Tax Increment Interlocal Agreements for South Main

Redevelopment and Tax Increment Financing Plan and Interlocal Agreement

REDEVELOPMENT AND TAX INCREMENT FINANCING PLAN ( PROJECT)

AND INTERLOCAL AGREEMENT TO IMPLEMENT PLAN

WHEREAS, , a limited partnership (the "Developer"), is in the process of developing a site of approximately acres at the , which is more particularly described as follows (the "Site"):

[INSERT LEGAL DESCRIPTION]

WHEREAS, the development of the Site is for a retail and commercial development consisting of a shopping center, motel and related outparcels, all as more particularly described as follows (the "Redevelopment Project"):

A. Dirt work

1. Clear and grub 9 acres

2. Excavate and remove 4'-6' of undercut to firm ground over 9 acres

3. Fill and compact in lifts red clay sand to an elevation of 282.00', or 6'-9', over 9 acres

B. Storm Drainage

1. 550 LF 30" diameter concrete pipe

2. 2 curb inlets

3. 2820 LF curb and gutter

4. 3500 SY 6" asphalt base on prepared sub base

5. Grading

6. Add 120 LF 30" diameter concrete pipes with flared end sections at road intersections

7. Add 1030 LF concrete swale along Drive and Road R.O.W. line to create positive drainage on upper side of property

8. Fill and sod areas over pipe and around swale

9. Landscape with trees and shrub masses

C. Utilities

1. 875 LF 8" diameter sanitary sewer line with four manholes tying into existing main, with taps at proposed outparcels

2. 720 LF 8" water main with taps, valves, and four fire hydrants

3. Locate existing above ground electrical and telephone to underground service with transformers locate accessible to each out parcel

4. Extend 8" diameter sewer to last out parcel with one manhole, 80 LF

D. Lighting

1. 18 type V street lights, anodized aluminum shoe box type fixtures on 40' poles with mercury vapor lamps

E. Paving

1. Add 1-1/2" wearing course over 3500 SY street surface, with base repair and striping

F. Landscaping (8' strip each side of street)

1. Grade and add topsoil

2. 2,026 SY Centipede sod

3. 40 - 3" Caliper Pin Oaks

4. 280 Carrison Holly

5. 30 Crepe Myrtles 8-10'

6. Complete irrigation on remote time clock and

WHEREAS, the Site is an area in which the construction and rehabilitation of property for commercial use is in the public interest; and

WHEREAS, the Redevelopment Project will constitute an appropriate land use and will serve as a catalyst for further commercial development of the intersection of Drive and Road, which is an ideal location for commercial development due to the convergence of two major roadways; and

WHEREAS, the Redevelopment Project will further cause the installation of streets and water and sewer lines and other public improvements; and

WHEREAS, the Redevelopment Project will provide the residents of the City of (the "City") and County (the "County") with facilities which will add to and improve both recreational and economic opportunities; and

WHEREAS, this instrument (the "Plan") shall serve as a redevelopment plan, a tax increment financing plan and an interlocal agreement for purposes of Code of , as amended, Section through (the "Act"); and

WHEREAS, on , the Board of Aldermen of the City enacted a resolution setting forth its intent to go forward with the Redevelopment Project pursuant to the Act; and

WHEREAS, under the Plan, the City will issue tax increment bonds pursuant to the Act in an amount not to exceed $ (the "Bonds"), and the Bonds will be secured in part by increments in real property and personal property ad valorem taxes for the Site resulting from completion of the Redevelopment Project, which increments shall be pledged by both the City and the County to fund debt service on the Bonds; and

WHEREAS, it is expected that the proceeds of the Bonds will be expended as follows:

(a) Cost of Redevelopment Project $

(b) Costs of Issuance of Bonds $

(c) Debt Service Reserve (construction interest and remaining balance for project costs) $

Total Par Amount of Bonds $

WHEREAS, the annual sources of funds for repayment of the Bonds following completion of the Redevelopment Project are estimated to be as follows:

YEAR 1 - TAXES - AVAILABLE

1) AD VALOREM TAX. $

2) PERSONAL PROPERTY TAX $

TOTAL TAXES GENERATED - YEAR 1 $

YEAR 2 - TAXES - AVAILABLE

1) AD VALOREM TAX $

2) PERSONAL PROPERTY TAX $

TOTAL TAXES GENERATED - YEAR 2 $

YEAR 3 - AND AFTER TAXES - AVAILABLE EACH , BEGINNING

1) AD VALOREM TAX $

2) PERSONAL PROPERTY TAX $

TOTAL TAXES GENERATED - YEARS 3 AND LATER $

WHEREAS, the implementation of the Plan through issuance of the Bonds and completion of the Redevelopment Project will have no adverse financial impact on the City or the County in that only future increments are to be pledged, and neither the City nor the County will have any reduction of taxes previously received on the Site; and

WHEREAS, the implementation of the Plan through issuance of the Bonds and completion of the Redevelopment Project will have a beneficial financial impact on the City and County in that both will enjoy increased tax receipts from the Site when the Bonds are retired and will enjoy increased tax receipts from nearby properties whose development is influenced and induced by the Redevelopment Project; and

WHEREAS, it is the intention of the City, the County and the Developer, and the parties find it necessary, that all increments in real property and personal property ad valorem taxes resulting from the Redevelopment Project, i.e., that resulting from all the captured assessed value, be hereby pledged to payment of the Bonds and that to the extent such funds in any year exceed the debt service on the Bonds, the excess will be invested and held by the City, together with other available funds, for the purpose of redeeming all or any portion of the Bonds before maturity; and

WHEREAS, the duration of the Plan shall extend to provided that if the Bonds are paid in full before such time, the Plan shall expire days following the date on which all Bonds are paid in full, and any funds then held by the City under the Plan and not otherwise required for debt service on the Bonds, costs of the Redevelopment Project, or reimbursement of such costs, shall be divided between the City and the County in proportion to the funds theretofore respectively provided by the City and the County toward debt service on the Bonds from their pledge of real and personal property ad valorem taxes; and

WHEREAS, a separate fund shall be established and held by the City, either directly or with a trustee bank, in order to receive the ad valorem taxes pledged to payment of the Bonds as well as the proceeds of any other financial assistance; and

WHEREAS, it is estimated that the approval of the Plan and the implementation of the Redevelopment Project will favorably impact both the City and the County as the only taxing jurisdictions thereby affected in that overall ad valorem tax collections will increase due to likelihood of further development near the Site being favorably influenced by the Redevelopment Project, and such additional ad valorem tax collections are estimated to equal or exceed $ for the City and $ for the County over the next five years;

NOW THEREFORE BE IT AGREED:

1. All statements of law and fact set forth in the above and foregoing preamble are adjudicated by the City and the County to be true and correct and the City, the County, and the Developer hereby agree to be bound by and obligated to perform all of the respective duties and actions respectively described and provided for each of them in the above and foregoing preamble and to be contractually obligated to perform such duties and actions to the same extent as if repeated and set forth in this section 1.

2. The City shall proceed with issuance of the Bonds.

3. The Developer shall proceed with the Redevelopment Project, and the proceeds of the Bonds will be periodically disbursed to the Developer in order to finance the costs of the Redevelopment Project, provided that the Developer satisfies the condition which will be set forth in the resolution authorizing issuance of the Bonds.

4. To the extent that the Developer shall have constructed any part of the Redevelopment Project with private funds in advance of the issuance of the Bonds, the Developer shall be reimbursed for such expenditures out of proceeds of the Bonds provided that the reimbursement is for construction of the street, costs and sewer lines and other public portions of the Redevelopment Project and further provided that such public portions have been dedicated to the City to assure public use and access.

5. The Plan shall be deemed to constitute an interlocal agreement between the City and the County for the purposes of Code of , as amended, Section and Sections through .

6. The County further agrees that, provided the Plan has taken effect and the Bonds have been issued, this Plan shall be deemed to constitute full authority to all elected and appointed officials and employees of the County to deliver to the City or its trustee or paying agent for the Bonds all of the ad valorem tax revenues which the County has herein agreed to pledge toward payment of the Bonds.

7. The City and County agree that no special staffing need be provided for the Plan, that the budget for the Plan shall consist of the City's annual budget in that the City's obligation shall be to receive the funds paid pursuant to the pledges of tax increments herein provided and utilize such funds to pay principal, interest and redemption premiums, if any, on the Bonds and any fees of a trustee or paying agent, and that the City Clerk of the City or, if the Bonds are issued pursuant to a trust indenture, the trustee there under, is hereby designated to receive, disburse and account for all funds of the joint undertaking of the City and County herein described.

8. The Plan shall take effect at such time as it has been approved by the Attorney General of the State of or if the Attorney General fails to approve the Plan within sixty days of its submission to the Attorney General, upon the sixty-first day after its submission, provided that the parties hereto have executed the Plan.

9. The City, the County and the Developer will take all such further actions as are necessary in order to implement the Plan, provide for issuance of the Bonds, provide for security for the Bonds in accordance with the Plan and provide for completion of the Redevelopment Project.

10. The Developer shall: (a) effect the completion of all portions of the buildings, facilities and improvements intended for the Site at no cost to the City or the County beyond the proceeds of the Bonds and the investment income derived therefrom; (b) pay all real property and personal property ad valorem taxes for the Site in a timely manner; and (c) maintain and operate all buildings, facilities and improvements on the Site in such a manner as to preserve property values.

11. The parties hereto acknowledge that the Developer intends to transfer title to the Site to a yet to be formed limited liability company, and the Plan shall not be deemed to preclude such transfer, provided, however, that any transferee of title to all or any part of the Site must execute a written agreement to be bound by the terms of the Plan, which agreement must be in a form satisfactory to the City and the County.

12. Original executed copies of the Plan shall be filed with the Chancery Clerk of County and the Secretary of State of the State of at such time as it takes effect and the Plan shall be deemed to be in force from the date such filings are completed.

13. A Copy of the Plan shall be filed with the State Department of Audit within sixty days of the date the Plan is in force.

14. Any modification or amendment to the Plan may only be made by the written agreement of the parties provided that no such modification or amendment shall adversely affect or reduce the security for the Bonds.

THIS, the day of , .

ACKNOWLEDGEMENTS

STATE OF

COUNTY OF

PERSONALLY appeared before me and respectively the Mayor and City Clerk of the City of , (the "City"), who, first being duly sworn, acknowledged that they executed and delivered the above and foregoing instrument for and on behalf of the City and as the City's act and deed, having first been duly authorized.

THIS the day of .

_________________________

NOTARY

My Commission Expires:

STATE OF

COUNTY OF

PERSONALLY appeared before me and respectively the President and Clerk of the Board of Supervisors of County, (the "County"), who, first being duly sworn, acknowledged that they executed and delivered the above and foregoing instrument for and on behalf of the County and as the County's act and deed, having first been duly authorized.

THIS the day of , .

____________________________________

NOTARY

My Commission Expires:

STATE OF

COUNTY OF

PERSONALLY appeared before me who first being duly sworn acknowledged that he executed and delivered the above and foregoing instrument for and on behalf of said corporation in its capacity as general partner of said limited partnership and as the act and deed of said limited partnership, having first been duly authorized.

THIS the day of .

____________________________________

NOTARY

My Commission Expires: