2024/09/18 Council Agenda Packet

4 extended in writing by the County and City), at which time the full balance due and owing under the Loan Documents shall be paid by EGM. This payment does not affect the Restrictive Covenant, which will remain in effect until December 31, 2051. C. Security for the Loan The Loan shall be evidenced by the Note. As set forth in the Loan Documents, EGM shall execute and deliver for recording the Deed of Trust, which will secure the Loan as set forth in the Loan Documents. EGM shall also execute and deliver for recording the Restrictive Covenant. II. BUDGET AND LOAN DISBURSEMENT A. Project Budget. The total Loan is not to exceed $4 million, which shall be first used for acquisition costs for the Property and Allowed Project Costs, with the remainder for Project costs as may be preapproved by the County and City, with all such costs incurred between June 1, 2024, and December 31, 2026 (or such later date approved in writing by the County and City). B. Property Acquisition Funding. If EGM has already purchased the Property as of the date of this Agreement, the City will provide the acquisition funding by reimbursement as set forth in II.B.1 below. If EGM has not already purchased the Property as of the date of this Agreement, the City will provide the acquisition funding by making a Loan deposit into the escrow account used for the closing of the sale of the Property to EGM as set forth in II.B.2 below. 1. Acquisition Funding by Reimbursement. a. To receive reimbursement of acquisition costs for the Property, EGM must first submit to the County and City in writing the amount requested and backup documentation. The EGM request must also be accompanied by documentation regarding the total funding that EGM has committed for acquisition, improvement, and operation of the Property and Project. EGM must also submit the Invoice in the form of Attachment 3 to the City-County ILA. b. If the Property is subject to any deed of trust or other lender lien, then EGM must also submit to the County and City the form of subordination agreement that such lender(s) will execute to subordinate lender interest(s) to the Loan, Deed of Trust, and Restriction Covenant. c. Acquisition reimbursement will not be delivered to EGM unless the County and City, after review of EGM’s submittals, both determine in writing to approve EGM’s acquisition reimbursement request. These approvals are at the sole discretion of the County and City. d. The City may terminate this Agreement if EGM has not purchased the Property by December 31, 2024, unless the City’s Director of Community Development determines in writing to extend that date. e. Unless the City’s Director of Community Development determines otherwise in writing, acquisition reimbursement will not be delivered to EGM unless the City receives a copy of an appraisal showing that the