RES 17969 - Laserfiche WebLink

To summanze the foregoing, annual distnbutions of Surplus Cash shall be made in accordance with the following schedule: A 50% of Surplus Cash—to be retained by Borrower for use in accordance with the terms of the limited partnership agreement of Borrower B. 50% of Surplus Cash to be allocated as follows a 38% x 50% = 19%payable to the City, to be applied to reduce the outstanding balance payable under this Note, b. 62% x 50% = 31%payable to the County to reduce the outstanding balance of the County loans. No later than June 1 of each year following the issuance of a final certificate of occupancy or equivalent for the Project, Borrower shall provide to City Borrower's calculation of Surplus Cash for the previous calendar year, accompanied by such supporting documentation as City may reasonably request, including without limitation, an independent audit prepared for the Project by a certified public accountant in accordance with generally accepted accounting principles. City shall have the right to inspect and audit Borrower's books and records concerning the calculation of Surplus Cash, and to object within ninety(90) days from receipt of Borrower's statement. Failure to timely object shall be deemed acceptance. If City does object, City shall specify the reasons for disapproval Borrower shall have thirty(30) days to reconcile any disapproved item. If Borrower and City cannot agree on the amount of Surplus Cash, an independent auditor mutually selected by Borrower and City shall resolve any disputed items. The cost of the auditor shall be shared equally by Borrower and City. No later than November 1 of each year following issuance of the final certificate of occupancy or equivalent for the Project, Borrower shall provide to City a projected budget for the following calendar year which shall include an estimate of Surplus Cash. City will review the proposed budget and, if acceptable, approve it, which approval shall not be unreasonably withheld, provided, however, if the proposed budget has not been rejected by City within 30 days of receipt, City shall be deemed to have accepted the budget If the budget is not acceptable, City shall specify the reasons for disapproval Once approved, any changes to the budget that exceed ten percent(10%) of the total budget shall require City's pnor written consent, which consent shall not be unreasonably withheld. 1 2.1 "Surplus Cash" shall mean for each calendar year during the term hereof, the amount by which Gross Revenue (defined below) exceeds Annual Operating Expenses (defined below) for the Project Surplus Cash shall also include net cash proceeds realized from any refinancing of the Project, less fees and closing costs reasonably incurred in connection with such refinancing, and any City-approved uses of the net cash proceeds of the refinancing. 1 2 2 "Gross Revenue" shall mean for each calendar year dunng the term hereof, all revenue, income, receipts and other consideration actually received from the operation and leasing of the Project Gross Revenue shall include, but not be limited to: all rents, fees and charges paid by tenants, Section 8 payments or other rental subsidy payments received for the OAK 44829-4624-9261 v5 3