10-08-2001 Council Packet - Laserfiche WebLink

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ARTICLE V. LIMH A HON UPON i:ncumbr /\nce ; PRommiioNs AGAINST ASSIGNMENT AND TRANS! liR; SUBORDINATION Section 5.1 Limitation I tpon F:ncumbrancc of Development. Prior to the issuance of the CertiUcate of Completion, neither the Developer nor any successor in interest to the Development Properly or any part thereof shall engage in any financing or any other transaction creating any Mortgage or other encumbrance or lien upon the Development Property, whether by express agreement or operation of law. or suffer any encumbrance or lien to be made on or attached to the parcel of the Development Property other than this Agreement, the PUD .Agreement and the I-inancing Documents. Section 5.2 Representation as to Development. I he Developer represents and agrees that its undertakings pursuant to the Aga*ement are for the purpose of implementation of the Development and not for speculation in landholding. Ilie Developer further recognizes that, in view' of the importance of the Development to the general welfare of the City and the substantial financing and other public aids that have been made available by the I IRA and the City for the purpi^sc of making the Development possible, the qualifications and identity of the Developer are of particular concern to the IIR.A and the City. I he Developer fuither recognizes that it is because of such qualifications and identity that the HRA and City are entering into this Agreement, and, in so doing, are liirther w illing to rely on the representations and undertakings of the Developer for the faithful perfonnance of all undertakings and covenants agreed by Developer to be performed. Section 5.3 Prohibition Against t ransfer of Property and Assignment of Agreement For the reasons set out in Section 5.2 of this Agreement, the Developer represents atid agrees that, prior to the issuance of the Certificate of Completion as certified by the City: (a) Except for leases and other tenancies in the rental units of the Improvements, any other purpo.se authorized by this Agreement, the Developer, except as so authorized, has not made or created, and w ill not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust or power, or transfer in any other mixle or form of or with respect to this Agreement or the Development Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approv al of the City; and (b) 1 he City shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval under this Section 5.3 that: (i) Any proposed transferee shall have the qualifications and financial responsibility, as reasonably determined by the City, necessary^ and adequate to fulfill the obligations undertaken in this Agreement by the Developer or, in the event the transfer is of or relates to part of the Development, such obligations to the e.xtent that they relate to such part, (ii) Any proposed transferee, by