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CAPITAL IMPROVEMENT LOAN AGREEMENT <br />THE CITY OF SAN LEANDRO AND <br />DAVIS STREET FAMILY RESOURCE CENTER <br />This Loan Agreement for Capital Improvements (this "Agreement') is entered into by the City of San <br />Leandro (°City"), a municipal corporation, and Davis Street Family Resource Center (°Participant") and is dated <br />this day of July 1, 2009 (°Effective Date"). City and Participant are hereinafter collectively referred to as the <br />°Parties." <br />RECITALS <br />A. City is the recipient of Community Development Block Grant ("CDBG") funds. <br />B. Participant leases from a private landlord that certain real property located at 3081 Teagarden <br />Street, San Leandro, California, legally described in Exhibit A (the "Property'). <br />C. Participant desires to acquire the Property and seeks Cites assistance to accomplish this goal. <br />D. City desires to provide CDBG loans to qualified local nonprofit organizations like Participant in <br />order to assist such organizations with capital improvement projects or facility acquisition. <br />E. City has determined that Participant is a qualified local nonprofit organization and is eligible to <br />receive a loan of CDBG funds to assist in the acquisition of the Property (the "Project Loan"). <br />F. Concurrently herewith, Participant shall execute a promissory note (the °Note"). This <br />Agreement and the Note are collectively referred to as the "Loan Documents." <br />NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is <br />hereby acknowledged, the Parties hereby agree as follows: <br />ARTICLE I <br />LOAN TERMS; USE AND DISBURSEMENT OF PROCEEDS <br />1.1 LOAN. City agrees to loan to Participant, and Participant agrees to borrow from City a <br />sum of up to Five Hundred Thousand Dollars ($500,000) (the "Loan") upon the terms and conditions and <br />for the purposes set forth in this Agreement for assistance to Participant to acquire the Property. The Loan <br />shall be evidenced by the Note which shall be dated as of the Effective Date and executed by Participant <br />substantially in the form attached hereto as Exhibit B and secured by the Deed of Trust and executed by <br />Participant substantially in the form attached hereto as Exhibit C. <br />Fiscal Year o9-10 1 San Leandro <br />Capital Improvement Loan Agreement <br />