Common use of PROGRAM GRANT Clause in Contracts

PROGRAM GRANT. Subject to Fenway’ s satisfaction of and compliance with all of the terms and conditions of this Agreement including without limitation the requirements set forth in Section 4 below, the City agrees, to pay to Fenway a Program Grant in the maximum amount of six million, five hundred thousand and dollars ($6,500,000.00) (the “Program Grant”) to reimburse Fenway for construction of the public infrastructure for the Project defined as potable water main lines, sanitary sewer main lines, stormwater main lines, public streets, public sidewalks, public parks, and all associated appurtenances, all as identified in Exhibit A attached hereto and incorporated herein (the “Public Infrastructure”) and provide certain fee waivers, as follows: (a) A maximum of $4,250,000.00 will be given to reimburse Fenway for the construction of Public Infrastructure items identified in Exhibit A as to be funded from the City’s General Fund; and (b) A maximum of $1,000,000.00 will be given to reimburse Fenway for the construction of Public Infrastructure identified in Exhibit A as qualifying for funding from the City’s Stormwater Fund; and (c) A maximum of $1,000,000.00 will be given to reimburse Fenway for the construction of Public Infrastructure identified in Exhibit A as qualifying for funding from the City’s Utility Fund and; and (d) A maximum of $250,000.00 will be given in the nature of permit and development fee waivers. It is understood and agreed by the Parties that the line item cost amounts shown in Exhibit A are estimates only and the actual line item amounts may be adjusted up or down within each funding category of Public Infrastructure improvements. However, the maximum Grant payment for each funding category of Public Infrastructure, as listed above, and funds not spent in any funding category are NOT transferrable to reimburse Fenway for expenses in another funding category. The Grant payments made hereunder shall be paid solely from lawfully available funds that have been appropriated by the City. Under no circumstances shall the City’s obligations hereunder be deemed to create any debt within the meaning of any constitutional or statutory provision. Consequently, notwithstanding any other provision of this Agreement, the City shall have no obligation or liability to pay any Grant unless the City appropriates funds to make such payment during the budget year in which the Grant is payable; provided that during the Term of this Agreement the City agrees that it will take such steps as are within its power to appropriate funds each year estimated to equal the amount of Grants to be paid the Company for the ensuing fiscal year. Further, the City shall not be obligated to pay any commercial bank, lender or similar institution for any loan or credit agreement made by the Company. Notwithstanding the foregoing, the Company may pledge or contribute the City’s payments, dependent on Company’s full compliance with the terms of this Agreement, to assist in securing financing for the Project; but the City will not consent to a requirement to make payments directly to a lender.