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Use Restriction Covenant Agreement
<br /> This Leasehold Use Restriction Covenant Agreement (the "Covenant Agreement") by
<br /> HopeWorks Social Enterprises (the "Owner"), is part of the consideration for the financial
<br /> assistance provided by City of Everett (the "City") pursuant to the City of Everett Loan Agreement
<br /> ("Agreement") entered into by and between the City and Owner, for the development of certain
<br /> real property legally described on Attachment 1 attached hereto, together with all tenements,
<br /> privileges, reversions, remainders, irrigation and water rights, and stock, oil and gas rights,
<br /> royalties, minerals and mineral rights, hereditaments and appurtenances belonging or in any way
<br /> pertaining to the Property, and the rents, issues, and profits thereof ("the "Property").
<br /> This Covenant Agreement will be filed and recorded in the official public land records of
<br /> Snohomish County, Washington, and shall constitute a restriction upon the use of Owner's
<br /> leasehold interest in the Property described herein, which leasehold interest was created by the
<br /> Lease by and between Hopeworks Station Enterprises as Lessor and Owner as Lessee, subject to and in
<br /> accordance with the terms of this Covenant Agreement.
<br /> The covenants contained herein are to be taken and construed as covenants running with
<br /> the land and shall pass to and be binding upon the Owner, its successors and assigns, heirs,
<br /> grantees, and lessees of the Property, beginning on the date of recording of this Covenant
<br /> Agreement. Each and every contract, deed, or other instrument covering or conveying Owner's
<br /> leasehold interest in the Property, or any portion thereof, shall be conclusively held to have been
<br /> executed, delivered, and accepted subject to such covenants, regardless of whether such
<br /> covenants are set forth in such contract, deed, or other instrument.
<br /> This Covenant Agreement is intended to be co-existent with, and not cumulative of, any
<br /> other tenant income restrictions in place upon the Property.
<br /> NOW, THEREFORE, it is hereby covenanted as follows:
<br /> 1. From the date of the recording of this Covenant Agreement and continuing until December
<br /> 31, 2043, the Owner shall operate the Property exclusively as a workforce development center
<br /> associated with the low-income supportive housing on the Property and available to Very Low-
<br /> income persons. "Very Low Income" means gross annual household income is not more than
<br /> fifty percent (50%) of the annual median income (at the time of initial occupancy) for the
<br /> Seattle-Bellevue-Everett metropolitan statistical area, adjusted for household size, as
<br /> estimated from time to time by the U.S. Department of Housing & Urban Development (HUD).
<br /> If at any future time HUD ceases issuing said median household estimates, the income under
<br /> this Agreement shall be as determined by the City.
<br /> 2. Owner will make annual certifications to the City in such form and on such date as the City
<br /> may require, and with such accompanying documentation as the City may require, that it is in
<br /> compliance with this Covenant Agreement.
<br /> 3. Owner hereby irrevocably grants an easement in gross to the City and its agents and
<br /> employees, for the duration of this Covenant Agreement, to enter the Property at any time on
<br /> reasonable notice to inspect the condition of the Property, to interview tenants and verify
<br /> income information and any other matters relevant to this Covenant Agreement, or to inspect
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