Reso 2019-139 - Laserfiche WebLink

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NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto 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 Three Hundred Thousand Dollars ($300,000.00) CDBG Loan and for the purposes set forth in this Agreement for construction of Improvements approved by the City. The CDBG Note, which shall be dated as of the Effective Date. 1.1.1. FEDERAL AWARD IDENTIFICATION. Federal award identification information regarding the funding provided to Participant by this Agreement, as required by 24 CFR 200.331, is included in Exhibit C, attached hereto and incorporated herein. 1.2 REPAYMENT; INTEREST RATE; FORGIVENESS. 1.2.1 LOAN TERM AND REPAYMENT. The Term of this Agreement shall be ten (10) years. Provided that Participant is not in default under the Loan Documents, the City shall forgive one tenth th (1/10) of the principal of the CDBG Loan, which is equal to Thirty Thousand Dollars ($30,000.00), annually th on the anniversary of the Effective Date. On the tenth (10) anniversary of the Effective Date, provided that no default or breach by Participant has occurred pursuant to Article IV, the entire outstanding principal and interest accrued on the CDBG Loan shall be forgiven. If Participant sells or transfers the Property or changes the use of the Property without written approval from the City, the CDBG Loan shall become due and payable upon sale. 1.2.2 TIMELINE TO SPEND THE LOAN. Participant shall expend the entire CDBG Loan within twenty-four (24) months of the effective date of this Agreement. 1.2.3 INTEREST. Interest shall accrue on the principal balance of the CDBG Loan at a rate of three percent (3%) simple interest per annum. 1.3 PREPAYMENT. Participant may, without premium or penalty, at any time and from time to time, prepay all or any portion of the outstanding principal balance due under the CDBG Note. Any prepayment of principal must be accompanied by interest accrued but unpaid to the date of receipt of prepayment. Prepayments shall be applied first to any unpaid late charges and other costs and fees then due, then to accrued but unpaid interest and then to principal. 1.4 USE OF PROCEEDS CDBG Loan Proceeds n Exhibit B and in accordance with the budget and timeline specified in Exhibit B. 1.5 DISBURSEMENT OF PROCEEDS. Participant shall submit separate written requests for each disbursement of CDBG Loan funds with supporting evidence for all amounts requested (each a 2 3238974.3 CDBG Loan Agreement