Common use of Developer Payments Clause in Contracts

Developer Payments. (a) So long as no event described in Section 14 hereof shall have occurred and be continuing, the Village shall pay to the Developer a Sales Tax Rebate with respect to each Applicable Project for the Sales Tax Participation Period that pertains to each such Applicable Project, an amount equal to forty percent (40%) of the Sales Tax Revenue received by the Village with respect to sales made from each such Applicable Project (the “Sales Tax Rebate”) during the Sales Tax Participation Period applicable to such project, which Sales Tax Rebate shall be calculated by the Village only from the portions of the said Sales Taxes generated by each Applicable Project approved by the Village Board and actually received by the Village after any deductions made by the Illinois Department of Revenue (“IDOR”). (i) Assume that a total of $1,000 of sales subject to the Sales Taxes as defined in Section (b)(ii) occur on the Subject Property during a calendar year within the term of this Agreement. (ii) The Village is entitled to receive from the State of Illinois 3.75% of Sales Tax Revenues, resulting in a total of $37.50 as to the aforesaid $1,000 in taxable sales, less deductions made by the IDOR. (iii) The $37.50 of Sales Tax Revenues that the Village would receive would be derived by the Village from the following sources: $10 from State of Illinois sales tax; $20 from the Village’s Home Rule tax; and, $7.50 from the Village’s BDD tax. (iv) The Developer would be entitled to 40% of the Sales Tax Revenues actually received by the Village = $37.50 x 40% = $15.00. It is agreed that if such $37.50 is reduced by any lawful IDOR deductions, then only 40% of the amount actually received by the Village, after deductions, shall be due to the Developer. less any deductions made by the IDOR. The $15.00 shall be paid from any source of the Sales Tax Revenues as determined by the Village. (v) The Village agrees that it shall not pledge or assign to any other person any of the Sales Tax Revenues generated from the Subject Property, or request that IDOR make any deductions from the portion of such revenues that would otherwise be remitted by IDOR to the Village. (b) Every Sales Tax Rebate due hereunder shall first be applied to reduce the outstanding principal balance due on any outstanding Developer Notes (but only during such time as said Developer Notes remain valid and payable under the terms of the TIF Agreement), beginning with the oldest Developer Note first, and then (after all such principal on all Developer Notes have been paid, or after the remaining Developer Notes expire upon expiration of the TIF Agreement) to all accrued but unpaid interest on such Developer Notes. After the earlier of the date as of which (i) all Developer Notes have been fully retired, or (ii) the TIF Agreement has expired, the payments of Sales Tax Rebates shall nevertheless continue to be made to the Developer as herein provided. No costs incurred by the Developer in connection with any of the Applicable Projects that qualify as “redevelopment project costs” under the TIF Act shall have the effect of increasing the maximum amount of reimbursable Redevelopment Project Costs above Ten Million Dollars ($10,000,000) as currently provided in Section 6 of the TIF Agreement.