OPA: Grimshaw House - City of Anaheim

408. Financing of the Developer Improvements.
408.1 Approval of Financing. As required herein and as Condition Precedent,
Developer shall submit to Agency evidence that Developer has obtained sufficient
equity capital and/or has obtained firm and binding commitments for construction
financing which together are sufficient to pay for the development of the Site and
the construction of the Developer Improvements in accordance with this
Agreement (collectively, “Evidence of Financing”). Agency shall approve or
disapprove such Evidence of Financing within fifteen (15) days of receipt of a
complete submission. Approval shall not be unreasonably withheld, delayed or
conditioned. If Agency shall disapprove any such Evidence of Financing, Agency
shall do so by Notice to Developer stating the reasons for such disapproval and
Developer shall promptly obtain and submit to Agency new Evidence of
Financing. Agency shall approve or disapprove such new Evidence of Financing
in the same manner and within the same times established in this Section for the
approval or disapproval of the Evidence of Financing as initially submitted to
Agency. To the extent that the Agency-approved Evidence of Financing includes
financing other than equity capital, Developer shall close the approved
construction financing prior to or concurrently with the Outside Construction
Commencement Date.
Such Evidence of Financing shall include the following: (a) a copy of a
legally binding, firm and enforceable loan commitment(s) obtained by Developer
from one or more Institutional Lenders for the mortgage loan or loans for
construction and permanent financing for the construction of the Developer
Improvements, subject to such lenders’ reasonable, customary and normal
conditions and terms, and (b) other documentation satisfactory to Agency as
evidence of other sources of capital sufficient to demonstrate that Developer has
adequate funds to cover the difference between the total cost of the construction
and completion of the Developer Improvements, less financing authorized by
those loans set forth in subparagraph (a) above.
408.2 No Encumbrances Except Mortgages, Deeds of Trust, or Sale and
Lease-Back Development. Mortgages, deeds of trust and sales and leases-back
for any reasonable method of financing through an Institutional Lender for the
purpose of securing loans of funds to be used for (i) financing the acquisition or
development of the Site, (ii) financing the construction of the Developer
Improvements (including architecture, engineering, legal, and related direct costs
as well as indirect hard and soft costs such as real property taxes, insurance
premiums, closing costs, loan carrying costs and costs of financing) on or in
connection with the Site, (iii) the financing or refinancing of contributed equity or
other amounts, (including the granting of a security interest in Developer’s rights
under this Agreement) or (iv) any other purposes necessary and appropriate in
connection with development under this Agreement shall be permitted before
issuance of the Release of Construction Covenants only with Agency's prior
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