Resolution 6561 - Laserfiche WebLink

24 months, and restricts Touchstone from transferring the Property until the hotel has been fully constructed and has reached stabilization. 3. Touchstone will execute and deliver to the City an option agreement, in the form attached to the Tenth Amendment,which will grant the City the right to reacquire the Property if Touchstone fails to meet certain milestones related to completion of the project,as set forth in the option agreement. 4. Touchstone will deliver$500,000to the City at closing,which will be nonrefundable unless Touchstone secures the necessary project equity financing by June 30, 2013, and secures the necessary project construction financing and starts project construction by October 31, 2013,all as set forth in the option agreement and other project documents. 5. Touchstone will execute and record a Deed of Trust against the property, in the form attached to the Tenth Amendment. 6. The principals of Touchstone will execute and deliver to the City a guaranty, in the form attached to the Tenth Amendment. 7. Touchstone will secure at its sole cost and risk all necessary equity financing to construct the entire hotel project. 8. Touchstone will secure at its sole cost and risk all necessary construction financing to construct the entire hotel project. This construction financing will be structured so that Touchstone may not draw on the construction loan until Touchstone has spent$6 million on the project. 9. In accordance with the terms of the project construction covenant,Touchstone will at its sole cost and risk demolish existing improvements on the Property. 10. In accordance with the terms of the project construction covenant, Touchstone's excavation for the hotel project will enable the removal and proper disposal of some or all of certain contaminated soils currently buried on the Property. 11. In accordance with the terms of the project construction covenant,Touchstone at its sole cost and risk will construct the entire hotel project. H. The City will receive other public benefit from the hotel project on the Property, including,for example, (1) increased vibrancy of the downtown core, (2) increased property values for adjacent and nearby City-owned properties, and (3)taxes from the construction and operation of the hotel project. The City desires to transfer the Property to Touchstone for the purpose of the development and construction of the hotel project and delivery of the parking rights in favor of the City, which will, as set forth above, provide substantial benefits to the City.