2025-022 - Approve the Reimbursement Agreement with Forestbrook Public Improvement District No. 1 – Lone Star Planned Developments, LLC

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the City will do the following in the manner and to the maximum extent permitted by applicable law, subject to any conflicting provisions in any Bond Indenture: (a) take and pursue all reasonable actions necessary to cause the Assessments to be collected; (b) take and pursue all reasonable actions necessary to cause the liens related to the Assessments to be enforced continuously, including diligently prosecuting an action in district court to foreclose for delinquent or nonpayment of Assessments, including Annual Installments; and (c) take and pursue all reasonable actions necessary to cause no reduction,, abatement or exemption of the Assessments. Notwithstanding the foregoing, the City shall not be required under any circumstances to (a) establishper annum interest rates on Assessments higher than the per annum 'Interest rate(s) under this Agreement on the unpaid principal balance of the Reimbursement Agreement Balance for the applicable Improvement Area, or (b) purchase or make payment for the purchase of the delinquent Assessments or the corresponding Assessed Parcel. The City shall not be required under any circumstances to expend any funds for Delinquent Collection Costs or Annual Collection Costs in connection with its covenants and agreements under this Section or otherwise other than funds for such purpose on deposit in. the applicable account of the PID Reimbursement Fund. Notwithstanding its collection efforts, if the City fails to receive all or any part of the Assessment Revenue and, as a result, is unable to make transfers from the. PID Reimbursement Fund for payments to the Developer as required under this Agreement, such failure and inability shall not constitute a Failure or Default by the City under this Agreement. A Bond Indenture shall control in the event of any conflicts with this Agreement. 3.2 PID Proiect Costs, 3.2.1 As provided in. the Development Agreement, unless PID Bonds are sold to "'-up-front" fund PID Projects, the Developer shall make Developer Advances to pay all PID Project Costs for an Improvement Area prior to the issuance of PID Bonds to reimburse the Developer for any such Developer Advances. 3.2.2 Bond Proceeds (i) may be used to reimburse the Developer for Developer Advances for PID Project Costs or to pay for PID Project Costs directly, and (ii) shall be used in the manner provided in the applicable Bond Indenture. 3.2.3 As evidence of Developer Advances required in connection with the issuance of a series of PID Bonds, the Developer shall submit to the City for approval all information related to such costs that would be required by a Closing Disbursement Request at least fifteen (15) business days prior to the closing of the PID Bonds. The lack of Bond Proceeds or other funds in the PID Project Fund for an Improvement Area or in the PID Reimbursement Fund shall not diminish the obligation of the Developer to pay all PID Project Costs for such Improvement Area. 3.3 Pymgn!0 — AfR!eimbursementA Ance. 3.3.1 Unless and until PID Bonds are issued, the City agrees to pay the Developer solely from funds on deposit in the applicable account in the PID Reimbursement Fund, and the Developer shall be entitled to receive payments from the City, from such source for amounts shown on the Certificate for Payment for an Improvement Area (which amounts include only PID Project Costs paid by or at the direction of the Developer) (any unpaid amount owed the Developer for all Reimbursement Agreement Forestbrook Public Improvement District No. I Page 6 018581.000001\4908-9229-3155.v5