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G. Agency staff have determined that the Joint Project Area will <br />generate sufficient revenue to enable the Loan to be repaid by not later than the <br />end of the fiscal year ending June 30, 2019. <br />H. The City and the Agency desire to set forth the terms and conditions <br />governing the use of the Loan proceeds and the repayment of such funds by the <br />Joint Project Area to the West San Leandro/MacArthur Boulevard Project Area. <br />NOW, THEREFORE, in consideration of the foregoing recitals and the <br />mutual covenants and conditions set forth in this Agreement, the City and the <br />Agency agree as follows. <br />1. This Agreement shall govern the disbursement, use and repayment of <br />the Loan from the West San Leandro/MacArthur Boulevard Project Area to the <br />Joint Project Area. <br />2. The Agency agrees to fund the Loan to the Joint Project Area using <br />tax increment revenue from the West San Leandro/MacArthur Boulevard Project <br />Area. The Loan shall bear interest at the rate equal to the Local Agency <br />Investment Fund ("LAIF") rate in effect as of the Effective Date. The outstanding <br />principal balance of the Loan together with accrued interest shall be due and <br />payable on the date (the "Maturity Date") which is the earlier of (i) the tenth <br />(10th) anniversary of the Effective Date, or (ii) 30 days after the Agency closes <br />escrow for the sale of the Property for development. To the extent that funds <br />are available prior to the Maturity Date, in the Agency's discretion, tax increment <br />revenue accruing to the Joint Project Area may be used to make periodic <br />payments to the West San Leandro/MacArthur Boulevard Project Area to pay <br />down the outstanding balance of the Loan. <br />3. The City and the Agency agree that if the Agency issues bonds <br />secured by tax increment revenue generated by the Joint Project Area, the <br />obligation to repay the Loan shall be subordinate to the obligation to pay debt <br />service on such bonds. <br />4. The Loan proceeds may be used solely for acquisition of the Property <br />and related purposes consistent with Community Redevelopment Law and the <br />Joint Project Area Redevelopment Plan. <br />5. This Agreement is not intended to substitute for or supplant any <br />authorization, approval or procedural requirement required to be provided or <br />followed by the Agency or the City for any project or activity funded by the <br />proceeds of the Loan. <br />SIGNATURES ON FOLLOWING PAGE. <br />1225334-1 2 <br />