2024/09/18 Council Agenda Packet

5 Property has an appraised value of at least the amount that EGM requests for acquisition reimbursement. f. Acquisition reimbursement will be delivered to EGM contemporaneously with the recording of the fully executed Deed of Trust, the Restrictive Covenant, and subordination/priority agreements (if any) against the Property. All fees associated with recording documents are the responsibility of EGM. g. Unless otherwise determined by the City, acquisition reimbursement will not be delivered to EGM unless a title company acceptable to City is irrevocably committed to issue a lender’s title insurance policy in the amount of the reimbursement requested, with policy form and exceptions acceptable to the City in its sole discretion. 2. Acquisition Funding by Escrow Deposit. a. To receive acquisition funding by the City depositing funds into the escrow account for EGM’s purchase of the Property (the “Loan Escrow Deposit”), 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. The Loan Escrow Deposit will not be made unless the County and City, after review of EGM’s submittals, both determine in writing to approve EGM’s acquisition funding request. These approvals are at the sole discretion of the County and City. c. The City will not make the Loan Escrow Deposit after December 31, 2024, and the City may terminate this Agreement if the Closing does not occur by December 31, 2024, unless the City’s Director of Community Development determines in writing to extend those dates. d. Unless the City determines otherwise in writing, the Loan Escrow Deposit will not be made unless the City receives a copy of an appraisal showing that the Property has an appraised value of at least the amount of the Loan Escrow Deposit. e. The escrow agent and title company must be reasonably acceptable to the City. f. The amount of the Loan Escrow Deposit will not exceed the amount required under escrow agent’s closing statement(s) to be deposited by buyer into escrow to close the sale transaction. g. The City will not disburse any portion of the Loan before closing. For example, the City will not disburse any portion of the Loan for use as earnest money. h. Unless otherwise determined by the City and County, the City will, through its escrow instructions, not allow Loan Escrow Deposit funds