Section 1: For purposes of this Ordinance, the following terms shall have the following meanings:

(a) Original Project Area shall mean that portion of the City of Primghar, Iowa described in the Urban Renewal Plan for the Urban Renewal Area #1 approved by Resolution on November 25, 1996, which Original Project Area includes the lots and parcels located within the area legally described as follows:

Beginning at the intersection of 1st Street North and South Green Avenue, then South on South Green Avenue to 1st Street South, then West on 1st Street South to South McCormack Avenue, then North on South McCormack Avenue to 1st Street North, then East on 1st Street North to point of beginning.

The Urban Renewal Area includes the full right-of-way of all the streets forming the boundary.

(b) Amendment No. 1 Area shall mean that portion of the City of Primghar, Iowa added to Urban Renewal Area #1 by the Amended and Restated Urban Renewal Plan for Urban Renewal Area #1 approved by Resolution No. 2007-23 on December 10, 2007, which Amendment No. 1 Area includes the lots and parcels located within the area legally described as follows:

Original Town: Block 5, Lots 6-10

Original Town: Block 7, Lots 3-7

Original Town: Block 10, Lots 1-5

Original Town: All of Block 12

The Urban Renewal Area includes the full right-of-way of all the streets forming the boundary.

(c) Amended Project Area shall mean that portion of the City of Primghar, Iowa included within the Original Project Area and the Amendment No. 1 Area, which Amended Project Area includes the lots and parcels located within the area legally described as follows:

ORIGINAL PROJECT AREA

Beginning at the intersection of 1st Street North and South Green Avenue, then South on South Green Avenue to 1st Street South, then West on 1st Street South to South McCormack Avenue, then North on South McCormack Avenue to 1st Street North, then East on 1st Street North to point of beginning.

The Urban Renewal Area includes the full right-of-way of all the streets forming the boundary.

AMENDMENT NO. 1 AREA

Original Town: Block 5, Lots 6-10

Original Town: Block 7, Lots 3-7

Original Town: Block 10, Lots 1-5

Original Town: All of Block 12

The Urban Renewal Area includes the full right-of-way of all the streets forming the boundary.

Section 2: The taxes levied on the taxable property in the Amended Project Area, legally described in Section 1 hereof, by and for the benefit of the State of Iowa, City of Primghar, County of O'Brien, South O'Brien Community School District, and all other taxing districts from and after the effective date of this Ordinance shall be divided as hereinafter in this Ordinance provided.

Section 3: As to the Original Project Area, that portion of the taxes which would be produced by the rate at which the tax is levied each year by or for each of the taxing districts taxing property in the Original Project Area upon the total sum of the assessed value of the taxable property in the Original Project Area as shown on the assessment roll as of January 1, 1995, being the first day of the calendar year preceding the effective date of Ordinance No. 224, shall be allocated to and when collected be paid into the fund for the respective taxing district as taxes by or for the taxing district into which all other property taxes are paid. The taxes so determined shall be referred herein as the "base period taxes" for such area.

As to the Amendment No. 1 Area, base period taxes shall be computed in the same manner using the total assessed value shown on the assessment roll as of January 1, 2006, being the assessment roll applicable to property in such area as of January 1 of the calendar year preceding the effective date of this Ordinance.

Section 4: That portion of the taxes each year in excess of the base period taxes for the Amended Project Area, determined for each sub-area thereof as provided in Section 3 of this Ordinance, shall be allocated to and when collected be paid into the special tax increment fund previously established by the City of Primghar to pay the principal of and interest on loans, monies advanced to, or indebtedness, whether funded, refunded, assumed or otherwise, including bonds issued under authority of Section 403.9 or Section 403.12 of the Code of Iowa, incurred by the City of Primghar, Iowa to finance or refinance, in whole or in part, urban renewal projects undertaken within the Amended Project Area pursuant to the Urban Renewal Plan, as amended, except that taxes for the regular and voter-approved physical plant and equipment levy of a school district imposed pursuant to Section 298.2, but only to the extent authorized in Section 403.19(2), and taxes for payment of bonds and interest of each taxing district shall be collected against all taxable property within the Amended Project Area without any limitation as hereinabove provided.

Section 5: Unless or until the total assessed valuation of the taxable property in the areas of the Amended Project Area exceeds the total assessed value of the taxable property in the areas shown by the assessment rolls referred to in Section 3 of this Ordinance, all of the taxes levied and collected upon the taxable property in the Amended Project Area shall be paid into the funds for the respective taxing districts as taxes by or for the taxing districts in the same manner as all other property taxes.

Section 6: At such time as the loans, monies advanced, bonds and interest thereon and indebtedness of the City of Primghar referred to in Section 4 hereof have been paid, all monies thereafter received from taxes upon the taxable property in the Amended Project Area shall be paid into the funds for the respective taxing districts in the same manner as taxes on all other property.

Section 7: All ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. The provisions of this Ordinance are intended and shall be construed so as to continue the division of taxes from property within the Original Project Area under the provisions of Section 403.19 of the Code of Iowa, as authorized in Ordinance No. 224, and to fully implement the provisions of Section 403.19 of the Code of Iowa with respect to the division of taxes from property within the Amendment No. 1 Area as described above. In the event that any provision of this Ordinance shall be determined to be contrary to law it shall not affect other provisions or application of this Ordinance which shall at all times be construed to fully invoke the provisions of Section 403.19 of the Code of Iowa with reference to the Amended Project Area and the territory contained therein.

Section 8: This Ordinance shall be in effect after its final passage, approval and publication as provided by law.