Agenda - Council - 03/24/1998 - Laserfiche WebLink

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DRAFT 3/18/98 ARTICLE VII MORTGAGE FINANCING Section 7.1. Financing. (a) On or before the closing date, the Developer shall submit, to the City, evidence of one or more commitments for financing which, together with committed equity for such construction, is sufficient for the construction of the Minimum Improvements. Such commitments may be submitted as short term financing, long term mortgage financing, a bridge loan with a long term take-out financing commitment, or any combination of the foregoing. Such commitment or commitments for short term or long term financing shall be subject only to such conditions as are normal and customary in the banking industry. (b) If the City finds that the financing is sufficiently committed and adequate in amount to provide for the construction of the Minimum Improvements, then the City shall notify the Developer, in writing, of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within 10 days from the date when the City is provided the evidence of financing. A failure by the City to respond to such evidence of financing shall be deemed to constitute an approval hereunder. If the City rejects the evidence of financing as inadequate, it shall do so, in writing, specifying the basis for the rejection. In any event, the Developer shall submit adequate evidence of financing within 30 days after such rejection. Section 7.2. ~ily's Option to Cure Default on Mortgage. In the event that there occurs a default under any Mortgage authorized pursuant to Article VII of this Agreement, the Developers shall cause the City to receive copies of any notice of default received by any developers from the holder of such Mortgage. Thereafter, the City shall have the right, but not the obligation, to cure any such default on behalf of the Developer within such cure periods as are available to the Developer under the Mortgage documents. Page 14 I I