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07-28-1999 Council Agenda
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07-28-1999 Council Agenda
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1054867.2 <br />to subordinate their rights under the Development <br />Property Deed and this Agreement and for the purposes <br />described in Section 8.1(a) of this Agreement, but only <br />provided that the First Mortgage provides that if the <br />holder of the First Mortgage shall foreclose on the <br />Development Property, the improvements thereon, or any <br />portion thereof, or accept a deed to the Development <br />Property in lieu of foreclosure, it shall consent to <br />the Assessor's Minimum Market Value set forth in the <br />Assessment Agreement and provided that such <br />subordination shall not relieve the Developer of its <br />obligation hereunder to restore the Development <br />Property in the event of damage, destruction or <br />condemnation of all or any part of the Development <br />Property. <br />(b) In order to facilitate the obtaining of <br />financing for the construction of the Minimum <br />Improvements, the City agrees that it shall agree to <br />any reasonable modification of this Article VIII or <br />Article V, intercreditor agreement or waiver of its <br />rights hereunder to accommodate the interests of the <br />holder of the First Mortgage, provided, however, that <br />the City determines, in their reasonable judgment, that <br />any such modification(s) will adequately protect the <br />legitimate interests and security of the City with <br />respect to the Project and the Development Program. <br />The City also agrees to consider such modification(s) <br />of this Article VIII with respect to other holders, and <br />to agree to such modifications if the City deems such <br />modification(s) necessary and reasonably. <br />Page 80 <br />
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