12-19-2001 Council Agenda - Laserfiche WebLink

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minimum market value) with respect to the portion of the Redevelopment Property the Developer retains. 11. MORTGAGE FINANCING AND ENCUMBRANCES. 11.1. Limitation Upon Encumbrance of Redevelopment Property. Prior to the recording of the Develoner Mortgage, completion of the Minimum Improvements and the City's issuance of a Certificate of Completion, the Developer may not grant any mortgage or create or consent to any other encumbrance or lien upon the Redevelopment Property, or suffer any encumbrance or lien to be made on or attach to the Redevelopment Property, except the Developer may grant a First Mortgage for the purpose of obtaining funds necessary for the development of the Project and the construction of the Minimum Improvements (including, but not limited to, labor and materials, equipment, professional fees, real estate taxes, construction interest, organization and other indirect costs of development, and an allowance for contingencies) upon, and only upon, the prior written approval of the City in accordance with Section 11.2. In addition, the Developer may, without notice to or the consent of the City enter into one or more leases affecting the Redevelopment Property provided each lease is, by its express terms, subordinate to this Agreement, the Assessment Agreement and the Developer Mortgage. Prior to the City's issuance of the Certificate of Completion, the Developer may not subject the Redevelopment Property to easements without the written consent of the City, which consent the City may not unreasonably withhold or delay. After the City's issuance of the Certificate of Completion, the Developer may grant easements without the consent of the City or the Authority, but if the City's consent is not obtained, the easement remains subject to the City's rights under the Developer Mortgage. 11.2. Approval of a First Mortgage. The City may grant or withhold its approval of a First Mortgage in the City's sole and absolute discretion except the City must approve a First Mortgage granted for the purposes described in Section 11.1 if: 1353333vDOC Red (V3 to V2) (a) the Authority first receives a copy of all mortgage documents; (b) the mortgage loan, together with the Developer's Equity and the amount of the City Loan, will, in the reasonable judgment of the City, be sufficient to construct the Minimum Improvements; (c) the City has not given the Developer notice of an Event of Default pursuant to Section 13.2, or, if notice has been given, the Developer has cured the Event of Default; and (d) the City determines that the terms of the First Mortgage conform to the terms of Section 11.5 of this Agreement. f The First Mortgage must secure a First Mortgage Loan in an amount less than or equal to $ ; the First Mortgage Loan must be amortized over a period of not more than years; and the First Mortgage Page 127