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ATTACHMENT A City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org ATTY/RESO.0022/CC RESO APPROVING CONDITIONAL FUNDING COMMITMENTS FOR RISE CITY APARTMENTS AND 1580 MAPLE STREET – ATTACHMENT A REV: 05-05-26 LF Page 2 of 3 1199\06\4215889.1 Third Party Closing Costs Applicant/borrower is responsible for lender's legal fees and all third-party closing costs Timing/ Conditions Project must start construction within 36 months from receiving funding award. The City Manager shall have the authority, in their sole discretion, to extend the commencement requirement for up to one additional year upon a determination that the Developer is making satisfactory progress toward completion of the Project. Additionally, the City Manager has the authority to extend the commencement date based on the progress made on the Blomquist Street Extension project. Loan Amount Predevelopment loan amount of $500,000. • All City funding must be spent on eligible expenses, as described below. Loan Term The predevelopment loan term is up to 36 months, with potential conversion to a construction/permanent loan at the start of construction. As noted above, the City, at its discretion, may extend the loan term for up to one (1) year upon a determination that the Developer is making satisfactory progress toward completion of the Project. If the commencement date is extended based on the Blomquist Street Extension project, the loan term will be extended accordingly. Interest Rate No interest is accrued or payable during the predevelopment period. Payments No payments are due on the predevelopment loan until the maturity date when the entire balance is payable in full unless it is rolled over into a City- approved construction/permanent loan. If the predevelopment loan is rolled over into a construction/permanent loan, interest begins to accrue on the outstanding principal balance commencing upon the closing date for the construction/permanent loan. The construction/permanent loan interest rate will be determined by the City and will have a rate up to 3% simple. Loan Repayment Loan must be repaid at the earlier of the maturity date or the close of construction financing or, at the City’s discretion, can be rolled over into the Construction/Permanent Loan and assumed by the project development entity. Subject to funding availability. Security City predevelopment loan shall be secured by the following: 1. Loan Guaranty or deed of trust if land is owned or leased by applicant; and 2. Assignment of plans, contracts and tangible goods. 3. Leasehold Deed of Trust when the ground lease is signed Eligible Third Party Costs The City will provide this portion of the Loan to the applicant for payment of third-party expenses, subject to the terms of the City’s Loan agreement: • Architecture, engineering and other professional services, including customary legal costs, that are required for securing land use approvals, meeting environmental requirements and/or obtaining project funding • Application fees for County, State or Federal funding • City permit and other fees