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02/12/2018 <br />WHEREAS, the anticipated Loan closing has moved to February 28, <br />2018, and the City wishes to approve the loan documents after the original <br />February 1, 2018 deadline; and <br />WHEREAS, the Loan will be for a term of fifty-five years and bear interest <br />at a rate of 3% simple interest per annum; and <br />WHEREAS, the terms of the Loan are set forth more fully in a Funding <br />Agreement by and between the City and MidPen, in substantially the form <br />attached hereto as Attachment 1 and incorporated herein by reference (the <br />"Funding Agreement'); and <br />WHEREAS, as evidence of the Loan, MidPen will execute a promissory <br />note (the 'Promissory Note"), and to secure the Loan, MidPen will execute and <br />record a deed of trust (the "Deed of Trust'), each in substantially the form <br />attached to the Funding Agreement; and <br />WHEREAS, in consideration for the Redwood City Affordable Housing <br />Funds or the use of the proceeds thereof, MidPen has agreed to record <br />Affordability Covenants on the property in substantially the form attached to the <br />Funding Agreement, which Affordability Covenants restrict income and rent of <br />the City assisted units such that the units remain continuously affordable to lower <br />income persons for 55 years; and <br />WHEREAS, in connection with the Loan, the City desires to execute a <br />Subordination Agreement by and among the City, MidPen, and Silicon Valley <br />Bank in substantially the form attached hereto as Attachment 2 and incorporated <br />herein by reference (the "Subordination Agreement") and an Intercreditor <br />Agreement by and among the City, MidPen and the County of San Mateo in <br />substantially the form attached hereto as Attachment 3 and incorporated herein <br />by reference (the "Intercreditor Agreement'); and <br />WHEREAS, the Funding Agreement, the Promissory Note, the Deed of <br />Trust, the Affordability Covenants, the Subordination Agreement, and the <br />Intercreditor Agreement shall be collectively referred to hereinafter as the "Loan <br />Documents"; and <br />WHEREAS, the City Council now wishes to approve the Loan and the <br />ATTY/RESO.0009/CC RESO APPROVING A LOAN FOR AFFORDABLE HOUSING FUND MID PEN ATHERTON COURT <br />RESOLUTION NO. 15644 <br />REV: 02-06-18 JS MUFF NO. 304 <br />Page 2 of 3 <br />