2024/09/18 Council Agenda Packet

6 to be paid to the Property’s seller at closing unless the title company is irrevocably committed at closing to issue a lender’s title insurance policy in the amount of the Property’s purchase price, with policy form and exceptions acceptable to the City in its sole discretion. i. Unless the County and City have approved a priority/subordination agreement and such agreement is recorded at Closing, the City will, through its escrow instructions, require that the following documents be recorded in the following order at Closing without any intervening recorded document: (i) deed, (ii) Restrictive Covenant, and (iii) Deed of Trust. All fees associated with recording documents are the responsibility of EGM. C. Funding of Allowable Project Costs. To the extent that Loan funds remain after acquisition funding, those remaining Loan funds will be disbursed to EGM to reimburse Allowable Project Costs as follows: 1. “Allowable Project Costs” are costs approved by the City and County necessary to prepare the Property for the Project, subject to the following limitations and clarifications: a. Unless pre-approved by both County and City in writing, Allowable Project Costs do not include any costs for construction, alteration, enlargement, improvement, repair, or demolition. b. Examples of Allowable Project Costs include design costs, permitting costs, bed purchase costs, and furniture purchase costs as necessary for the Project. However, costs are only allowable to the extent directly attributable to preparation of the Property for the Project. For example, if EGM’s design costs include costs for design of improvements/buildings on the Property that include more than what is necessary for the Project, reimbursement under this Agreement will be limited to those design costs necessary for the Project. 2. EGM will submit requests for reimbursement to the City, which the City will provide to the County. Reimbursement requested by EGM of will not be paid to EGM unless both City and County approve the EGM reimbursement request. 3. Loan funds for Allowable Project Costs will not be disbursed to EGM until after EGM owns the Property. 4. Unless determined otherwise by the County and City, Loan funds for Allowable Project Costs will be disbursed solely on a reimbursement basis. 5. Loan funds may reimburse costs for Allowable Project Costs incurred between June 1, 2024 and the date EGM takes ownership of the Property, but reimbursement will not be paid until after such ownership date. 6. Reimbursement requests must be submitted by EGM as required by the City. EGM must submit the Invoice in the form of Attachment 3 to the City- County ILA. The City may require EGM to use the City Amplifund system.