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CONTRACT 1937 Other CLOSEDCONTRACT 19 37 ,- 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. CONTRACT 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 2 CONTRACT, 1937 - 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. 3 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 4 CITY OF EL SEGUNDO By EL SEGUNDO SENIOR CITIZEN H OU S I N G'- C �-0-14 P 0 RA ON By ------ r..Id..t