Agenda Packets - 1987/12/14 - Laserfiche WebLink

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r` ARTICLE VR Financing Section 7.1. Financing. (a) Prior to and as a condition to the City's payment of any of the costs of constructing the Public Improvements, the Redevelo2er shall submit to the City evidence of a commitment for financing sufficient for construction of Phases of the idinimum Improvements which will generate the aggregate_ Assessor's Minimum Market Value required by Section 4.3 to be generated by January 2, 1989. if the City finds that the financing Is sufficiently committed, adequate in amount to provide for the contraction of suet+ Phase or Phases, and contains other terms and conditions which are not inconsistent with the objectives and needs of the City, then the City shall notify the Redeveloper In wetting of Its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within thirty (30) days from the date when the City Is provided the evidence of such financing. If the City rejects the evidence of financing as inadequate., It shall do so In writing specifying the basis for the rejection. in any event the Redeveloper shall submit adequats ev!dcnce of financing within thirty (30) days after such rejection.. (b) Prior to the City's reimbursement to the Redeveloper of any funds pursuant to Section 3.7 of this Agreement with respect to a Phase, the Redeveloper shali provide evidence to the City, satisfactory to the City, that the Redeveloper has obtained permanent financing with respect to such Phase or that the Redeveloper has paid all of the costs of constructing such Phase. Section 7.2. Limitation Upon Encumbrance of Property. Prior to the completion of the Minimum Improvements, as certified by the City, neither the Redeveloper nor any successor in interest to the Redevelopment Property or any part thereof shall engage in any financing or any other transaction creating any mortgage or other encumbrance or lien upon the Redevelopment Property, whether by express agreement or operation of law, or suffer any encumbrance or lien to be made on or attach to the Redevelopment Property, except: (a) for the purposes of obtaining funds only to the extent necessary for making the Minimum Improve- ments (including, but not limited to, land and building acquisition, including the purchase price paid for the Redevelopment Property, labor and materials, pro- fessional fees, real estate taxes, construction interest, organizational and other Indirect costs of development, costs of constructing the minimum !mprovements, and an allowance for contingencies), and (b) only upon the prior written Ppproval of the City, which approval shalt not be unreasonably withheld or delayed. For the purposes of ,such financing as may be made pursuant to the Agreement, the Redevelopment Property may, at the option of the Redeveloper (or successor In interest), be divided into several parts or parcels, provided that such subdivision, in the opinion of the City, Is not Inconsistent with the purposes of the Program and this Agreement and Is approved in writing by the City. Section 7.3. Approval of Mortgage. The City shall approve a Mortgage If: (a) the City first receives a copy of all mortgage documents; (b) the City determines, In Its reasonable discretion, that the mortgagee Is a responsible lender capable of and authorized to make the mortgage loan; (c) the City determines, In its reasonable discretion, that the mortgage loan, together with other funds available to the Redeveloper, will be sufficient to construct the subject Phase of 29