2005/09/14 Council Agenda Packet

1 / K. The parties desire and intend to continue with the cleanup and this Agreement establishes the financial terms for advancing and/or paying for those expenses that would have been paid by ASARCO but for its bankruptcy. Nothing in this Agreement shall be construed as relieving ASARCO of its obligations to EHA or other parties involved in the Everett Smelter Site or any subsequent action to recover funds from ASARCO, its cleanup trust fund, or any other responsible entity. L. The City is willing to advance the funds needed to complete the clean up and consummate the sale of the property to Barclays North, Inc. and to be repaid such advanced funds from the increased Ecology grant and from the profit generated when the Park Ridge Condominium units are sold.. II. RESPONSIBILITIES A. The City will advance up to Nine Hundred Thousand Dollars ($900,000) to the EHA ("City Supplemental Advance") for the completion of the Project, as defined in the City/EHA July 22 Agreement. B. No more often than weekly, EHA will submit invoices (third party and EHA) for actual costs incurred in cleanup activities, along with such other reasonable documentation as the City may require. If reasonably acceptable, the City will then advance funds to the EHA in an amount equal to the total of the invoices reasonably acceptable to the City. C. Advances by the City to EHA will be repaid and secured by disbursements of additional grant money from Ecology and (2) profits generated by EHA's sale of the Park Ridge condominiums. EHA agrees to execute such other and further documents and instruments as may be reasonably necessary to perfect the City's security interest therein D. In addition to any other obligations due under or arising out of the City/EHA July 22 Agreement and existing line of credit, EHA will pay or reimburse the City as funds are disbursed from the revenue sources including the Dept. of Ecology. By June 30, 2006 all amounts advanced by the City under this Agreement will be paid up to a total of Six Hundred Seventy-five Thousand Dollars ($675,000). E. This Agreement does not diminish or change EHA's obligations to the City under the City/EHA July 22 Agreement, including, but not limited to, bonding for the cap, and EHA's satisfactory compliance with those conditions required under the City/EHA July 22 Agreement for expending funds and otherwise coordinating with the City on the cleanup and redevelopment activities including any funds advanced by the City under this Agreement. F. EHA will use the City Supplemental Advance to accomplish the conditions precedent for site preparation to enable the closing of the property sale to Barclays North under the terms of the Purchase and Sale Agreement between EHA and Barclays North. G. If, and to the extent, funds are obtained from the ASARCO Trust Fund for this clean up, such ASARCO Trust Fund money will be used to repay advances/grants as follows: ; � ;