6200 12TH DR SE 2020-10-22 - Laserfiche WebLink

201803290406.020 • Section 16 Reacquisition Option 16 1 Option Developer hereby grants the City the right and option to rescind the original conveyance of the Property from the City to Developer at no cost to the City (except as provided for closing costs under Section 16 8 5 below), and thereby cause the Property to be transferred back from Developer to the City,effective upon the occurrence of a "Triggering Event" (as defined in Section 16 2 below) and on the terms and conditions set forth in this Section 16(the"Option") 16 2 Triggering Event The City's Option to cause the Property to be reconveyed back to the City shall only exist during the Option Term(as defined in Section 16 4 below) and shall become effective if Developer, on or before the Project Construction Start Date,fails to commence construction or fails to close all loans or other financing necessary to construct the Project in accordance with this Covenant,or an Event of Default occurs prior to the Project Construction Start Date and is continuing as of the date of the exercise of the Option(any such failure,the"Triggering Event") 16 3 Exercise of Option Upon the occurrence of the Triggering Event, and so long as such Triggering Event remains uncured during the Option Term, the City may exercise its Option to rescind the original conveyance of the Property to the Developer by giving written notice to Developer (the "Option Exercise Notice") Any Option Exercise Notice shall state the date on which the reconveyance of the Property back to the City shall occur("Closing"),but the date of Closing(the "Closing Date")shall in any event be not less than fifteen(15)days after the date of the Option Exercise Notice 16 4 Option Term.,The Option term(the"Option Term")shall commence as of the date hereof and shall terminate on the earlier to occur of (i)the LLC's closing of the construction loan for the Project from KeyBank National Association ("KeyBank"), or (ii)if the City exercises the Option,upon conveyance of the Property to the City pursuant to the terms hereof 16 5 Conveyance. For purposes of the Option, the conveyance by Developer of the Property shall include (a) all appurtenant rights to the Property, including all privileges, tenements, estates, interests and easements, and (b) all Improvements then located on the Property 16 6 Escrow The City will provide First American Title Insurance Company, Everett office such other title company that the City may select("Escrow Agent")with a copy of any Option Exercise Notice concurrently with delivery of the same to Developer Escrow Agent shall be responsible for closing the conveyance of the Property to the City pursuant to the terms and conditions hereof