Common use of Guarantied Value Clause in Contracts

Guarantied Value. The parties anticipate that, upon completion, the currently contemplated land and improvements related to the Project will have an equalized value for purposes of real property assessment (“Equalized Value”) of not less than Fifty-Four Million Dollars ($54,000,000.00; the “Guarantied Value”) on the third (3rd) anniversary of the date upon which the Developer receives certificates of occupancy for the Project (the “Guarantied Value Date”). As a condition to entering into this Agreement, the City requires that Developer guaranty a minimum Equalized Value for the land and improvements related to the Project. By executing this Agreement, Developer guaranties that, on and after the Guarantied Value Date, the Equalized Value of the land and improvements on the Developer Property shall at all times during the life of the District be at least the Guarantied Value. If the Equalized Value of the Developer Property is less than the Guarantied Value any time on or after the Guarantied Value Date, the Developer shall be in Default under this Agreement. Notwithstanding the foregoing, if the Equalized Value of the Developer Property is less than the Guarantied Value at any time on or after the Guarantied Value Date solely as a result of a Reconstruction Event, then the Developer shall not be in Default under this Agreement, provided the Developer complies with the terms of Section 3.9 above regarding such Reconstruction Event; and, furthermore, if the Equalized Value of the Developer Property is less than the Guarantied Value at any time on or after the Guarantied Value Date but the Project was timely completed by Developer and Developer is making all Tax Increment Shortfall payments required in Section 4.3 below, then the Developer shall not be in Default under this Agreement. For the avoidance of any doubt and notwithstanding any provision herein to the contrary, in the event that the Project is not fully-constructed or fully-reconstructed timely by Developer in accordance with the terms of this Agreement, Developer shall be in Default under this Agreement.