10A Action 2012 0618 - Laserfiche WebLink

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G. Developer requested, and pursuant to the Original OPA, Agency agreed to provide predevelopment financing and a construction/permanent loan pursuant to the terms and conditions set forth herein and in the Original OPA for the purpose of providing partial financing for the development of the Project. H. The purpose of this Agreement is to provide for the development of the Property as more particularly set forth herein and in the Original OPA. The City has determined that (i) development of the Property pursuant to this Agreement (a) is consistent with the Downtown San Leandro Transit- Oriented Development Strategy approved by the City Council in September 2007, and (b) will further the goals of the City by providing affordable housing, and (ii) the financing described herein is necessary to make the Project economically feasible and affordable to low -, very low -, and moderate - income households. I. A material inducement to the execution of the Original OPA and this Agreement is the agreement by Developer to develop the Project within the time periods specified herein and in accordance with the provisions hereof, and the City would be unwilling to enter into this Agreement in the absence of an enforceable commitment by Developer to complete the Project in accordance with such provisions and within such time periods, subject to the terms and conditions set forth herein. J. In connection with the predevelopment financing provided by Agency pursuant to the Original OPA, Developer has executed a promissory note (the "Original Predevelopment Note ") and an assignment of plans, specifications and contracts (the "Original Assignment Agreement "), each dated as of June 25, 2009. Pursuant to Resolution No. 2012 -001, the City has succeeded to the Agency's interest in the Original Predevelopment Note and the Original Assignment Agreement. In connection with this Agreement, Developer will execute (i) an Amended and Restated Predevelopment Note (the "Amended and Restated Predevelopment Note ") reflecting Developer's obligation to repay the funds advanced to date pursuant to the Original OPA and the additional predevelopment funds to be advanced pursuant to this Agreement, and (ii) an Amended and Restated Assignment of Agreements, Plans and Specifications substantially in form attached hereto as Exhibit E -3 (the "Amended and Restated Assignment Agreement "). Upon Developer's acquisition of the Property, Developer shall execute (a) a secured promissory note (the "Note ") which shall replace the Amended and Restated Predevelopment Note and shall be in the amount of the additional funds to be advanced for the construction/permanent loan together with the balance outstanding under the Amended and Restated Predevelopment Note, (b) a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing ( "Deed of Trust ") which shall provide City with a security interest in the Project and the Property, and (c) an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants ( "Regulatory Agreement ") which shall require Project rents to be affordable to low -, very low -, and moderate - income households for a term of not less than fifty -five (55) years. The Deed of Trust and the Regulatory Agreement shall be recorded against the Property and the Project. This Agreement, the Amended and Restated Predevelopment Note, the Amended and Restated Assignment Agreement, the Note, the Deed of Trust, the Regulatory Agreement and the MOU described in Section 4.5.1(vi)_ below, are collectively hereinafter referred to as the "City Documents." 1865087.6 4