To receive LEDA support, Greater Kudu must invest at least $350 million in project construction and operate the facility for at least 10 years. minimum of $350,000,000 in the construction of the Project

If $350 million in qualifying construction expenses has not accrued by the agreement’s termination date—generally the tenth anniversary—the company must cooperate in returning 100% of the public support it received through the GRT increment. If by the Termination Date $350,000,000 in expenses

The company must provide monthly documentation of project-related gross receipts tax filings, including required contractor and subcontractor records, to the Village, County, and State Economic Development Department. provide a copy of all CRS-1s for the Project

The company must provide security for the public support through a parent-company commitment, and the parent must reimburse the Village for all public support if the company fails to satisfy the required investment or other repayment obligations. the Parent shall reimburse the Village for all of the public support

The company must pay the Village’s reasonable administrative expenses, third-party expenses, inspection and audit costs, and outside legal fees arising from a company default; the administrative fee may be supplemented from the project’s GRT increment. pay the Village ... an administrative fee

LEDA funds may be used only for eligible public infrastructure improvements and are limited to the gross receipts taxes generated by the project; the Village and County have no obligation to fund improvements beyond appropriated amounts. the only recourse for payment of the GRT Increment

The Village will dedicate 50% of its gross receipts and compensating tax increments generated by taxable construction expenses for the data-center project for 10 years to fund eligible infrastructure improvements, subject to the project agreements and the requirement that the Company invest at least $350 million and operate the facility for at least 10 years. 50% of the Village’s ... tax revenue ... for ten years

The project may receive corresponding contributions of 50% of eligible construction-related gross receipts and compensating tax increments from the State and Valencia County for 10 years, in addition to the Village contribution. fifty percent of the state ... and ... local and county gross receipts and compensating tax increments

The Village and County can use the dedicated tax proceeds to acquire, construct, install, and pay for eligible public infrastructure supporting the project, including highway-intersection and connectivity improvements, Huning Ranch Loop expansions, an Eastside feasibility study, the Safety Corridor, and potentially the Los Lunas West Loop. Infrastructure Improvements

The Village is designated as fiscal agent for the State and County contributions, with the funds transferred into a project-specific fund and distributed for public infrastructure; EDD must transfer State funds to the Village within 30 days after their deposit in the LEDA Fund. Transfer to the Village the GRT Increment from the LEDA Fund

The Village and County, rather than Greater Kudu, may enter the construction and related contracts for the public infrastructure, with project costs paid from the dedicated tax increments and limited to eligible infrastructure costs. the Village and the County, rather than the Company, to enter into the construction

The Village is not obligated to issue the industrial revenue bonds until it completes its normal project review and the Council approves a separate bond ordinance.

The Village Administrator must publish notice at least 14 days before the Council meeting at which the bond ordinance will be considered, creating a required notice and waiting period.

The inducement resolution expires if the Council does not adopt the bond ordinance within 180 days after the resolution’s adoption.

The industrial revenue bonds will not receive federal tax-exempt treatment; the resolution states that interest is taxable for federal income-tax purposes.

Tax certificates authorized for the project may be used only for capital equipment and other tangible personal property and may not be used after project completion.

To receive LEDA support, Greater Kudu must operate the facility for at least 10 years and invest at least $350 million in project construction.

If at least $350 million in project-related construction expenses have not accrued by the applicable termination date, Greater Kudu must cooperate in recovering 100% of the gross-receipts-tax increment it received.

The company must provide monthly documentation, including contractor and subcontractor tax filings and project-related gross-receipts-tax summaries, so the public contributions can be verified.

LEDA-funded infrastructure improvements may be paid for only from eligible gross-receipts-tax increments and may not exceed the actual cost of those improvements.

The Village may issue taxable industrial revenue bonds for the expansion in up to six series of up to $7.5 billion each, financing project costs and certain bond-issuance costs. The bonds require later Village Council approval through a bond ordinance and remain subject to Village review. up to six (6) series

Interest on the industrial revenue bonds is intended to be taxable for federal purposes but exempt from New Mexico state taxation, reducing the state tax burden for bondholders and potentially lowering financing costs. interest on the Bonds is exempt from State taxation

The Company may use Type 9 nontaxable transaction certificates, acting as the Village’s agent, to purchase capital equipment and other tangible personal property for the project without the applicable transaction taxes. The certificates cannot be used after project completion or for non-project purchases, and they become void if the bond ordinance is not adopted. Type 9 Nontaxable Transaction certificates

The industrial revenue bonds are payable solely from lease payments made by Greater Kudu and are not a general debt of the Village or a charge against its taxing power. The Company must promptly reimburse the Village for bond-related costs, limiting the Village’s financial exposure while enabling the project financing structure. special limited obligations

The Village will dedicate 50% of the Village gross receipts and compensating tax increment generated by the Company’s taxable construction expenses for ten years to eligible infrastructure supporting the expansion. The County and State arrangements likewise provide for dedication of 50% of their applicable tax increments. fifty percent of the tax revenue

The dedicated LEDA tax revenues may fund public infrastructure connected to the expansion, including New Mexico Highway 6 intersection and connectivity improvements, Huning Ranch Loop improvements, an Eastside expansion feasibility study, Safety Corridor improvements, and potentially the Los Lunas West Loop. The improvements are funded only to the extent that dedicated revenues or separately appropriated matching amounts are available. Infrastructure Improvements

The Village will act as fiscal agent for the State and County LEDA increments, receive the dedicated revenues, place them in a project-specific fund, and administer payments for eligible infrastructure costs. The revenues cannot be used for other purposes, and any Village or County contribution beyond the dedicated revenues requires separate legislative appropriation. act as fiscal agent

The LEDA support is available in connection with a commitment by Greater Kudu to invest at least $350 million in construction and operate the facility for at least ten years. If the required construction spending is not achieved, the project party must cooperate in recovering the public support, with a parent-company commitment serving as security for repayment. invest a minimum of $350,000,000

The data-center expansion and related bond financing remain subject to the Village’s normal project review and require Village Council approval and authorization through a later bond ordinance.

Before the Council considers the bond ordinance, the Village must publish notice of its intent to adopt it at least 14 days in advance, including the meeting’s time, date, and location.

The inducement resolution expires if the Village Council does not adopt the bond ordinance within 180 days after the resolution’s adoption.

The Company must enter into a lease agreement requiring lease payments sufficient to pay debt service on the bonds.

The bonds’ interest is not intended to be exempt from federal income tax, although the resolution states that it is exempt from New Mexico state taxation.

Type 9 nontaxable transaction certificates may be used only for capital equipment and other tangible personal property purchased for the project and may not be used after the project is completed.

If the Council refuses or fails to adopt the bond ordinance, the Company loses the benefits under the Industrial Revenue Bond Act, including the certificates, and previously covered purchases may become subject to the otherwise applicable tax.

Authorizes up to six taxable Industrial Revenue Bond series, each with principal of up to $7.5 billion, to finance the expansion project and related issuance costs. up to six (6) series

Provides that interest on the bonds is exempt from New Mexico state taxation, although the company does not intend the interest to be exempt from federal income taxation. interest on the Bonds is exempt from State taxation

Allows Greater Kudu to apply, as the Village’s agent, for Type 9 nontaxable transaction certificates for purchases of capital equipment and other tangible personal property for the project. The certificates cannot be used after project completion or for nonqualifying purchases. apply to the Taxation and Revenue Department for Type 9 Nontaxable Transaction certificates

Creates an inducement resolution allowing the company to proceed under the Industrial Revenue Bond structure while the Village completes its review and considers the later bond ordinance. The inducement is subject to the Village Council’s subsequent approval of that ordinance. This Resolution is intended to be an “inducement resolution”

Structures the bonds as special limited obligations payable solely from lease revenues, rather than from the Village’s general credit or taxing power; the company must promptly reimburse the Village for bond-related costs. payable solely from the revenues derived from the leasing of the Project

Authorizes the Village Administrator to publish the required notice of intent to adopt the bond ordinance, advancing the process toward final bond authorization. The notice must be published at least 14 days before the meeting at which the Council considers the ordinance. at least fourteen (14) days prior