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Item 68 - Crossroads at Washington Affordable Housing Project at 1126, 1136, & 1146 East Washigton Ave.
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Item 68 - Crossroads at Washington Affordable Housing Project at 1126, 1136, & 1146 East Washigton Ave.
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City Clerk
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Agenda Packet
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Clerk of the Council
Item #
68
Date
6/21/2022
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<br />Page | 52 <br />4894-6811-3695v.2 0017787-000542 <br />4894-6811-3695v.2 0017787-000542 <br />(which term as used herein includes any other governmental or quasi-governmental authority having <br />such power) (the foregoing being collectively referred to as a “Stay”). Further, Leasehold <br />Mortgagee’s obligations stated in Section 17.6.1(b) and (c) shall be automatically suspended during <br />any period that any Stay prevents Leasehold Mortgagee from taking any such actions. Nothing <br />herein, however, shall be construed to extend this Lease beyond the Term hereof nor to require a <br />Leasehold Mortgagee to continue such foreclosure proceedings after the Event of Default has been <br />cured. If the Event of Default has been cured and the Leasehold Mortgagee shall discontinue such <br />foreclosure proceedings, this Lease shall continue in full force and effect as if Tenant had not <br />defaulted under this Lease. <br />17.6.3. In the event the Leasehold Mortgage requires a new lease between the Lessor <br />and the Leasehold Mortgagee, Lessor shall enter into such new lease with the Leasehold Mortgagee <br />pursuant to Section 17.7, below, provided Lessor are provided with the necessary and adequate <br />documents related to the new lease requirements in the Leasehold Mortgage as described in Section <br />17.7. <br />17.6.4. So long as any Leasehold Mortgagee is complying with Sections 17.6.1 and <br />17.6.2 above, then upon the acquisition of Tenant’s Leasehold Estate by a Leasehold Foreclosure <br />Transferee, this Lease shall continue in full force and effect as if Tenant had not defau lted under this <br />Lease; provided that no Leasehold Foreclosure Transferee shall have any liability for the <br />performance of any of the Tenant’s obligations under this Lease until the Leasehold Foreclosure <br />Transferee has acquired the Tenant’s interest under th e Lease, and then the Leasehold Foreclosure <br />Transferee shall be liable for the performance of only those obligations of the Tenant arising from <br />and after the effective date of the Leasehold Foreclosure Transferee’s acquisition of the Tenant’s <br />Leasehold Estate. Any such Leasehold Foreclosure Transferee shall be deemed to be an assignee or <br />transferee and shall be deemed to have agreed to perform all of the terms, covenants and conditions <br />on the part of the Tenant to be performed hereunder from and after the effective date on which such <br />Leasehold Foreclosure Transferee acquires title to the Leasehold Estate, but only for so long as such <br />purchaser or assignee is the owner of the leasehold estate. <br />17.6.5. Any Leasehold Mortgagee (or its designee) that becomes a Leasehold <br />Foreclosure Transferee, upon acquiring title to Tenant’s Leasehold Estate without obtaining Lessor’s <br />consent and provided it is not in default of any of the provisions of this Lease, shall have a one-time <br />right to assign the Leasehold Estate to an assignee (a) which is an Affiliate of the Leasehold <br />Foreclosure Transferee, or (b) which has substantial experience, or will employ a property <br />management company with substantial experience, managing, maintaining and operating affordable <br />housing developments like that on the Premises. Upon such assignment, the Leasehold Foreclosure <br />Transferee shall automatically be released of all obligations thereafter accruing under this Lease, <br />provided that, substantially concurrently with such assignment, the assignee delivers to Lessor a <br />written agreement assuming Tenant’s obligations under the Lease thereafter accruing. Any <br />subsequent Transfers occurring after the one-time assignment permitted under this Section shall be <br />subject to Article X. <br />17.7 Leasehold Mortgagee’s Right to New Lease. <br />17.7.1. In the event of any termination of this Lease (including any termination <br />because of an Event of Default, or because of any rejection or disaffirmance of this Lease pursuant to <br />bankruptcy law or any other law affecting creditor’s rights, but other than by reason of a Total <br />Taking), Lessor shall give prompt written notice of such termination to each Leasehold Mortgagee <br />EXHIBIT 11
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