Agmt 2008 Spectrum Community Services

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CAPITAL IMPROVEMENT LOAN AGREEMENT THE CITY OF SAN LEANDRO AND SPECTRUM COMMUNITY SERVICES This Loan Agreement for Capital Improvements (this "Agreement") is entered into by the City of San Leandro ("City"), a municipal corporation, and Spectrum Community Services ("Participant") and is dated this day of July 1, 200$ ("Effective Date"). City and Participant are hereinafter collectively referred to as the "Parties." RECITALS A. City is the recipient of Community Development Block Grant ("CDBG")funds. B. Participant desires to perform the following capital improvements as described under the Scope of Work in Exhibit B or related to the Property and seeks City's assistance to accomplish this goal (the "Improvements"). C. City desires to provide CDBG loans to qualified local nonprofit organizations in order to assist such organizations with capital improvement projects. D. City has determined that Participant is a qualified local nonprofit organization and is eligible to receive a loan of CDBG funds in order to construct the Improvements (the "Project Loan"). E. Concurrently herewith, Participant shall execute a promissory note (the "Note"). This Agreement and the Note are collectively referred to as the "Loan Documents." NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows: ARTICLE I LOAN TERMS; USE AND DISBURSEMENT OF PROCEEDS 1.1 LOAN. City agrees to loan to Participant, and Participant agrees to borrow from City a sum of up to Forty Thousand Dollars ($40,000.00) (the "Loan") upon the terms and conditions and for the purposes set forth in this Agreement for construction of the Improvements which are approved by the City. The Loan shall be evidenced by the Note which shall be dated as of the Effective Date and executed by Participant substantially in the form attached hereto as Exhibit A. 1.2 REPAYMENT; INTEREST RATE; FORGIVENESS. Fiscal Year 08-09 1