Agenda - Council - 03/24/2015 - Laserfiche WebLink

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of the amount of the new loan that Borrower 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. Borrower 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, Borrower 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 Developer or Borrower or an Affiliate of Developer or Borrower. Section 7.7 Principal Forgiveness. If Borrower repays $2,000,000 or more of the outstanding amounts due under Loan No. 2 on or before the date 12 months after the date of the first disbursement of proceeds of Loan No. 2, the HRA shall forgive $250,000 of the principal amount of Loan No. 1, such forgiveness to be effective as of the date Borrower has prepaid at least $2,000,000 of the amount due under Loan No. 2. ARTICLE VIII LOAN NO. 2 Section 8.1 Loan No. 2. To further assist Developer with the construction of the Housing Development Project, the HRA proposes to make a loan to Borrower in an original principal amount equal to the sum of (i) $6,825,000.00 and (ii) the Costs of Issuance pursuant to the terms of the Loan Agreement and the Note No. 2. The HRA will fund Loan No. 2 with the proceeds of the Temporary TIF Bonds. Immediately prior to the HRA's conveyance of the Development Property to Developer and the HRA's and Borrower's execution of the Loan Agreement and Note No. 2 pursuant to Section 8.2 below, the City will provide the HRA and Borrower with the City's reasonable estimate of the Costs of Issuance and the HRA will complete the Loan Agreement, Note No. 2 and the Personal Guaranty with the original principal amount of Loan No. 2. 14 2695614v16