Agmt 2009 Davis Street Family Resource Center DSFRC (2)

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CAPITAL IMPROVEMENT LOAN AGREEMENT THE CITY OF SAN LEANDRO AND DAVIS STREET FAMILY RESOURCE CENTER This Loan Agreement for Capital Improvements (this °Agreement") is entered into by the City of San Leandro ("City'), a municipal corporation, and Davis Street Family Resource Center (°Participant") and is dated this day of July 1, 2009 ("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 leases from a private landlord that certain real property located at 3081 Teagarden Street, San Leandro, California, legally described in Exhibit A (the "Property'). C. Participant desires to acquire the Property and seeks Cites assistance to accomplish this goal. D. City desires to provide CDBG loans to qualified local nonprofit organizations like Participant in order to assist such organizations with capital improvement projects or facility acquisition. E. City has determined that Participant is a qualified local nonprofit organization and is eligible to receive a loan of CDBG funds to assist in the acquisition of the Property (the °Project Loan"). F. 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 Five Hundred Thousand Dollars ($500,000) (the "Loan") upon the terms and conditions and for the purposes set forth in this Agreement for assistance to Participant to acquire the Property. 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 B and secured by the Deed of Trust and executed by Participant substantially in the form attached hereto as Exhibit C. Fiscal Year o9-10 1 San Leandro Capital Improvement Loan Agreement