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LOAN AGREEMENT <br /> This AGREEMENT is entered into this day of , 2009 among the City of <br /> Santa Ana, a charter city, duly organized and existing under the Constitution and laws of the <br /> State of California, (hereinafter "City"), the Community Redevelopment Agency of the City of <br /> Santa Ana, a public body, corporate and politic, and Downtown Incorporated, a California non- <br /> profit corporation, (hereinafter "Downtown, Inc."). <br /> RECITALS <br /> A. On December 15, 2008 the City Council of the City of Santa Ana established the <br /> Downtown Community Management District (the "CMD") to promote economic <br /> revitalization and physical maintenance of Downtown Santa Ana through the levy, <br /> collection and expenditure of funds. <br /> B. Pursuant to state law, governmental agencies such as the City and Agency which own <br /> property within an assessment district must be assessed for special benefits conferred <br /> upon such governmental properties. <br /> C. The first assessments for the CMD will not be received and be available for use in <br /> the district until January 2010 and is in the interest of the property owners in the <br /> district that some of the programs called for under the Management District Plan <br /> begin in the first half of Fiscal Year 2009-2010. <br /> D. The board of directors of the CMD, including the City and Agency have been <br /> requested to loan an amount equal to the estimated first year assessment to <br /> Downtown, Inc., who shall be the management entity for the district under agreement <br /> with the City (the "Management Agreement"). <br /> E. The loans shall be repaid by Downtown, Inc in accordance with this Agreement and a <br /> promissory note. <br /> <br /> NOW THEREFORE, for good and valuable consideration the parties agree as follows: <br /> 1. City and A enc~bli ation. City and Agency shall loan to Downtown, Inc. the <br /> sums of $ (the "City Loan") and $ (the <br /> "Agency Loan") (collectively, the "Loan Proceeds") secured by Downtown, <br /> Inc.'s execution of the Promissory Notes attached hereto as Exhibit 1 & 2 and <br /> incorporated herein by this reference. <br /> 2. Use of Funds Repayment Acceleration. The Loan Proceeds shall be used by <br /> Downtown, Inc. for purposes consistent with the Management Agreement. <br /> Downtown, Inc. shall repay City Loan and Agency Loan on or before June 30, <br /> 2014. Notwithstanding the foregoing, in the event the annual assessments for the <br /> Page 1 <br /> 80A-36 <br /> <br />