CONTRACT 1937 Other CLOSEDCONTRACT
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CITY (W 9- SEGUNDO
REPAYMENT AGREEMENT
THIS AGREEMENT is entered into this 5th day of January,
1988 by and between the CITY OF EL SEGUNDO, CALIFORNIA, a
Municipal corporation (hereinafter "CITY") and the EL SEGUNDO
SENIOR CITIZEN HOUSING CORPORATION, a California Nonprofit Public
Benefit Corporation (hereinafter "CORPORATION").
WITNESSETH:
A. City is the owner of real property located at 615
East Holly Avenue in the City of El Segundo, California, which
property is developed as a 97-unit senior and handicapped housing
project (the "Project"); and
B. City and Corporation have entered into an
Operating Agreement dated May 6, 1986 (the "Operating Agreement")
setting forth terms and conditions under which Corporation will
operate the housing project; and
C. City has loaned to the project for purposes of
acquiring land and funding construction the sum of $1,780,000
from the General Emergency Contingency Reserve Fund; and
D. In addition to the $1,780,000 loan, voters of the
City on November 8, 1983 approved Ordinance No. 1056 authorizing
expenditure of $2,345,538, plus interest accrued thereon, from
the Voters' Trust Account for the Senior Housing Project; and
E. The parties desire to memorialize their
understanding concerning the obligation of the Project to
replenish the City's funds from the Project's revenues and
that the satisfaction of that obligation be established by
contemporaneous records; and
F. Corporation acknowledges the obligation of the
Project revenues to replenish the City's funds as above set
forth; and
G. Corporation agrees that during the term of the
operating Agreement to make the payments hereinafter set forth.
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1937`=
cii,v - 11 SEGUNDO
NOW, THEREFORE, for and in consideration of the above
premises, City and Corporation agree that the funds advanced for
construction of the Senior Housing Project shall be repaid under
the following terms and conditions:
1. Repayment of $1,780,000 Loan. Corporation agrees
to repay the loan sum of $1,780,000 from the General Emergency
Contingency Reserve Fund from revenues of the Project over a
period of twenty (20) years at the rate of eight percent (8%)
interest per annum from April 5, 1988. Payments shall be made in
equal monthly installments of $14,889-00 or more and shall be due
on the fifth day of each month beginning May 5, 1988. Advance
payments of principal may be made without penalty. Each payment
shall first be credited to accrued interest and the balance shall
be applied to principal. The entire balance of principal and
accrued interest, if any, shall be due on May 5, 2008.
2. Late Payment. If Corporation fails to perform any
of the payment provisions of this agreement, City may give
Corporation ten (10) days written notice to cure the failure to
perform. In the event Corporation does not cure said failure
within said ten (10) days, Corporation shall be in default of its
obligation under this agreement. In the event of default, the
City council, after a noticed hearing, may declare this
agreement, as well as the May 6, 1986 Operating Agreement, null
and void and thereafter assume operation of the Project, or enter
into a contract or contracts with third parties to operate the
Project.
3. in addition to repaying the foregoing advance,
Corporation agrees to pay to the City for deposit in the General
Fund or such other fund as the City may determine a sum equal to
the $2,345,538 expended from the Voters' Trust Account for
construction of the Project together with interest accrued
through July 30, 1987 in the amount of $882,544. such payment
shall not be subject to additional periodic interest payments.
Repayment shall begin when all principal and interest payments on
the $1,780,000 loan from the General Emergency Contingency
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CITY OF 9 SECIINDO
Reserve Fund have been made, but not later than June 5, 2007.
The parties agree to meet at the call of the Mayor of the City to
work out in a timely manner the terms and conditions of such
payment.
4. Payments Made To. All payments due hereunder
shall be made to the City Treasurer, City of El Segundo, 350 Main
Street, El Segundo, California 90245, and shall be credited to
the City General Fund.
5. Notices. All notices, reports, and statements
which either party desires or is required to give to the other
under this Agreement shall be in writing and shall be delivered
by registered or certified mail, postage prepaid, return receipt
requested, or shall be delivered by personal delivery, addressed
as shown below. Notices shall be deemed effectively communicated
as of the date of the receipt. Either party may change its
address for purposes of notices under this Agreement by means of
written notice given in accordance with the provisions of this
section.
As to City: City of El Segundo
350 Main Street
El Segundo, California 90245
Attention: City Manager
As to corporation: El Segundo Senior Citizen
Housing corporation
350 Main Street
El Segundo, California 90245
Attention: Chairman
6. Governing Law. Validity of this Agreement and any
of its terms and conditions shall be interpreted and construed
pursuant to the laws of the State of California.
7. Severability. If any provision of this Agreement
is held by a court of competent jurisdiction to be void or
unenforceable, the remaining provisions shall nevertheless
continue-in full force and effect.
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CONTRACT,
19 37 -�
CITY 0F c! SEGUNDO
IN WITNESS WHEREOF, the parties hereto have set their
hands and seals the day and year first above written.
-ATTEST:
City Clerk
(SEAL)
ATTEST:
SecretAry
APPROVED AS TO FORM:
City By
71
rttor-, y
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CITY OF EL SEGUNDO
By
EL SEGUNDO SENIOR CITIZEN
H OU S I N G'- C �-0-14 P 0 RA ON
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