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<br /> <br />2 <br /> <br />LOAN AGREEMENT <br /> <br /> This Loan Agreement (the “Agreement”) by and between the EVERETT GOSPEL MISSION, a <br />Washington nonprofit corporation (“EGM”) and the CITY OF EVERETT, a Washington municipal <br />corporation (the “City”) is dated for reference purposes __________________________ (the <br />“Effective Date”) and is made to facilitate the acquisition of the certain property and certain other <br />costs, all for the purposes of providing emergency bridge housing as set forth in this Agreement. <br />RECITALS <br />A. Under Interlocal Agreement Between Snohomish County and the City of Everett for Emergency <br />Bridge Housing dated __________ (the “City-County ILA”), the City has received from <br />Snohomish County (the “County”) funding from the County’s chemical dependency/mental <br />health program fund (CDMH) pursuant to RCW 82.14.460 and chapter 4.25 SCC. Under <br />RCW 82.14.460, such funding must be used: <br />solely for the purpose of providing for the operation or delivery of chemical dependency or <br />mental health treatment programs and services and for the operation or delivery of <br />therapeutic court programs and services. Moneys collected by cities and counties under <br />this section may also be used for modifications to existing facilities to address health and <br />safety needs necessary for the provision, operation, or delivery of chemical dependency or <br />mental health treatment programs or services otherwise funded with moneys collected in <br />this section. For the purposes of this section, "programs and services" includes, but is not <br />limited to, treatment services, case management, transportation, and housing that are a <br />component of a coordinated chemical dependency or mental health treatment program or <br />service. <br />B. EGM proposes to acquire (or already has acquired) property located at 3715 and 3719 Smith <br />Avenue in Everett, WA, which is legally described in the attached Exhibit A (the “Property”). <br />C. EGM will use the Property for emergency bridge housing, with chemical dependency or mental <br />health treatment programs and services. The emergency bridge housing and these programs <br />and services to be provided on the Project Property, and certain requirements thereto, are <br />described in Exhibit B to this Agreement (the “Project”). <br />D. This Agreement provides CDMH funding to EGM as a deferred forgivable loan in the amount of <br />$4 million at three percent (3%) simple interest for the following Project purposes: <br />1. Funding EGM’s acquisition of the Project Property, which will be approximately $2.5 <br />million. This acquisition must occur before December 31, 2024, or else the City may <br />terminate this Agreement; and <br />2. Funding EGM’s Allowable Project Costs (as set forth below); and <br />3. If there are remaining funds, funding EGM’s other Project-related costs, subject to <br />County and City pre-approval. <br />E. In connection with the forgivable loan provided in this Agreement, EGM will execute a <br />promissory note in form of the attached Exhibit C (the “Note”), which will be secured by a deed <br />of trust in the form of the attached Exhibit D (the “Deed of Trust”). This Agreement provides <br />that, if the Project is not physically ready for Project operation by December 31, 2026 (or such <br />later date as may be approved in writing by the County and City), then the City may exercise <br />remedies under the Loan Documents (as defined below).