RDA Agmt 2008 1750 Doolittle LLC etc

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LOAN AGREEMENT THIS LOAN AGREEMENT ("Agreement") is entered into effective as of September ~, 2008 ("Effective Date") by and between the San Leandro Redevelopment Agency, a public body, corporate and politic ("Agency") and 1750 Doolittle, LLC, a California limited liability company ("Borrower"). Agency and Borrower are hereinafter collectively referred to as the "Parties." RECITALS A. Pursuant to authority granted under Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.) ("CRL"), the Agency has the responsibility to implement the redevelopment plan adopted by the City Council (the "City Council") by Ordinance No. 99-025 on July 19, 1999 for the West San Leandro-Macarthur Redevelopment Project Area (the "Project Area"). B. Borrower is the owner of that certain real property located at 1750 Doolittle Drive, San Leandro and known as Alameda County Assessor's Parcel No. 079A-0385-002-004 (the "Property"). The Property is located in the City of San Leandro (the "City"). C. Comcore, Inc. ("Comcore") has acquired an option to purchase a parcel adjacent to the Property (the "Comcore Option") which is known as Alameda County Assessor's Parcel No. 079-0385- 002-06 (the "Option Property"). D. Borrower and Comcore desire to work cooperatively to combine the Property and the Option Property for the future development of a commercial building (the "Project"). E. The Comcore Option expires on November 30, 2010. However, Comcore intends to seek a five-year extension of the Comcore Option. F. The Option Property has been contaminated by the Nestle Plume and said contamination is currently being remediated, G. There has been a delay in the remediation of the contamination on the Option Property and said delay has hindered Borrower's ability to assemble the Property and the Option Property for development of the Project. H. Borrower has requested and Agency has agreed to provide a loan ("Loan") to Borrower in an amount not to exceed Five Hundred Fifty-Nine Thousand Two Hundred Dollars ($559,200) as a short- term loan to provide funds to pay for costs related to 1) retiring the seller financing for the Property ("Seller Financing") and, 2) demolition of the building which currently exists on the Property ("Building Demolition"). I. Concurrently herewith, Borrower will execute a promissory note ("Promissory Note") to evidence the amount of the Loan, and a Deed of Trust and Security Agreement ("Deed of Trust") which shall provide Agency with a security interest in the Property. This Agreement, the Promissory Note and the Deed of Trust are hereinafter collectively referred to as the "Loan Documents." 1113396.3 1