Common use of Mitigation Payments Clause in Contracts

Mitigation Payments. (a) Following the Trust Acquisition Date, in order to mitigate the Impacts resulting from the Project, to fund certain police, fire protection, emergency medical and other services to be provided for the Project by the City, and as payments in lieu of taxes against all property (real and personal) and all activity that would otherwise be taxable by the City if the Subject Property were not acquired in trust, and as consideration for the City’s assistance and support of the Project as contemplated in this Agreement, the Tribe shall pay to the City the amounts set forth below for the applicable periods (the “Mitigation Payments”): (1) For the period from the Trust Acquisition Date until the Opening Date, $125,000 per year payable in monthly installments; (2) From and after the Opening Date, the greater of (a) the applicable Guaranteed Amount or (b) four percent (4%) of all Net Gaming Revenue. (b) Prior to the Opening Date, Mitigation Payments shall be due and payable to the City monthly in arrears, on the last Business Day of each calendar month. On and after the Opening Date, any required Mitigation Payments shall be paid quarterly in arrears within 45 days after the last day of each calendar quarter commencing on the first such date to occur after the Opening Date; provided, however, that if by the terms of the Compact, the Tribe is required to make a payment to the Commonwealth based upon gaming revenue of the Project on a basis more frequently than quarterly, then the Tribe agrees to pay such Mitigation Payments to the City on a basis no less frequently than the Tribe is making such payments to the Commonwealth. (c) On January 31 of each calendar year occurring after the Opening Date, the Tribe shall determine the aggregate Percentage Amounts paid to the City for the immediately preceding calendar year. If such amount is less than the Guaranteed Amount, prorated for any partial year, the Tribe shall pay to the City, no later than February 15 (or if such date is not a Business Day, then the Business Day immediately following February 15), an amount equal to the difference between such Guaranteed Amount and such aggregate Percentage Amounts. (d) The City will not seek payments to be made after the Trust Acquisition Date from the Commonwealth of Virginia regarding the Project and to the extent the City receives any such payments through the Compact or otherwise, such amounts shall be credited towards the Mitigation Payments. (e) If Gaming that meets the Minimum Standards ceases to be conducted at the Project following the Opening Date for more than 90 consecutive days (other than in connection with any temporary closure resulting from a Force Majeure Event, a casualty event or new construction on the Subject Property), then the Parties agree to meet and negotiate in good faith an alternate calculation for the Mitigation Payments that will thereafter be due and payable to the City based on the highest and best use of the Subject Property; provided, however, that in no event will the aggregate Mitigation Payments for any calendar year be less than the Guaranteed Amount.