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First Amendment to THRIVE DDA and Consent to Assignment of Leases and Rents <br />Authorization <br />June 7, 2022 <br />Page 2 <br />2 <br />7 <br />2 <br />3 <br />is requesting additional time to meet the required milestones. THRIVE is also requesting <br />right of entry during the DDA period to commence soil remediation that is now necessary <br />for the site due to a change in the plans from utilizing raised planter beds to farming in <br />the ground. To accommodate these requests, a First Amendment to the DDA (Exhibit 1) <br />is required. <br />Additionally, in an effort for THRIVE to secure $100,000 of financing, THRIVE is <br />requesting that the City authorize a Consent to Assignment of Leases and Rents (Exhibit <br />2). The Ground Lease stipulates that THRIVE may secure funding for this project by <br />assigning THRIVE’s interest under the lease. This agreement identifies Clearinghouse <br />Community Development Financial Institution (CCDFI) as an assignee as a lender to <br />THRIVE. <br />A summary of the proposed amendments to the DDA and Ground Lease, and terms of <br />the Consent to Assignment of Leases and Rents are outlined in the table below: <br />AGREEMENT SUMMARY OF KEY TERMS <br />DDA <br />Amendments <br />One-year extension (through June 18, 2023). <br />Lease must be executed by December 15, 2022. <br />Allows right of entry for soil remediation prior to execution of the <br />lease. <br />Updated schedule of performance to align with the one-year <br />extension. <br />Ground <br />Lease <br />Amendments <br />(Part of DDA) <br />Stipulates the purchase option is only available to THRIVE, Santa <br />Ana, Inc, and does not allow a third-party lease assignee to <br />purchase the property. <br />Consent to <br />Assignment <br />of Leases <br />and Rents <br />The City consents to THRIVE’s assignment of the Ground Lease to <br />lender Clearinghouse Community Development Financial Institution <br />(CCDFI) to facilitate project financing, as allowable by the DDA and <br />Ground Lease. <br />The City will not terminate the Ground Lease with THRIVE without <br />allowing CCDFI the opportunity to cure defaults. <br />To be executed along with Ground Lease. <br />Project Description <br />THRIVE proposes to develop a microfarm to grow and distribute fresh produce and <br />ornamentals, and host weekly open-air markets and community activities that promote <br />health. The site would include a work area, produce pick-up table, and lunch tables. In