AgdaPkt 2003-06-30 - Laserfiche WebLink

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J. WHEREAS, in view of the benefits of the Project, the Agency deems it desirable to use its housing set -aside funds for the purposes of providing the Agency Assistance. NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS: Section 1. Defined Terms: Incorooratio of Recitals All terms not otherwise defined herein shall have the same meaning as used in the CRL. The recitals are by this reference incorporated herein and made a part of this Agreement. Section 2. Public Purpose. The Agency and the Participating Owner agree that the completion of the Project shall be undertaken for - the common benefit of the parties hereto and the residents of the City in order to eliminate blight within the City and areas in or adjacent to the Project Area. The Agency has further concluded that the Project will eliminate or prevent blight on the Property, and will provide an affordable residential base to persons and households who may be presently residing in the Project Area and in other redevelopment project areas of the Agency. Precedent. Ser.tion 3. Aaencv Assistance and Conditions a. The Agency hereby agrees that in order to assist the Participating Owner in the completion of the Project, the Agency will, subject to the terms and conditions contained herein, provide the Loan in a total amount not to exceed Five Hundred Thousand Dollars ($500,000), as evidenced by the Promissory Note and secured by a deed of trust on the Property (the "Deed of Trust "), in the form attached hereto as Exhibit "D ". b. The Promissory Note shall provide that the Loan will accrue no interest, except in the case of default as hereinafter provided, and shall be repaid at the end of the Loan Term (as defined below) , except in the case of a default as hereinafter provided in which case repayment may be accelerated. c. For the purposes of this Agreement, the "Loan Term" shall be the date which is fifty five (55) years from the date that the Certificate of Completion, as provided hereinafter, is issued by the Agency. In the event of a breach of this Agreement, the Affordability Covenants, the Redevelopment Covenants, the Note or the Deed of Trust and after notice of such breach as set forth herein, and a failure to cure or commence curative or mitigating actions (if such cure reasonably requires in excess of the applicable cure period), the Loan shall be deemed to have accrued interest at a rate of eight percent (8%) per annum from the date 3