4.7 SR 01-02-2018 - Laserfiche WebLink

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ARTICLE VII FINANCING Section 7.1. Financing. (a) Before conveyance of the City's Property, the Developer shall submit to the City evidence of one or more commitments for mortgage financing which will close on or before the date of the Closing on the real property exchange pursuant to this Agreement or a certificate of internal financing in an amount sufficient for the construction of the Developer's Minimum Improvements. Such commitments may be submitted as short term financing, long term mortgage financing, a bridge loan with a long-term take-out financing commitment, or any combination of the foregoing. Such commitment or commitments for short term or long term mortgage financing shall be subject only to such conditions as are normal and customary in the mortgage banking industry. (b) If the City finds that the mortgage financing is sufficiently committed and adequate in amount to provide for the Developer's Minimum Improvements, then the City shall notify the Developer in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within 15 days from the date when the City is provided the evidence of financing. A failure by the City to respond to such evidence of financing shall be deemed to constitute an approval hereunder. If the City rejects the evidence of financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any event the Developer shall submit adequate evidence of financing within 30 days after such rejection. Section 7.2. HRA Loan. The Developer acknowledges that pursuant to a Loan Agreement (Blighted Properties Forgivable Commercial/Industrial Loan) between the Housing and Redevelopment Authority in and for the City of Elk River (the "HRA") and the Developer, the HRA has authorized a loan in the amount of $75,000 in connection with the Developer's Minimum Improvements (the "HRA Loan") which HRA Loan is conditioned, among other things, upon the Developer providing a Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statement for the Developer's Minimum Improvements Property to the HRA and therefore, Closing under this Agreement is a condition to closing on the HRA Loan. The Developer further acknowledges that the Developer will be required to repay the HRA Loan, among other things, if the Developer fails to complete the Developer's Minimum Improvements as evidenced by a Certificate of Completion as provided in Section 4.4 hereof. 23 512017v5 JSB BL185-52