Laserfiche WebLink
F.In connection with the forgivable loan provided in this Agreement, EGM will execute a use <br />restriction covenant in the form of the attached Exhibit E (the "Restrictive Covenant''), which <br />will restrict the Property until December 31, 2051, as described therein. This Agreement, the <br />Note, Restrictive Covenant, and the Deed ofTrust are collectively referred to in this Agreement <br />as the "Loan Documents." <br />AGREEMENT <br />NOW, THEREFORE, in consideration of their mutual promises herein contained, the parties <br />hereto agree as follows: <br />I.BASIC LOAN TERMS <br />A.Purpose of the Loan/Project Deadline <br />The purpose of the Loan (defined below) is to facilitate the Property being physically <br />ready for Project operation no later than December 31, 2026 (unless such date is <br />extended in writing by the County and City). EGM will use the Loan for acquisition <br />of the Property and for Allowable Project Costs, with EGM securing funding from <br />other sources for necessary improvements to the Property. Remaining Loan funds <br />may only be used for purposes pre-approved by the County and City. <br />By executing this Loan Agreement, EGM agrees to cause the Property to be <br />physically ready for Project operation no later than December 31, 2026 (unless such <br />date is extended in writing by the County and City). <br />For the purposes of this Agreement and the other Loan Documents, the Property is <br />deemed "physically ready for Project operation" when the Property, as determined <br />by the City's Director of Community Development, is physically able to be used for <br />Project purposes with all improvements to the Property necessary for Project <br />operation substantially completed, which must include capacity for 65 beds of <br />emergency bridge housing and capacity for up to an additional 60 emergency <br />severe weather shelter beds on the Property. <br />B.The Loan <br />Subject to the terms and conditions of this Agreement and the other Loan <br />Documents, EGM is hereby provided a deferred loan at three percent (3%) simple <br />interest in a principal amount not to exceed $4 million ($4,000,000) (the "Loan"). <br />Principal and interest shall be due on December 31, 2026 (unless such date is <br />extended in writing by the County and City), at which time the full balance due and <br />owing under the Loan Documents shall be paid by EGM, except that, if the Project <br />is physically ready for Project operation by December 31, 2026 (or such later date <br />approved in writing by the County and City), and EGM is otherwise in compliance <br />with the Loan Documents, then the City will forgive the Loan (including forgiveness <br />of 100% of the principal and 100% of the interest), with the Note deemed paid in <br />full and with the Deed of Trust reconveyed or otherwise terminated. This <br />forgiveness does not affect the Restrictive Covenant, which will remain in effect <br />until December 31, 2051. <br />If the Project is not physically ready for Project operation by December 31, 2026 (or <br />such later date approved in writing by the County and City), the principal, interest, <br />and reconveyance fees shall be due on December 31, 2026 (unless such date is <br />3