55A - AGMT LEGACY APARTMENTS - Laserfiche WebLink

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The City's obligation to disburse the Loan is subject to satisfaction of the following conditions precedent, all of which the City acknowledges have been met as of the execution date hereof: (a) All grading pennits shall have been issued or the City shall have issued a letter stating that Building Permits are ready to issue, subject only to payment of fees and the completion of grading of the Project site. (b) Developer shall have secured all necessary financing and funding for the construction and operation of the Project. Such financing and funding shall be sufficient to pay all Project development costs, through lease -up, as set forth in the final budget consistent with the approved Proforma (or as otherwise approved by the City). (c) Developer shall have provided evidence to the City that the Developer has obtained insurance policies and certificates or endorsements acceptable to the City, as described in this Agreement. (d) Developer shall have provided construction security in favor of the City, which may include a completion guarantee from Developer, in an amount sufficient to ensure the Project will be completed and placed in service within the time set forth in the Project schedule approved by the City. (e) Developer shall submit and obtain the City Project Manager's approval (which such approval shall not be unreasonably withheld, conditioned, or delayed) of the construction contract, the identity and qualifications of the General Contractor, the Partnership Agreement for the limited partnership entity to be formed to own and operate the Project, and management, marketing and tenant selection plans for the Proj ect. 6.3 Termination for Failure of Condition. If (a) any of the conditions set forth in Section 6.2 are not timely satisfied (subject to applicable notice and cure rights), and (b) City is not in default under this Agreement, City may terminate this Agreement without any further liability on its part by giving written notice of termination to Developer. Upon the giving of such notice, all principal, interest and other amounts owing under the Agreement shall be due and payable. 6.4 Any Disbursement. The City's obligation to approve any disbursement of the Loan is subject to the satisfaction of the following conditions: (a) Satisfactory Progress. The City Project Manager shall be satisfied that, based on his/her own inspections or other reliable information from a third -party inspector, the construction is progressing satisfactorily in conformance with all applicable laws and other requirements. (b) Condition of Title. Either (i) the City Project Manager reasonably believes that no event has occurred since the Close of Escrow that would give rise to a colorable claim against the Property (e.g., a mechanic's lien) superior to the claim of City against the Property with respect to the subject disbursement, or if such claim is made, the 55A-24