Town of Avon answers to Financial Questions related to the Village (at Avon) Settlement Term Sheet and Consolidated, Amended and Restated Annexation and Development Agreement (“CARADA”) 8/22/2012
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used exclusively for asphalt overlays of existing roads in the Village (at Avon). Thisprovision was negotiated to establish a dedicated financial fund to perform asphaltoverlays before existing roads in the Village (at Avon) deteriorated to an excessivedegree.
What is the “Term” of this Agreement? The CARADA expressly defines the Termseparately from the Vesting Term as agreed in the Settlement Term Sheet.
The Termdoes not have a specific date specified, rather, the Term is “for so long as” theTown’s Tax Credit obligation must remain in place to fully satisfy all “DistrictDebts.” District Debts include the existing outstanding bonds (originally $52million, currently approximately $46 million in principal is outstanding), additionalbonds to fund the water storage tank (est. $9 million), repayment of Past DeveloperAdvances (est. $12 million), and payment of Supplemental Bonds to be issued in thefuture (est. $23 million). The total principal obligation of the District Debts forwhich the Town is obligated to maintain the Tax Credit is limited to $96 million.
Why is BNP Paribas part of the lawsuit?
The Town asserted several claims challengingthe constitutionality of various financial and tax commitments of the Town underthe existing Annexation Agreement as interpreted by the other parties. BNPParibas intervened in the lawsuit to represent its legal interests.
Who is party to BNP Paribas’ Letter of Credit? How much is it for?
U.S. Bank NationalAssociation as Trustee is the holder of the letter of credit against BNP Paribas in theoriginal amount of $52.1 million.
What exactly are the financial ramifications if a settlement cannot be reached?
Thefinancial ramifications of a failure to finalize the settlement were presented to theTown Council on August 14, 2012. The “8-14-12 District Debt Presentation” can befound of the Town’s website under CARADA Public Review Materials at
. See also the answer to Question 49 below.
What happens if the developer goes bankrupt?
The Town has no knowledge of thefinancial status of the Developer. As effects the Town, the only payment obligationunder the CARADA directly by the Developer is the contribution of $80,000 peryear for five years (total $400,000). If the Developer is not able to comply with thispayment obligation, then the Developer would be in default of the CARADA.Otherwise, the CARADA does not create any obligation of the Developer to makeadditional payments or contribute capital to the Village (at Avon) Project.
What is the CARADA?
The CARADA is an acronym for the Consolidated, Amendedand Restated Annexation and Development Agreement, which is an amendment tothe existing Annexation Agreement. The existing Annexation Agreement wasoriginally approved in October 1998, and amended twice thereafter.