12-06-1995 Council Agenda - Laserfiche WebLink

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Guarantors or upon any of their property, except for such returns the failure to file, and such taxes the failure to pay, would not have a material adverse effect on the business, properties, assets, operations or condition (financial or otherwise) of the Developer and Guarantors. 3.11 Developer is not in violation of any environmental law, ordinance, governmental rule or regulation which violation could materially adversely affect its business, prospects, properties, assets, operations or condition (financial or otherwise) or its ability to perform its obligations contained in this Agreement or in any instrument or document executed and delivered pursuant to this Agreement. Other than as disclosed in the Environmental Phase I Report, the Project is free of Hazardous Substances and is not subject to any claims to which "Superfund" type liens attach or claims by regulatory agencies or other third parties relating to or arising from the release or threatened release of Hazardous Substances in, on or about the Project. 4. Agreement of EDA to Lend and Agreement of Developer to Borrow. 4.1 Subject to the terms and conditions hereof and of the Note, Mortgage and other Loan Documents delivered herewith, the EDA agrees to loan Developer and Developer agrees to borrow from EDA an amount not to exceed ONE MILLION NINE HUNDRED THOUSAND DOLLARS ($1,900,000) Dollars. The EDA shall advance against the Note in stages as set forth in Section 5 below. 4.2 In consideration of the EDA's commitment to lend, Developer hereby agrees to pay to the EDA concurrently with the execution hereof a non - refundable, wholly earned Loan Origination Fee of $150,000. 304291.2 5. Advances and Disbursements. 5.1 An initial advance (the "Initial Advance ") shall be made against the Note on the Date of Closing in the amount of $1,400,000 and shall be used to pay the purchase price for Developer's acquisition of the Land and the Existing Improvements. 5.2 After Developer's delivery of the documents and instruments described in Section 2.3 to the EDA and Developer's commencement of the Rehabilitation Work, Developer may submit to the EDA and Title, no more often than monthly, written Disbursement Requests for costs associated with the Rehabilitation Work. Each Disbursement Request shall specify the amount of Loan proceeds Developer is asking the EDA to disburse, the parties to receive the disbursement and the labor or materials which the disbursement will pay for and shall certify such amounts to be currently payable (excluding withholdings) for costs incurred in connection with the Rehabilitation Work. After Developer's delivery of the documents and instruments described in Section 2.4 to the EDA and after the completion of the Enhancement Page 13