Agmt 2000 Davis Street Community Center

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CAPITAL IMPROVEMENT AGREEMENT WITH THE DAVIS STREET COMMUNITY CENTER FOR THE USE OF CDBG FUNDS FOR THE PURCHASE OF THE PROPERTY AT 1103 DAVIS STREET This Agreement, dated as of January 18, 2000, is entered into by and between City of San Leandro, a municipal corporation hereinafter designated "City" and the Davis Street Community Center, a California nonprofit public benefit corporation, hereinafter designated "Recipient." RECITALS WHEREAS, City is desirous of contracting with Recipient for a loan to acquire property to used for the construction of a new Davis Street Community Center; and WHEREAS, the Davis Street Community Center provides services to low income residents, including job skills training and food bank; and WHEREAS, City wishes to provide funds for this purpose; and WHEREAS, such expenditure meets the national objectives for the use of CDBG funds; and WHEREAS, .Recipient is willing and able to perform duties and render services which are determined by City to be necessary or appropriate for the welfare of residents of the City; and WHEREAS, City desires that such duties and services be provided by Recipient, and Recipient agrees to perform such duties and render such services, as more particularly set forth below. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows: ARTICLE 1: LOAN SECTION 1.01 LOAN l Subject to the terms and conditions of this Agreement, City hereby agrees to Loan to Recipient Two Hundred Fourteen Thousand Nine Hundred Forty-one Dollars ($214,941.00), which shall bear interest at the rate of two percent (2%) per annum simple interest, through the Term of this Agreement. The Term of ,this Agreement shall be thirty (30) years. The entire principal and accrued interest shall be deferred for the Term and shall be due and payable at the end of the Term, except as provided below. If Recipient fulfills the provisions of Section 1.02 of this Agreement for the entire Term of the Loan, the City shall forgive the loan at the end of the Term. If Recipients sells the Property without prior written approval of the City, the Loan shall become due and payable upon sale.