08-22-2001 Council Agenda - Laserfiche WebLink

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9.1. Limitation Upon Encumbrance of Development Property. Prior to the completion of the Minimum Improvements and the City's issuance of a Certificate of Completion, the Developer may not grant any mortgage, create or consent to any other encumbrance or lien upon the Development Property, or suffer any encumbrance or lien to be made on or attach to the Development Property, except the Developer may grant a First Mortgage for the purpose of obtaining funds necessary for 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 9.2. 9.2. 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 9.1 if: (a) the City first receives a copy of all mortgage documents; (b) the mortgage loan, together with other funds available to the Developer, 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 11.2, 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 9.5 of this Agreement. (e) the First Mortgagee executes and delivers to the City a recordable instrument acknowledging that the First Mortgage and the First Mortgagee's rights under the First Mortgage are subject and subordinate to the terms of the Assessment Agreement, whether or not the Assessment Agreement has been recorded as of the date of the First Mortgage. 9.3. Notice of Default; Copy to Mortgagee. Whenever the City is obligated to deliver a notice to the Developer with respect to and Event of Default, the City will, at the same time, send a copy of the notice to any Mortgagee if the Mortgagee has provided the City with written notice of the existence of its Mortgage and an address to which the notice should be sent. 9.4. Mortgagee's Option to Cure Events of Defaults. The City agrees to accept from any Mortgagee any payments or the performance of any obligations necessary to cure an Event of Default as though Developer had tendered such payment or performance. Page 59 1316916v1