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Item 19 - Density Bonus Agreement No. 2024-02 Property Located at 510 and 520 N. Harbor
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Item 19 - Density Bonus Agreement No. 2024-02 Property Located at 510 and 520 N. Harbor
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5/1/2025 3:22:40 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Planning & Building
Item #
19
Date
5/6/2025
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CITY COUNCIL DRAFT <br />4.15 Developer shall allow the City to conduct annual inspections of the Affordable <br />Units on the Property after the date of construction completion, with reasonable notice, which shall <br />be at least twenty four (24) hours in advance, unless a shorter time is required in an emergency, to <br />Developer for the Term of this Agreement. Developer shall commence to cure or cause the <br />commencement to cure any defects or deficiencies found by the City while conducting such <br />inspections within ten (10) business days of written notice thereof, or such longer period as is <br />reasonable within the reasonable discretion of the City. <br />5. TERM OF THIS AGREEMENT <br />5.1 Term. This Agreement shall continue until all Affordable Units have been <br />sold to Homebuyers pursuant to this Agreement (the "Term"). Upon the issuance of a Certificate <br />of Occupancy for all of the Affordable Units in a building, this Agreement shall terminate as to <br />the Unrestricted Units and the common area associated with that building. If there are no <br />Affordable Units in a particular building, this Agreement shall terminate as to the Unrestricted <br />Units in that building and the common area associated with that building upon the issuance of the <br />Certificate of Occupancy for Affordable Units in the prior building. Upon the initial sale of each <br />Affordable Unit and execution and recordation (as applicable) of the Homebuyer Documents <br />pursuant to Section 3.5, or sale of an Affordable Unit as a Released Unit pursuant to Section 3.6, <br />this Agreement shall terminate and be of no further force and effect with respect to such Affordable <br />Unit. Upon the initial sale of all Affordable Units to Eligible Households pursuant to this <br />Agreement, this Agreement shall terminate and be of no further force and effect. While not <br />necessary to effect the termination of this Agreement, the Parties shall cooperate to execute and <br />record a release or termination as to the Unrestricted Units, common area of the Project, or the <br />Affordable Units as per the terms of this Section. <br />5.2 Continuing Obligation to Pay the City Equity Share. Notwithstanding the <br />expiration of the Term, the City shall have the right to receive payment for the City Equity Share, <br />and enforce the Affordable Housing Resale Restrictions, the City Promissory Note, and the City <br />Deed of Trust until satisfactory payment of the City Equity Share pursuant to the terms of those <br />agreements. <br />G��]�ly:11 1 D : u 111► :� ► I► ul► �1:11 �]� <br />6.1 Default. Failure or delay by any Party to perform any term or provision of <br />this Agreement, which is not cured within thirty (30) days after receipt of notice from the other <br />Party specifying the default (or such other period specifically provided herein), constitutes a <br />default under this Agreement; provided, however, if such default is of the nature requiring more <br />than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by commencing to <br />cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion <br />within an additional sixty (60) days following the conclusion of such thirty (30) day period (for a <br />total of ninety (90) days). Except as required to protect against further damages, the injured Party <br />may not institute proceedings against the Party in default until the time for cure has expired. <br />Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it <br />change the time of default. <br />6.2 Remedies. <br />Page 18 <br />5 53 94.0010 1 \43721567.2 <br />
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