Agenda - Council - 09/27/2011 - Special

Home

Agreement, the HRA will be deemed to have made a $120,000.00 "Advance," to itself from the available proceeds of Loan No. 1 in full payment of this fee contemporaneously with the first "Advance" of the proceeds of Loan No. 1 that the HRA makes pursuant to the terms of the Loan Agreement. If, at any time after the execution of the Loan Agreement, Developer defaults in the timely payment of any amounts due under Note No. 1, the HRA gives Developer "Written Notice" of the default, as provided for in the Loan Agreement, and Developer does not cure the default within ten (10) days of the effective date of the HRA's notice, interest shall accrue on the outstanding principal balance of Note No. 1 from the date of the default through the date Developer cures all defaults under Note No. 1 at the rate of twelve percent (12 %) per annum. Section 7.4 Repayment Terms. Commencing on April 1, 2015 and continuing on each April 1 thereafter until April 1, 2025, Developer must pay to the HRA, in certified or wire transferred funds and for application to the outstanding principal and interest, if any, due under Note No. 1, an amount equal to 20% of the Net Cash Flow for the immediately preceding calendar year. If, prior to April 1, 2025, Developer refinances a Project Loan, Developer must make an additional payment to the HRA, for application to the outstanding principal due under Note No. 1, in an amount equal to 20% of the difference between the principal amount of the new Project Loan and the amount of the outstanding principal and accrued, unpaid interest under the Project Loan that is being refinanced. The preceding sentence applies each time Developer refinances a Project Loan. Notwithstanding anything else in this Section 7.4, if Developer refinances a Project Loan to obtain additional funds that are necessary to complete the initial construction of the Minimum Improvements, Developer is not obligated to pay to the HRA 20% of the amount of the new loan that Developer uses to pay costs of completing the initial construction of the Minimum Improvements. The entire outstanding principal amount of Loan No. 1 and all accrued interest, if any, is due and payable in full upon the earlier of April 1, 2025 or a Sale of the Development Property. Upon the occurrence of an Event of Default, the entire outstanding principal balance of Loan No. 1 and all accrued interest and other amounts due under Note No. 1 shall, at the option of the HRA and subject to the notice and cure provisions set forth in Section 13.1(c) and the Loan Agreement, become immediately due and payable, in full; provided, however that if an Event of Default described in Section 13.1 (i) or (j) occurs, all sums outstanding under Note No. 1 shall become immediately due and payable in full without notice or demand whatsoever. Section 7.5 Prepayments. Developer may prepay Note No. 1, in whole or in part, at any time and, if in part, from time to time, during the term of Note No. 1. All payments shall be applied first to the payment of accrued, unpaid late charges, then to accrued, unpaid interest, if any, with the balance, if any, applied to the reduction of principal. Section 7.6 Submission of Financial Information. On or before April 1, 2015 and on or before each April 1 thereafter until April 1, 2025, Developer must provide the HRA with a statement from a certified public accountant setting forth the "Net Cash Flow," "Net Operating Expenses" and "Operating Expenses," as defined in the Development Agreement, for the immediately preceding calendar year and with such back -up documentation regarding income, expenses and debt service as the HRA may reasonably request to confirm the certified public accountant's calculation of "Net Cash Flow," "Net Operating Income" and "Operating Expenses." The certified public accountant who prepares the statement may be an employee of Borrower or an Affiliate of Borrower. 2695614v12 13