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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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8/15/2023 9:54:53 AM
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City Clerk
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Agenda Packet
Agency
Clerk of the Council
Item #
68
Date
6/21/2022
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2206002.SA Page 6 <br />19090.018.019 June 3, 2022 <br /> <br />a. “Agency Base Rent” of $4,108,136, which is equal to the appraised fair market <br />value of the Agency Site. <br />i. The Agency Base Rent will bear interest at a simple rate of three percent <br />(3%) per year commencing on the Commencement Date. <br />ii. The Agency Base Rent will be repaid through a share of the Project’s <br />Residual Receipts. <br />iii. Once the Agency Base Rent has been repaid in full, the Tenant shall <br />have no further obligation for Agency Base Rent. <br />iv. Any net refinancing/net syndication proceeds received by the Tenant shall <br />be used to pay any unpaid Agency Base Rent. <br />b. “County Base Rent” of $2,341,864, which is equal to the appraised fair market <br />value of the County Site. <br />i. The County Base Rent will bear interest at a simple rate of three percent <br />(3%) per year commencing on the Commencement Date. <br />ii. The County Base Rent will be repaid through a share of the Project’s <br />Residual Receipts. <br />iii. Once the County’s Base Rent has been repaid in full, the Tenant shall <br />have no further obligation for County Base Rent. <br />iv. Any net refinancing/net syndication proceeds received by the Tenant shall <br />be used to pay any unpaid County Base Rent. <br />3. Prior to commencement of construction of the Initial Improvements, the Tenant shall <br />provide to the Lessor information demonstrating that the Tenant has secured sufficient <br />financing to construct the Project. <br />4. Tenant shall provide the Lessor with written construction status reports on a monthly <br />basis starting at the commencement of construction. <br />5. The Tenant shall pay all Taxes, Operating Costs and Utility Costs during the Ground <br />Lease Term. <br />6. The Tenant may use the Site for the construction, development, entitlement, operation, <br />maintenance, replacement and repair of the Project. <br />7. The Tenant shall obtain all the required land use approvals, entitlements and permits <br />necessary for the development of the Site. <br />EXHIBIT 14
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