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Escrow Agent to apply the proceeds of the City Loan on behalf of Developer to the Purchase <br />Price of the Property and related soft costs. Developer shall execute and deliver to the Escrow <br />Agent the City Promissory Note, the City Deed of Trust and the Affordability Restrictions on <br />Transfer of Property. <br />3.2 Authorized Use of City Loan. The City Loan proceeds may be used for the <br />acquisition of the foreclosed Property, as well as pre- approved reasonable soft costs related to <br />such purchase. <br />3.3 Loan Repayment. Developer shall make payments to the City as provided in <br />Sections 3.4 (Residual Receipts), 3.5 (Refinancing Proceeds), 3.6 (Sale Proceeds) and 3.7 <br />(Accelerated Loan Repayment). <br />3.4 Annual Loan Repavment/ Residual Receipts. <br />a. The Developer shall make a loan payment to the City annually, in the <br />amount of the lesser of the outstanding balance due under the City Promissory Note or the City's <br />percentage of the residual receipts , as provided in this Section 3.4. <br />b. Within one hundred fifty (150) days after the close of the initial Calendar <br />Year following the issuance of the Certificate of Completion and on or before the 150`x' day of <br />each Calendar Year thereafter, the Developer shall submit to the City an audited financial <br />statement of gross revenues and operating expenses attributable to the Property for the applicable <br />Calendar Year, along with a computation of the residual receipts due to the City for the Calendar <br />Year. <br />c. Except as otherwise provided, the Developer shall pay to the City fifty <br />percent (50 %) of the Residual Receipts. Fifty percent (50 %) of the Residual Receipts shall <br />remain with the Developer. <br />d. The Residual Receipts payment shall be made not later than one hundred <br />fifty (150) days after the close of the Calendar Year. Such payment shall be applied first to any <br />late fees, then to reduce the principal balance of the loan. <br />3.5 Loan Repayment from Refinancing Proceeds. The Developer shall make a <br />loan payment to the City from every refinancing that occurs during the term of this Agreement <br />not to exceed the outstanding balance of principal on this City Promissory Note, to the extent of <br />the City's percentage, which is fifty percent (50 %), of the Refinancing Proceeds (if any), as <br />follows: the cash proceeds from such Refinancing shall be applied first to pay closing costs; next, <br />the amount necessary to pay in full the balance remaining on the Senior Loan; next, the amount <br />necessary to pay any deferred developer fee in full; and next, the Developer shall pay to the City <br />the City's percentage of the remaining Refinancing Proceeds to the extent of the outstanding <br />balance on this City Promissory Note. At least fifty percent (50 %) of the Refinancing proceeds <br />shall remain with Developer, with all remaining Refinancing proceeds remaining with the <br />Developer to the extent the outstanding balance of the City Promissory Note has been fully paid.. <br />Such payment shall be due on the date of such Refinancing, and shall be applied to reduce the <br />9 <br />1076A5311389382.1 <br />