Agenda Packets - 1998/12/07 - Laserfiche WebLink

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Mr. Daniel L. Hall November 24, 1998 Page 2 (b) For the purpose of obtaining funds in an amount not exceeding the costs of the Development Property and the Minimum Improvements (including, but not limited to, labor and materials, equipment, professional fees, real estate taxes, construction interests, organization and other indirect costs of development, costs of constructing the Minimum Improvements, an allowance for contingencies, costs of any financing to fund construction or acquisition of the Project, amounts required to fund any reserves relating to construction or acquisition of the Project, amounts required fund any reserves relating to construction of the Project, and amounts required to fund any required escrow accounts); and, (c) Only upon the prior written approval of the City in accordance with Sections 8.1 and 8.2." I have incorporated the language of definition for First Mortgage in the proposed revision to Section 8.1 as above stated. The definitional section of the Development Agreement defines a "Mortgage" as any security agreement or mortgage which is a permitted encumbrance pursuant to the terms of Article 8. I think we need to include the revisions to Section 8.1 in order to make it absolutely clear that the existing mortgage may be deemed a permitted encumbrance, whether it remains in place or is refinanced as a part of the new project financing. 2 The definition of "Person" appearing on page 3 of the Development Agreement should include a Limited Liability Company. 3. As you know, the Project costs are usually quite a bit greater than the direct construction expense of the Minimum Improvements. This fact is recognized by the expansive recitation of those scft costs in Section 8.1. Accordingly, I think that Section 3.2 (d) should be revised to read as follows: • "(d) Receipt of the certification by the Developer, together with such supporting documentation as the City may reasonably require, evidencing and certifying that the Developer has expended not less than thirty percent (30%) of the cost of the Development Property and the Minimum Improvements (including, but not Iimited to, labor and materials, equipment, professional fees, real estate taxes, construction interests. organization and other indirect costs of development, and cost of constructing Minimum Improvements)."