10-22-2001 Council Packet - Laserfiche WebLink

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ARTICLE V. LIMITATION UPON ENCUMBRANCE; PROHIBITIONS AGAINST ASSIGNMENT AND I R/\NSI ER: SI BORDINATION Section 5.1 Limitation l^pon Encumbrance of Development. Prior to the issuance of the Certificate of Completion, neither the Developer nor any successor in interest to the Dexelopment Property 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 sufler any encumbrance or lien to be made on or attached to the p;m:el of the De\eli>pment Property other than this Agreement, the PUD .Agreement and the financing Documents. Section 5.2 Representation as to Development. I he De\ eloper represents and agrees that its undertakings pursuant to the Agreement are for the piirjiose of implementation of the Development and not for speculation in landholding. The 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 purpose of making the Development possible, the qualifications and Identity of the Developer arc of par ticular concern to the I IRA and the City, fhe Developer further recognizes that it is bccau.se of such qualifications and identity that the I IRA and City are entering into this .Agreement, and. in so doing, are further willing to rely on the representations and undertakings of the Developer fur the faithful performance of all undertakings and cox enanls agreed by Developer to be performed. Section 5.3 Prohibition Against Transfer of Propertx and Assienment of Agreement. I or the reasons set out in Section 5.2 of this Agreement, the Developer represents and 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 Improx ements. i>r fi>r any other purpose authorized by this Agreement, the Developer, except as so authorized, has not n.ade or created, and xx ill ntu make or create, or sufler to be m.ide or created, any total or p.irtial .sale, assignment, conveyance, or anx trust or poxxer. or transfer in any other mode or form of or xxith respect to this .Agreement or ihc Dexelopqtent Property or any part thereof or any interest therein, or any contract <ir agreement to do any of the same, xvithout the prior xx-ritten approval of the City; and (b) The City shall be entitled to require, except as otherxvise provided in this .Agreement, as conditions to any such approval under this Section 5.3 that: (i) .Any any proposed transferee shall have the qualifications and financial resptxnsibility, as reasonably determined by the City, necessaiy and adequate to fulfill the obligations undertaken in this Agreement by the Developer or. in the event the transfer is of or relates to p;irt of the Development, such obligations to the extent that they relate to such part.: (ii) Any any proposed transferee, by instrument in xvriting satisfactoiy* to the City and in form recordable among the land records, shall for itself and its successors and assigns, and specifically for the benefit of the I IRA and the City, have expressly assumed all (or the applicable portion) of the obligations of the Developer