12-19-2001 Council Agenda - Laserfiche WebLink

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5. PURCHASE AND SALE OF THE REDEVELOPMENT PROPERTY. Contemporaneously with the execution of this Agreement, the Authority and the Developer will execute the Purchase Agreement. In event of a conflict between the terns of this Agreement and the terms of Purchase Agreement, the terns of the Purchase Agreement control. If the Developer terminates the Purchase Agreement pursuant to Section 14 of the Purchase Agreement or if the Authority terminates the Purchase Agreement pursuant to Section 15 or 16(a)(i) of the Purchase Agreement, this Agreement automatically terminates. The automatic termination of the Agreement pursuant to the preceding sentence does not relieve a Party from liability to other Parties for a default under this Agreement that occurred prior to termination, but no Party has further obligations under this Agreement after such termination. 6. LOAN FOR ELIGIBLE EXPENSES. 6.1. General. To assist the Developer in the development of the Redevelopment Property, the City will loan the Developer an amount not to exceed $500,000 to finance Eligible Expenses the Developer incurs in connection with the development of the Redevelopment Property (the "City Loan "). 6.2. Conditions Precedent to the City Loan. The City's obligation to make the City Loan to the Developer and the Developer's right to receive the City Loan from the City are subject to the Developer's satisfaction of the following conditions precedent: 1353333vDOC Red (V3 to V2) (a) At least ten Business Days before the date the Developer wants to close on the City Loan (the "Disbursement Date "), the Developer must notify the City, in writing, of the amount, not to exceed $500,000, the Developer is requesting as the City Loan amount. (b) On or before the Disbursement Date, the Developer must provide the City with documentation evidencing, to the reasonable satisfaction of the City, that the Developer has paid not less than $600,000 to third parties in connection with the construction of the Minimum Improvements and other aspects of the development of the Redevelopment Property and that Developer's lender has disbursed not less than $ either to Developer or directly to third parties to pay costs associated with Developer's construction of the Minimum Improvements and other costs associated with the development of the Redevelopment Property. If Developer's lender has disbursed loan proceeds directly to Developer, Developer must also provide the City with documentation evidencing, to the reasonable satisfaction of the City, the Developer has used the loan proceeds to pay amounts due to third parties in connection with the construction of the Minimum Improvements or otherwise associated with the development of the Redevelopment Property. (c) On or before the Disbursement Date, Developer must provide the City with documentation, reasonably acceptable to the City confirming the Developer has incurred Eligible Expenses in at least the amount of the City Loan. Page 115