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ATTACHMRNT A
UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT
Office of Urban Development Action Grants t'),F-1Qi • / M�:
V D A G GRAM AGREEMENT
Urban Development Action Grant
Under Section 119
of the
Housing and Community Development Act of 1974
(Public Law 93-383, as Amended)
]lame of Recipient
a
City of Santa Ana, California
(Fiesta Market Place)
Address of Recipient:
Honorable Daniel E. Griset
Mayor of Santa Ana
Santa Ana, California 92702
C176/C182
Amount of Grant:
$689,000
C2 =
UDAG Grant Humber:
B-84 AA-06-0615(P)
preliminary Approval Date:
October 3, 1985
VDAG OFFICE USE ONLY
C183 Reviewer: COHEN C510 Draft Attorney: ANDERSON
C520 Draft Typist: EASTERLING C202 First LBC Due Date: —
C180 Obligation Date 5 C203 LBC Code S (Single) x
v�ri H (Multiple)
4 PR
C177 HUD Sign Date
DATA SYSTEMS USE OHLT
C181 Number of Transactions: S
C198 Construction Jobs: 103 C196 Retained Jobs: -0-
C190 New Permanent Jobs: 3_ 6_ 3 C191 Lo/Mod New Permanent Jobs: 2271
C192 CETA Qualified New Permanent Jobs: 181 C193 Minority New Perm Jobs: 327
C174 Private Investment:
$8 420 602
C172 Other Public Investment: $5,017.100
Commencement Date
Completion Date
Land Acquisition
C452
10/Ow 1/89
C458
04/0_ 1/86
C462
05 01/86
C468
01/0'
Capital Equipment-
C472
/ , /
C478
Other Activity
C482
C488
TABLE OF CONTENTS
U D A G GRANT AGREEMENT
i
INTROMMORY
page
Preamble
1
Recitals
1
ARTICLE I - GE WAL PROVISIONS
Page
Section 1.01
Cbntents of Agreement
2
Section 1.02
Exhibits Incorporated
2
Section 1.03
General Definitions
2
ARTICLE II - AMOUNT AND AUTHORIZED USES OF GRANT FUNDS
Page
Section 2.01
Grant Assistance Provided
3
Section 2.02
Authorized Uses of Grant Funds
4
Section 2.03
Adjustments to Grant Funds
4
Section 2.04
Recipient's use of Program Inane
4
ARTICLE III - DISEU169S T OF GRANT FUNDS
Page
Section 3.01
Letter of Credit Procedures
4
Section 3.02
Incurring Costs for Project Activities
5
Section 3.03
Authorization by the Secretary for the Recipient to
6
Draw Grant Funds
ARTICLE IV - OWLIANCE WITH FEDERAL RAM AND UDW REGULATIONS
Page
Section 4.01
Delegation and Acceptance of Responsibilities
7
Uider Federal Rules
7
Section 4.02
Compliance with LMkG Regulations
ARTICLE V - REPRESENTATIONS h'ARPANTI£S AND SPECIFIC OBLIGATIONS
Page
Section 5.01
Recipient's Representations and Warranties
7
8
Section 5.02
obligation to Ccmplete Recipient Activities
As Scheduled
8
Section 5.03
Cbligation to Achieve Projected Jobs
9
Secticn 5.04
obligation to Cure Title Defects
9
Section 5.05
bbtification aryl Action Upon Default
AMCLE: VI - INSPECTICN AND REVIEW
Page
Section 6.01
Duty to Maintain, and Rights to Inspect and Copy.
9
..
Books, Records and Documents
9
-section 6.02
Section 6.03
Site Visits
Duration of Inspection Rights
9
9
Section 6.04
Reports
ARTICLE VII - DEFA IS AND RL17E:DIES
page
Section 7.01
Defaults
10
10
Section 7.02
Remedies Upon Default
ARTICLE VIII•- CERTIFICATIONS BY REC1PIEW
Page
Section 8.01
Certifications Upon Draw of Funds
10it
Section 8.02
Certification After Completion of All
section 8.03
Recipient Activities
Certification After Completion of All
it
Non -Recipient Activities
Revised 6/8,1
OUIX OF CONTIMS - Continued
ARTICLE IX - THIRD PARTY CONTRAL-v RErxImumS
Qe
Section 9.01
Escrow of Program Income
ll
Section 9.02
Pnogtam Income Applied to Costs
11
Section 9.03
Program Income for Title I Activities
11
Section 9.04
Assurance of Governmental Approvals
12
Section 9.05
Completion of Project
Section 9.06
Assurances of Projected Jobs
12
Section 9.07
Section 9.08
Yaintaining Records and Right to Inspect
12
12
Section 9.09
Access to Project
inn Assignment or Succession
12
Section 9.10
Secretary Approval of Amendments
12
12
Section 9.11
Lisclaimer of Relationships
13
Section 9.12
Limitation of Recipient Liability for Project
13
Activities
Section 9.13
Conflict of Interest
13
Section 9.14
Fmiect Signs
13
ARTICLE X - EVIDENTIARY MATERIALS
Section 10.01
Commitments of Participating Parties - General
13
Section 10.02
Form of Documentary Evidence - General
14
Section 10.03
Opinions of Recipient's Counsel
14
Section 10.04
Evidence of Contracts - Form
14
Section 10.05
Evidence of Loan Commitments - Fbrm
14
Section 10.06
Evidence of Loans - Form
15
Section 10.07
Evidence of Liquid Assets - Form
15
Section 10.08
Evidence of Finances Satisfactc:Yy to
16
Counsel - Form
Section 10.09
Anti -Speculation Provisions - Sale of
16
Real Property
Section 10.10
Evidence of Title to Real Property - Form
16
ARTICLE: XI - M,ISCELIANEAUS
Section 11.01
Notices
17
Section 11.02
Assignment
17
Section 11.03
Successors Bound
17
Section 11.04
Remedies Not Impaired
17
Section 11.05
Cumulative Remedies
17
Section 11.06
Severability
17
Section 21.07
Entire Agreement
18
Section 11.08
Execution in Counterparts
18
Section 11.09'
Table of Contents; Titles and headings
18
Section 11.10
Amendment of this Grant Agreement
18
Section 11.11
Disclaimer of Relationships
18
Section 11.12
Governing Taw
18
Section 11.13
Waiver by Secretary
18
Section 11.14
Effective Date
18
Section 11.15
Termination of Grant Agreement
19
SCHLCULF OF EXLIMIS
EXHIBIT A
SUPPLF 4ENTARY PROVISIONS
EXHIBIT L;
LESCRIPri`ION OF RECIPIENT ACTIVITIES
EXUBIT C
DESCRIPTION OF NON -RECIPIENT ACTVITIES
EXHIBIT D
FRDJEC2• ECI CET - SIAPARY OF PMPOSED EXPE24DIIIVRES
E:XhIBIT E
RL.O,UIRED E;VIDENPIARY MAILRiALS
EXEII BIT F
MFOJECT PERFORMANCE SCMMULE
Revised 6/8 1
_ ii
PREAMBLE
IS C�ReANT AGREEMENT is made and entered into by and between TEX
SECbt'C
EMkRY OF FDW'NG AND LREM DEVEMP,sENT, acting by and through the
Assistant Secretary for Cmmunity Planning and Development, as representative
of the United States of America, and .the RE)CIPIM-,.
., RLC I TALS M.
'AE RECIPIENT has applied to the Secretary for grant assistance
under the UD4G Program to undertake activities which are consistent with the
provisions of Section 119 of the Act and the UDAG Regulations; and
`LEE SE7CRETkRY, in reliance upon the representations set forth in
the Application, has approved the award of grant funds to the Recipient, to
be expended by the Recipient in conformity with the requirements and provisions
Of this Grant Agreement;
IN COMIDERATION of the mutual promises and covenants contained in
this Grant Agreement, the Secretary and the Recipient agree as follows;
Revised 6/8 1
1
ARTICLE I
GENERAL PROvIsIOM
Section 1.01 Contents a£ Agreement
as may, fzom=time agreement ,. be11 nConsist of this Grant Agreement and the Application,
Section 1.02 Exhibits Incorporated
A11 exhibits which are referred to in this Grant Agreement and are
attached hereto are incorporated herein and made a part hereof.
Section 1.03 General Definitions
Unless specifically provided otherwise or the centeA otherwise requires,
when used in this Grant Agreement.
(1) "Act" means tedhe .housing and Comm
unity Development Act of 1974,
Pub. L. Na. 93-383, as amend
(2) "Application" means the Application For Federal Assistance, arri
such other submittals, as are specified in Exhibit A of this Grant Agreement.
(3) "Default" means any default set forth in subsection (a) of Section
7.01 of this Grant Agreement.
(4) "Eligible Costs" means costs for the activities specified in
Exhibits fi and C of this Grant Agreement for which grant funds are budgeted
as specified in Exhibit D of this Grant Agreement, provided that such costs
M are not incurred in connection with any activity which, under 24 C.F.R.
Part 570, as may be from time to time amended, are ineligible under the
LTAG Program, and (ii) conform to the requirements of Attachment 8 to Federal
ASaiagement Circular 74-4 ((ust Principles APF,licable to Grants and Contracts
with State and Local Covernment), as may be from time to time amended. Fbr
Purposes of determining the conforniity of costs to said Attachment E, all costs
se tforth in Section C thereof except for "prearrangement costs" and "proposal
(which are eligible only to the extent authorized in Section 570.454 of
24. C.F.R. Part 570) may be considered eligible without.prior approval of the
Secretary.
(5) "Environmental Conditions" means the conditions imposed by law,
particularly 24 C.F.R. Part 58, and the provisions of this Grant Agreement which
Prohibit or limit the commitment and use of grant funds until certain procedural
requirements have been completed.
(6) "Environmental Requirements" means the requirements described
in 24 C.F.R. Part 58.
(7) "Environmental Studies" means all eligible activities necessary to
produce an "environmental document", as that term is defined at Section 1508.10
of 40 C.F.R. Part 1508, or to comply with the requirements of 24 C.F.R. Part 58.
(8) "Grant Funds" means those funds to be provided by hM to Recipient
pursuant to the terms pf this Grant Agreement, as specified in Exhibit A of this
Grant Agreement.
(9) "HOD" means the United States Department of Housing and Urban
Development.
(10) "Letter of Credit" means the letter of credit to be issued or
amended by the Department of the Treasury pursuant to Section 3.01 of this
Grant Agreement.
Revised 6/81 2
(11) "Non -Recipient Activities" means those activities of the Project
to be carried out by Participating Parties, other than the Recipient or an agent
or agency of the Recipient, which activities are described in bxhibit C of this
Crant Agreement.
(12) "Participating Party" means any person, firm, corporation or,
entity identified as such in Exhibit A of this Grant Agreement. Identification
as a "Participating Party" signifies that the Secretary, in selecting the Recipient
for the award of this grant, relied in material part upon a representation that
the party so identified will complete a specified portion of the Project or a
specific activity necessary for the crnipletion of the Project.
(13) "Program Inane" means the UrAG percentage of: M any income earnec
by Recipient, or an agent or agency of Recipient, from the disposition of real or
personal property acquired in whole or in part with grant funds; (ii) the repayment
proceeds (including principal and interest) of any loan made in whole or in fart
with grant funds; (fii) any other revenues defined as program iMcme in 24 C.F.R.
Part 570, Subpart J, and (iv) any inccuie from an activity where it is specifically
declared in Exhibit A of this Grant Agreement that the inane from such activity
shall be deemed to be Program Income. The "UrAG percentage" means an amount computed
by applying the percentage of participation of grant funds in the total cost of
acquisition of property, in the total amount of a loan, or in the total cost of
an activity, to the income from the disposition of such property, the total repayment
proceeds of such loan, or the income from such activity.
(14) "Pockets of raverty Project" means a Project approved based on an
application submitted and approved pursuant to Section 119(b)(2) of the Act.
_ (15) "Project" means the activities described in the Application and
in Exhibits F, C and D of this Grant Agreement which are to be carried out to meet
the objectives of the LCAG Program.
(16) "recipient" means the local governmental entity receiving
grant funds pursuant to this Grant Agreement, as more particularly identified
on the cover page of this Crant Agreement.
(17) "Recipient Activities" means those activities of the Project to
be carried out by the Recipient, or an agent or agency of the Recipient, which
activities are described in Lxhibit F of this Crant Agreement.
(18) "Secretary" means the Secretary of Lousing and Urban LeveloFxnent
cr any other official of i_UU to whom the Secretary has delegated authority to
act with respect to matters covered by this Grant Agreement.
09) "EiAC Program" means the Urban Development Action Crant Program
eFstablished by 1.41D pursuant to Section 119 of the Act.
(20) "E£AG Regulations" means the regulations set forth in 24 C.F.R.
Bart 570, Subpart G, as the same may, from time to time, be amended.
ARTICLE II
ANIDLK-T A14D ALMMIZEr USES OF C WJT FUNrS
Section 2.01 Crant Assistance Provided
Id consideration of the various obligations undertaken by the Recipient
pursuant to this Grant Agreement, and in consideration of the obligations to
be undertaken by Participating Parties, as represented by the Recipient in the
Application, the Secretary agrees, subject to the terms and conditions set forth
herein, to provide the Recipient with grant funds in the amount specified in
Lxhibit A of this Grant Agreement.
Revised 6181
Section 2.02 Authorized Uses of Grant Funds
The grant funds provided to the Recipient pursuant to this Grant Agreement
shall be used only for the specific purposes described in Exhibits B and C of
this Grant Agreement and in the amounts budgeted in Exhibit D of this Grant
Agreement, subject to the project amendments provisions of the UPAG Regulations.
Section 2.03 Adjustments to Grant Funds
She armunt of grant funds which the Secretary has agreed to provide
to the Recipient under this Grant Agreement has been determined by the Secretary
in reliance upon the cost estimates of the Recipient with respect to the activities
set forth in the Application and the investment commitments of Participating Parties.
She Secretary reserves the right to reduce the grant amount (i) to conform to
any revision to which the Recipient and the Secretary may agree with respect
to Exhibits B. C or D of this Grant Agreement, (ii) if the actual costs for
activities are lower .than those set forth in Exhibits B, C or D`of this Grant
Agreement, or (iii) if the investment by Participating Parties is less than
the amounts specified in Exhibits B, C, D or E of this Grant Agreement.
Section 2.04 Recipient's Use of Program Income
(a) In order to provide funds to assure oompletion of the Recipient
Activities, the Secretary shall have the right to require all Program Income
received by the Recipient, or by any Participating Party, prior to the completion
of all Recipient Activities, to be deposited in escrow under arrangements approved
by the Secretary. The Secretary may exercise said right either by specifying such
requirement in Exhibit A of this Grant Agreement or by separate written instructions
to the Recipient delivered at any time prior to the completion of all Recipient
Activities and the draw of grant funds to pay costs incurred for such activities.
(b) Unless otherwise specifically stated in Exhibit A of this Grant
Agreement, all Program Income which is received by the Recipient or any
Participating Party, prior to completion of all Recipient Activities shall be
used prior to, and in place of, any draw under the Letter of Credit to the
extent adequate to pay costs so incurred.
(c) Unless otherwise specifically stated in Exhibit A of this Grant
Agreement or in the close-out agreement between the Recipient and Hur, all Program
Income received by the Recipient, or any Participating Party, after the canpletion
of all Recipient Activities shall be used by the Recipient, or the Participating
Party subject to the approval of the Recipient, for community or economic development
activities eligible for assistance under Title I of the Act.
(d) For Rockets of Poverty Projects, all Program Income received
by the Recipient, or any Participating Party, after the completion of all
Recipient Activities shall be used only for activities which directly benefit
-low- and moderate -inane residents of the pocket.
ARTICLE III
DISEURSMaIT OF GRANT FUNCS
Section 3.01 Letter of Credit Procedures
.w
(a) Promptly after the Secretary has received from the Recipient not
less than three (3) fully executed copies of this Grant Agreement and has approved
evidentiary materials required by Exhibit E of this Grant Agreement that would allow
a drawdown of grant funds pursuant to the terms of Exhibit F of this Grant Agreement,
the Secretary shall cause a Letter of Credit to be issued to the Recipient by the
Department of the Treasury, or shall cause the Letter of Credit previously issued
to the Recipient by the Department of the Treasury with respect to the Ccmunity
Revised 6181
Development Blocy,,,rant Program under Title I of the Act to be increased,
in accordance with procedures established by the Department of the Treasury,
in an amount not to exceed the amount of grant funds referenced in Section 2.01
and specified in Exhibit A of this Grant Agreement.
(b) The authorization to use the Letter of Credit and to pay costs
out of grant funds shall be governed by the provisions of this Grant Agreement
and shall be subject to all conditions precedent to the Recipient's draw of grant
funds which are specified in this Grant Agreement, The Recipient shall not draw
upon the Letter of Credit until the Secretary has authorized the Recipient to
draw pursuant to Section 3.03 of this Grant Agreement.
(c) The Recipient is authorized to draw grant funds against the
Letter of Credit only in accordance with the provisions of this Grant Agreement
and the procedures established by the Secretary and the Department of the
Treasury. No payment by the Department of the Treasury of an improper or
unauthorized draw to the Recipient shall constitute a waiver of the right
of the Secretary to challenge the validity of such draw, to en&rce all
rights and remedies set forth in this Grant Agreement, or take corrective
or remedial administrative action pursuant to the UAAG Regulations, which
action may include, without limitation, suspension or termination of the
Recipient's funding under this Grant Agreement.
(d) The disposition of any grant funds that remain available under
the Letter of Credit following ocmpletion of the Project, or the termination
Of this Grant Agreement by the Secretary, or its termination for any cause,
shall be in accordance with close --out procedures then in effect or established
by the Secretary, and the Recipient shall not have any rights to such grant
funds.
Section 3.02 Incurring Costs for Project Activities
(a) The use of grant funds is conditioned upon the Recipient
incurring costs to be paid in accordance with this Grant Agreement or as
otherwise approved by the Secretary in writing. The incurring of costs to
be paid out of grant funds shall be governed by the following:
cities as (1) Except for the cost of application preparation for small
specified in the UDAG regulations, no costs incurred prior to the preliminary approval date may be paid out of grant funds.
(2) After the preliminary approval date, eligible administrative
costs, including but not limited to costs of Environmental Studies, and costs
incurred by Participating Parties, other than the Recipient, its agent or
agency, for any activity not to be paid for in whole or in part with grant . funds, may be incurred before or after the effective date of this Grant
Agreement, as defined in Section 11.14 below, and the satisfaction of
environmental conditions.
(3) Except as permitted by-24 C.F.R. part 58, no other costs
to be paid out of grant funds may be incurred by the Recipient or any Partici—
pating Party until all Environmental Conditions of 24 C.F.R. Part 58 have been
fully satisfied and the Secretary has issued the environmental releases required
by 24 C.F.R. Part 58.
(4) After the Recipient has satisfied all of the Environmental
Conditions and the Secretary has issued the required environmental releases,
then at any time after the Preliminary Approval Date for this Project, the
Recipient and the Participating Party may incur eligible costs to be paid
out of grant funds.
Revised 6/81
(b) The authorization to incur costs in subsection (a) above is
not an authorization to reimburse those costs and does not nean or imply that
such costs will be reimbursed out of grant funds. The Recipient and Participating
Parties may voluntarily, at their own risk, and upon their awn credit and
expense, incur costs as authorized in subsection (a) above, but their authority
to reimburse or to be reimbursed out of grant funds shall be governed by the
provisions of this Gant Agseemmt applicable to the payment of costs and the
release of funds by the Secretary.
(c) Neither the Recipient nor any Participating Party shall incur
any costs in connection with any activity to be paid for, in whole or in part,
with grant funds, even though such costs will not be reimbursed out of grant
funds, unless such costs could be incurred pursuant to subsection (a) of this
Section 3.02 if such costs were to be paid out of grant funds.
(d) Prior to the issuance by the Secretary of the envirormental
releases required by 24 C.F.R. Part 5s, the Recipient may not use any funds,
including local funds, to take any action with respect to the Project where
such action might have an adverse environmental effect, would limit choices
among competing alternatives, or might alter the environmental premises on
which the pending clearance is based in such a fashion that the validity of
the conclusions to be reached would be affected.
Section 3.03 Authorization by the Secretary for the Recipient to
Draw Grant Ftux7s
(a) No costs may be paid out of grant funds prior to the issuance
by the Secretary of the environmental releases required by 24 C.F.R. Part 58,
a written approval by the Secretary of required evidentiary materials as specified
in Exhibits E and F of this Grant Agreement, and written authorization from the
Secretary to draw grant funds under the Letter of Credit.
(b) All certifications and other materials required by this Grant
Agreerent to be submitted to the secretary as conditions precedent to the
Recipient's authority to pay costs out of grant funds shall be submitted by
the Recipient prior to any draw of grant funds under the Letter of Credit.
(c) Unless Exhibit E or F of this Grant Agreement authorizes the
phasing or staging of the Recipient's draw of grant funds, then upon a finding
by the Secretary that the Recipient has submitted, in a timely manner and in
acceptable form and content, all of the evidentiary materials specified in
Exhibit E of this Grant Agreement and upon approval by the Secretary of said
evidentiary materials; and if no default has occurred, as defined in
subsection (a) of section 7.01 of this Grant Agreement, the Secretary shall
Promptly issue to the Recipient a written authorization to draw grant funds under
the letter of Credit for the purposes authorized by this Grant Agreement.
(d) If Exhibit E or F of this Grant Agreement authorizes the
Phasing or staging of the Recipient's draw of grant funds, then upon a finding
by the secretary that the Recipient has submitted, in a timely manner and in
acceptable form and content, all of the evidentiary materials specified in
Exhibit E of this Grant Agreement to be submitted to and accepted by the
Secretary for any particular phase or stage of the draw of grant funds; and upon
approval by the Secretary of said evidentiary materials; and if no default has
occurred, as defined in subsection (a) of Section 7.01 of this Grant Agreement,
the Secretary shall promptly issue to the Recipient a written authorization to
draw grant funds under the Letter of Credit in accordance with any requirements
or authorizations described in Exhibit E or F respecting the particular phase or
stage of the draw of grant funds.
(e) Prior to the Recipient's payment of any costs with grant funds,
and prior to the Recipient's drawing of any grant funds under the Letter of Credit,
the Recipient shall not have been served by the Secretary with any notice suspending
the Recipient's authority to draw grant funds under the Letter of Credit, nor be in
breach of the Recipient's obligation to report a default, pursuant to subsection (a)
of Section 5.05 of this Grant Agreen-ent.
Revised 5/01
ARTICLE IV
COIPLIX�-„ WITH FEDERAL RULES AND UDAG FO- iATICNS
Section 4.01 Delegation and Acceptance of Responsibilities Under
Federal Rules
By its execution of this Grant Agreement, the Recipient represents and
warrants that it has the legal capacity to assume the responsibilities for compliance
with all applicable Federal rules and agrees and undertakes to assume and carry out
all such responsibilities in accordance with all the requirements which are or may
be established pursuant thereto.
Section 4.02 Ccupliance with UDAG Regulations
The Recipient shall comply with the uDAG regulations, including the
certifications specified therein.
ARTICLE V
REPRESMT!'ATICNS, WARRANTIES, AND SPECIFIC OBLIGATIONS
Section 5.01 Recipient's Representations and Warranties
The Recipient has, by and through consultations among all appropriate
members of the Recipient's governing body and its officers, examined into each
of the following and by its execution of this Grant Agreement the Recipient does,
upon information and belief, represent and warrant to the Secretary that:
(1) The Recipient is duly organized and validly existing under the
laws of the jurisdiction of which the Recipient is a part, and has all requisite
power and authority to enter into this Grant.Agreement.
(2) A resolution, motion, order or ordinance has been duly adopted,
passed or enacted as an official act of the Recipient's governing body, authorizing
the execution and delivery of this Gant Agreement by the Recipient and authorizing
and directing the person executing this Grant Agreement to do so for and on
behalf of the Recipient.
(3) This Grant Agreement has been executed and delivered by the
Recipient, in such manner and form as to ccrrply with all applicable laws to make
this Grant Agreement the valid and legally binding act and agreement of the Recipient-
(4) Except as set forth in Exhibit A of this Grant Agreement, there
is no action, proceeding, or investigation now pending, nor any basis therefor,
known or believed to exist by the Recipient, which (i) questions the validity
of this Grant Agreement, or any action taken or to be taken under it, or
(ii) is likely to result in any material adverse change in the authorities,
properties, assets, liabilities, or conditions (financial or otherwise) of
the Recipient which would materially and substantially impair the Recipient's
ability to perform any of the obligations imposed upon the Recipient by this
Grant Agreement.
(5) rale representations, statements, and other matters contained
in the Application were true and complete in all material respects as of the
date of filing. Except as set forth in Exhibit A of this Grant Agreement, the
Recipient is aware of no event which would require any amanaTent to the Application
(other than an amendment which has been filed with and approved by the Secretary)
in order to nuke such representations, statesrents, and other matters true and ecarplete
in all material respects and not misleading in any rateri.al respect. The Recipient
is aware of no event or other fact which should have been, and has not been, reported
in the Application as material information.
(6) " The Recipient has obtained, or has reasonable assurances that
it will obtain, all Federal, State and local government approvals and reviews
required by law to be obtained by the Recipient for the Project; and all
participating Parties have obtained, or the Recipient has reasonable assurances
that such participating Parties will obtain, all such approvals and reviews
required by law to be obtained by the Participating Parties for the Project.
Revised 6/81 7
(7) sofar as the capacity of the R pient to carry out any
obligation under thi:, Grant Agreement is concerned, (x) the Recipient is not in
material violation of its Charter, or any mortgage, indenture, agreement,
instrument, judgment, decree, order, statute,"rule or regulation and (ii) the
execution and performance of this Grant Agreement will not result in any such
violation.
(8) Except for approved eligible administrative and personnel
costs, no member, officer, or employee of the Recipient, or its designees, or
agents, no consultant, no member of the governing body of the Recipient or the
locality in which the program is situated, and no other public official of the
Recipient or such locality or localities, who exercises or has exercised any
functions or responsibilities with respect to the Project during his or her
tenure, or who is in a position to participate in a decisionmaking process
or gain insider information with regard to the project, shall have any interest,
direct or indirect, in any contract or subcontract, or the proceeds thereof,
for work to be performed in connection with the Project or in any activity,
or benefit therefrom, which is part of this Project at any time during or
after such person's tenure. This provision shall be in addition to the require-
ments in Attachments O,cf CMB Circular A-102 and A-110. -
(However, upon written request of the Recipient, the Secretary
may agree in writing to waive a conflict otherwise prohibited by this
provision whenever there has been full public disclosure of the conflict
of interest, and the Secretary determines that undue hardship will result
either to the Recipient or the person affected by applying the prohibition
and that the granting of a waiver is in the public interest. No such request
for a waiver shall be made by Recipient which would, in any way, permit a
violation of State or local law or any charter provision of the Recipient.)
Section 5.02 Obligation to Complete Recipient Activities as Scheduled
(a) The Recipient shall use its best efforts to assure the completion
of the Recipient Activities described in Exhibit B of this Grant Agreement within
the time periods specified in Exhibit F of this Grant Agreement.
(b) The Recipient agrees that the foregoing undertaking and
assurance means that Recipient shall, to the maximum extent permitted by law,
use and apply all of its governmental and proprietary powers for such completion,
including but not limited to those powers governing taxes, other revenues, credit,
eminent domain and appropriations, if necessary, for the purpose of providing any
shortfall between funds available under this grant and funds necessary to
complete all of the Recipient Activities described in Exhibit B of this Grant
Agreement.
Section 5.03 Obligation to Achieve Projected Jobs
(a) in selecting the Recipient for this grant, the Secretary
considered certain representations by the Recipient to the Secretary that this
grant is expected to create a specific number of permanent new job opportunities,
including a specific number of new permanent job opportunities for minorities,
CETA-eligible persons, and persons who, at the time of their employment, will
be persons of low- or moderate -income within the meaning of Section 570.3 of
24 C.F.R. Part 570, as may be from time to time amended.
(b) The Recipient acknowledges its representations in the Application
pertaining to the creation of jobs and obligates itself to use its best efforts
to create, or cause to be created, the numbers and kinds of jobs within a
specified time period as specified in Exhibit A of this Grant Agreement as
being expected to be created through this grant.
(c) For Pockets of Poverty Projects, Recipient shall ensure that at
least 75 percent of all permanent jobs initially resulting from the Project
are provided to low- and moderate -income persons and that at least 51 percent
of all permanent jobs initially resulting from the Project are provided to low -
and moderate -income residents from the pocket. Recipient shall continuously use
best efforts to ensure that at least 75 percent of all permanent jobs resulting
from the Project are provided to low- and moderate -income persons and that at least
51 percent of all permanent jobs resulting from the Project are provided to low -
and moderate -incase residents from the Pocket.
(d) The Recipient obligates itself to use all powers available to
Revised 6;81.
Recipient to enforc, he undertakings or assurances .._.Participating Parties
respecting the creation of jobs which are specified in Exhibit A of this Grant
Agreement.
Section 5.04 Oblation to Cure Title Defects
(a) The Recipient shall use its best efforts to promptly cure, or
cause to be cured, any defect in the title to any real property necessary to
the completion of Recipient Activities, where such defect will or may have a
material adverse effect on the use of such real property for the Project.
(b) The Recipient agrees that the foregoing obligation means that
the Recipient shall, to the maximum extent permitted by law, use and apply all
of its governmental and proprietary powers, including but not limited to those
powers governing taxes, other revenues, credit, eminent domain and appropria-
tions, if necessary, for the purpose of assuring the availability of all real
property, free and clear of adverse and inhibiting title defects, which is
necessary to complete Recipient Activities.
Section 5.05` Notification and Action Upon Default
(a) The Recipient shall promptly give written notice to the
Secretary upon the discovery by the Recipient of any default involving any
Participating Party, as defined in Section 7.01 of this Grant Agreement.
(b) Promptly upon the discovery of any default involving any Participating
Party, the Recipient shall vigorously pursue, to the fullest extent possible, all
remedies available to Recipient to remove or cure such default, or to seek redress
or relief from its effects, including reimbursement for any grant funds expended
on the Project, and to prevent or mitigate any adverse effects on the Project.
Recipient shall keep the Secretary fully informed as to the status of such
actions.
ARTICLE VI
INSPEMON AND REVIEW
Section 6.01 Duty to Maintain, and Rights to Inspect and Copy,
Books, Records and Documents
(a) The Recipient shall keep and maintain such books, records and
other documents as shall be required under rules and regulations now or hereafter
applicable to grants made under the VDAG Program, and as may be reasonably necessary
to reflect and disclose fully the amount and disposition of the grant funds, the
total cost of the activities paid for, in whole or in part, with grant funds, and
the amount and nature of all investments related to such activities which are
supplied or to be supplied by other sources.
(b) All such books, records and other documents shall be available at
the offices of the Recipient (except that books, records and other documents
Of a Participating Party which are subject to this Section 6.01 may be maintained
at the offices of such Participating Party) for inspection, copying, audit and
examination at all reasonable times by any duly authorized representative of the
Secretary or the Comptroller General of the United States.
Section 6.02 Site Visits
Any duly authorized representative of the Secretary shall, at all
reasonable times, have access to all portions of the Project.
Section 6.03 Duration of Inspection Rights
The rights of access and inspection provided in this Article VI shall
continue until the completion of all close-out procedures respecting this grant,
and until the final settlement and conclusion of all issues arising out of this
grant.
Section 6.04 Reports
The Recipient shall promptly furnish to the Secretary all reports
required to be filed in accordance with any directives of the Secretary or any
statute, rule or regulation of HUD. Recipient shall provide to the HUD Area
and Central Offices an annual report on the use of Program Intone as long as
such funds are generated by the Project.
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ARTICLE VII
DEFAULTS AND REMEDIES
Section 7.01 Defaults
A default shall consist of any use of grant funds for any purpose
other than as authorized in Exhibits B, C and D of this Grant Agreement; or any
breach of any covenant, agreement, provision, or warranty of (i) the Recipient
made in this Grant Agreement; (ii) the Recipient made in any agreement entered
into between the Recipient and any Participating Party relating to the Project;
(iii) any Participating Party made in any agreement specified in Exhibit E of
this Grant Agreement, or; (iv) the performance schedule specified in Exhibit F
of this Grant Agreement.
Section 7.02 Remedies L Default
(a) Upon occurrence of any default as described in Section 7.01,
the Secretary may suspend the Recipient's authority to draw any Grant Funds
under the Letter of Credit at any time by notice to the Recipient. If a default
is not cured within thirty (30) consecutive days from notice of sucW default by
the Secretary to the Recipient, the Secretary may continue such suspension or by
delivery of notice terminate this Grant Agreement. In the event of a termination,
the Recipient's authority to draw grant funds under the Letter of Credit shall
have terminated at the date of the notice of termination and the Recipient shall
have no right, title or interest in or to any grant funds remaining under the
Letter of Credit.
(b) In addition to any other rights or remedies, if a default
consists of the Recipient's failure to submit the evidentiary materials described
in Exhibit E of this Grant Agreement by the date specified in Exhibit F of this
Grant Agreement, the Secretary shall have the right to terminate this Grant
Agreement and the award of grant funds to which this Grant Agreement relates by
delivery of written notice to the Recipient. Upon such termination, all obliga—
tions of the Secretary pursuant to this Grant Agreement and such award shall
cease and the Recipient shall neither have nor retain any rights whatsoever with
respect to the grant funds provided under this Grant Agreement.
(c) If a default occurs, the Secretary may at any time or from time
to time proceed to protect and enforce all rights available to the Secretary
under this Grant Agreement by suit in equity, action at law, or by any other
appropriate proceedings, whether for specific performance of any covenant or
agreement contained in this Grant Agreement, or damages, or other relief, or
proceed to take any action authorized or permitted under applicable law or
regulations, including the recapture of any expended grant funds from any
payments received by Recipient as a result of the default of any Participating
Party.
(d) The rights and remedies available to the Secretary in the
event of a suspension or termination of this Grant Agreement shall survive such
suspension or termination..
ARTICLE VIII
CERTIFICATIONS BY RECIPIENT
Section 8.01 Certifications Upon Draw of:Funds
Execution by the Recipient of each request for a draw of grant
funds under the Letter of Credit shall constitute a certification that:
(1) All of the representations and warranties of the Recipient as
set forth in Section 5.01 of this Grant Agreement continue to be valid, true,
and in full force and effect.
(2) The Recipient is in compliance with all of the Recipient's
obligations specified in this Grant Agreement which, by their terms or intent,
are applicable at the time of the draw of grant funds.
10
Revised 6/81
1
(3) All conditions precedent to the Recipient's authority to draw
the grant funds shall have been satisfied, in accordance with Section 3.03 of
this Grant Agreement.
(4) The grant funds to be drawn will be used for Eligible Costs
actually incurred in accordance with the provisions of Exhibits E, C and D to
this Grant Agreement.
(5) All ft+ogram Income which has been received by the Recipient or
by a Participating Party has been deposited or used in accordance with the
provisions of Section 2.04 of this Grant Agreement.
Section 8.02 Certification After Ccmpletion of all Recipient
Activities
Within thirty (30) days after the completion of all Recipient
Activities, the Recipient shall submit to the Secretary a written certification,
executed by the chief executive officer of the Recipient, stating that all
Recipient Activities, have been completed consistent with the terms of this
Grant Agreement, and specifying the date of completion and the cost for each
Recipient Activity.
Section 8.03 Certification After Completion of All_ilon-Recipient
Activities
Within thirty (30) days after the completion of all 17on Recipient
Activities, the Recipient shall submit to the Secretary a written certification,
executed by the chief executive officer of the Recipient, stating that all Non-
pecipient Activities, have been conpleted consistent with the terms of this Qrant
Agreement, and specifying the date of completion and the cost for each lion -Recipient
Activity. She certification shall have attached to it a statement from each
Participating Marty that the information in the certification with respect to
the Non -Recipient Activities carried out by that Participating Party is complete
and correct.
WkICLL IY.
'i'hIRD PARTY LU4TRhM' REQUIRD1F1-rLS
Section 9.01 Escrow of Pr am Intone
She Recipient shall include in all contracts with Participating Parties
involving activities to be paid for with grant funds, a provision that, upon
instruction by the Secretary, all Program Intone received by the Participating
Party, prior to the completion of all Recipient Activities, shall be deposited
in escrow under arrangements approved by the Secretary, in order to provide
-funds to assure the completion of the Recipient Activities.
section 9.02 Program Income Applied to Costs
Unless Exhibit A of this Crant Agreement authorizes or requires
otherwise, the Recipient shall include in all contracts with Participating
Parties involving activities to be paid for with grant funds, a provision that
all program Income received by the Participating Party, prior to the completion
of all Recipient Activities, shall be transmitted to the Recipient for payment
of costs incurred for Recipient Activities -
Sect )n 9.03 m Income for Title I Activities
Unless Exhibit A to this Crant Agreement authorizes or requires
otherwise, the Recipient shall include in all contracts with Participating
Tarties involving activities to be paid for with grant funds, a provision that
all Program Income received by the Participating Party after the completion of
all Recipient Activities shall, at the option of the Recipient, either be
transmitted to the Recipient, or used by the Participating Party with Recipient
approval, for conmunity and economic development activities which would be
eligible for assistance under Title I of the Act, unless otherwise provided in
the close-out agreement between recipient and HUD.
Revised 6/81 11
Section 9.04 Assurance of Covernmental Approvals
the Recipient shall include in all contracts with Participating
Parties a warranty that the Recipient and each Participating Party has obtained,
or has reasonable assurance that it will obtain, all Federal, State and local
governmental approvals and reviews required by law to be obtained by the Recipient
or Participating Party for the Project. Any such approvals or reviews which
have not been obtained shall be specified in the contract.
Section 9.05 Completion of Project
1.he Recipient shall cause to be included in all contracts with
Participating Parties a representation on the part of each Participating Party
that the Participating Party acknowledges that the Secretary, in selecting the
Lecipient for the award of this grant, relied in material part upon the assured
completion of the Project and that the Participating Party assures the Recipient
that such activities `will be colleted by the Participating Party.
Section 9.06 Assurances of projected Jobs
(a) Siie Recipient shall either include in all appropriate contracts
with Participating Parties, or shall secure in the most legally binding and
enforceable form for such assurance available under the laws of Fecipient's
State, written assurances from each Participating Party that such Participating
Party will use its best efforts to create or cause to be created, within a time
specified in Exhibit A of this Grant Agreement, a specified number of new
permanent job opportunities, including a specified number of new permanent job
opportunities for minorities, CEIA-eligible persons, and persons who, at the
time of their employment, will be persons of low -and moderate -income.
(b) For Pockets of Poverty Projects, Recipient shall also includE
assurances necessary to canply with Section 5.03(c) of this Grant Agreement.
All assurances shall (i) state that in order to assist and enable the Recipient
to report to the Secretary, as the Secretary may require, the assuring Partici-
pating Party agrees to report to the Recipient, as the Recipient may from time
to time require, on the numbers and kinds of such jobs created or caused to be
created and filled, and (ii) contain such other provisions as may be required
by the Recipient to enable the Recipient to canply with any reporting require -
rents of the Secretary and to cause the assurances to be legally binding and
enforceable to the maximum extent permitted by the applicable law.
section 9.07 tzintaining Records and Right to Ins et
jibe Recipient shall include in all contracts with Participating
Parties receiving grant funds provisions requiring that (i) each such Partici-
pating Party keep and maintain books, records and other documents relating
directly to the receipt and disbursement of such grant funds; and (ii) any
duly authorized representative of the secretary or Comptroller cameral of the
Limited States shall, at all reasonable times, have access to and the right to
inspect, copy, audit, and examine all such books, records and other documents
of such Participating Party until the completion of all close --out procedures
respecting this grant and the final settlement and conclusion of all issues
arising out of this grant.
Section 9.03 Access to Project
The Recipient shall include in all contracts with Participating
parties a provision that each Participating Party agrees that any duly authorized
representative of the Secretary shall, at all reasonable times, have access to
tany he eompletnion of allof the oject in close-outhich such proceduresarespecting this involved until
s grant'
Section 9.09 tIo Assi nment or Succession
The Recipient shall include in all contracts with Participating
Parties receiving grant funds an acknowledgement and agreement by the Parti-
cipating Party that no transfer of grant funds by the Recipient to the Parti-
cipatirxl Party shall be"or be deemed an assignment of grant funds, and that such
Reviled 6/81 12
Participating Party sh. . neither succeed to any rights enefits or advantages
of the Recipient under this Grant Agreement, nor attain any rights, privileges,
°authorities or interests in or under this Grant Agreement.
Section 9.10 Secretary Approval of Amendments
The Recipient shall include, or cause to be included, in all contracts
which are required to be submitted to and approved by the secretary in accordance
with Exhibit E of this Grant Agreement a provision that during the term of this
Grant Agreement such contract shall not be amended in any material respect,
after such approval and acceptance, without the prior written approval of the
Secretary. "Material" shall be defined as anything which cancels or reduces
any developmental, construction, job creating, or financial obligation of any
Participating Party by more than ten (10%) percent, changes the sites or
character of any development activity, or increases any time for performance
by a party by more than thirty (30) days.
Section 9.11 Disclaimer of Relationships
The Recipient shall include in all contracts with Participating
Parties, and in all contracts with any party involving the use of grant funds,
an acknowledgement that nothing contained in this Grant Agreement, or in the
contract between the parties, nor any act of the secretary, the Recipient, or
any of the parties, shall be deemed or construed by any of the parties, or by
the third persons, to create any relationship of third -party beneficiary,
principal and agent, limited or general partnership, or joint venture, or of
any association or relationship involving the Secretary.
Section 9.12 Limitation of Recipient Liability for Project Activities
Unless otherwise specified in Exhibit A of this Grant Agreement, the
Recipient shall include in all contracts with Participating Parties, and in all
contracts with any party involving the use of grant funds, an acknowledgement
that the Recipient shall not be liable to any Participating Party, or to any party
except HUD, for completion of, or the failure to complete, any activities which
are a part of the Project, except those specified in Exhibit D of this Grant
Agreement.
Section 9.13 Conflict of Interest
The Recipient shall include in all contracts with Participating
Parties, and in all contracts with any party involving the use of grant funds,
a conflict of interest provision consistent with Section 5.01(8) of this Grant
Agreement.
Section 9.14 Project Signs
The Recipient shall include in all contracts with Participating
Parties, and in all contracts with any party involving the use of grant funds,
a project sign provision consistent with any criteria which may be established
by the Secretary.
ARTICLF . X
EVIDENTIARY MATERIALS
Section 10.01 Commitments of Partici tin Parties - General
(aj In selecting the Recipient for the award of this grant, the
Secretary has relied, in material part, upon the representations of the Recipient
and Participating Parties that the Recipient and the Participating Parties
(i) will carry out certain activities connected with the Project; (ii) will
complete those activities; (iii) have, or will have, the financial capability
to assure the carrying out of the activities to their completion; and
(iv) will invest, or cause to be invested, a specific
value
eaamount Participating
the ng
Project. The Secretary has also relied uponarts
Parties' representations that such Participating Parties will, prior to any
use of grant funds for the Project, enter into legally binding agreements
evidencing the comitments which were so relied upon by the Secretary.
13
Revised 6/81
(b) Evident. .y materials to be submitted t( A approved by the
Secretary as specified in Exhibit E of this Grant Agreement shall include:
M a complete index describing the material submitted; (ii) the legally
binding and enforceable commitment of the Participating Party, in unequivocal
terms, to undertake and complete specified activities connected with the Project,
and to expend on the Project a specified minimum amount of funds or other form
of investment; and (iii) clear and convincing proof that the Participating Party
has on hand, or will have available to it, any finances or other things of value
necessary to carry out the promises of completing the activities and making
the specified investment.
(c) Evidentiary materials which have been submitted to and approved
by the Secretary shall not be amended in any material respect without prior
written approval of the Secretary.
Section 10.02 Form of Documentary Evidence - General
All documentary evidence of commitments submitted to the Secretary
for approval shall beJn the form of either (i) a duplicate original, or
(ii) a photographic copy of the fully executed original, of the documents.
Section 10.03 Opinions of Recipient's Counsel
(a) Whenever, in Exhibit E to this Grant Agreement or otherwise,
the opinion of an attorney is required as part of any evidentiary material to
be submitted to the Secretary, the opinion shall be in writing and shall be
that of counsel for the Recipient, unless otherwise specified.
(b) In the formulation or rendering of an opinion, Recipient's
counsel may rely upon the certification of other persons, or the written
statements or opinions of other counsel; provided, a copy of each such certi-
fication, statement, or opinion is attached to the opinion of Recipient's
counsel.
(c) If, in the formulation and rendering of an opinion, the
Recipient's counsel predicates the opinion upon "information and belief,"
then in all such cases the opinion of Recipient's counsel shall contain,
or have attached thereto, a statement or description of all of the informa-
tion upon which the belief of counsel is predicated.
Section 10.04 Evidence of Contracts - Form
(a) Evidence of contractual commitments submitted to the Secretary
shall be in the form specified in Section 10.02 above; shall include all of
the documents evidencing the contractual commitment; and shall have attached
the opinion of Recipient's counsel made in accordance with Section 10.03
above.
(b) The opinion of Recipient's counsel shall certify that the
documents comply with Section 10.02 above, that Recipient's counsel has examined
into the authority of all parties to the documents, and of all persons executing
the documents on behalf of the parties, and that said parties and persons were
authorized to enter into and execute the documents.
(c) The opinion of Recipient's counsel shall state that the documents
constitute a valid and legally enforceable contract under the laws of the
Recipient's State and that the documents conform to the provisions of this
Grant Agreement, except .0s to any particulars specified in the opinion.
Section 10.05 Evidence of Loan Commitments - Form
(a) Evidence of loan commitments from private lending institutions
shall be in the form specified at Section 10.02 above; shall include all of
the documents evidencing the loan commitment, an acceptance by the borrower,
the purposes of the loan, the authorized use of loan funds, and all other
terms and conditions of the loan commitment, the acceptance, and the loan; and
shall have attached the opinion of Recipient's counsel, made in accordance with
Section 10.03.
14
Revised 6/81
(b) A loan commitment may specify contingencies or conditions which
must be satisfied before the closing of the loan, or the disbursement of loan
funds, but the oommmitment shall be an irrevocable commitment, enforceable by
the borrower upon satisfaction of all contingencies or conditions.
(c) Else opinion of Recipient's counsel shall certify that the
documents comply with Section 10.02; that Recipient's counsel has examined
into the authority of all parties to the loan wmeaitment and the acceptance,
and of all persons executing the loan commitment and acceptance on behalf of
the parties; and that said parties and persons were authorized to rake the
loan ccanitraent and acceptance. _
(d) �Lhe opinion of Recipient's counsel shall state that, subject
only to such contingencies and conditions as are expressed in the documents,
the lending institution is irrevocably committed to loan, and the borrower to
accept upon the tems,and conditions specified, the principal amount specified
in the loan commitment; and that the loan ow nitment, and the acceptance, and
all of the terns and conditions of the loan conmitnent, and the loan, are
lawful and enforceable under the laws of the Recipient's State; and that the
documents conform to the provisions of this Crant Agreement, except in any
particulars specified in the opinion.
(e) If, under the terms of the loan commitment, the making of the
loan is contingent upon the happening of any condition precedent, then the
approval of the oommitrment by the Secretary as the evidence required under
this Crant Agreement may be conditioned by the Secretary upon the submittal
and acceptance of further evidence that such contingencies have been satisfied,
or that the contingencies have been otherwise removed, or that the loan has
closed.
(f) where evidence of a loan commitment is required to be submitted
to the Secretary under this [,rant Agreement, evidence of the actual closing of
the loan shall Le acceptable, in lieu of the foregoing, provided such evidence
canplies with Section 1.0.06.
Section 10.06 Evidence of Loans - Form
(a) Evidence of a loan having been made or closed shall be in the
form specified at :section 10.02; shall be on the letterhead of the lending
institution; shall state the principal amount of the loan, its purposes (interim
or permanent), and the authorized uses of loan funds; shall describe or identify
the security for the loan; shall state the term of the loan; shall identify all
parties to the loan; shall be executed by an authorized officer of the lending
institution; and shall have attached an opinion of recipient's counsel shade in
accordance with Section 10.03, certifying that the docunments comply with
Section 10.02, and that the officer of the lending institution was authorized
to execute the documents.
(b) Evidence of a loan having been made or closed may .also be suLmitted
in the form of copies of recorded notes, deeds, bonds, indentures and other
documents which comply with section 10.02 and which contain sufficient evidence,
including evidence of recordation, to enable the Secretary to determine the
matters specified above at subsection (a) of this Section 10.06 and that the
loan has been made or closed.
Section 1047 Evidence of_Liqui3 Assets - Form
Whenever a Participating Party is required to provide evidence of
liquid assets for -an activity in an amount and manner satisfactory and acceptable
to a lending institutiar, such evidence shall be in the form specified at
Section 16.02; shall be on the letterhead of the lending institution; shall
identify the Participating Party; and shall state that the Participating }
has on hand or inmediately available to the Participating Farty, liquid
assets of a value and in an amount satisfactory and acceptable to the lending
institution, and that the availability and use of the liquid assets for the
activity to be carried out by the Participating Party in connection with the
Project is assured to the satisfaction of the lending institution. 'The document
shall be executed by an authorized officer of the lending institution; and
shall have attached an opinion of Recipient's counsel, made in.accordance with
15
Revised 6/81
Section 10.03, that the documents comply with Section 10.02 and that the officer
of the lending institution was authorized to execute the same.
Section 10.08 Evidence of Yinances Satisfactory to Counsel - Fbrm
(a) whenever evidence is required in the form of a statement and
opinion of Recipient's counsel that a Participating Party will provide a
specific amount of finances for purposes of carrying out the commitment of
that Participating Party in connection with the Project, such evidence shall
be in the form of an opinion of Recipient's counsel made in accordance with
Section 10.03.
(b) The opinion of Recipient's counsel shall certify that counsel
has examined into the availability to the Participating Party of liquid assets
and/or of debt financing; shall state the amount and the source of liquid assets
on harO or immediately available to the Participating Party for use in the Project;
and shall state the amount and the source of debt financing which is available,
or irrevocably committed, to the Participating Party for use in the Project.
the evidence of these funds shall be consistent with the provisions of Sections
10.05, 10.06 and 10.07 above to the extent possible.
(c) 7-he opinion of Recipient's counsel shall be that the Parti-
cipating Party has on hand, or immediately available, or irrevocably committed
to the Participating Party, for use in carrying out the commitments of the
Participating Party to the Project, liquid assets and/or debt financing in a
sum equal to the specified amount of finances required in this Grant Agreement.
(d) sutmissions pursuant to this section shall be subject to HUD
approval as to form and content.
Section 10.09 Anti -Speculation Provisions - Sale of Real Pro rt
(a) Whenever, in Exhibit E: of this Grant Agreement, a document is
required to contain a provision for the prevention or discouragement of speculation
in the purchase and sale of property by a beneficiary of grant funds, then,
unless otherwise specified, such provision shall comply with this Section.
(b) The document shall prohibit the beneficiary of grant funds from
selling or otherwise disposing of the property within a period specified in
Exhibit E of this Crant Agreement after the date of the purchase, for an amount
in excess of the purchase price paid, plus the actual costs of any improvements
to the property by the beneficiary. s!he.prohibition against sale shall
have the same force and effect as a lis pendens, and shall specify that in the
event of any attempted sale, in violation of the provision, the Recipient shall
be.entitled to the ex parte issuance of an injunction restraining such sale.
She document shall be executed and authenticated in such manner and form as
niay be required under state law to authorize its recordation at the place of
recordation of deeds, as if a lis pendens; and the document shall be so recorded.
(c) she docurient may, in conjunction with the foregoing, or in lieu
thereof, describe a procedure whereunder, in the event of any sale of the
property within the period specified in Lxhibit L of this Grant Agreement, the
amount of grant funds which benefited the beneficiary shall be repaid by the
beneficiary to the Iecipient. Such procedure may include a pro-rata reduction
of the ammunt to be repaid, based upon the time elapsing between the date of
the initial purchase of the property and its disposition by the beneficiary.
,he document must either specify the amount of grant funds which benefited the
beneficiary, or set forth a formula or agreed method for determining such
amount. Zhe document shall be executed and authenticated in such manner and
form as may be required to authorize its recordation, as if a lis pendens; and
the document shall be so recorded.
Section 10.10 Evidence of Title to Real Property - Ebrm
Whenever, in Exhibit E of this Grant Agreement, a Participating
party or the Recipient is required to acquire fee simple or leasehold title to
real property, and proof of such acquisition is required, evidence small be in
the form of an opinion of Recipient's. counsel, made in accordance with Section
10.03. The opinion shall certify that on a specified date, either an original
ALTA policy of land or mortgage'title insurance, or other records identified in
16
Revised 6/81
the opinion, were examined by Recipient's counsel; and that said policy or other
records identified the Participating Party, or'a wholly-ormed subsidiary of the
Participating Party, or the -Recipient or its agent or agency, as required, as the
owner or lessee of record, in fee simple or leasehold,of said property. The
opinion shall further state that on,the date specified by Recipient's counsel, the
record fee simple or leasehold title to said real property was vested, in the
Participtting Party, or such subsidiary thereof, or in the Recipient or its agent
or agency as required. in lieu thereof, evidence may be in the form of docanents
which comply with Section 10.02.and which contain sufficient evidence, including
evidence of recordation, to enable the Secretary to determine, to the satisfaction
of the Secretary, that the Participating Party or the Recipient did acquire the
title, as required.
AMCLE XI =
MISCrLLANEOLS
Section 11.01 Notices
(a) All amendments, notices, requests, objections, waivers,
rejections, agreements, approvals, disclosures and consents of any kind made
pursuant to this Grant Agreement shall be in writing.
(b) Any such communication shall be deemed effective for all pur-
poses as of the date such communication is mailed, postage prepaid, by registered
or certified mail, return receipt requested, to be delivered only to the office
of the addressee, addressed as follows:
(1) Communications to the Secretary shall be mailed simultaneously
to: (A) The Director, Office of Urban Development Action Grants, U.S. Department
of Housing and Urban Development, 451 7th'Street, S.W., Room 7258, Washington,
D.C. 20410, and (B) The Area office Manager of the wD Area office authorized
to receive the AFplication of the Recipient for the grant hereunder; and
(C) such other persons or at such other addresses as may be furnished by the
Secretary to the Recipient.
(2) Communications to the Foci lent shall be addressed to the
Recipient, at the address set forth in Exhibit A of this Grant Agreement, or
such other address as may be furnished by the Recipient to the Secretary.
Section 11.02 Assignment
No right, benefit, or advantage inuring to the Recipient under this
(,'rant Agreement and no burden imposed on the Recipient hereunder may be assigned
without the prior written approval of the Secretary. An authorization by the
Secretary for the transfer of grant funds by Recipient to a Participating Party
-shall not be deemed an authorization for an assignment, and such Participating
Party shall not succeed to any rights, benefits or advantages of the Recipient
hereunder.
Section 11.03 Successors Bound
11his Grant Agreement shall bind, and the rights, benefits and advan-
tages shall inure to, the Recipient's successors.
Section 11.04 Remedies Not I fired
No delay or anission of the Secretary in exercising any right or remedy
available under this Grant Agreement shall impair any such right or remedy or
constitute a waiver of any Default, or an acquiescence therein.
Section 11.05 Lmilative Remedies
All rights and remedies of -the Secretary under this Grant Agreement
shall be cumulative.
section 11.O6 Se mrability
the invalidity of any article, section, subsection, clause or pro-
vision of this Grant Agreement shall not affect the validity of the remaining_
Revised6/81 17
articles, sections, 'subsections, clauses or provisions hereof.
Section 11.07 Entire h9reement
This Grant Agreement constitutes the eistire agreement between the
Secretary and the Recipient and supersedes all prior oral and written agreements
between the parties hereto with respect to the subject grant. Notwithstanding
the provisions of Section 1.01 of this Grant Agreement,,in the event of any
inconsistency between the provisions of this Lrant Agreement and anything
contained in the Application, then the provisions of this Grant Agreement shall
prevail. +
Section 11.08 Execution in Counterparts
This Grant Agreement may be executed in any number of counterparts.
All such counterparts shall be deemed to be originals and together shall con-
stitute but one and the same instrument.
Section 11.09 Table of Contents; Titles and tieadin s
Any table of contents, the title of the Articles, and the headings of
the sections and subsections set forth herein are not a part of this Grant
Agreement and shall not be deemed to affect the meaning or construction of any
of its provisions.
Section 11.10 Amendment of this Grant Acxeement
This Grant Agreement, or any part hereof, may be amended from time
to time hereafter only in writing executed by the Secretary and the Recipient.
Section 11.31 Disclaimer of Relationships
The Recipient acknowledges that the obligation of the Secretary is
limited to providing grant funds in the manner and on the terms set forth in
this Grant Agreement. Wthing in this Grant Agreement, nor any act of either
the Secretary or of the gecipient, shall be deemed or construed by either of
any relationship of third -party beneficiary,
then,, or by third persons, to create
oint vent
principal and agent, limited or genera
l partnership, °the3Secretaryure/ or of
any association or relationship whatsoever involving
Section 11.12 Governs Law
This Grant Agreement as it may affect the rights, sin accordance
and obligations of the Secretary shall be governed by
and with Federal law. Insofar as Federal law does not apply, the provisions of
this Grant Agreement shall be governed by and construed in accordance with the
laws of the Recipient's State -
Sect )n 11.13 Waiver Secreta
The secretary reserves and shall have the exclusive right to waive, at
the sole discretion of the Secretary, and to the extent permitted by law, any
requirement or provision under this Gooan�st construed be, No any waiver ofby or on �anylsuch
the Secretary shall be, or be deemed si ned b the Secretary,
requirement or statedpisio constitute sucunless the h waiver in writing, 9 Y
and expressly
Section 11.14 Effective rate
the
(a) This Grant Agreement shall, when executedrothec pient to make the
�retary, constitute an offer by the Secretaryeement. FRen delivered to the
within grant and ut enter into this shall constitute a tender of said
Recipient so executed and d llyaccepted, if at all, by the Recipient and which
offer, which shall be promptly royal. The Secretary may
shall not be altered without the Secretary's app
revoke the tender and rescind the offer at any time prior to its acceptance Y
the recipient, by written notice of the Secretary to the Recipient, given
-specified at Section 11.01 of this Grant Agreement•
18
Revised 6/81
(b) This Gt . Agreement shall be deemed toy e been accepted, and,
shall beanie effective, as of the date this Grant Agreement is executed and
dated by the Recipient.
Section 11.15 Termination of Grant Agreement
Unless otherwise terminated by the Secretary pursuant to Article VII
of this Grant Agreement, or by the mutual consent of Recipient and the Secretary,
this Grant Agreement shall terminate upon the oanpletion of all close-out
procedures respecting this grant and the final settlement and conclusion between
Recipient and the Secretary of all issues arising out of this grant, unless
otherwise provided in the close-out agreement between Recipient and the Secretary.
Revised 6/81 19
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SIGNATURE PAGE
THIS GRANT AGREEMENT, numbered B-84-AA 06-0615(P) is hereby
executed and delivered by the Parties hereto on the dates set
forth below their respective signatures, as followa:
THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT
Date:
By.
DuBois L. Gilliam
Deputy Assistant Secretary
for Program Policy Development
and Evaluation
Office of community Planning
and Development
THE CITY OF SANTA ABA, CALIFORNIA
Date:
ATTEST:
By:
YDaniel E. Griset
i e C. Guy, Cler a Title: Mayor
Corm i
IMPORTANT
One (1) fully executed copy of this Grant Agreement must be mailed
to the Office of Urban Development Action Grants, and two (2) fully
executed copies of this Grant Agreement must be mailed to the HUD
Field Office Manager, in accordance with Section 11.019 on the same
date executed by Recipient. -
Adorm p pt �� s r�� ent
EDWEityll.anager
City Attorney —20—
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Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(P)
Amendment #1
EXHIBIT A
SUPPIEMENTARY PROVISIONS
Rider to Section I.D3(2). In addition to Recipient's Application for
Federal Assistance (SF 424), the "Application" shall include:
(1) Addenda #1, 2 and 3.
(2) Letter dated September 23, 1985, from Fiesta Place Partners, Rangel,
Ceballos, and Escalante to Stanley Newman, Director, UDAG, confirming
repayment terms.
Plus any additional materials submitted since the date the Application
was filed upon which the Secretary relied in making this award.
Rider to Section 1.03(12). The term ."Participating Party" consists of
the following persons, firms, corporations and entities:
"Developer" means Fiesta Marketplace Partners, a California limited
partnership with Allan Fainbarg S Irving Chase as Managing
General Partners, with an address at 2323 North Tustin
Avenue, Suite L, Santa Ana, California 92705.
"Agency" means the Community Redevelopment Agency of Recipient, a public
body, with an address at 20 Civic Center Plaza, Santa Ana,
California 92702.
"Underwriters" mean Bank of America National Trust b Savings Association
with an address at 802 North Main Street, Santa Ana,
California 92701, and/or Miller S Schroeder Municipals,
Inc., with an address at 505 Lorros Santa Fe Drive, Suite
100, Post Office Box 946 Solona Beach, California 92705.
"Rangel" means Raymond A. and Delia M. Rangel, with an address at 306
East Fourth Street, Santa Ana, California 92701.
"Ceballos" means Jose Isabell, Juan C. and Bertha Ayon Ceballos, d/b/a
Ceballos Real Estate Investments with an address at 314 East
Fourth Street, Santa Ana, California 92701.
"Escalante" means Robert and Loretta Escalante with an address at 302
North French Street, Santa Ana, California 92701.
"Fainbarg" means Fainbarg Children's Trust, an irrevocable trust, with
Allan Fainbarg as Trustee with an address at 2323 North
Tustin Avenue, Suite L, Santa Ana, California 92705.
"Guarantor" means Allan Fainbarg and Irving Chase, jointly and severally,
c/o Fiesta Marketplace Partners, 2323 North Tustin Avenue,
Suite L, Santa Ana, California 92705.
Rider to Section 1.03(13). The phrase 'the UDAG percentage of" contained
on the first line of paragraph (13) and the last sentence thereof are deleted
in their entirety.
EXH1h1T A
Page 1 of 4
Recipients City of Santa Ana California Grant Number: B-84-AA-06-06152)
Continuation Sheet ---Exhibit A
Rider to Section 1.03. (21) "project Sites" mean the following:
2 (a) "Project Site A" -- Sales Parcels: 201-215, 301-315, and 214-222
located on East Fourth Street; 301-305 and 307 located on Borth Spurgeon all
3 located in Santa Ana, California and further described in the Application-
4 (b) "Project Site B" -- 302-308 East Fourth Street, Santa Ana,
California.
5 (c) "Project Site C" -- 212, 312 and 314 East Fourth Street, Santa Ana,
6 California.
%)7 (d) "Project Site D" - 302 and 304 North French Street and 307 East
Third Street, Santa Ana, California.
8
(e) "Project Site E" -- 217 East Fourth Street, Santa Ana, California.
9
0 Rider to Section 1.03. (22) "parking Areas" mean the followings
A (a) "Parking Area a -- 202-320 East Fifth Street, Santa Ana,
California.
2
(b) "parking Area B" -- 201-221 East Third Street, Santa Ana,
3 California.
'4
Rider to Section 1.03. (23) "Project Elements" mesa the following:
5 (a) "Project Element A" -- the construction of approximately 51,024
6 square feet of offices, 43,824 square feet of retail space, a 1,540 square
foot food court, a 7,200 square foot theatre; the rehabilitation of a 7,560
foot
ce
7 foraae350-spaceatre and a parking lot2as0furtheredescribediin the ding and Application.
improvements
foot Application
B (b) "Project Element B" _- the construction of aapproximately20,000
9 square foot building and facade improvements to an approximately 2,500 square
foot building as further described in the Application.
'0
(c) "Project Element C" -- the construction of an approximately 6,000
feet
I square foot building (the first floor shall be approximately 3,000
of owner -occupied retail space, the second floor shall be approximately
3,0000
2 square feet of office space) and rehabilitation of two (2) approximately
square foot buildings.
^3 (d) "Project Element D" -- the rehabilitation of an approximately 81640
4 square foot building and repaving of a parking lot as further described in the
Application-
.5 (a) "Project Element E" -- the reconstruction of the facade of the
6 improvement located on Project Site E.
7
S
Rider to Section 2.01. The amount of this IIDAG grant s:
SIX HUNDRED EIGHTY NINE THOUSAND DOLLARS ($
689,000).
0
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Page 2 of 4
EXHIBIT A "
Recipient: City of Santa Ana California Grant Number: B-84-AA-06-0615(P.)
Continuation Sheet --Exhibit A
t Rider to Sections 2.04 9.01 9.02 and 9.03. Any repayment or other
payments received pursuant to Paragraphs III, IV, V and VI of Exhibit E to
3 this Grant Agreement and received prior to completion of the UDAG funded
Recipient Activities shall be held in escrow pursuant to Section 2.04(a) of
this Grant Agreement until completion of the UDAG funded Recipient `
5 Activities. All escrowed funds shall bear interest with the accounts insured
ryl by an agency of the U.S. Government. Upon completion of the UDAG funded
8 Recipient Activities, any funds held in said escrow shall be spent for
9 activities eligible under Title I of the housing and Community Development Act
0 of 1974, as amended, and shall be spent in accordance with Part 570 of Title
1 24 Code of Federal Regulations. Any repayments received after completion of
2 the UDAG funded Recipient Activities shall be deemed miscellaneous revenues
3 and shall be spent for activities eligible under Title I of the Housing and
4 Community Development Act of 1974, as amended, and shall not be governed by
5 Part 570.
6 Rider to Section 5.01(8) Paragraph (8) shall be deleted in its entirety
7 and the following shall be inserted in place thereof:
B
"(8) Recipient shall comply with the conflict of interest provision set
9 forth in 24 CFR Section 570.611 (48 Federal Register 186, pp. 43571-72,
?0
H 9723/83)."
'2 Rider to Sections 5.03 and 9.06. The jobs referenced at Section 5.03 and
I the assurances required at Section 9.06 shall aggregate:
.14 Total New Permanent Jobst 363 . Escalante - 3
'5 Developer - 3011 Rangel - 44; Ceballos - 15,
Total New Permanent Jobs for Low•- and Moderate -Income Persons: 271
Developer - 226; Rangel - 33; Ceballos - 11; Escalante - 1
I Total New Permanent Jobs for CETA-Eligible Persons:
el- 1
Developer - 150; Rangel - 22; Ceballos - 8; s
.18 Total New Permanent Jobs for minoritieCeballoss: 27 Escalante - 2
1-9 Developer - 271; Rangel -
40;i0 Total New Permanent Jobs for Low- and Moderate -Income Residents
of the Pocket of Poverty: 186
5'
Developer - 154; Rangel - 22; Ceballos - 8; Escalante - 2
52 Job Requirements shall be completed within 48 months from the
Date.of Preliminary Approval.
Page 3 of 4
EXHIBIT A
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Recipient: City of Santa Ana California Grant Number: B-84-AA-06-0615(P)
Continuation Sheet ---Exhibit A
Rider to Section 9.13 Conflict of Interest. Sectiod 9.13 shall be deleted
in its entirety and the following shall be inserted in place thereof:
"The Recipient shall include in all contracts with Participating Parties
and in all contracts with any party involving the use of Grant Funds, a
conflict of interest provision consistent with 24 CFR Section 570.611 (48
Federal Register 186, pp. 43571-72, 9/23/83)."
Rider to Section 11.01. The address of the Recipient for the purpose of
communications relating to this Grant Agreement is:
Honorable Daniel E. Griset
Mayor of Santa Ana
c/o Robert Bobb, City Manager
Santa Ana, California 92702
Contact Person: Ed Henning
City Hall
20 Civic Center Plaza
Santa Ana, California 92702
(714) 973-6131
Rider to Section 11.14. In the event Recipient shall not execute and
return one counterpart of this Grant Agreement to the Secretary and two (2)
counterparts to the HUD Field Office within 60 days from the date the
Secretary signed the Grant Agreement, this tender and offer may be revoked and
rescinded by the Secretary.
EXHIBIT b
Page 4 of 4
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Recipient: City of Santa Ana California Grant Number: B-84--AA-06-0615(P)
Amendment #1
EXHIBIT B
DESCRIPTION OF RECIPIENT ACTIVITIES
Rider to Section 1.03(17). The "Recipient Activities" shall consist of. -
Recipient shall:
(a) purchase Project Site A and Parking Areas and carry out related
relocation and demolition activities for an aggregate cost of approximately
$5,017,000 utilizing HUD Section 108 loan proceeds of not less than $2,850,000 and
Tax Increment financing of not less than $2,167,000;
(b) sell Project Site A to Developer for a nominal fee of $1.00;
(c) lend to Developer not more than $552,000 of Grant Funds which shall be
used in accordance with Page 2 of Exhibit ➢ to this Grant Agreement;
(d) collect $300,000 from Developer to defray the cost of improving a
350-space parking lot on Parking Areas;
(e) lend to Ranges not more than $90,000 of Grant Funds which shall be used
in accordance with Page 3 of Exhibit D to this Grant Agreement;
(f) lend to Ceballos not more than $36,000 of Grant Funds which shall be used
in accordance with Page 4 of Exhibit D to this Grant Agreement;
(g) lend to Escalante not more than $11,000 of Grant Funds which shall be
used.in accordance with Page 5 of Exhibit D to this Grant Agreement; and
(h) issue and sell to Underwriters not less than $6,000,000 of Industrial
Revenue Bonds for the development of the Project.
EXHIBIT B
Page 1 of 1
Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(P)
EXHIBIT C
1 DESCRIPTION OF NON -RECIPIENT ACTIVITIES
2 Rider to Section 1.03(11). The "Non -Recipient Activities" shall consist of:
3 I
4 Developer shall:
5 (a) acquire Project Site A from Recipient at a nominal cost of $1.00;
6 (b) complete Project Element A on Project Site A at a total cost of not less
7 than $72016,172 of which not less than $4,980,000 shall be private loan funds,
8 $1,484,172 shall be Developer's equity funds and up to $552,000 shall be a loan of
9 Grant Funds;
0 (c) borrow from Underwriters at least $6,000,000 of which $4,980.000 shall be
used by Developer for financing the development of Project Element A and the
2 balance of $1,020,000 shall be loaned by Developer as follows--
3 (1) $754,800 to Rangel for the development of Project Element B;
4 (2) $224,400 to Ceballos for the development of Project Element C; and
5 (3) $40,600 to Fainbarg for the development of Project Element D;
6 (d) invest not less than $1,484.172 cash equity in the development of Project
7 Element A;
8 _ (e) pay to Recipient $300,000 to reimburse Recipient cost of improving
9 Parking Areas;
10 (f) borrow from Recipient not more than $552,000 of Grant Funds for financing
A the development of Project Element A; and
2 (g) unconditionally and irrevocably guarantee the completion of Project
13 Element A within the timeframe hereinafter set forth in Exhibit F to this Grant
4 Agreement.
.5 II
f
'6 Rangel shall: .
7 (a) complete Project Element B on Project Site B at a total cost of not less
8 than $1,277,744 of which not less than $754,800 shall be private loan funds,
$432,944 shall be Rangel's equity funds and not more than $90,000 shall be a loan
0 of Grant Funds;
(b) borrow from Developer $754,800 for financing the development of Project
2 Element B;
Page 1 of 3
EXHIBIT C
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Recipient: City of Santa Ana California Grant Number: B-84-AA-06-0615(P)
Continuation Sheet ---Exhibit C
(c) invest not less than 19216.587 in cash equity and land valued at $216.357
in the development of Project Element B;
(d) borrow from Recipient not more than $90,000 of Grant Funds for financing
the development of Project Element B; and
(e) unconditionally and irrevocably guarantee the repayment of'the aforesaid
WAG Loan and the completion of"Project Element B within the timeframe hereinafter
set forth in Exhibit F to this Grant Agreement. .
uz
Ceballos shall:
(a) complete Project Element C on Project Site C at a total cost of not less
than $570,485 of which not less than $224,400 shall be private loan funds, not less
than $96,647 shall be Agency loan funds, not less than $213,438 shall be Ceballos'
equity funds and up to $36,000 shall be a loan of Grant Funds;
(b) borrow from Developer not less than $224,400 for financing the
development of Project Element C;
(c) invest not less than $88,068 cash equity and land valued at $125,370 in
the development of Project Element C;
(d) borrow from Agency at least $96.647 in Agency loan funds for financing
the development of Project Element C;
(a) borrow from Recipient not more than $36,000 of Grant Funds for financing
the development of Project Element C; and
(f) unconditionally and irrevocably guarantee the repayment of the aforesaid
UDAG Loan and the completion of Project Element C within the timeframe hereinafter
set forth in Exhibit F to this Grant Agreement.
IV
Escalante shall%
(a) complete Project Element D on Project Site D at a total cost of not less
than $183,410 of which not less than $99,457 shall be Agency loan funds, $72,953
shall be Escaiante's equity funds, and up to $11,000 shall be a loan of Grant
Funds;
(b) borrow from Agency at least $99,457 in Agency loan funds for financing
the development of Project Element D;
• Page 2 of 3
EXHIBIT C'
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Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(p)
Continuation Sheet --Exhibit C Amendment #1
(c) invest not less than $35,898 in cash equity and land valued at $37,055 in
the development of Project Element D;
(d) borrow from Recipient not more than $11,000 of Grant Funds for financing
the development of Project Element D; and
(a) unconditionally and irrevocably guarantee the repayment of the aforesaid
UDAG Loan and the completion of Project Element D within the timeframe hereinafter
set forth in Exhibit F to this Grant Agreement.
V
Fainbarg shall complete Project Element E on Project Site E at a total cost of
not less than $681,520 of which not less than $40,800 shall be private loan funds
from Developer and $20,720 shall be Fainbarg's cash equity, and land valued at
$620,000.
VI
Agency shall:
(a) lend to Ceballos not less than $96,647 of funds from the Direct
Commercial Rehabilitation Loan Program which shall be used for financing the
development of Project Element C;, and
(b) lend to Escalante not less than $99,457 of funds from the Direct
Commercial Rehabilitation Loan Program which shall be used for financing the
development of Project Element D.
V11
Underwriters shall purchase from Recipient not less than $6,000,000 of
Industrial Revenue Bonds which Underwriters shall lend to Developer for the
development of the Project Elements.
VIII
Guarantor shall guarantee to Recipient the completion of Project Elements A. B
and C within the timeframe bereinafter set forth in Exhibit F to this Grant
Agreement.
Mil BIT C
Page 3 of 3
Recipient: City of Santa ---a, California Grant Nu—.ar: B-84-AA-06-0615(P)
Amendment #1
EXHIBIT D--TOTAL
Project Budget - Summary of Projected Expenditures
USE OF FUNDS a
SOURCES OF FUNDS
TOTAL
COSTS
Line Item Activity
UDAG Private Other
Funds Funds Funds
a.
Land
$5,017,000
$ 5,017,000
b.
Parking
$ 300,000
300,000
C.
Construction/Renovation
$689,000
6,446,476
7,135,476
d.
Contingency
98,640
'
98,640
e.
Professional Fees
1,186,704
1,186,704
f.
Contributed Land Equity
998,782
998,782
g•
h.
I.
j-
k. Capttal Equipment
10,000
10,000
1. Equipment not counted in
leverage ratio
m. Working Capital (not
counted• in leverage ratio)
n. Profit & Overhead (not
counted in leverage ratio)
o. TOTAL PROJECT COST
$689,000
$9,040,602
$5,017,000
$14,746,602
p. Recipient administrative costs
reimbursed from UDAG funds
q. Less: items not counted in
leverage ratio (line f.)
- 998,782*
r. Total private investment to
be reported on QPR's ("countable
private")
$8,041,820
S. Plus: Discounted value of
UDAG loan repayment
+ 435,662
t. Plus: Discounted value of
other public loan repayments
+ 856,264
u. Plus: Present value of
lease payments
+ -0-
v. Totals used in computing
leverage ratio
$689,000
$9,333,746
Discount Rate: 10
EXHIBIT D
*Land already owned by Revised 3/29/84
Rangel, Ceballos, Escalante S Fainbarg
Page 1 of 6
.Recipient: City of Santa A-z, California
Grant Number: B-84-AA-06-0615(P)
Continuation Sheet --Exhibit D
FIESTA MARKETPLACE PARTNERS
Project RaidQpt - SnmMary of
Projected Expenditures
USE OF FUNDS
UDAG
SOURCES OF FUNDS
Private Other
TOTAL
Line Item Activity
Funds
Funds Funds
COSTS
a.
$ 300.000
$ 300,000
Parking
b.
Building Construction
$552,000
5,083,045
5 635 045
5,635,045
C.
Professional Fees
982,487
982,487
d.
98,640
98,640
Contingency
e.
f.
g•
h.
1.
k. Capital Equipment
1. Equipment not counted in
leverage ratio
m. Working Capital (not
counted in leverage ratio)
n. Profit & Overhead (not
counted is leverage ratio)
$552,000
$6,464,172
$7,016,172
TOTAL PROJECT COST
Recipient administrative costs
Freimbursed
from UDAG funds
q. Less: items not counted in
_ -p-
leverage ratio (lines 1.-n.)
r. Total private.investment to
$6,464,172
be reported on QPR's ("countable'
private")
s. Plus: Discounted value of
+ 345,779
UDAG loan repayment
t. Plus: Discounted value of
+ -0-
other public loan repayments
u. Plus: Present value of
+ _0-
.
lease payments
v. Totals used in computing $552,000
$6,809,951
leverage ratio
Revised 3/29/84
Discount Rate:110Z
Page 2 of 6
• FMIBIT D
Recipient: City_of Santa
Ana California
Grant Number: B-84-AA-06-0615(P)
Coe.-inuation Sheet --Exhibit D
RANGEL
Project
Budget - Summary of
Projected Expenditures
USE OF FUNDS
UDAG
SOURCES OF FUNDS
Private Other
TOTAL
Line Item Activity
Funds
Funds Funds
COSTS
a•
$ 216,357
$ 216,357
Land
b'
$90,000
$50,412
940,412
Construction
c•
120,975
120,975
Professional Fees
d.
ti
J.
k. Capital Equipment
1. .Equipment not counted in
leverage ratio
m. Working Capital (not
counted in leverage ratio)
n. Profit & Overhead (not
counted in leverage ratio)
TOTAL PROJECT COST
$90,000
$1,187,744
o.
p. Recipient administrative costs
reimbursed from UDAG funds
q. Less: items not counted in
_ 216,357*
leverage ratio (line a.)
r. Total private investment to
$ 971,387
be reported on QPR's ("countable,
private")
a. Plus: Discounted value of
+ 56,619
UDAG loan repayment
t. Plus: Discounted value of
+ -0-
other public loan repayments
u, plus: Present value of
+ _0_
lease payments
v. Totals used in computing $90' 000
$1,028,006
leverage ratio
- Discount Rate:-10% *Represents 75X'of the
already
appraised
owned.
• value of land
EXHIBIT D
$1.277,744
Revised 3129184
Page 3 of 6
Recipient: City of Santa Ana, California
Grant Number: B-84-AA-06-0615(F)
Cu,tinuation Sheet ---Exhibit D
CEBALLOS
Project Budget - Summary of
Projected Expenditures
UDAG
SOURCES OF FUNDS
Private Other
TOTAL
Line Item Activity
Funds
Funds Funds
COSTS
a•
$125,370
370125
$ ,
Land
b.
Building Construction
$36,000
354,071
390,071
c'
55,044
55,044
Professional Fees
d.
ti
e•
f.
g.
h.
i.
j-
k.. Capital Equipment
1. Equipment not counted in
leverage ratio
m. Working Capital (not
counted in leverage ratio)
n. Profit & Overhead (not
counted in leverage ratio)
$36,000
$534,485
$570,485
o. TOTAL PROJECT COST
p. Recipient administrative costs
reimbursed from UDAG funds
q. Less: items not counted in
-125,370*
leverage ratio (line a.)
r. Total private investment to
$40g,115
be reported on QPR's ("countable
private")
a. Plus: Discounted value of
+ 25,479
UDAG loan repayment
t. Plus: Discounted value of
+434,594
other public loan repayments
u. plus: Present value of
+ -0-
lease payments
v. Totals used in computing $36,000
$434,594
leverage ratio
Revised 3/29/84
of anoraised
Discount Rate* Luis ^value of land already owned.
• Page 4 of 6
EXHIBIT D 1.
Recipient: CitY of Santa Ana California
fGrant Number: B-84-AA-06-0615(P)
Ca.__inuation Sheet ---Exhibit
D
ESCALANTE
Project Budget -
Summary of
Projected Expenditures
vSh Ur YUNLa
UDAG
SOURCES OF FUNDS
Private Other
TOTAL
Line ltem Activity
Funds
Funds Funds
COSTS
$ 37,055
$ 37,055
a. s'
Land
b. Construction
$11 000
104,746.
115,746
c.
Professional Fees
20,609
20,609
d.
10,000
_ 10,000
Capital Equipment
e.
f.
g•
h.
i.
j-
k. Capital Equipment
1. Equipment not counted in
leverage ratio
m. Working Capital (not
counted in leverage ratio)
n. Profit & Overhead (not
counted in leverage ratio)
$ 11,000
$172,41Q
5183,410
o. TOTAL PROJECT COST
p. Recipient administrative costs
reimbursed from UDAG funds
q. Less: items not counted in
_ 37,055*
leverage ratio (line a.)
r. Total private investment to
$135,355
be reported on QPR46 ("countable
private")
s. Plus: Discounted value of
+ 7,755
UDAG loan repayment
t. Plus: Discounted value of
+ -o-
other public loan repayments
u. Plus: Present value of
+ -0-
lease payments
,
v. Tools used in computing
$11 000
$143,140
leverage ratio
Revised 3/29/84
Discount Rate:,10% *Representd 75X-of appraised
land already ocined.
value of
"
Page 5 of 6
EXHIBIT D
Recipient: City of Sant %na, California Grant nber: B-84-AA-00615(P)
Amen dmen6-
t 1
Continuation Sheet ---Exhibit D
k
FAINBARG
Project Budget - Summary of Projected Expenditures
USE OF FUNDS a
SOURCES OF FUNDS
TOTAL
COSTS
Line Item Activity
UDAG Private Other
Funds Funds Funds
a.
Land
$620,000
$620,000
b.
Building Construction
53,842
53,842
C.
Professional Fees
7,679
7,679
d.
e.
f.
g•
h.
i.
j-
k. Capital Equipment
1. Equipment not counted in
leverage ratio
m. Working Capital (not
counted.in leverage ratio)
n. Profit S Overhead (not
counted in leverage ratio)
o. TOTAL PROJECT COST
$681,520
$681,520
p. Recipient administrative costs
reimbursed from UDAG funds
q. Less: items not counted in
leverage ratio (line a.)
-620,000
r. Total private investment to
be reported on QPR`s ("countable
private")
$ 61,520
s. Plus: Discounted value of
UDAG loan repayment
+ -0-
t. Plus: Discounted value of
other public loan repayments
+ -0-
u. Plus: Present value of
lease payments
+ -0-
i Totals used in computing
l
Ileverage ratio
�
Discount kate: 10%
Revised 3/29/84
EXHIBIT D
Page 6 of 6
t
Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(P)
EXHIBIT E
REQUIRED EVIDENTIARY MATERIALS
The evidentiary materials to be submitted by the Recipient for the approval of
3 the Secretary shall include the applicable provisions of Article IX of this Grant
Agreement and shall consist of the following:
I
5
(a) All governmental approvals and permits necessary for the commencement of
to the Recipient and Non -Recipient Activities shall have been obtained.
(b) Evidence of this commitment shall be a written certification from
9 Recipient, signed by the chief executive officer, in accordance with Section 10.02
0 of this Grant Agreement, that all such governmental approvals and permits have been
A obtained.
II
2
3 (a) Title to all land necessary for the Project, except land to be acquired
.4 with Grant Funds, shall be held by Recipient or the appropriate Participating
5 Party.
(b) Evidence of this commitment shall be in accordance with Section 10.10 of
:? this Grant Agreement.
III
8
-9 (a) Recipient and Developer shall enter into an agreement which shall contain
.0 provisions consistent with the following:
(1) Recipient shall agree to carry out the Recipient Activities set
rl forth in subparagraphs (a), (b), (c) and (d) of Exhibit B to this Grant Agreement.
13 (2) Developer shall agree to carry out all Non -Recipient Activities
�4 ascribed to Developer in Exhibit C to this Grant Agreement. The agreement shall
15 set forth the scope of the work, its location, and the obligation of Developer to
,6 invest not less than $6,464,172 of private funds and cash equity in Project
rl Element A.
e (3) Recipient shall be obligated to make a loan to Developer of not more
than $552,000 of Grant Funds (the "UDAG Loan"), which shall be used for the partial
50 50 financing of the construction of Project Element A in accordance with Page 2 of
31 Exhibit D to this Grant Agreement. The terms and conditions of the UDAG Loan shall
32 be consistent with the following:
• ' Page 1 of 22
EXHIBIT E
1
2
3
4
;i
is
6
►i
0
2
3
'4
5
6
;7
8
.9
?0
M
i
'3
4
.5
5
8
.9
4
i1
i2
Recipient: City of Santa Ana, California grant Number; S-r,k-AA-Uo-UULJ(P)
Continuation Sheet --Exhibit L•
(as) UDAG Interim Loan:
(i) Principal: The principal amount of the U➢AG Interim Loan
shall be no more than $552,000.
(ii) Term: The term of the UDAG Interim Loan shall commence
upon the date of the initial disbursement of Grant Funds or May 1, 1986, whichever
is earlier.
(iii) Interest: The interest rate shall be zero percent (0X)
per annum. Interest shall be forgiven during the term of the Interim Loan.
(iv) Disbursement/Ratio: Loan disbursements shall be based on
vouchers submitted by Developer, verified by Recipient, and certified by the
architecto construction manager, or other certifying official as shall be
acceptable to Recipient. All submissions by contractors of monthly requisitions
shall be on AIA Forms 702 and 703 or their equivalent.
No disbursement of the UDAG Interim Loan shall be made until:
a) Developer has furnished Recipient with the following:
1) an ALTA policy for mortgage title insurance, in
the full amount of the UDAG Interim Loan, insuring that Recipient will be the
holder of a second lien on the hereafter described security, free of encumbrances
and other exceptions to title other than those approved in advance by Recipient,
and not subordinated to any interest except the first deed of trust for the benefit
of -Underwriters in an amount not to exceed $6,000,000 plus further advances by the
Underwriters which are invested in the Project and are required for its completion;
and
2) a Builder's Risk and Fire Insurance policy or
policies duly endorsed to indicate Recipient as an insured mortgagee; and
b) All of the evidentiary materials required by this
Exhibit 8 have been submitted to and approved by the Secretary and the Secretary
has authorized Recipient to draw down such funds from its Letter of Credit.
EXHIBIT E.
Page 2 of 22
5
i
i
7
3
1
2
3
4
5
5
7
3
9
7
1
2
,?3
4
5
5
7
3
3
t
2
Recipient: City of Santa Ana, California avant
Continuation Sheet ---Exhibit E
UDAG funds may be drawn down for Project Element A activities in a ratio ro
countable private funds of not more than $1.00 of UDAG funds to $11.50 of countable
private funds; thus, for every $12.50 of funds expended on Project Element A not
more than $1.00 will be UDAG funds and not less than $11.50 will be countable
private funds.
(bb) UDAG Permanent Loan:
(i) Term: Term of the UDAG Permanent Loan shall be 10 years
commencing upon completion of construction, but in no event later than
February 1, 1987.
(ii) Principal: The principal of the UDAG Permanent Loan
shall be the amount disbursed under the UDAG Interim Loan.
(iii) Interest: The interest rate shall be six percent (6%)
per anus for the first three years and eight percent (8%) per annum thereafter.
(iv) Repayment: Repayment of principal and interest shall be
made in monthly installments in accordance with a 25-year amortization schedule
during the Term of the UDAG Permanent Loan, and a balloon payment sufficient to pay
off the entire outstanding indebtedness of principal and interest shall be made at
maturity of the UDAG Permanent Loan.
(v) Contingent Interest/Partici ation in Cash Flow:
Developer shall pay to Recipient for a period of time equal to the Term of the
UDAG Permanent Loan 102 of the Net Annual Cash Flow of the Project after a 12%
preferred return on Developer's cash equity.
"Net Annual Cash Flow" means all operating income and receipts of Project
Element A less debt service on the first mortgage and the UDAG Permanent Loan,
real estate taxes, and reasonable operating expenses (including a management fee
not to exceed three percent (U) of operating income) allowable for Federal income
tax purposes, excluding reserves for capital improvements, depreciation and other
non -cash items. Participation payments shall be due within 90 days of the end of
the operating year of Project Element A.
EXHIBIT E
Page 3 of 22
I
2
3
4
5
6
J7
8
0
.1
2
3
14
.5
6
17
.8
19
?0
?1
'3
'4
?6
'7
'8
'9
i0
51
12
Recipient: City of Santa Ana, Calisornia_ Grant Number: "B-b4-AA-Ub-061:)kP)
Continuation Sheet -^-Exhibit E '
REQUIRED ADDITIONAL PROVISIONS APPLICABLE TO UDAG INTERIM AND PERMANENT LOANS.
(cc) Secures: The UDAG Loan shall be secured by a deed of trust
or mortgage in favor of Recipient upon all land, buildings, fixtures, equipment and
other assets of the Developer comprising Project Site A and Project Element A. The
security position of the Recipient may be subordinated to the first mortgage
5
security interest of the Underwriters in an amount not to exceed $6,000,000 plus
further advances by the Underwriters which are invested in the Project and are
required for its completion.
The deed of trust or mortgage shall also contain standard provisions to
protect the interest of the second mortgagee, including, for example, a provision
that a default under the first mortgage which could permit a foreclosure by the
first mortgagee shall constitute a default under the second mortgage and the unpaid
principal balance and interest of the UDAG Loan shall become immediately due and
payable.
To the extent permitted by law, all of the personal property described in the
mortgage shall be deemed to be fixtures and part of the real property. As to any
part of such personal property not deemed or permitted by law to be fixtures, the
mortgage shall constitute a security agreement under the Uniform Commercial Code.
(dd) Participation in Sale or Refinancing Developer shall pay to
Recipient 15% of the Net Proceeds from any sale or disposition in whole or part of
Project Site A and/or Project Element A or from any syndication or refinancing,
except refinancing allowed pursuant to a call and/or takeout provision in the first
mortgage.
"Net Proceeds" shall be defined as all proceeds received less (1) repayment of
the first mortgage (not to exceed $4,980,000). (2) repayment of the UDAG Loan, (3)
Developers documented reasonable costs of sale or refinancing, and (4) repayment
of documented Developer equity contributed to Project Element A and a 12% preferred
return on Developer equity. Any sale, partial sale, or refinancing shall not cause
the percent contingent interest/participation of Net Annual Cash Flow described in
subparagraph (v) above, to be discontinued.
EXHIBIT E.
Page 4 of 22
Recipient: City of Santa Ana, California Grant Number: B-84 AA-06-0615(P)
Continuation Sheet ---Exhibit E Amendment i-1
01
(ee) Sale/Refinancing: The entire balance of the outstanding
02 principal of the UDAG Loan, and all accrued unpaid interest thereon, shall become
0immediatelydand
ue payable either upon the bankruptcy, reorganization,
04 syndication, dissolution or liquidation of the Developer, or upon the sale, partial
05 06 sale, refinancing, exchange, transfer, sale under foreclosure, of other disposition
of Project Site A, improvements and/or capital equipment situated thereon.
-07
(ff) Guarantee: The completion of the Non -Recipient Activities
08
09 pertaining to Developer shall be unconditionally and irrevocably guaranteed by
Developer,and the Guarantors.
10
1.1 (gg) Prepayment: Prepayment may occur at any time after the fourth
(4th) UDAG Permanent Loan year, provided Developer pays the full amount of the UDAG
12
ti Loan plus any accrued interest and the Developer buys out the Recipient's
1¢ participation, if any, in Project Element A by establishing a fair market value of
15 Project Site A and Project Element A as determined by two MAI appraisers (one
16 selected by Recipient) and pay to Recipient 15% of the net value thereof.
17 "Net Value" shall be defined as the fair market value of Project Site A and
-
1B Project Element A less: (1) repayment of the first mortgage (not to exceed
19 $4,980,000), (2) repayment of the UDAG Loan, (3) reasonable settlement costs to
20 Developer which would arise from a hypothetical sale thereof based upon a sales
21 price equal to the aforesaid fair market value thereof, and (4) repayment of
22 documented equity contributed by Developer to Project Element A and a 12% preferred
23 return on Developer's equity.
24 (hh) Excess Syndication Proceeds: Recipient shall be entitled to
25 receive 80% of the excess syndication proceeds from the development.
25 "Excess Syndication Proceeds" is defined as the sum of the net syndication
27 proceeds either owed to or received by the general partner(s) from the limited
28 partner investors) that results in a surplus of receipts not needed or required to
�9 complete the development of Project Element A and which is in excess of the cash
equity requirement called for under Paragraph I(d) of Exhibit C to this Grant
31 Agreement.
1
32
EXHIBIT E Page 5 of 22
1
3
5
5
_7
8
0
.9
2
3
•4
5
6
7
8
9
'0
2
73
�6
7
8
'9
0
ii
i2
Recipient: City ox Santa Ants uaiirornla vraut Numoer: b-84-AA-06-0615(P)
Continuation Sheet --Exhibit E
"Net Syndicatioh Proceeds" is defined as gross syndication proceeds less
allowable deductions for legitimate arms -length, third party costs of the
syndication such as legal, accounting, closing, printing, syndication fee,
brokerage, marketing and such other reasonable, allowable and necessary
legitimate, arms -length third party costs and deductions of the said
syndication.
(ii) Reduction of UDAG Loan: In the event that the cost of
Project Element A is less than $7,016,172 the UDAG Loan shall be reduced by 80� for
each $1.00 of such shortfall and such Grant Funds shall not be drawn down under the
Letter of Credit.
(jj) Annual Accounting: Developer shall deliver a statement to
Recipient from an independent Certified Public Accountant, within 90 days of the
close of each operating year during the Term of the UDAG Permanent Loan,
certifying:
(i) Operating Income and receipts of Project Element A;
(ii) Operating Expenses;
(fii) Net Annual Cash Flow;
(iv) Developer equity;
(v) Net Proceeds, if applicable;
(vi) Excess Syndication Proceeds, if applicable; and
(vii) The amount of participation in Net Annual Cash Flow, Net
Proceeds, and Excess Syndication Proceeds due Recipient.
(4) All applicable terms and conditions of this Grant Agreement,
including Article IX provisions and job assurances specified in Sections 5.03 and
9.06 shall be set forth in the agreement.
(5) The agreement shall specify a timeframe for performance
consistent with Exhibit F to this Grant Agreement.
(6) During the term of this Grant Agreement, Developer shall agree
to provide necessary data and information as -to private investment and jobs
relating to this Grant Agreement.
(7) Developer shall agree to reimburse the Recipient the amount of
$300,000 for the cost of improving the Parking Areas.
• Page 6 of 22
EXHIBIT E
2
3
4
5
6
7
8
9
0
2
3
4
5
6
7
B
9
O
2
'3
4
5
6
7
8
9
0
�2
spec+p�eu.. �.i�y ui .:au.a nna,_..alx;ornma Gran[ ivumoer: B-84-AA-06-0615(P)
Continuation Sheet ---Exhibit E
(b) 3vidence of this commitment shall be in accordance with Section 10.04 of
this Grant Agreement together with copies of the forms of all UDAG Loan documents
to be used at closing.
IV
(a) Recipient and Rangel shall enter into an agreement which shall contain
provisions consistent with the following:
(1) Recipient shall agree to carry out the Recipient Activities set
forth in subparagraph (e) of Exhibit B to this Grant Agreement.
(2) Rangel shall agree to carry out all Non -Recipient Activities
ascribed to Rangel in Exhibit C to this Grant Agreement. The agreement shall set
forth the scope of the work, its location, and the obligation of Rangel to invest
not less than $1,187,744 of private funds and cash equity in the development of
Project Element B.
(3) Recipient shall be obligated to make a loan to Rangel of not more
than $90,000 of Grant Funds (the "UDAG Loan"), which shall be used for the partial
financing of the construction of Project Element B in accordance with Page 3 of
Exhibit D to this Grant Agreement. The terms and conditions of the UDAG Loan shall
be consistent with the following:
(aa) UDAG Interim Loan:
(i) Principal: The principal amount of the UDAG Interim Loan
sha-11 be no more than $90,000.
(ii) Term: The Term of the UDAG Interim Loan shall commence
upon the date of the initial disbursement of Grant Funds but in no event later than
May 1, 1986.
(iii) Interest: The interest rate shall be zero percent (OX)
per annum. Interest shall be forgiven during the term of the UDAG Interim Loan.
(iv) Disbursement/Ratio: Loan disbursements shall be based on
vouchers submitted by Rangel, verified by Recipient, and certified by the
architect, construction manager, or other certifying official as shall be
acceptable to Recipient. All submissions by contractors of monthly requisitions
shall be on AIA Forms 702 and 703 or their equivalent.
No disbursement of the UDAG Interim Loan shall be made until:
EXHIBIT E Page 7 of 22
Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(Y)
Continuation Sheet ---Exhibit E Amendment fl
01 -a) Rangel has furnished Recipient with the following:
02 1) an ALTA policy for mortgage title insurance,
03 in the full amount of the UDAG Loan, insuring that Recipient will be the holder of
04 a co -second lien on the hereafter described security together with Guarantors' lien
03 thereon in an amount not to exceed $754,800 which secures Guarantors of the
06 Underwriters' loan mentioned below, free of encumbrances and other exceptions to
07 title other than those approved in advance by Recipient, and not subordinated to
08 any interest except the first deed of trust for the benefit of Underwriters in an
09 amount not to exceed $754,800 plus further advances by the Underwriters which are
10 invested in Project Element B and are required for its completion; and
1.1
2) a Builder's Risk and Fire Insurance policy or
12 policies duly endorsed to indicate Recipient as an insured mortgagee; and
13 b) All of the evidentiary materials required by this
t4 Exhibit E have been submitted to and approved by the Secretary and the Secretary
15 has authorized Recipient to draw down such funds from its Letter of Credit.
16 UDAG funds may be drawn down for Project Element B activities in a ratio to
17 countable private funds of not more than.$1.00 of UDAG funds to $11.50 of countable
18
private funds; thus, for every $12.50 of funds expended on Project Element B not
19 more than $1.00 will be UDAG funds and not less than $11.50 will be countable
20 private funds.
21
(bb) UDAG Permanent Loan:
22
(i) Term: Term of the UDAG Permanent Loan shall be 10 years
23 commencing upon completion of construction, but in no event later than
24
February 1, 1987.
25
(11) Principal: The principal of the UDAG Permanent Loan
26
shall be the amount disbursed under the UDAG Interim Loan.
27
(iii) Interest: The interest rate shall be seven percent (7%)
28
per annum.
29 (iv) Repayment: Repayment of principal and interest shall be
30
made in monthly installments in accordance with a 25-year amortization schedule
31
the 'rnrm cm,•--nt Loan, e.:3 a balloon pay�:.at :.__ficient to pay
32
EXHIBIT E Page 8 of 22
a
Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(P)
Amendment #1
Continuation Sheet ---Exhibit E
01 off the entire outstanding indebtedness of principal and interest shall be made at
02 maturity of the UDAG Permanent Loan.
03 (v) Contingent Interest/Participation in Cash Flow: Rangel
04 shall pay to Recipient for a period of time equal to the Term of the UDAG Permanent
05 Loan five percent (5%) of the Net Annual Cash Flow of Project Element B.
06 "Net Annual Cash Flow" means all operating income and receipts of Project
07 Element B less debt service on the first mortgage and the UDAG Permanent Loan, real
OB estate taxes, a 12% preferred return on Rangel's cash equity, and reasonable
09 operating expenses (including a management fee not to exceed three percent (3%) of
10 operating income) allowable for Federal income tax purposes, excluding reserves for
11 capital improvements, depreciation and other non -cash items. Participation
12 payments shall be due within 90 days of the end of the operating year of Project
13 Element B.
14 REQUIRED ADDITIONAL PROVISIONS APPLICABLE TO UDAG INTERIM AND PERMANENT LOANS.
75 (cc) Security: The UDAG Loan shall be secured by a co -second deed
16
of trust or mortgage in favor of Recipient and Guarantors (not to exceed $754,800,
17
as aforesaid) upon all land, buildings, fixtures, equipment and other assets of
18 Rangel comprising Project Site B and Project Element B. The security position of
19
the Recipient may be subordinated to the first mortgage security interest of the
20 Underwriters in an aggregate amount not to exceed $754,800 plus further advances by
21
the Underwriters which are invested in Project Element B and are required for its
22
completion.
�3 The deed of trust or mortgage shall also contain standard provisions to
24
protect the interest of the second mortgagee, including, for example, a provision
25
that a default under the first mortgage which could permit a foreclosure by the
26 first mortgagee shall constitute a default under the second mortgage and the unpaid
27 principal balance and interest of the UDAG Loan shall become immediately due and
28
payable.
29 The deed of trust or mortgage shall not contain an exculpation clause in
30
favor of Rangel.
31
To the extent permitted by law, all of the personal property described in the
32
mortgage shall be deemed to be fixtures and part of the real property. As to any
EXHIBIT L Page 9 of 22
Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(P)
• Amendment #1
Continuation Sheet ---Exhibit E
01 part of such personal, property not deemed or permitted by law to be fixtures, the
02 mortgage shall constitute a security agreement under the Uniform Commercial Code.
03 (dd) Participation in Sale or Refinancing: Rangel shall pay to
04 Recipient five percent (5%) of the Net Proceeds from any sale or disposition in
05 whole or part of Project Site B and/or Project Element B or from any syndication or
Q6 refinancing, except refinancing allowed pursuant to a call and/or takeout provision
07 in the first mortgage.
08 "Net Proceeds" shall be defined as all proceeds received less (1) repayment of
09 the first mortgage (if applicable), (2) repayment of the UDAG Loan, (3) Rangel's
10 documented reasonable costs of sale or refinancing, and (4) repayment of documented
11 Rangel cash equity contributed to the construction of Project Element B and a
12 preferred return of 12% per annum.
73 -(ee) Sale/Refinancing: The entire balance of the outstanding
14 principal of the UDAG Loan, and all accrued unpaid interest thereon, shall become
15 immediately due and payable either upon the bankruptcy, reorganization,
16 syndication, dissolution or liquidation of Rangel, or upon the sale, partial sale,
17 refinancing, exchange, transfer, sale under foreclosure, or other disposition of
18 Project Site B. improvements and/or capital equipment situated thereon.
19 (ff) Guarantee: The repayment of the UDAG Loan to Rangel shall be
20 unconditionally and irrevocably guaranteed by Rangel and the completion of the
21
Non -Recipient Activities pertaining to Rangel shall be unconditionally and
22
irrevocably guaranteed by Rangel and the Guarantors.
23
(gg) Prepayment: Prepayment may occur at any time after the fourth
24
(4th) UDAG Permanent Loan year, provided Rangel pays the full amount of the UDAG
25
Loan plus any accrued interest and Rangel buys out the Recipient's participation,
26 if any, in Project Element B by establishing a fair market value of Project Site B
27 and Project Element B as determined by two BAI appraisers (one selected by
28 Recipient) and pay to Recipient five percent (52) of the net value thereof.
29
"Net Value" shall be defined as the fair market value of Project Site B and
30 '
Project Element B less: (1) repayment of the first mortgage (not to exceed
31
32
EXHIBIT E Page 10 of 22
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
1s
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Recipient: City of Santa Ana California Grant Number; B-84 L►A-06-0615(P)
Amendment ail
Continuation Sheet --- Exhibit E
$4,980,000), (2) repayment of the UDAG Loan, (3) reasonable settlement costs to
Rangel which would arise from a hypothetical sale thereof based upon a sales price
equal to the aforesaid fair market value thereof, and (4) repayment of documented
equity contributed by Rangel to Project Element B and a 12% preferred return on
Rangle's equity.
(hb) Reduction of UDAG Loan: In the event that the cost of
Project Element B is less than $1,277,744 the UDAG Loan shall be reduced by 80� for
each $1.00 of such shortfall and such Grant Funds shall not be drawn down under the
Letter of Credit.
(ii) Annual Accounting: Rangel shall deliver a statement to
Recipient from an independent Certified Public Accountant, within 90 days of the.
close of each operating year during the Term of the UDAG Permanent Loan,
certifying:
(i) Operating Income and receipts of Project Element B;
(ii) Operating Expenses;
(iii) Net Annual Cash Flow;
(iv) Rangel's.equity;
(v) Net Proceeds, if applicable; and
(vi) The amount of participation in Net Annual Cash Flow, and
Net Proceeds due Recipient.
(4) All applicable terms and conditions of this Grant Agreement,
including Article IX provisions and job assurances specified in Sections 5.03
and 9.06 shall be set forth in the agreement.
(5) The agreement shall specify a timeframe for performance
consistent with Exhibit F to this Grant Agreement.
(6) During the term of this Grant Agreement, Rangel shall agree to
provide necessary data and information as to private investment and jobs relating
to this Grant Agreement.
(b) Evidence of this commitment shall be in accordance with Section
10.04 of this Grant Agreement together with copies of the forms of all UDAG
Loan documents to be used at closing.
EXH1B1T E
Page 11 of 22
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Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(P)
Continuation Sheet ---Exhibit E
y
(a) Recipient and Ceballos shall enter into an agreement which shall contain
provisions consistent with the following:
(1) Recipient shall agree to carry out the Recipient Activities set
forth in subparagraph (8) of Exhibit B to this Grant Agreement.
(2) Ceballos shall agree to carry out all Non -Recipient Activities
ascribed to Ceballos in Exhibit C to this Grant Agreement. The agreement shall set
forth the scope of the work, its location, and the obligation of Ceballos to invest
not leas than $534,485 of private funds and cash equity in the development of
Project Element C.
(3) Recipient shall be obligated to make a loan to Ceballos of not more
than $36,000 of Grant Funds (the "UDAG Loan"), which shall be used for the partial
financing of the construction of Project Element C in accordance with Page 4 of
Exhibit D to this Grant Agreement. The terms and conditions of the UDAG Loan shall
be consistent with the following:
(aa) UDAG Interim Loan:
(i) Principal: The principal amount of the UDAG Interim Loan
shall be no more than $36,000.
(ii) Term: The Term of the UDAG Interim Loan shall commence
upon the date of the initial disbursement of Grant Funds, but in no event later
then May 1, 1986.
(iii) Interest: The interest rate shall be zero percent (0%)
per annum. Interest shall be forgiven during the term of the UDAG Interim Loan.
(iv) Disbursement/Ratio: Loan disbursements shall be based on
vouchers submitted by Ceballos, verified by Recipient, and certified by the
architect, construction manager, or other certifying official as shall be
acceptable to Recipient. All submissions by contractors of monthly requisitions
shall be on AIA Forms 702 and 703 or their equivalent.
No disbursement of the UDAG Loan shall be made until:
EXHIBIT E
Page 12 of 22
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Recipient: Cat of Santa Ana California Grant Number: B-84-AA-06-0615(P)
Amendment #1
Continuation SheetExhibir E
a) Ceballos has furnished Recipient with the following:
1) an ALTA policy for mortgage title insurance,
in the full amount of the UDAG Interim Loan, insuring that Recipient will be the
holder of a co -second lien with Guarantors (not to exceed $224,400) on the property
to be improved with the new building and a co -third lien with Guarantors (not to
exceed $224,400) on the property to be rehabilitated, free of encumbrances and
other exceptions to title other than those approved an advance by Recipient, and
not subordinated to any interest except the first deed of trust on the new building
for the benefit of Underwriters in an aggregate amount not to exceed $224,400 and
the existing first deeds of trust on the property to be rehabilitated totaling
$115,000 in favor of Prank Torres ($100,000) and Jesus Galan ($15,000) plus further
advances by the Underwriters which are invested in the development of Project
Element C and are required for its completion; and
2) a Builder's Risk and Fire Insurance policy or
policies duly endorsed to indicate Recipient as an insured mortgagee; and
b) All of the evidentiary materials required by this
Exhibit E have been submitted to and approved by the Secretary and the Secretary
has authorized Recipient to draw down such funds from its Letter of Credit.
UDAG funds may be drawn down for Project Element C activities in a ratio to
countable private funds of not more than $1.00 of.UDAG funds to $11.50 of countable
private funds; thus, for every $12.50 of funds expended on the construction and
rehabilitation of Project Element C not more than $1.00 will be UDAG funds and not
less than $11.50 will be countable private funds.
(bb) UDAG Permanent Loan:
(i) Term: Term of the UDAG Permanent Loan shall be 10 years
commencing upon completion of construction and rehabilitation, but in no event
later than February 1, 1987.
(ii) Principal: The principal of the UDAG Permanent Loan
shall be the amount disbursed under the UDAG Interim Loan.
(III) Interest: The interest rate shall be seven percent (7%)
per annum.
EXHIBIT E
Page 13 of 22
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Recipient: City ofrSauta Ana, California T Grant Number: B-84-AA-06-0615(P)
Amendment O1
Continuation Sheet --Exhibit E
(iv) Repayment: Repayment of principal and interest shall be
made in monthly installments in accordance with a 25-year amortization schddule
during the Term of the UDAG Permanent Loan, and a balloon payment sufficient to pay
off the entire outstanding indebtedness of principal and interest shall be made at
maturity of the UDAC Permanent Loan.
REQUIRED ADDITIONAL PROVISIONS APPLICABLE TO UDAG INTERIM AND PERMANENT LOANS.
(cc) Security: The UDAG Loan shall be secured by a deed of
trust or mortgage in favor of Recipient and Guarantors (securing Guarantor in the
amount of $224,400) upon all land, buildings, fixtures, equipment and other assets
of Ceballos comprising Project Element C. The security position of the Recipient
and the Guarantors may be subordinated to the first mortgage security interest of
the Underwriters for the new construction in an amount not to exceed $224,000 plus
further advances by the Underwriters which are invested in Project Element C and
are required for its completion and to the existing first mortgages upon the
properties to be rehabilitated in favor of Frank Torres ($100,000) and Jesus Galan
($15,000) aggregating $115,000_
The deed of trust or mortgage shall also contain standard provisions to
protep.t the interest of Recipient, including, for example, a provision that a
default under Ceballos' obligations under the deed of trust or mortgage to the
Guarantor or the first mortgages or second mortgage which could permit a
foreclosure by any of the mortgagees thereunder shall constitute a default under
Ceballos' mortgage to Recipient and the unpaid principal balance and interest of
the UDAG Loan shall become immediately due and payable.
The deed of trust or mortgage shall not contain an exculpation clause in
favor of Ceballos.
To the extent permitted by law, all of the personal property described in
the mortgage shall be deemed to be fixtures and part of the real property. As
to any part of such personal -property not deemed or permitted by law to be
fixtures, the mortgage shall constitute a security agreement under the Uniform
Commercial Code.
EXHIBIT E
Page 14 of 22
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Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(P)
Amendment #1
Continuation Sheet ---Exhibit E
(dd) Sale/Refinancing: The entire balance of the outstanding
principal of the UDAG Loan, and all accrued unpaid interest thereon, shall become
immediately due and payable either upon the bankruptcy, reorganization,
syndication, dissolution or liquidation of Ceballos, or upon the sale, partial
sale, refinancing, exchange, transfer, sale under foreclosure, or other disposition
of Project Site C, improvements and/or capital equipment situated thereon.
(ee) Guarantee: The repayment of the UDAG Loan to Ceballos shall
be unconditionally and irrevocably guaranteed by Ceballos and the completion of the
Non -Recipient Activities pertaining to Ceballos shall be unconditionally and
irrevocably guaranteed by Ceballos and the Guarantors.
(ff) Prepayment: No prepayment may occur without prior written
approval of the Recipient.
(gg) Reduction of UDAG Loan: In the event that the cost of
Project Element C is less than $570,485 the UDAG Loan shall be reduced by 804 for
each $1.00 of such shortfall and such Grant Funds shall not be drawn down under the
Lettgr of Credit.
(4) All applicable terms and conditions of this Grant Agreement,
including Article IX provisions and job assurances specified in Sections 5.03
and 9.06 shall be set forth in the agreement.
(5) The agreement shall specify a timeframe for performance
consistent with Exhibit F to this Grant Agreement.
(6) During the term of this Grant Agreement, Ceballos shall agree to
provide necessary data and information as to private investment and jobs relating
to this Grant Agreement.
(b) Evidence of this commitment shall be in accordance with Section
10.04 of this Grant Agreement together with copies of the forms of all UDAG
Loan documents to be used at closing.
29 (a) Recipient and Escalante shall enter into an agreement which shall contain
30 provisions consistent with the following:
31 (1) Recipient shall agra^ *o cxtrry out tb- Rec'n'.ent Activities set
32 forth in subparagraph (g) of Exhibit B to this Grant Agreement.
1i
EXHIBIT E Page 15 of 22
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Recipient: City of Santa Ana, California OranL Numocr: r;-d4-a-i-Ub-ub15(P)
Continuation Shcet —Exhibit E
(2) Escalante shall agree to carry out all fta--.: •s_p'_. :1:tivities
ascribed to Escalante in Exhibit C to this Grant Agreement. The agreement shall
set forth the scope of the work, its location, and the obligation of Escalante to
invest not less than $172,410 of private funds and cash equity in the development
of Project Element D.
(3) Recipient shall be obligated to make a loan to Developer of not
more than $11,000 of Grant Funds (the "UDAG Loan"), which shall be used for the
partial financing of the construction of Project Element D and in accordance with
Page 5 of Exhibit D to this Grant Agreement. The terms and conditions of the UDAG
Loan shall be consistent with the following:
(as) UDAG Interim Loan:
(i) Principal: The principal amount of the UDAG Interim Loan
shall be no more than $11,000.
(it) Term: The Term of the UDAG Interim Loan shall commence
upon the date of the initial disbursement of Grant Funds, but in no event later
then May 1, 1986.
(iii) Interest: The interest rate shall be zero percent (OX)
per annum. Interest shall be forgiven during the term of the UDAG Interim Loan.
(iv) Disbursement/Ratio: Loan disbursements shall be based on
vouchers submitted by Escalante, verified by Recipient, and certified by the
architect, construction manager, or other certifying official as shall be
acceptable to Recipient. All submissions by contractors of monthly requisitions
shall be on AIA Forms 702 and 703 or their equivalent.
No disbursement of the UDAG Interim Loan shall be made until:
'a) Escalante has furnished Recipient with an ALTA policy
for mortgage title insurance,'in the full amount of the UDAG Loan, insuring that
Recipient will be the holder of a third lien on the hereafter described security,
free of encumbrances and other exceptions to title other than those approved in
advance by Recipient, and not subordinated to any interest except the existing
first deeds of trust in an aggregate amount not to exceed $282,945 in favor of John
EXHIBIT E.
Page 16 of 22
Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(P)
Continuation Sheet ---Exhibit E
Fildes ($48,348) and William Lauer ($234,597) and the second deed of trust in an
amount not to exceed $99,457 in favor of Agency plus further advances by Agency
i which are invested in Project Element D and are required for its completion; and
* b) All of the evidentiary materials required by
i this Exhibit E have been submitted to and approved by the Secretary aced the
i Secretary has authorized Recipient to draw down such funds from its Letter of
A7 Credit.
3 UDAG funds may be drawn down for Project Element D activities in a ratio to
3 countable private funds of not more than $1.00 of UDAG funds to $12.30 of countable
a private funds; thus, for every $13.30 of funds expended on Project Element D not
more than $1.00 will be UDAG funds and not less than $12.30 will be countable
2 private funds.
3 (bb) UDAG Permanent Loan:
4 (1) Term: Term of the UDAG Permanent Loan shall be 10 years
3 commencing upon completion of construction, but in no event later than
6 February 1, 1987.
7 (11) Principal: The principal of the UDAG Permanent Loan
8 shall be the amount disbursed under the UDAG Interim Loan.
9 (111) Interest: The interest rate shall be seven percent (7%)
per annum.
'1 (iv) RePaY ent: Repayment of principal and interest shall be
made in monthly installments in accordance with a 25-year amortization schedule
�3
during the Term of the UDAG Permanent Loan, and a balloon payment sufficient to pay
'4 off the entire outstanding indebtedness of principal and interest shall be made at
15 maturity of the UDAG Permanent Loan.
16 REQUIRED ADDITIONAL PROVISIONS APPLICABLE TO UDAG INTERIM AND PERMANENT LOANS.
?7 (cc) Securit The UDAG Loan shall be secured by a deed of
.8 trust or mortgage in favor of Recipient upon all land, buildings, fixtures,
119 equipment and other assets of Escalante comprising Project Site D and Project
50 ition of the Recipient may be subordinated to the
Element D. The security pos
31 existing first mortgage security interest of John Fildes ($48,348) and
32
Page 17 of 22
EXHIBIT E
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52
Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(P)
Continuation Sheet ---Exhibit E
William Lauer ($234,597) in an amount not to exceed $282,945 and the second
mortgage security interest of Agency in an amount not to exceed $99,457 plus
further advances by Agency which are invested in the development of Project
Element D and are required for its completion.
The deed of trust or mortgage shall also contain standard provisions to
protect the interest of the third mortgagee, including, for example, a provision
that a default under the first or second mortgage which could permit a foreclosure
by the •first or second mortgagee shall constitute a default under the third
mortgage and the unpaid principal balance and interest of the UDAG Loan shall
become immediately due and payable.
The deed of trust or mortgage shall not contain an exculpation clause in
favor of Escalante.
To the extent permitted by law, all of the personal property described in
the mortgage shall be deemed to be fixtures and part of the real property. As
to any part of such personal property not deemed or permitted by law to be
fixtures, the mortgage shall constitute a security agreement under the Uniform
Commercial Code.
(dd) Sale/Refinancing: The entire balance of the outstanding
principal of the UDAG Loan, and all accrued unpaid interest thereon, shall become
immediately due and payable either upon the bankruptcy, reorganization,
syndication, dissolution or liquidation of Escalante, or upon the sale, partial
sale, refinancing, exhange, transfer, sale under foreclosure, or other disposition
of Project Element D, improvements and/or capital equipment situated thereon.
(ee) Guarantee: The repayment of the UDAG Loan and the completion
of the Non -Recipient Activities pertaining to Escalante shall be unconditionally
and irrevocably guaranteed by Escalante.
(ff) Prepayment: No prepayment may occur without prior written
approval of the Recipient.
(88) Reduction of UDAG Loan: In the event that the cost of
Project Element D is less than $184,410 the UDAG Loan shall be reduced by 80� for
and such Grant Funds shall not be drawn down under the
each $1.00 of such shortfall
Letter of Credit.
{ Page 18 of 22
EXHIBIT E
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2B
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Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(P)
Amendment #1
Continuation Sheet ---Exhibit E
> (4) All applicable terms and conditions of this Grant Agreement,
including Article IX provisions and job assurances specified in Sections 5.03
and 9.06 shall be set forth in the agreement.
(5) The agreement shall specify a timeframe for performance
consistent with Exhibit F to this Grant Agreement.
(6) During the term of this Grant Agreement, Escalante shall agree
to provide necessary data and information as to private investment and jobs
relating to this Grant Agreement.
(b) Evidence of this commitment shall be in accordance with Section
10.04 of this Grant Agreement together with copies of the forms of all UDAG
Loan documents to be used at closing.
VII
(a) Recipient's attorney shall certify that Recipient has on hand or
irrevocably committed to it $5,017,100 to carry out the Recipient Activities in
subparagraph (a) of Exhibit B to this Grant Agreement.
(b) Evidence of this commitment shall be in accordance with Section 10.03 of
this Grant Agreement.
VIII
(a) Recipient's attorney or an acceptable banking institution shall certify
that cash or liquid assets of not less than $1,484,172 are available or irrevocably
committed to Developer and are sufficient to complete the development of Project
Element A. Such certification shall identify the kinds of assets and the nature of
the irrevocable commitment.
(b) Evidence of this commitment shall be in accordance with Section 10.07 or
10.08 of this Grant Agreement.
IX
(a) Developer and Guarantor shall irrevocably and unconditionally guarantee
the completion of the development of Project Element A within the timeframe
hereafter set forth in Exhibit F to this Grant Agreement.
(b) Evidence of this commitment shall be in accordance with Section 10.04 of
this Grant Agreement.
EXHIBIT E
Page 19 of 22
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Recipient: City of Santa Ana, California Grant Number: B-84-AA-06-0615(P)
Amendment fl
Continuation Sheet ----Exhibit E
x
(a) Recipient's attorney or an acceptable banking institution shall certify
that cash or liquid assets of not less than $216,857 are available or irrevocably
committed to Rangel and are sufficient to complete the development of Project
Element B. Such certification shall identify the kinds of assets and the nature of
the irrevocable commitment.
(b) Evidence of this commitment shall be in accordance with Section
10.07 or 10.08 of this Grant Agreement.
xi
(a) Rangel shall irrevocably and unconditionally guarantee the repayment of
the UDAG Interim/Permanent Loan to it and Rangel and Guarantor shall
unconditionally and irrevocably guarantee the completion of the development of
Project Element B within the timeframe hereafter set forth in Exhibit F to this
Grant Agreement.
(b) Evidence of this commitment shall be in accordance with Section
10.04 of this Grant Agreement.
x1I
(a) Recipient's attorney or an acceptable banking institution shall
certify that cash or liquid assets of not less than $88.068 are available or
irrevocably committed to Ceballos and are sufficient to complete the development of
Project Element C. Such certification shall identify the kinds of assets and the
nature of the irrevocable commitment.
(b) Evidence of this commitment shall be in accordance with Section
10.07 or 10.08 of this Grant Agreement.
x1II
(a) Ceballos shall irrevocably and unconditionally guarantee the repayment of
the UDAG interim/Permanent Loan and Ceballos and Guarantor shall irrevocably and
unconditionally guarantee the completion of the development of Project Element C
within -the timeframe hereafter set forth in Exhibit F to this Grant Agreement.
(b) Evidence of this commitment shall be in accordance with Section
10.04 of this Grant Agreement.
EXHIBIT E
Page =o of 22
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52
Recipient: City of Santa Ana California Grant Number: B-84-AA-06-061.5(P
Continuation Sheet ---Exhibit E
XIV
(a) Recipient's attorney or an acceptable banking institution shall
certify that cash or liquid assets of not less than $35,898 are available or
irrevocably committed to Escalante and are sufficient to complete the development
of Project Element D. Such certification shall identify the kinds of assets and
the nature of the irrevocable commitment.
(b) Evidence of this commitment shall be in accordance with Section
10.07 or 10.05 of this Grant Agreement.
XV
(a) Escalante shall irrevocably and unconditionally guarantee the
repayment of the UDAG interim/Permanent Loan to it and the completion of the
development of Project Element D within the timeframe hereafter set forth in
Exhibit F to this Grant Agreement.
(b) Evidence of this commitment shall be in accordance with Section
10.04 of this Grant Agreement.
XVI
(a) Recipient's attorney or an acceptable banking institution shall
certify that cash or liquid assets of not less than $20,720 are available or
irrevocably committed to Fainbarg and are sufficient to complete the Project. Such
certification shall identify the kinds of assets and the nature of the irrevocable
commitment.
(b) Evidence of this commitment shall be in accordance with Section
10.07 or 10.08 of this Grant Agreement.
XV II
(a) Feinberg shall irrevocably and unconditionally guarantee the -completion
of the development of Project Element E within the timeframe hereafter set forth in
Exhibit F to this Grant Agreement.
(b) Evidence of this commitment shall be in accordance with Section
10.04 of this Grant Agreement.
EXHIBIT E
Page 21 of 22
E
P
3
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5
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.B
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A
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52
Recipient: City of Santa Ana California Grant Number: B-84-AA-06-0615(P)
Continuation Sheet ---Exhibit E
XVIII
(a) Recipient shall issue and sell and Underwriter shall purchase at least
$6,000,000 in Industrial Revenue Bonds for the Project.
(b) Evidence of this commitment shall be in the form of a certification from
the trustee and/or depo.4itory of the proceeds of the bond sale stating that said
trustee and/or depository has on hand and immediately available to Developer for
use by Developer and Rangel, Ceballos and Fainbarg as aforesaid, the net bond
proceeds for financing the construction and development of Project Elements A, B, C
and D, respectively, and in accordance with Section 10.02 of this Grant Agreement.
X1x
(a) Agency shall lend $99,457 to Escalante and $96,647 to Ceballos using
funds from the Direct Commercial Rehabilitation Loan Program.
(b) Evidence of this commitment shall be in accordance with Section 10.06 of
this Grant Agreement.
xx
(a) Developer shall loan Rangel not less than $754,800 from bond proceeds for
use by Rangel for the development of Project Element B.
(b) Evidence of this commitment shall be in accordance with Section 10.06 of
this Grant Agreement.
XXI
(a) Developer shall loan Ceballos not less than $224,400 from bond proceeds
for use by Ceballos for the development of Project Element C.
(b) Evidence of this commitment shall be in accordance with Section 10.06 of
this Grant Agreement.
XXII
(a) Developer shall loan Fainbarg not less than $40,800 from bond proceeds
for use by Fainbarg for the development of Project Element D.
(b) Evidence of this commitment shall be in accordance with Section 10.06 of
this Grant Agreement.
Page 22 of 22
EXHIBIT E
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Recipient: City of S_a_nta Ana, California Grant Number: B-84 AA-06-0615(P
Amendment #1
EXHIBIT F
PROJECT PERFORMANCE SCHEDULE
I
(a) The Evidentiary Materials,described in Exhibit E to this Grant Agreement
must be submitted to the Secretary by Recipient not later than six (6) months from
the date the Secretary executed this Grant Agreement.
(b) Upon notification to Recipient of the approval by the Secretary of the
Evidentiary Materials required by subparagraph (a) above, and upon receipt by the
HUD Field Office of a certification by Recipient to the Secretary that construction
of the Developer's, Rangel's, Ceballos and Escalante's portion of the Project has
commenced and is continuing, Recipient shall be authorized to draw down Grant Funds
for Eligible Costs consistent with Letter of Credit procedures and the provisions
of this Grant Agreement.
II
The Recipient and Non -Recipient Activities shall be commenced and completed in
accordance with the following schedule:
Activity Commencement Date Completion Date
Land Acquisition October 1, 1985 September 1, 1986
Construction/Renovation October 1, 1986 October 1, 1987
• ZII
Notwithstanding anything to the contrary in this Grant Agreement, construction
of .the Project must be commenced no later than 12 months from the date the
Secretary executed this Grant Agreement.
No time extensions shall be given to this 12 month commencement of
construction requirement.
EXHIBIT F
Page 1 of 1
r
ATTACHMENT NO. B.•
LEGAL DESCRIPTION OF "SALES PARCELS"
Such real property is generally bounded by French Street, Third Street,
Bush Street and Fifth Street, and is more particularly described as
follows:
Sales Parcel 1 Assessor Parcel No. 398-327-03. -04. -05. and portion
of -02; All that certain real property in the City of
Santa Ana. County of Orange, State of California.
described as follows: Lots 2 and 3 and the west 55
feet of Lots 1 and 4 in Block 16 of the Town of Santa
Ana. as per map recorded in Book 2. Page 51 of
Miscellaneous Records of Los Angeles County.
California.
Sales Parcel 2 Assessor Parcel No. 398-326-07, -06, and portion of
-05. All that certain real property in the City of
Santa Ana, County of. Orange, State of California,
described as follows: Lots 1,.2, and 3 together with
that portion of Lot 4 in Block 1 of Fruit s Addition
to Santa Ana, as per map recorded in Book 9, Page 91
of Miscellaneous Records of Los Angeles County,
California, lying westerly of the following described
line - beginning at a point in the northerly line of
said Lot 4, said point being distant westerly 74.58
feet, measured along said northerly line and the
northerly line of Lot 5 in said Block, from the
easterly line of said Block l; thence southerly to a
point in the southerly line of said Lot 4, said point
being distant westerly 74.45 feet, measured along the
southerly line of said Block 1, from the southeast
corner of said Block 1 except the north 8.00 feet
thereof.
Sales Parcel 3 Assessor Parcel No. 398-503-04, -05, and -06; All
that certain real property in the City of Santa Ana.
County of California, described as follows: The east
100.61 feet of the north 20 feet of Lot 5 and the
east 100.61 feet of Lots .8 and 9 in Block 9 of the
Town of Santa Ana, as shown on a map recorded in Book
2, Page 51 of Miscellaneous Records of Los Angeles
County. California.
Sales Parcel 4 Assessor Parcel No. 398-505-14i All that certain real
property in the City of Santa Ana, County of Orange,
State of California, described as follows: Lots 1,
2, and 3 in Block 3 of Blee's Addition to Santa Ana,
as shown on a map recorded in Book 4. Page 545 of
Miscellaneous Records of Los Angeles County,
California except the south 58 feet and the north 5
feet thereof.
Sales Parcel 5 Assessor Parcel go. 398-50t-13; All that certain real
property in the City of Santa Ana, County of Orange.
State of California, described as follows: The south
58 feet of the west 6 feet of Lot 3 and -the south 58
feet of Lots 1 and 2 in Block 3 of Blee's Addition to
Santa Ana, as shown on a map recorded in Book 4, Page
545 of Miscellaneous Records of Los Angeles County,
California.