contractors obtain workers' compensation, 8 comprehensive public liability and builder's risk insurance coverage in amounts customary in the industry for similar type projects. The Developer shall require that such insurance be maintained by any of its contractors for the duration of the construction of such portion of the Work. Without limiting the generality of the foregoing, not less than ten (10) days prior to commencement of construction of each and any portion of the Redevelopment Project, the Developer and/or its general contractor shall provide the City with a certificate of insurance evidencing a commercial general liability insurance policy with coverages of not less than $2,369,306 for claims arising out of a single accident or occurrence and $355,396 for any one person in a single accident or occurrence, which reflects the current absolute statutory waivers of sovereign immunity in Sections 537.600 and 537.610 of the Revised Statutes of Missouri, as amended. Further, the policy shall be adjusted upward annually, to remain at all times not less than the inflation-adjusted sovereign immunity limits as published in the Missouri Register on an annual basis by the Department of Insurance pursuant to Section 537.610 of the Revised Statutes of Missouri, as amended. The policy shall provide that it may not be cancelled, terminated, allowed to lapse or be substantially modified without at least thirty (30) days prior written notice to the City. The City shall be listed as an additional insured on such certificate. Such policy shall include a severability of interests clause and the insurance shall be primary with respect to any applicable insurance maintained by the City. To the extent that laws pertaining to prevailing wage and hour apply to any portion of the Work, the Developer agrees to take all actions necessary to apply for the wage and hour determinations and otherwise comply with such laws. The Developer shall clear blight or rehabilitate to eliminate the physical blight existing in the 353 Project Area, or will make adequate provisions satisfactory to the City for the clearance of such blight. This obligation shall be a covenant running with the land and shall not be affected by any sale or disposition of the 353 Project Area. Any purchaser of property in the 353 Project Area from the Developer or any successor in title, who wishes to receive the development rights and tax abatement granted by this Agreement, shall acquire title subject to this obligation insofar as it pertains to the land so acquired. 3.5 Governmental Approvals. T'he City agrees to employ reasonable and good faith efforts to cooperate with the Developer and to process and timely consider and respond to all applications for the Governmental Approvals as received, all to the extent authorized, and in accordance with, the applicable City ordinances and laws of the State of Missouri. 3.6 Construction Plans; Changes. The Construction Plans shall be prepared by a professional engineer or architect licensed to practice in the State of Missouri. The Construction Plans and all construction practices and procedures with respect to the Work shall be in confornuty with all applicable state and local laws, ordinances and regulations. The Developer shall submit Construction Plans for approval by the City's engineer or his designee in sufficient time so as to allow for review of the plans in accordance with applicable City ordinances and procedures and in accordance with the schedule set forth in Section 3.4. The plans shall be in sufficient completeness and detail to show that construction will be in substantial conformance with the Development Plan and this Agreement. Prior to commencement of construction or during the progress of the Work, the Developer may make such reasonable changes, including, without limitation, modification of the construction schedule, including dates of commencement and completion, modification of the areas in which the Work is to be performed, relocation, expansion or deletion of items, revisions to the areas and scope of the Work, and any and all such other changes as site conditions or orderly development may dictate or as may be required to meet any reasonable requests of prospective tenants or purchasers of any real property located within the Area or as may be necessary or desirable, in the sole deternunation of the Developer, to 9 enhance the economic viability of the Project; provided that (i)the Developer shall obtain all necessary approvals and comply with all laws, regulations and ordinances of the City, and (ii)the Developer shall complete all of the Work. 3.7 Certiticate of Substantial Completion. The Developer shall furnish to the City and the District a Certificate of Substantial Completion promptly after substantial completion of the Work. The City and the District shall, within thirty (30) days following delivery of the Certificate of Substantial Completion, carry out such inspections as each shall deem necessary to verify to each one's respective reasonable satisfaction the accuracy of the certifications contained in the Certificate of Substantial Completion. The Certificate of Substantial Completion shall be deemed accepted by the District and/or the City unless, within thirty (30) days following delivery of the Certificate of Substantial Completion, the District and/or the City furnishes the Developer with specific written objections to the status of the Work, describing such objections and the measures required to correct such objections in reasonable detail. In the case where the District and/or the City, within thirty (30) days following delivery of the Certificate of Substantial Completion, provides the Developer with specific written obj ections to the status of the Work, the Developer shall have such amount of time as is reasonably necessary to address such objections and when addressed shall resubmit the Certificate of Substantial Completion to the District and/or the City in accordance with this Section. Upon acceptance of the Certificate of Substantial Completion by the District and/or the City, or upon the lapse of thirty(30) days after delivery thereof to the District and/or the City without any written objections thereto, the Developer may record the Certificate of Substantial Completion with the Cape Girardeau County Recorder of Deeds, and the same shall constitute evidence of the satisfaction of the Developer's agreements and covenants to perform the Work. The Certificate of Substantial Completion shall be in substantially the form attached as Exhibit D, attached hereto and incorporated by referenced herein. 3.8 Community Improvement District. On Apri12, 2007, the City established the District pursuant to the CID Act. The District shall operate solely for the purpose of providing revenues to fund principal of and interest on the Obligations, to fund the construction of the CID Project. T'he Developer shall cause the District to operate in accordance with the following: (a) The District shall impose a CID Sales Tax in an amount equal to one percent (1%) on taxable sales within the District pursuant to Section 67.1545 of the CID Act, the net proceeds of which CID Sales Tax shall be applied to debt service on the Obligations funding Redevelopment Project Costs paid or incurred in connection with the CID Project within the District. (b) The District may impose a CID Special Assessment pursuant to Section 67.1521 of the CID Act in an amount determined by the Board of Directors of the District to be necessary to finance the CID Project, the net proceeds of which CID Special Assessment shall be applied to debt service on the Obligations funding Redevelopment Project Costs paid or incurred in connection with the CID Project within such District. (c) Pursuant to Section 67.1451 of the CID Act, the District's Board of Directors shall consist of five members representing the Developer, as the owner of all real property within the CID Project Area, and the businesses operating within the CID Project Area. (d) The CID Revenues shall be deposited into the Special Trust Fund to fund principal of and interest on the Obligations,to fund the construction of the CID Project. (e) The District shall keep accurate records of CID Revenues received and costs incurred, and such records shall be open to inspection by the City at all reasonable times. 10 (fl The District shall maintain its existence until the later of: (i) the repayment of all outstanding Obligations, or (ii) the expiration of the Obligations pursuant to the CID Act, at which time the District shall dissolve and the CID Sales Tax and the CID Special Assessment shall no longer be levied unless a subsequent project has been authorized by the District and approved by the City in accordance with the CID Act. (g} The District shall not exercise any powers or undertake any action authorized under the CID Act other than those powers and actions expressly set forth in the CID Petition as reasonably necessary in connection with the completion of any CID Project or as otherwise agreed upon by the City and the Developer in writing. (h) The Developer, to the extent it is an owner of record of real property located within the District, shall in good faith cooperate and assist in obtaining approval for and levying of the applicable CID Sales Tax contemplated by this Agreement by voting to approve the CID Sales Tax at an election held in accordance with Section 67.1545 of the CID Act. (i) The Developer, to the extent it is an owner of record of real property located within the District, shall in good faith cooperate and assist in obtaining approval for the CID Special Assessment by voting to approve such CID Special Assessment at an election held in accordance with Section 67.1521 of the CID Act. (j) The Developer shall use its best efforts to ensure that every retailer shall add the CID Sales Tax to the retailer's sales price and when so added such CID Sales Tax shall constitute a part of the price, shall be a debt of the purchaser to the retailer until paid, and shall be recoverable at law in the same manner as the purchase price, all as provided for in Section 67.1545 of the CID Act. (k) Developer shall pay or cause to be paid all costs, including without limitation reasonable costs incurred by the City in connection with the creation of the District,which shall constitute Reimbursable Project Costs. 3.9 Pledge of CID Revenues. Subject to the limits provided in Sections 5.6 and 5.8 of this Agreement and this Section, the Developer shall use its best efforts to cause the District to: (a)pledge all or a portion of the CID Special Assessment Revenues received from time to time to the payment of debt service on Obligations related to the CID Project, and (b)pledge all or a portion of the CID Sales Tax Revenues (subject to annual appropriation) received from time to time to the payment of debt service on Obligations related to the CID Project. Any Obligations issued by the District shall be the exclusive responsibility of the District payable solely out of funds of the District and property as provided in the CID Act and shall not constitute a debt or liability of the State of Missouri, the City, the County or any agency or political subdivision of the State. Neither the District, nor the City nor the County shall be obligated to pledge any funds other than those specifically described herein. 3.10 Performance Bond. The Developer will obtain a performance and payrnent bond for the construction of the public improvements to be dedicated to the City and/or the County in conformance with Section 107.170 of the Revised Statutes of Missouri, as amended. The cost of such bond shall be advanced by the Developer and shall be eligible for reimbursement hereunder. ARTICLE IV. REIMBURSEMENT OF DEVELOPER COSTS 4.1 District's and City's Obligations to Reimburse Developer. Subject to the terms of the Authorizing Ordinance and this Agreement,upon Substantial Completion of the 353 Project, the City and 11 the County agree, subject to the terms of this Agreement and subject to appropriation by their respective governing bodies,to pledge or cause to be pledged the Municipal Contribution to reimburse Developer by and through the Redevelopment Corporation for the verified Reimbursable Project Costs in an amount not to exceed One Million Two Hundred Thousand Dollars ($1,200,000) plus interest. The City is obligated for 85.71% of the Municipal Contribution, and the County is obligated for 14.29% of the Municipal Contribution (respectively, the "Share"), in accordance with the definition thereof and subject to annual appropriation; provided, however, that if the verified Reimbursable Project Costs after Substantial Completion are less than Three Million Three Hundred Thousand Dollars ($3,300,000) in the aggregate, the Municipal Contribution shall be reduced as calculated below(the"Adjustment"): Adjustment — $3,300,000—actual verified Reimbursable Project Costs * 1,200,000 $3,300,000 *For example,if the actual verified Reimbursable Project Costs totaled$3,000,000,the Municipal Conh-ibution would be reduced by$109,091 to 1,090,909. The Developer shall, on the first day of each month, remit the Gross Rental Contribution, if any, to the Trustee and provide evidence thereof to the City and the County. The amount of the Municipal Contribution shall be reduced dollar-for-dollar by the revenues received by the Gross Rental Contribution, if any, prior to any Adjustment as set forth herein. The Developer shall also be reimbursed for verified Reimbursable Project Costs from Tax Savings and CID Revenues such that, when combined with the Municipal Contribution, the Developer's aggregate reimbursement may equal but not exceed Three Million Six Hundred Thousand Dollars ($3,600,000); provided, however, that the Developer retains its right to reimbursement from the Tax Savings and CID Revenues after the maximum Municipal Contribution has been paid. Notwithstanding any provision of this Agreement to the contrary, if the Developer sells, ground leases or otherwise transfers its ownership interest in the NARS Site, and as a result holds no further interests as the lessor thereof, then the Gross Rental Contribution shall be fixed at that amount due under lease (or which would have been due under the lease should such transfer occur before the beginning in the sixth year of the term set forth in Section 5.2) with NARS or any other such tenant occupying the NARS Site on the date the NARS Site is so sold, ground leased or otherwise transferred,for the remainder of the term of the Municipal Contribution. 4.2 Reimbursements Limited to Reimbursable Project Costs; Developer's Right to Substitute. Nothing in this Agreement shall authorize the District to issue Obligations or for the City,the County or the District to reimburse the Developer for any cost that is not incurred pursuant to the CID Act or Chapter 353. Within thirty(30) days of the District's and the City's receipt from the Developer of a Certificate of Reimbursable Project Costs, the District and the City shall review and act upon such Certificate of Reimbursable Project Costs. The parties agree that each of the categories of costs set forth in E�ibit B, attached hereto and incorporated herein by this reference, shall constitute Reimbursable Project Costs which are eligible for reimbursement in accordance with Chapter 353, the CID Act and this Agreement. The Developer shall be entitled to reimbursement for Redevelopment Project Costs from any of the categories set forth in E�ibit B, and Developer may shift eligible costs between categories,so long as the maximum aggregate amount of Reimbursable Project Costs does not exceed the maximum amount established in Section 4.1 of this Agreement. In the event that (a) any cost is deternuned by the City or the District not to be eligible for reimbursement in accordance herewith, or (b) a cost incurred by the Developer in any of the approved categories of costs is less than the amount for that category authorized by the City or the District, then the Developer shall have the right to substitute other costs within one of the categories identified, such that 12 the aggregate of all project cost elements may equal but not exceed Three Million Six Hundred Thousand Dollars ($3,600,000). 4.3 District's Obligations Limited to Special Trust Fund and Obligation Proceeds. Notwithstanding any other term or provision of this Agreement, Obligations issued by the District are payable only from the Special Trust Fund and from Obligation Proceeds,if any,and from no other source. Neither the District, the City nor the County have pledged their full faith and credit relative to the Obligations or relative to any party's obligation to pay any Reimbursable Project Costs. The Obligations shall be special, limited obligations of the District, and shall not constitute debt to the District nar the City nor the County within any constitutional, charter, or statutory meaning of the word "debt;" provided, however, that the Developer may, in its sole discretion,use the proceeds from the Municipal Contribution for any lawful purpose under Chapter 353 or the CID Act, including the redemption of all or any portion of the CID Notes. 4.4 Collection of CID Sales Tax. The parties acknowledge that MDOR shall perform all functions incidental to the administration, collection, enforcement and operation of the CID Sales Tax in accordance with Section 67.1545 of the CID Act. MDOR shall collect and remit the CID Sales Tax to the District after deducting the reasonable and actual cost of collection of the CID Sales Tax but not to exceed one percent (1%) of the total amount collected or received during the preceding month, in accordance with Section 32.087 of the Revised Statutes of Missouri, as amended, and the local sales tax law, as defined in Section 32.085 of the Revised Statutes of Missouri, as amended. The District shall deposit such CID Sales Tax revenues into the Special Trust Fund. 4.5 Segregation and Investment of CID Revenues. The District's Board of Directors shall direct the District's treasurer to invest any or all of the CID Revenues on deposit in the Special Trust Fund in accordance with applicable laws relating to investment of District funds. If the District's Board of Directors fails to provide the District's treasurer with direction regarding investment, the District's treasurer shall maintain such CID Revenues in a checking account in the name of the District to be maintained at such FDIC-insured financial institution designated by the District as its depository of funds. All interest earned upon the balance in the Special Trust Fund shall be deposited to the credit of the Special Trust Fund. 4.6 Use of CID Revenues. Beginning in the first month following the initial deposit of CID Revenues into the Special Trust Fund and continuing each month thereafter until the expiration or repeal of the CID Sales Tax and the CID Special Assessment, if any, the District shall,not later than the fifteenth day of each month, distribute all moneys deposited in the Special Trust Fund during the preceding month in the manner directed by the District's Board of Directors. The District shall pledge, subject to annual appropriation, all CID Revenues to pay CID Administrative Costs and CID Project Costs, including debt service on any Obligations issued to finance the CID Project as provided for in the Note Resolution. 4.7 Repeal of the CID Revenues. So long as any of the Obligations are outstanding, the District shall not repeal or reduce the CID Sales Tax or the CID Special Assessment unless such repeal or reduction will not impair the District's ability to repay the Obligations that are outstanding. Upon satisfaction in full of all of the Obligations,the District shall immediately implement the procedures in the CID Act for repeal of the CID Sales Tax and the CID Special Assessment and for abolishment of the District. Upon the expiration or notice of repeal of the CID Sales Tax or CID Special Assessment at the direction of the District's Board of Directors,the District shall: (a) promptly apply all or a portion of any moneys remaining in the Special Trust Fund to the final payment of CID Administrative Costs; and (b)retain any moneys remaining in the Special Trust Fund until such time as the District is abolished and the District's Board of Directors has provided for the transfer of any moneys remaining in the Special Trust Fund in a manner pernutted by the CID Act. 13 ARTICLE V. OBLIGATIONS 5.1 Payment Term and Interest Rate of Municipal Contribution. The reimbursement obligation will commence October 1, 2007, and will expire on the earlier of: (a) 20 years from the commencement date, or (b)the date on which the Developer has been reimbursed the amount calculated pursuant to Section 4.1 hereof, plus interest calculated at the Interest Rate (the "Term"). Each reimbursement payment will be due and payable forty-five (45) days after the end of each previous calendar quarter,commencing February 15,2008 (the"Payment Date") for the tertn of the agreement. 5.2 Disbursement of Municipal Contribution. On each Payment Date during the Term,the City and the County shall (a) each remit to the Developer (or, at the direction of the Developer, to the Trustee), but only from the Municipal Contribution appropriated by their respective governing bodies, their pro rata portion(as provided in Section 4.1 hereo fl of the payment due on such date and(b)provide a written statement to the Developer showing the amount of the Municipal Contribution paid to date and the amount remaining to be paid (except as such amount may be reduced by any Gross Rental Contribution}. To the extent no revenues have been appropriated to make the Municipal Contribution by the City and/or the County in any calendar quarter on the applicable Payment Date, any balance due by the City and/or the County will carry forward and be reimbursable from their respective share of the Municipal Contribution on any subsequent payout date. 5.3 Annual Appropriation of Municipal Contribution. 5.3.1 Notwithstanding any provision of this Agreement to the contrary, the City and the County are obligated only to pay their respective Municipal Contribution as may lawfully be made from funds budgeted and appropriated for that purpose during the City's or the County's then current fiscal year, respectively. If this Agreement terminates as to either the City or the County, the other party shall continue to make only its pro rata share of the Municipal Contribution. 5.3.2 The obligations of the City and the County to make the payments hereunder constitute a current expense of the City and the County, respectively, are from year to year, and do not constitute a mandatory payment obligation of the City or the County in any fiscal year beyond the then current fiscal year of the City or the County. The City's and the County's obligations hereunder shall not in any way be construed to be a debt of the City or the County in contravention of any applicable constitutional or statutory limitation or requirement concerning the creation of indebtedness by the City or the County, nor shall anything contained herein constitute a pledge of the general credit, tax revenues, funds or moneys of the City or the County, respectively. 5.3.3 The City and the County reasonably believe that legally available funds in an amount sufficient to make all payments during the Term of this Agreement can be obtained. Notwithstanding the foregoing, the decision whether or not to budget or appropriate funds or to extend this Agreement for any subsequent fiscal year is solely within the discretion of the then current governing body of the City and the County,respectively. 5.3.4 Subject to State law, the City and the County further agree that neither the City nor the County shall further encumber or pledge any portion of the Municipal Contribution, if any, during the term of this Agreement or take any actions in connection therewith inconsistent with the terms and conditions of this Agreement. 14 5.4 CID Notes. Within 30 days after the acceptance of the initial Certificate of Reimbursable Project Costs by the District, the District shall issue the CID Notes in a form approved by the District. The CID Notes shall be issued in an aggregate principal amount of not to exceed Three Million Six Hundred Thousand Dollars ($3,600,000), plus Issuance Costs related to the CID Notes, plus CID Administrative Costs paid prior to the acceptance of the Certificate of Substantial Completion. The CID Notes shall be special, limited obligations of the District secured by CID Revenues. The CID Notes shall bear interest at the Interest Rate. The CID Notes shall have a stated maturity that is not later than 20 years from the date of issuance. Within ten days after acceptance by the District and the City of each subsequent Certificate of Reimbursable Project Costs, the District shall instruct the Trustee to make additional endorsements to the CID Notes, subject to the limitations of Section 5.2 of this Agreement. Upon the Trustee's endorsement of the CID Notes as provided in this Section and the Note Resolution, the District shall be deemed to have reimbursed the Developer in full for such Reimbursable Project Costs. The Tax Savings, Municipal Contribution and CID Revenues shall be applied first to the payment of all or any portion of the past due and current interest on the CID Notes, and then to the payment of principal and the redemption thereon. Upon acceptance by the City and the District of a Certificate of Reimbursable Redevelopment Project Costs and the issuance of the CID Notes as provided in this Section 5.4, the Developer shall be deemed to have advanced funds necessary to purchase such CID Notes, and the District shall be deemed to have deposited such funds in the Project Fund and shall be deemed to have reimbursed the Developer in full for such costs from the amounts deemed to be on deposit in the Project Fund from time to time. 5.5 CID Bonds. The District may issue, or cause to be issued, CID Bonds at any time in an amount sufficient to refund all or a portion of the outstanding CID Notes without the consent of the City in its sole and absolute discretion, provided that the market conditions for such CID Bonds are such that the payment terms of the CID Bonds are sufficiently favorable that a reasonably prudent fmancial officer or agent of a similarly-situated political subdivision would undertake such a refunding or refinancing of the CID Notes and the underwriter selected by the District deternunes that the CID Bonds are reasonably likely to be redeemed within 20 years of the date of issuance of the CID Notes,based upon an estimate of the projected CID Revenues available to make debt service payments. The CID Bonds shall have a final maturity that is not later than 20 years from the date of issuance of the CID Notes. To the extent that CID Notes remain outstanding upon the issuance of the CID Bonds, such CID Notes shall be subordinate to the CID Bonds in accordance with the appropriate underwriting criteria established for the CID Bonds. The District shall have the right to select the underwriter and such financial advisors and consultants as the underwriter and the District deem necessary for the issuance of the CID Bonds. The CID Bonds shall bear interest at such rates, shall be subject to redemption and shall have such terms as the District shall deternune in its sole discretion. In the event that CID Bonds are issued, the District agrees to levy the CID Special Assessment in an amount equal to the ad valorem taxes that would have otherwise been paid on the 353 Project Area but for the existence of the tax abatement under Chapter 353 set forth in Section 7.1 hereo£ Further, the City and the County agree that any distributions of their respective share of the Municipal Contribution will be paid to the District to be applied to debt service on the CID Bonds. 5.6 Pledge of CID Revenues. Upon issuance of the Obligations, the District shall pledge, subj ect to annual appropriation by the District's Board of Directors, all CID Revenues that are from time to time on deposit in the Special Trust Fund, to the payment of debt service on the Obligations as provided in the Trust Indenture. 5.7 Annual Accounting of Municipal Contribution and Tax Savings. In order to evidence compliance with the terms of this Agreement, on the first day of the month in which the CID Notes are issued, and each year thereafter until said CID Notes are fully redeemed, the Developer shall provide to the District,the City and the County, a notice setting forth the following: (a)the amount received from the City and the County during that year�, (b)the amount of Gross Rental Contribution available to be applied 15 against the Municipal Contribution, if any; and (c)the amount of Tax Savings realized during the previous tax year as a result of the 353 Project; provided, however, that the Developer shall not be required to provide notice of Tax Savings if (i) CID Bonds are issued, or (ii) a party other than the Developer holds the CID Notes, in which cases the Developer will cause the District to levy its CID Special Assessment,the revenues from which will be applied to pay debt service on the CID Bonds. The Treasurer of the District shall endorse, or cause to be endorsed, the CID Notes to reflect the Developer's receipt of the amounts set forth in the notice as additional debt service paid thereon. 5.8 Covenant to Appropriate CID Sales Tax. The District covenants and agrees that the officer of the District at any time charged with the responsibility of formulating budget proposals will be directed to include in the budget proposal submitted to the District for each fiscal year that the Obligations are outstanding a request for an appropriation of all CID Revenues on deposit in the Special Trust Fund for application to the payment of the Obligations as provided in the Trust Indenture. The District shall promptly deliver to the City a copy of its annual budget in accordance with Section 67.1471 of the CID Act. Any funds appropriated as the result of such a request are pledged by the District to payrnent of the Obligations and shall be transferred from the Special Trust Fund at the times and in the manner provided in this Agreement and the Trust Indenture. If, on or before March 1 of each year, the District's Board of Directors fails to adopt a budget,the District shall be deemed to have adopted a budget that provides for application of all CID Revenues collected in such fiscal year in accordance with the budget for the prior fiscal year. 5.9 Repayment of the Obligations. The Obligations and the interest thereon shall be the exclusive responsibility of the District payable solely out of CID Revenues, Tax Savings and the Municipal Contribution and shall not constitute a debt or liability of the City, the County, the State of Missouri or any other agency or political subdivision thereof and shall not constitute an indebtedness within the meaning of any constitutional or statutory debt 1'unitation or restriction. Neither the District nor the City nor the County shall be obligated to pledge any funds other than those CID Revenues, Ta�c Savings and Municipal Contribution specifically pledged to repayment of verified Redevelopment Project Costs and the Obligations as provided in this Agreement and the Trust Indenture. For purposes of repaying the Obligations, the Tax Savings shall be applied first, if available, and the CID Revenues and Municipal Contribution shall be applied ratably to the balance remauung. 5.10 No Issuance of Other Obligations. Except for the Obligations, the District shall not issue any obligations pursuant to Section 67.1491 of the CID Act without the prior written consent of the City and the owners of the Notes or the Bonds, as applicable. 5.11 Cooperation in the Issuance of the Obligations. The parties agree, subject to applicable law, to cooperate and take all reasonable actions necessary to assist Bond Counsel, underwriters and fmancial advisors in the preparation of offering statements, private placement memorandum or other disclosure documents and all other documents necessary to market and sell the Obligations, including such actions necessary to cause the Developer to disclose all tenants within the District and the non-fmancial terms of the leases between the Developer and such tenants. The parties agree that the Developer shall not be required to disclose to the general public or any investor the rent payable under any such lease or any proprietary or confidential fmancial information pertaining to the Developer. However, in the event a confidentiality agreement is executed by the Developer, the Developer shall provide such information to such financial advisors,underwriters and their counsels as to enable such parties to satisfy their due diligence obligations. ARTICLE VI. SPECIAL TRUST FUND; COLLECTION AND USE OF CID REVENUES AND MUNICIPAL CONTRIBUTION 16 6.1 Creation of Special Trust Fund. The District agrees to maintain the Special Trust Fund, including a "CID Sales Tax Revenues Account," a "CID Special Assessment Account" and such further accounts or sub-accounts as are required by this Agreement or as the District may deem appropriate in connection with the administration of the Special Trust Fund pursuant to this Agreement. Subject to the requirements of the CID Act and, with respect to the CID Sales Tax and Municipal Contribution, subject to annual appropriation, the District will promptly upon receipt thereof deposit all CID Sales Tax Revenues into the Special Trust Fund. 6.2 Establishment of Base for Municipal Contribution. 6.2.1 Within sixty(60) days of the date hereof, Developer shall provide to the City any documents necessary for the calculation of the base for the Municipal Contribution including, but not limited to information related to payment of retail sales taxes by any businesses, owners or other occupants of the Redevelopment Area in the calendar year ending December 31, 2006. 6.2.2 Within ninety (90) days after the date hereof, subject to Section 8.5 hereof, the City shall provide to the Developer a certification of the amount of revenue from taxes, penalties and interest which are imposed by the City and the County and which are generated by retail sales within the Redevelopment Area for the calendar year ending December 31, 2006. 6.3 Cooperallon in Determining CID Revenues. The Developer agrees to cause the District to take all reasonable actions necessary to cause the CID Revenues to be paid into the Special Trust Fund. The Developer (or its successor(s) in interest as an owner or owner(s) of the affected portion(s)of the Property) shall require each"seller"(as that term is defined in Section 144.010(11)of the Missouri Revised Statutes, as amended) located in, or owner of any portion of, such Property to provide to the District the following information: 6.3.1 Each"seller's" federal and state tax identification numbers. 6.3.2 Within thirty(30)days of the end of each calendar quarter,copies of a completed [Community Improvement District Tax Return] for each "seller's" business located within the Redevelopment Area along with such other documents required by the Board of Directors of the District and the following information: 6.3.2.1 Copies of all sales tax returns filed with the Missouri Department of Revenue (on Form 53-S.F. Missouri Department of Revenue or such successor form) with respect to the sales taxes originating from businesses located within the Redevelopment Area for such quarter. In the event that a "seller" has multiple business operations within the City, such"seller" shall file separate sales tax returns for the sales taxes originating from the business located within the RedeveIopment Area. The Developer (or its successor(s) in interest as an owner or owner(s) of any portion(s) of the Property) shall also request any purchaser or transferee of real property and any lessee or other user of real property located within the Redevelopment Area to designate sales subject to sales taxes pursuant to Chapter 144 of the Revised Statutes of Missouri, as amended, to be reported as originating from the Redevelopment Area to the fullest extent permitted by law (including reasonable efforts to negotiate for the inclusion of a clause so providing in the leases of such Property). The Developer shall satisfy the requirements of this Section 6.3 by including the obligations set forth in this Section within any deed conveying a portion of the Property in the Redevelopment Area to or any lease entered into with any"seller"or purchaser. 17 6.4 Obligation to Report CID Revenues. The Developer shall use all reasonable efforts to cause any purchaser or transferee of real property located within the Redevelopment Area, and any lessee or other user of real property located within the Redevelopment Area to pay CID Revenues, as applicable, and shall use all reasonable efforts to timely fulfill such obligations as are required by Section 63 of this Agreement. So long as any Obligations are outstanding, the Developer shall use all reasonable efforts to cause such obligations to be covenants running with the land, which covenants shall be enforceable as if such purchaser, transferee, lessee or other user of such real property were originally a party to and bound by this Agreement. ARTICLE VII. TAX ABATEMENT 7.1 Tax Abatement. Subject to the provisions of this Agreement, the 353 Project Area shall not be subject to assessment or payment of general ad valorem taxes imposed by the City,the County,the State of Missouri, or any political subdivision thereof, for which ownership rights are acquired by the Redevelopment Corporation, as follows: First Ten (10) Years -- 100% real property tax abatement on the new improvements to the 353 Project Area and 50%real property tax abatement on the existing improvements on the 353 Project Area, beginning on January 1 st of the calendar year following the date upon which the Redevelopment Corporation acquires title to such portion of the 353 Project Area (but only for so long as said portion of the 353 Project Area is used in accordance with the Redevelopment Plan). During the first ten (10) years,the Developer shall be obligated to pay PILOTs in an amount equal to 50%of the ad valorem taxes levied on the existing improvements on the 353 Project Area,and(b) 100%of the ad valorem taxes levied upon the 353 Project Area, exclusive of improvements, and due and payable during the calendar year preceding the calendar year during which the Redevelopment Corporation acquires title to said 353 Project Area. Second Fifteen (I S Years -- 50% real property tax abatement on both new and existing improvements to the 353 Project Area, commencing upon the expiration of the aforementioned first ten (10) year period, so long as the applicable portion of the Redevelopment Area is used in accordance with this Agreement and the Development Plan. During the second fifteen (15) years, the Developer shall be obligated to pay PILOTs in an amount equal to the sum of: (a) 50%of the ad valorem taxes levied on new and existing improvements on the 353 Project Area, and(b) 100%of the ad valorem taxes levied upon the 353 Project Area, exclusive of improvements, and due and payable during the calendar year preceding the calendar year during which the Redevelopment Corporation acquires title to said 353 Project Area. The obligation to make the foregoing PILOTs shall constitute a lien against the 353 Project Area, enforceable by the City in the same manner as general real estate taxes. The City's and the County's obligation to remit the Municipal Contribution is abated during such time that the PILOTs are delinquent hereunder. The City shall furnish the County Collector with a copy of this Agreement. The Collector shall allocate the revenues received from such PILOTs (whether received under this Section or any other provision of this Agreement)among applicable taxing authorities in accordance with Section 353.110.4 of Chapter 353. 7.2 Abatement Contingent Upon Compliance with Redevelopment Plan. The tax relief provided in this Section shall be contingent upon the Redevelopment Corporation's compliance with the Development Plan and this Agreement, and shall apply to general ad valorem taxes only and shall not be deemed or construed to exempt the Redevelopment Corporation or its successors in interest, in whole or in part, from special assessments, fees, charges or other taxes which may be imposed by the City, the County or another governmental unit, including the CID Sales Tax and CID Special Assessment. 18 7.3 Expiration. Upon the expiration of such twenty-five (25) year period, the applicable portion of the 353 Project Area shall be subject to assessment and payment of all ad valorem taxes, based upon the full true value of such improvements. 7.4 Earnings Limitation on Redevelopment Project. The net earnings of the Redevelopment Corporation (and/or any successor owner) from the Redevelopment Project shall be limited in accordance with the applicable provisions of Chapter 353. 7.5 Financial and Annual Reports. (a) During the period of tax relief provided in this Agreement for each phase or all of the Redevelopment Project, as applicable, the Redevelopment Corporation shall provide annually to the City's Finance Director, within one hundred twenty (120) days after the end of the Redevelopment Corporation's fiscal year, three (3) copies of its detailed fmancial report for the preceding year for the Redevelopment Project, examined by a certified public accountant and containing a certification concerning such exainination. Said financial reports shall disclose: (1) the Redevelopment Corporation's eamings derived from the Redevelopment Project; (2) the disposition of any net earnings in excess of those pernutted by law; (3) the interest rate on income debentures,bonds,notes or other evidences of debt of Redevelopment Corporation; (4) the Redevelopment Corporation's cost of the Redevelopment Project; and (5) the Redevelopment Corporation's income and expenses derived &om or attributable to the Redevelopment Project. (b) If, in the Finance Director's judgment, the fmancial reports fail to provide the information required by this Section in accordance with generally accepted accounting principles or if a material dispute arises regarding the information provided in a financial report, and if requested by the City in writing, the Redevelopment Corporation shall, at its own expense and in an amount agreed by the Redevelopment Corporation and the City, have an audit made of its books by an auditing firm to be named by the City and approved by the Redevelopment Corporation, and the findings of such audit shall be made available to the Finance Director. 7.6 Accounting Practices. T'he Redevelopment Corporation shall establish and maintain depreciation, obsolescence, and other reserves, and surplus and other accounts, including a reserve for the payment of taxes and PILOTs,according to recognized standard accounting practices. ARTICLE VIII. GENERAL PROVISIONS 8.1 Developer's Right of Termination. At any time prior to the delivery of the Certificate of Substantial Completion, the Developer may, by giving written notice to the City and the County, abandon or discontinue the Redevelopment Project and terminate this Agreement and any agreements related thereto and its obligations thereunder. Upon such ternunation,the City and the County shall have no obligation to reimburse the Developer for any amounts advanced or costs incurred or paid, and the 19 Developer shall have no obligation regarding the Redevelopment Project or the related public improvements. Upon ternunation of this Agreement pursuant to this Section, the City or the Developer may file a declaration of abandonment with the Recorder of Deeds of Cape Girardeau County, and the real property included in the 353 Project Area shall from that date be subject to assessment and payment of all ad valorem taxes based on the true full value of such real property. 8.2 City's Right of Termination. If the Developer fails to provide the City with an acceptable Certificate of Substantial Completion in substantially the form attached hereto as Exhibit D in accordance with Section 3.4, the City and the County may terminate this Agreement and any agreements related hereto. Upon termination of such agreement(s) the City and the County shall have no further obligations to reimburse the Developer for any amounts advanced thereunder or any costs otherwise paid or incurred in connection with the Redevelopment Project or the related public improvements. Upon termination of this Agreement pursuant to this Section,the City or the Developer may file a declazation of abandonment with the Recorder of Deeds of Cape Girardeau County, and the real property included in the 353 Project Area shall from that date be subject to assessment and payment of all ad valorem taxes based on the true full value of such real property. 8.3 Successors and Assigns. 8.3.1 Binding Effect. This Agreement shall be binding on and shall inure to the benefit of the parties named herein and their respective heirs, administrators, executors, personal representatives, successors and assigns, including without limitation the assignee under a collateral assignment of this Agreement by the Developer as collateral security for a loan to the Developer. 8.3.2 Assignment or Sale. The rights, duties and obligations of this Agreement shall be assignable to any Related Entity of the Developer without City consent. The rights, duties and obligations of this Agreement shall be assignable to any other party, subject to prior written approval of the City,which approval shall not be unreasonably withheld or delayed; provided that the City Manager shall approve an assignment by the Developer upon a reasonable demonstration of a proposed assignee's experience and financial capability to undertake and complete the Redevelopment Project in accordance with this Agreement and the Development Plan. Nothing in this Section shall be construed to prohibit or otherwise limit the Developer from conveying fee ownership or leasehold interests in any portion of the Property. 8.3.3 Assignment or Sale to Exempt Organization. Prior to any sale, transfer or other disposition of all or any portion of the Property or any interest therein to an organization exempt from payment of ad valorem property taxes, such organization shall be required to agree not to apply for an exemption from payment of such property taxes for a period ending on the earlier of the date that all Obligations are paid in full or twenty(20) years from the date that the Approving Ordinance was adopted by the City. The Developer shall make this requirement a covenant nuining with the land, enforceable for such period as if such purchaser or other transferee or possessor thereof were originally a party to and bound by this Agreement. 8.4 Remedies. Except as otherwise provided in this Agreement and subject to the Developer's and the City's respective rights of termination, in the event of any default in or breach of any term or conditions of this Agreement by either party, or any successor, the defaulting or breaching party (or successor) shall, upon written notice from the other party specifying such default or breach, proceed immediately to cure or remedy such default or breach,and shall, in any event,within thirty(30) days after receipt of notice, cure or remedy such default or breach. In the event that the defaulting or breaching party(or successor) diligently and in good faith commences to cure or remedy such default or breach but 20 is unable to cure or remedy such default or breach within tlurty (30) days after receipt of notice, the defaulting or breaching party(or successor) shall, prior to the end of such thirty(30) days,provide notice to the other party that it has in good faith commenced to cure or remedy such default or breach, whereupon the defaulting or breaching party (or successor) shall have an additional thirty (30) days to cure or remedy such default ar breach. In case such cure or remedy is not taken or not diligently pursued, or the default or breach shall not be cured or remedied prior to the end of the additional thirty (30) day period, the aggrieved party may institute such proceedings as may be necessary or desirable in its opinion to cure and remedy such default ar breach, including without limitation proceedings to compel specific performance by the defaulting or breaching party. 8.5 Force Majeure. Neither the City nor the Developer nar any successor in interest shall be considered in breach or default of their respective obligations under this Agreement, and times for performance of obligations hereunder shall be extended in the event of any delay caused by force maj eure, including without limitation damage or destruction by fire or casualty; strike; lockout; civil disorder; war; restrictive government regulations; lack of issuance of any pernuts and/or legal authorization by the governmental entity necessary for the Developer to proceed with construction of the Work or any portion thereof; shortage or delay in shipment of material or fuel; acts of God; unusually adverse weather or wet soil conditions; or other like causes beyond the parties' reasonable control, including without limitation any litigation, court order or judgment resulting from any litigation affecting the validity of the Development Plan, the Redevelopment Proj ect or Obligations or this Agreement; provided that (i) such event of force majeure shall not be deemed to exist as to any matter initiated or sustained by the Developer in bad faith, (ii) with respect to the times for performance set out in Section 3.4 of this Agreement, the time for submitting a Certificate of Substantial Completion shall not be extended more than eighteen(18)months beyond the date set forth in Section 3.4,and(iii)the Developer notifies the City in writing within thirty (30) days of the commencement of such claimed event of force maj eure. 8.6 Notices. All notices, demands, consents, approvals and other communications required by this Agreement to be given by either party hereunder shall be in writing and shall be hand delivered, telefaxed or sent by a nationally recognized overnight courier or United States first class mail, postage prepaid, addressed to the appropriate party at its address set forth below, or at such other address as such party shall have last designated by notice to the other. (i) In the case of the Developer,to: Greater Missouri Builders,Inc. 1551 Wall Street Suite 220 St. Charles,MO 63303 Attention: Kent Evans Facsimile: (636) 949-9992 With a copy to: Annstrong Teasdale LLP One Metropolitan Square, Suite 2600 St. Louis,Missouri 63102 Attention: James E.Mello Facsimile: (314) 621-5065 (ii) In the case of the City,to: 21 City of Cape Girardeau 401 Independence Street Cape Girardeau,Missouri 63702 Attention: City Manager Facsimile: (573)335-7946 With a copy to: Office of the City Attorney 401 Independence Street Cape Girardeau,Missouri 63702 Attention: Eric Cunningham Facsimile: (573) 651-0860 (iii) In the case of the County,to: County of Cape Girardeau One Barton Square Jackson,Missouri 63755 Attention: Presiding Commissioner Facsimile: (573)243-4474 8.7 Damage or Destruction of Redevelopment Project. In the event of destruction or damage to the Redevelopment Project by fire or other casualty, during construction or thereafter during the term of this Agreement so long as any Obligations are outstanding and the Developer owns the Property,the insurance proceeds (after deducting any expenses incurred in the collection thereto) shall be applied at the direction of the Developer in conjunction with any commercial lender on the Redevelopment Project to the restoration, reconstruction and repair of the Redevelopment Project or, at the option of the Developer, to the repayment or redemption of CID Notes. In the event of such destruction or damage during the term of this Agreement and after any CID Bonds are issued or the issuance of a CID Note to a Note purchaser other than the Developer or a Related Entity, the Developer shall, at the City's option after consultation with the Developer, tender to the City that portion of the insurance proceeds, if any, to which Developer is entitled after satisfaction of any terms or obligations of any deed of trust,promissory note or financing agreement entered into by the Developer for the financing of all or any part of the Redevelopment Project, from any fire or casualty insurance policy in an amount equal to the outstanding principal amount of the Obligations plus accrued interest thereon to be deposited into the Special Trust Fund. 8.8 Inspection. The City may conduct such periodic inspections of the Redevelopment Area and the Redevelopment Project as may be generally provided in the City's code of ordinances. In addition, the Developer shall allow authorized representatives of the City access to the Redevelopment Proj ect from time to time for reasonable inspection thereof upon reasonable advance notice. 8.9 Choice of Law. This Agreement shall be taken and deemed to have been fully executed, made by the parties in, and governed by the laws of State of Missouri for all purposes and intents. 8.10 Entire Agreement; Amendment. The parties agree that this Agreement constitutes the entire agreement between the parties and that no other agreements or representations other than those contained in this Agreement have been made by the parties. This Agreement shall be amended only in writing and effective when signed by the authorized agents of the parties. 22 8.11 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall constitute one and the same instrument. 8.12 Severability. In the event any term or provision of this Agreement is held to be unenforceable by a court of competent jurisdiction,the remainder shall continue in full force and effect, to the extent the remainder can be given effect without the invalid provision. 8.13 Representatives Not Personally Liable. No elected or appointed official, agent, employee or representative of the City shall be personally liable to the Developer in the event of any default or breach by any party under this Agreement, or for any amount which may become due to any party or on any obligations under the terms of this Agreement. 8.14 Actions Contesting the Validity and Enforceability of the Redevelopment Project. During such time as the Developer is the registered owner of the Obligations, in the event a third party brings an action against the City or the City's officials, agents, attorneys, employees or representatives contesting the validity or legality of the Redevelopment Area, the CID Petition, the Development Plan, the Obligations, the 353 Ordinance, the CID Ordinance or the Authorizing Ordinance, Developer may, at its option,join the City in defense of such claim or action; provided, however, that if the Developer does not join the City in defense of such claim or action, the City may, at its sole cost and expense, handle and dispose of such claim or action in such manner as the City may see fit, without any liability to the Developer, including consenting to or permitting a default judgment in such claim or action. The parties expressly agree that, so long as no conflicts of interest exist between them with regard to the handling of such litigation,the same attorney or attorneys may simultaneously represent the City and the Developer in any such proceeding. The Developer shall be responsible for all reasonable and necessary costs and expenses incurred by the City and by the Developer in connection with the defense of such claim or action,provided that if the City does not approve a settlement or compromise which the Developer would agree to, the Developer shall not be responsible for any costs or expenses incurred thereafter in the defense of such claim or action. All costs of any such defense, whether incurred by the City or the Developer; shall be deemed to be Reimbursable Project Costs and reimbursable from any amounts in the Special Trust Fund, subject to Article IV of this Agreement. 8.15 Release and Indemnification. The indemnifications and covenants contained in this Section shall survive ternunation or expiration of this Agreement. 8.15.1 The City, the County and their respective governing body members, officers, agents, attorneys, employees and independent contractors shall not be liable to the Developer for damages or otherwise in the event that all or any part of Chapter 353, the CID Act, or any ordinance adopted in connection with either Chapter 353, the CID Act, this Agreement, the CID Petition or the Development Plan, is declared invalid or unconstitutional in whole or in part by the final (as to which all rights of appeal have expired or have been elchausted)judgment of any court of competent jurisdiction, and by reason thereof either the City or the County is prevented from perfornung any of the covenants and agreements herein or the Developer is prevented from enjoying the rights and privileges hereo£ 8.15.2 The Developer releases from and covenants and agrees that the City, the County and their respective governing body members, officers, agents, attorneys, employees and independent contractors shall not be liable for, and agrees to indemnify and hold harmless the City, the County, their respective governing body members, officers, agents, attorneys, employees and independent contractors against any and all claims, demands, liabilities and costs, including reasonable attorneys' fees, costs and expenses, arising from damage or injury, actual or claimed (excluding consequential and punitive damages), to persons or property occurring or 23 allegedly occurring as a result of any negligent or malicious acts or omissions of the Developer, its governing body members, officers, agents, attorneys, employees and independent contractors, in connection with its or their activities conducted pursuant to this Agreement. 8.15.3 The City, the County and their respective governing body members, officers, agents, attorneys, employees and independent contractors shall not be liable for any damage or injury to the persons or property of the Developer or its officers, agents, employees, independent contractors or any other persons who may be about the Property or the Work except for matters arising out of the gross negligence or willful misconduct of the City, the County and their respective governing body members, officers, agents, attorneys, employees and independent contractors. 8.15.4 All covenants, stipulations,promises, agreements and obligations of the City and the County contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City and the County and not of any of their respective governing body members, officers, agents, attorneys, employees or independent contractors in their individual capacities. 8.15.5 No governing body members, officers, agents, attorneys, employees or independent contractors of the City or the County shall be personally liable to the Developer(i)in the event of a default or breach by any party under this Agreement or(ii) for any amount or any Obligations which may become due to any party under the terms of this Agreement. 8.15.6 The Developer releases from and covenants and agrees that the City, the County their respective governing body members, officers, agents, attorneys, employees and independent contractors shall not be liable for, and agrees to indemnify and hold the City, the County, their respective governing body members, officers, agents, attorneys, employees and independent contractors, harmless from and against any and all third party suits, interest, claims and cost of reasonable attorneys fees incurred by any of them, resulting from, arising out of, or in any way connected with: (i) the enforcement of this Agreement, the validity of the Obligations, to the extent they are owned by the Developer or a Related Entity, the enforcement or validity of the pledge of the CID Revenues or the Municipal Contribution, or the enforcement or validity of any other agreement or obligation made in connection therewith and their approvals (so long as they are owned by the Developer or a Related Entity, but excluding opinions of counsel and of the City's financial advisors whenever such claim is based on such party's own negligence); (ii) the negligence or willful misconduct of the Developer or its officers, agents, employees or independent contractors in connection with the design, management, development, redevelopment and construction of the Work, or (iii) the compliance by the Developer with all applicable state, federal and local environmental laws,regulations and ordinances as applicable to the Property, to the extent such condition existed prior to the acquisition thereof by the Developer. The foregoing release and indemnification shall not apply in the case of such liability arising directly out of the gross negligence, or malicious acts or omissions, of the City, the County or their respective governing body members, officers, agents, attorneys, employees and independent contractors in connection with its or their activities conducted pursuant to this Agreement or which arises out of matters undertaken by the City or the County following ternunation of this Agreement as to the Redevelopment Project. 8.16 Survival. Notwithstanding the expiration or termination or breach of this Agreement by either party, the agreements contained in Section 2.2(ii), Article VI, Sections 8.7, 8.10, 8.11, 8.12, 8.13, 8.14, 8.15, 8.16 and Article IX of this Agreement shall, except as otherwise expressly set forth herein, survive such early expiration or early terniination of this Agreement by either party. 24 8.17 Costs and Expenses. Within 30 days after the execution of this Agreement, the Developer shall pay the City the sum of$12,500 for fees and expenses incurred in connection with the review and approval of the Development Plan, the creation of the District and this Agreement. If either Party defaults in the performance of its obligations hereunder, the Parties agree that the defaulting Party shall pay the non-defaulting Party's reasonable costs of enforcing the defaulting Party's obligations under this Agreement, including but not limited to attorneys fees and expenses. 8.18 Recording of Agreement. The Developer shall, at its sole expense, record this Agreement in the real property records of Cape Girardeau County, Missouri. The rights and obligations set forth herein shall be a covenant running with the Redevelopment Area throughout the term of this Agreement. No occupancy or building pernut shall be issued for any structure in the 353 Project Area until proof of such recording has been provided to the City. ARTICLE IX. REPRESENTATIONS OF THE PARTIES 9.1 Representations of the City. The City hereby represents and warrants that it has full constitutional and lawful right, power and authority, under current applicable law, to execute and deliver and perform the terms and obligations of this Agreement, including without limitation the right, power and authority to pledge the Municipal Contribution, and all of the foregoing have been or will be, upon adoption of ordinances authorizing the pledge of the Municipal Contribution, duly and validly authorized and approved by all necessary City proceedings, findings and actions. Accordingly, this Agreement constitutes the legal,valid and binding obligation of the City, enforceable in accordance with its terms. 9.2 Representations of the Developer. The Developer hereby represents and warrants it has full power to execute and deliver and perform the terms and obligations of this Agreement and all of the foregoing has been duly and validly authorized by all necessary corporate proceedings. This Agreement constitutes the legal, valid and binding obligation of the Developer, enforceable in accordance with its terms. 25 IN WITNESS WHEREOF,the City, the County and the Developer have caused this Agreement to be executed in their respective names and the City and the County have caused their respective seal to be affixed thereto, and attested as to the date first above written. "CITY": CITY OF CAPE GIRARDEAU,MISSOURI :��4�Ra���' o�. .�G By. . G� �� �� � ` Jay Knudt on,Mayor � _ rA � , �".•� �e.,° / *T�r��rxi ti 8 * � -� � Gayle Co d, City Clerk Town Plaza Development Agreement S-1 "COUNTY": COLTNTY OF CAPE GIRARDEAU, MISSOURI By: " Gera W.Jones, residing 'ssioner [SEAL] Attest: � Kara rk, County Clerk Town Plaza Development Agreement S-2 "DEVELOPER" GREATER MISSOURI BUILDERS, INC. a Misso i corpo ation By: ` en va s, V� e President 'I'o�vn Plazn Devclopment Agreement S-3 STATE OF MISSOURI ) ) SS. COUNTY OF CAPE GIlZARDEAU ) On this �s� day of ����. , 2007, before me appeared Jay Knudtson, to me personally known, who, being by me duly sworn, did say that he is the Mayor of the CITY OF CAPE GIRARDEAU, MISSOURI, a political subdivision of the State of Missouri, and that the seal affixed to the foregoing instrument is the seal of said City, and said instrument was signed and sealed in behalf of said City by authority of its City Council,and said individual acknowledged said instrument to be the free act and deed of said City. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the County and State aforesaid,the day and year first above written. �.,-/1.�-� /;�- � otary Public [SEAL] LADONNA LAUB Notary Public-Notary Seal My Commission Expires: State of Missouri County of Scott My Commission Expires Aug. 4, 2007 Town Plaza Development Agreement s-4 STATE OF MISSOURI ) ) SS. COUNTY OF CAPE GIIZARDEAU ) .�h On this j,3' day of ,��,;�� �, 2007, before me appeared Gerald W. Jones, to me personally known, who, being by me duly sworn, did say that he is the Presiding Commissioner of the COLJNTY OF CAPE GIRARDEAU, MISSOURI, a political subdivision of the State of Missouri, and that the seal affixed to the foregoing instrument is the seal of said County, and said instrument was signed and sealed in behalf of said County by authority of its County Council, and said individual acknowledged said instrument to be the free act and deed of said County. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the County and State aforesaid,the day and year first above written. �Vlc �''��� �, �� �, ��„� Notary Public �O��IA��.C3LDHAt� v�vu1 �� . �-`���a�h Notary Pubilc-Notary Sesl - [SEAL] STATE r3�'NitSSOURI CAPE G6i2A!Gtt�FAU GOUNTY M Commission Ex �res: C°mm°se��`"#��'d9�a392 Y P� My Comm9ss�c��Ex�ir�s; El�arch 1,2009 Town Plaza Development Agreement ,.�-O STATE OF MISSOURI ) ) SS. COUNTY OF ST. LOUIS ) On this : � ' �day of ��, 2007, before me appeared Kent Evans, to me personally known, who, being by me duly sworn, did say that he is the Vice President of GREATER MISSOURI BUILDERS, INC., a corporation duly organized and existing under the laws of the State of Missouri, and that he is authorized to sign the instrument on behalf of said corporation, and acknowledged to me that he executed the within instrument as the free act and deed of said corporation. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the County and State aforesaid, the day and year first above written. `��pQY P(jB SHARON L,SOMMER • =?'NOTARYG�'= �'�l'Commission Expires . ° . _.. .._ May 6,2010 , 1 , �. . ""��••S�-�� Notar Public =,y�,•..,..• St.Charles Counry Y �,�F M\,�' Commission#06515632 [SEAL] My Commission Expires: /','�< <� C�, ��� '��-' �Co�vn Plnza Development Agreement S-5 EXHIBIT A-1 LEGAL DESCRIPTION OF THE 353 PROJECT AREA ---Boundary Description--- A PART OF OUTLOT 57, UNITED STATES PRIVATE SURVEY NO. 2199, TOWNSHIl' 30 NORTH, RANGE 13 EAST OF THE FIFTH PRINCII'AL MERIDIAN, CITY AND COUNTY OF CAPE GIIZARDEAU, STATE OF MISSOURI, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: Commencing at a 1/2" iron pin(found)at the northwest corner of Outlot 57; Thence S 83°07' 18" E, 461.54 feet to a spike (found) at the northwest corner of a tract of land recorded in Book No. 294 at Page No. 891 of the land records of the County Recorder's Office; Thence S 06°26' 06" W, 121.41 feet along the west line of said tract to the southwest corner thereof and being the TRUE POINT OF BEGINNING; Thence S 83° 37' 49" E, 53.78 feet along the south line of the aforesaid tract recorded in Book 294 at Page 891 to a 1/2" iron pin(set); Thence S 00°07'49" E, 49.52 feet to a 1/2" iron pin(set); Thence S 83° 37' 49" E, 500.43 feet to a 1/2" iron pin (set) on the west right of way line of Sheridan Drive; Thence S OS°00'27" W, 181.97 feet along said west right of way line; Thence continuing along said west right of way, S 00°Ol' 14" E, 43.68 feet to a 1/2"iron pin(found) at the northeast corner of a tract of land recorded in Book No. 290 at Page No. 282; Thence along the north and west lines of said tract the following courses and distances, N 84° 57' 14" W, 171.13 feet; Thence S 50° 59' 49" W, 21.56 feet; Thence S 06° 56' S2" W, 142.96 feet to a chiseled "+" (found) on the north right of way line of William Street; Thence along the north right of way line the following courses and distances, N 84° 29' 22" W, 277.34 feet to a 1/2" iron pin(set); Thence N 00°07'49" W, 15.07 feet to a 1/2" iron pin(set); T'hence N 84° 29' 22" W, 109.76 feet; Thence leaving said north right of way line, N 06° 18' 37" E, 186.08 feet; Thence N 08° 10'46"E,241.64 feet to the point of beginning,containing 4.453 acres more or less. A-1 EXHIBIT A-2 LEGAL DESCRIPTION OF TI�E CID PROJECT AREA ---Boundary Description--- A PART OF OUTLOTS N0.57 AND 87, UNTTED STATES PRIVATE SURVEY NO. 2199, TOWNSHIP 30 NORTH, RANGE 13 EAST OF THE FIFTH PRINCIPAL MERIDIAN, CITY AND COUNTY OF CAPE GIItARDEAU, STATE OF MISSOURI, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: Beginning at a 1/2"Iron Pin Concrete (Found) at the Northwest corner of Outlot no. 57,U.S.P.S. No. 2199; Thence S 83°07'18" E, 461.54 feet along the North line of said Outlot No. 57 to a Railroad Spike (Found) at the Northwest corner of a tract of land recorded in the land records of the County Recorder's Office of book no 294 at page no 891; Thence S 06°26'06"W, 121 41 feet along the West line of said tract to the Southwest corner of said tract, from which a Railroad Spike (Found) bears N 06°26'06" E, 0.7 feet; Thence S 83°37'49" E, 53.78 feet along the South line of said tract to a 1/2" Iron Pin (Set) on the North Right of Way line of Merriweather Street; Thence S 00°07'49" E, 49.52 feet to a 1/2"Iron Pin(Set) on the South Right of Way line of Merriweather Street; Thence S 83°37'49"E, 500.43 feet along said South Right of Way line to a point on the West Right of Way line of Sheridan Drive, from which a 1/2" Iron Pin (Found) bears S 00°51' W, 0.9 feet; Thence along the West Right of Way line of said Sheridan Drive the following courses and distances: S OS°00'27" W, 181.97 feet to a 1/2" Iron Pin (Set); Thence S 00°Ol'14" E, 43.68 feet to a 1/2" Iron Pin (Found) at the Northeast corner of a tract of land recorded in book no. 290 at page no. 282; Thence along the North and West lines of said tract the following courses and distances: N 84°57'14"W, 171.13 feet to a 1/2"Iron Pin(Set); Thence S 50°59'49"W, 21.56 feet to a 1/2" Iron Pin(Set); Thence S 06°56'S2"W, 142.96 feet to a Chiseled Cross in Concrete (Found) on the North Right of Way line of William Street; Thence along said Right of Way line the following courses and distances: N 84°29'22"W,27734 feet to a 1/2"Iron Pin(Set); Thence N 00°07'49"W, 15.07 feet to a 1/2" Iron Pin (Set); Thence N 84°29'22" W, 568.90 feet to a 1/2" Iron Pin (Set); Thence N 83°57'22" W, 212.10 feet to a 1/2" Iron Pin(Set) at the Southeast corner of a tract of land recorded in book no. 309 at page no. 397; Thence along the East and North lines of said tract the following courses and distances: N 06°02'38"E, 165.00 feet to a 1/2"Iron Pin(Set)at the Northeast corner of said tract; T'hence N 83°57'22" W, 196.57 feet to a 1/2" Iron Pin (Set) at the Northwest corner of said tract; Thence S 06°O1'S4"W 13.66 feet along the West line of said tract to the Northeast corner of tract of land recorded in book no. 611 at page no. 756; Thence N 83°58'06"W, 176.65 feet along the North line of said tract of a 1/2" Iron Pin Set on the East Right of Way line of United States Route 61 (Kingshighway); Thence N 11°06'S4"E, 137.37 feet along said Right of Way line to a 1/2"Iron Pin(Set)on the South Right of Way line of the Walker Creek Right of Way Line; Thence along said South and East Right of Way lines the following courses and distances: S 78°42'S3" E, 59.09 feet to a 1/2" Iron Pin (Set); Thence N 11°1T07" E, 63.59 feet to a 1/2" Iron Pin(Set); Thence N 06°16'07" E, 145.02 feet to a 1/2"Iron Pin(Set); Thence N 11°00'38"E, 73.13 feet to a 1/2"Iron Pin(Set) on the North line of Outlot No. 87; Thence S 83°30'34" E, 509.97 feet along said North line to the point of beginning; containing 16.043 acres and subject to all easements of record. A-2 EXHIBIT B ESTIMATED REIMBURSABLE PROJECT COSTS CATEGORY ESTIMATED COSTS (a) Architecture/Engineering 160,000 (b) LegaUPlanning/Other Professional 66,961 (c) Environmental 1,500 (d) Site Work 1,088,835 (e) Exterior Reconstruction(fa�ade improvements,parking facilities, 1,431,840 roof reconstruction,HVAC required to convert the Sears Site from a single-use retail space to the NARS call center and multiple retail outlets) (fl Interior Reconstruction 1,786,000 TOTAL 4,535,136 B-1 EXHIBIT C FORM OF CERTIFICATE OF REIlVIBURSABLE PROJECT COSTS TO: City of Cape Girardeau 401 Independence Street Cape Girardeau,Missouri 63702 Attention: City Manager Re: City of Cape Girardeau,Missouri,Town Plaza Redevelopment Project Terms not otherwise defined herein shall have the meaning ascribed to such terms in the Development Agreement dated as of [ �, 2007 (the "Agreement"), by and among the City, Cape Girardeau County, Missouri (the "County"), and Greater Missouri Builders, Inc., a Missouri corporation (the "Developer"). In connection with said Agreement, the undersigned hereby states and certifies that: 1. Each item listed on Schedule 1 hereto is a Reimbursable Project Cost and was incurred in connection with the construction of the Redevelopment Project and attached hereto are itemized invoices,receipts or other information evidencing such costs. 2. These Reimbursable Project Costs have been incurred or paid by the undersigned and are reimbursable under the Agreement. 3. Of the Reimbursable Project Costs submitted for approval in this certificate, each item listed on Schedule 2 has been incurred in the completion of the CID Project on behalf of the District, and are subject to reimbursement from CID Revenues (as defined in the Agreement). 4. Developer has incurred Reimbursable Project Costs of at least one hundred thousand dollars($100,000). 5. Each item listed on Schedule 1 has not previously been paid or reimbursed from money derived from the Special Trust Fund or any money derived from any project fund established pursuant to the 353 Ordinance or CID Ordinance, and no part thereof has been included in any other certificate previously filed with the City. 6. There has not been filed with or served upon the Developer any notice of any lien, right of lien or attachment upon or claim affecting the right of any person, firm or corporation to receive payment of the amounts stated in this request, except to the extent any such lien is being contested in good faith. 7. All necessary permits and approvals required for the portion of the Work for which this certificate relates have been issued and are in full force and effect. 8. All Work for which payment or reimbursement is requested has been performed in a good and workmanlike manner and in accordance with the Development Plan, the CID Petition and the Agreement. C-1 9. If any cost item to be reimbursed under this Certificate is deemed not to constitute a reimbursable project cost within the meaning of Chapter 353, the CID Act and the Agreement, the Developer shall have the right to substitute other eligible Reimbursable Project Costs for payment hereunder. 10. The costs to be reimbursed under this Certificate constitute advances qualified for Tax- Exempt CID Notes: Yes: No: 11. The Developer is not in default or breach of any material term or condition of the Agreement beyond the applicable cure period, if any. Dated this day of ,20_. GREATER MISSOURI BUILDERS,INC. By: Name: Title: Approved for Payment this day of , 20_. CITY OF CAPE GIRARDEAU,MISSOURI By: Name: Title: TOWN PLAZA COMMUNITY IMPROVEMENT DISTRICT By: Name: Title: G2 SCHEDULE 1 The Developer has incurred the following Reimbursable Project Costs related to the Chapter 353: Payee: Amount: Description of Chapter 353/Municipal Contribution-Eligible Proj ects: C-3 SCHEDULE2 The Developer has incurred the following Reimbursable Project Costs in relation to the CID Proj ect: Payee: Amount: Description of Reimbursable Project Costs related to the CID Proj ect: C-4 EXHIBIT D FORM OF CERTIFICATE OF SUBSTANTIAL COMPLETION CERTIFICATE OF SUBSTANTIAL COMPLETION The undersigned, Greater Missouri Builders, Inc., a Missouri corporation (the "Developer"), pursuant to that certain Development Agreement dated as of� l, 2007, by and among the City of Cape Girardeau, Missouri (the "City"), Cape Girardeau, Missouri (the "County") and the Developer (the"Agreement"), hereby certifies to the City as follows: 1. That as of , , the construction of the Work (as that term is defined in the Agreement) has been substantially completed and funded in accordance with the Agreement. 2. The Work has been performed in a workmanlike manner and substantially in accordance with the Construction Plans(as those terms are defined in the Agreement). 3. This Certificate of Substantial Completion is accompanied by the project architect's or owner representative's certificate of substantial completion on AIA Form G-704 (or the substantial equivalent thereo fl, a copy of which is attached hereto as Appendix A and incorporated herein by reference,certifying that the Work has been substantially completed in accordance with the Agreement. 4. Lien waivers for applicable portions of the Work in excess of Five Thousand Dollars ($5,000)have been obtained. 5. This Certificate of Substantial Completion is being issued by the Developer to the City in accordance with the Agreement to evidence the Developer's satisfaction of all material obligations and covenants. 6. The acceptance (below) or the failure of the City to object in writing to this Certificate within thirty (30) days of the date of delivery of this Certificate (which written objection, if any, must be delivered to the Developer prior to the end of such thirty(30) days) shall evidence the satisfaction of the Developer's agreements and covenants to perform the Work. Upon such acceptance by the City, the Developer may record this Certificate in the office of the Cape Girardeau County, Missouri Recorder of Deeds. This Certificate is given without prejudice to any rights against third parties which exist as of the date hereof or which may subsequently come into being. Terms not otherwise defined herein shall have the meaning ascribed to such terms in the Agreement. D-1 IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand this day of ,20 GREATER MISSOURI BUII,DERS,INC. By: Name: Title: ACCEPTED: CITY OF CAPE GIRARDEAU,MISSOURI By: Name: Title: TOWN PLA7.A COMMUNITY IMPROVEMENT DISTRICT By: Name: Title: (Insert Notary Form(s)and Legal Description) D-2 EXHIBIT E REDEVELOPMENT AREA BOUNDARY MAP CoMmunity lmprwEment.�istrict Area... � � -�-F 7$�� � 2, j { ��r� �.�..�, ���� � # f a��r �,;,; � � � jk."�.i i �I�� � r' �,-F'� . � { �+3"tf#R':t"1=Tk�CX2 � I�, L_¢.��«�.�.�_ �.�__�A ._.�,� �E'x � � . . ;�y i. .__.._.._...�. _. .�,.a ..�..._ e.. . ,....�_,. ......�� � i" K, . ��C�� ����� � � � �JI'JC}Pi'It�CJ GC�d��Ct � � � � { ....�� � � i ; F � � �� ; � 5 i � � 1 i �� �_aC �.,..�:."..m'v;� �_..�........ ......�. 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F-1 ORDINANCE NO. 2007-02 AN ORDINANCE AUTHORIZING THE PIZESIDIl�TG COMMISSIONER TO EXECLTTE A DEVELOPMENT AGREEMENT WITH GREATER MISSOURI BUILDERS, INC. AND THE CITY OF CAPE GIRARDEAU. WHEREAS, on April 2, 2007, in response to a development proposal from Greater Missouri Builders, Inc. (the "Developer") and following duly noticed public hearings held on March 5, 2007, the City Council of the City of Cape Girardeau, Missouri (the "City") adopted (a) Ordinance No. 3802 finding certain property located at Kingshighway and William Streets (the "353 Project Area") to be a "blighted area" pursuant to Chapter 353 of the Revised Statutes of Missouri, as amended ("Chapter 353"); (b) Ordinance No. 3803 approving a development plan (the "Development Plan") for the development of the 353 Project Area; and (c) Ordinance No. 3804 establishing the Town Plaza Community Improvement District (the "District") and authorizing certain activities within the boundaries thereof (the "CID Project Area"); and WHEREAS, the County Commission finds it necessary and desirable to enter into a Development Agreement with the City and the Developer, whereby the Developer will agree to undertake certain improvements within the District and the County and the City will agree to use a portion of the sales ta�c revenues generated within the 353 Project Area to reimburse the Developer for a portion of those improvements; NOW, THEREFORE, BE IT ORDAINED BY THE COUNTY COMMISSION OF THE COUNTY OF CAPE GIRARDEAU, MISSOURI,AS FOLLOWS: Section 1. The County Corrunission finds that it is in the best interest of the County and its residents, in order to remedy the conditions that cause the 353 Project Area to be a "blighted area" pursuant to Chapter 353, that the County, the City and the Developer enter into the Development Agreement in substantially the form attached as Exhibit A hereto. The Presiding Commissioner is hereby authorized and directed to enter into said Development Agreement, and to take such further actions as may be necessary to carry out the intent of this Ordinance. _ __ Section 2. This Ordinance shall take effect and be in full force upon passage by the County Com�nission PASSED by the County Commission of the County of Cape Girardeau Missouri, this 28� day of June, 2007. : By: G y Gerald W. Jones " Presi ' g Commissio r � ; arry L. Boc First Distri t Commissioner 1`�����'1 Jay Pur ell Secon D strict Commissioner (SEAL) ATTEST: � ;? Bv: Kar lark Clerk of the County Commission Page 2 EXHIBIT A DEYELOPMENT AGREEMENT (attached hereto) A-1 �_ _ ___ ___ _ --_ _ - -