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2206002.SA Page 4 <br />19090.018.019 June 3, 2022 <br /> <br />3. The Agency agrees to ground lease the Agency Site to the Tenant based on the <br />following payment terms: <br />a. “Agency Base Rent” of $4,108,136, which is equal to the appraised fair market <br />value of the Agency Site. <br />b. The Agency Base Rent will bear interest at a simple rate of three percent (3%) <br />per year commencing on the Commencement Date. <br />c. The Agency Base Rent will be repaid through a share of the Project’s Residual <br />Receipts. <br />d. Once the Agency Base Rent has been repaid in full, the Tenant shall have no <br />further obligation for Agency Base Rent. <br />e. Any net refinancing/net syndication proceeds received by the Tenant shall be <br />used to pay any unpaid Agency Base Rent. <br />4. Through separate Loan Agreements, the Agency will provide the Tenant with not less <br />than $4.53 million in financial assistance (Agency Loans) based on the following: <br />a. The Agency will provide a $3.01 million loan of HOME Program funds (HOME <br />Loan) allocated to the City of Santa Ana (City) by the United States Department <br />of Housing and Urban Development (HUD). <br />b. The Agency will provide a $1.64 million loan of Neighborhood Stabilization <br />Program funds (NSP Loan) allocated to the City by HUD. <br />5. The Agency Loans will be repaid out of the same applicable percentage of Residual <br />Receipts as used to repay the Agency Base Rent. <br />6. The Agency will provide two (2) business days’ prior written notice to Tenant to enter the <br />Site. <br />C. County Responsibilities <br />The Ground Lease requires the County to accept the following responsibilities: <br />1. Together with the Agency, the County will convey the Site to the Tenant in the form of a <br />long-term ground lease for the purposes of constructing and operating the Project. <br />2. The Ground Lease will have the following terms: <br />a. The Ground Lease will commence on the Effective Date subject to the <br />preconditions identified in Section 5.1.2; <br />EXHIBIT 14