AgdaPkt 2019-09-09 Joint SA PFA - Laserfiche WebLink

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permit allowing occupancy of any residential unit in the Project. The Public Use Agreement may be amended from time to time by mutual agreement of the City and the Owner, and any amendment to the Public Use Agreement shall automatically be deemed to be incorporated into this Agreement without any further requirement to amend this Agreement. 7.2 Sales Tax Guarantee. (a) For the Term of this Agreement, and commencing two (2) years after occupancy is allowed in the final office or residential building, Owner agrees to pay to the City the positive difference, if any, obtained by subtracting: (i) the sales tax revenues the City actually received from the entire Property (including sales tax generated by office space tenants) for the previous fiscal year (measured from July 1 to June 30) from: (ii) the amount of Eighty -Three Thousand Seven Hundred Dollars ($83,700) (the "Sales Tax Guarantee"). (b) Commencing one year after the Effective Date, the amount of the Sales Tax Guarantee shall be increased once every twelve months based on the annual percentage increase in the Consumer Price Index, All Items (CPI -U), San Francisco -Oakland -San Jose, on June 30 of each year. (c) In the first year that the Project is subject to the Sales Tax Guarantee, Owner shall pay to the City the positive difference, if any, obtained by subtracting: (i) the sales tax revenues the City actually received from the Property for the previous fiscal year (measured from July 1 to June 30) from: (ii) the amount of the Sales Tax Guarantee prorated for the period in which occupancy was approved. (As an example, if occupancy is approved on October 1, 2019, then no Sales Tax Guarantee would be due from October 1, 2019 to October 1, 2021, and the first calculation of the Sales Tax Guarantee would occur for the period from October 1, 2021 to June 30, 2022, The sales tax actually received from the Property from July 1, 2021 to June 30, 2022 would be subtracted from the Sales Tax Guarantee prorated over a nine month period rather than a twelve month period to determine any amount owed to the City.) 7.3 Marketing to Incubator/Accelerator/Co-Working Tenants. For the Term of this Agreement, Owner shall make a good faith effort to implement the plan shown in Exhibit D attached hereto (the 'Incubator Marketing Plan") and market the office space within the Project to incubator, accelerator, and co -working tenants. Notwithstanding this provision, Owner shall have no obligation to implement the Incubator Marketing Plan if all of the office space in the Project is leased to a single tenant, nor shall Owner have any obligation to implement the Marketing Plan during periods when the office space in the buildings is ninety-five percent (95%) leased for at least one year in the future. 7.4 Affordable Housing. Concurrently with the recordation of this Agreement, Owner and City shall execute and record a Below Market Rate (BMR) Housing Agreement in the form attached as Exhibit E ("BMR Housing Agreement"), which shall provide, among other things, for: (a) the provision of a total of twenty (20) 11 1677A05\1960134.8 1/17/2017 PAGE 271