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85-0059,59 3. The owners agree not to convey any Unit to any entity so as to make the Unit exempt from property taxation unless provisions are made for the payments in lieu of property taxes in annual amounts sufficient to prepay or fully retire that portion of the tax increment indebtedness which is equal to the total tax increment indebtedness times the per- centage which is the Unit's valuation in relation to the valuation of all The Yancey residential and commercial condominium units. 4. The owners agree to cause The Yancey Condominium Association, Inc. to keep The Yancey building insured against loss or damage by fire, and such other risks, casualties and hazards as are customarily covered by Builders' Risk and "all risk" coverage policies in an amount not less that the assessed valuation of The Yancey residential and commercial condo - minium units in the aggregate. In the event of any damage or destruc- tion, which would reduce the valuation of The Yancey real property, the unit owner agrees to cause The Yancey Condominium Association Inc. to restore the building so that its real property valuation and that of all The Yancey residential and commercial units' improvements are not less than $ , , provided, however, that The Yancey Condominium Associa—lnc , may at its option pay to the City from the proceeds of such insurance an amount (less the amount of any reserves in any funds or accounts securing the tax increment indebtedness remaining) which would retire the tax increment indebtedness remaining in full, and upon such payment, would be under no obligation to restore, repair, or replace the building or improvements. 5. In the event that all or a substantial portion of The Yancey building is condemned and the condemning party would not be obligated to pay ad valorem taxes upon that portion condemned, the City of Grand Island shall be entitled to claim against the condemnor an interest in such condemned property equal to the total tax indebtedness (less the amount of any reserves in any fund or account securing such bonds) times the percentage which is the valuation of the property taken in relationship to the valuation of all the Units. 6. The City of Grand Island and the Declarant will be relying upon the above covenants in order to complete the tax increment financing, and the owners' or their successors' or assigns' failure to comply with the covenants above could give rise to liability including, without limitation, specific performance and money damages to the City of Grand Island, bond and noteholders of the tax increment financing and the Declarant. 7. These covenants are severable and the invalidation of one or more shall not invalidate any other covenant, term or condition herein contained. 8, "Owner" or "owners" as used herein shall mean and refer to the record owner, whether one or more persons or entities, or a fee simple title holder to any unit which is part of the properties described in Exhibit "A ", including contract buyers, but excluding those having such ins ter - est merely as security for the performance of an obligation. -2- U L.__