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Item A: Beam Development Purchase and Sale Agreement Terms
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Item A: Beam Development Purchase and Sale Agreement Terms
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6/9/2010 12:58:26 PM
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5/16/2008 4:10:40 PM
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Agenda Item Summary
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5/21/2008
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EXHIBIT E-2 <br />CENTRE COURT CONSTRUCTION LOAN – LOAN TERMS <br /> <br />Borrower: <br /> Beam Construction & Management, LLC <br />Aggregate Amount: <br /> An amount not to exceed $6,500,000 <br /> <br />Tranche 1: Section 108 <br /> <br />Amount: $5,187,000 <br /> <br />Term/Amortization: <br /> 10 years. Interest only payments for the first two years commencing on the first <br />payment date after Beam makes its first construction draw. Principal payments will commence on the <br />second anniversary of Beam making its first construction draw; thereafter thirty-one (31) principal <br />quarterly payments of $65,000 each, with a final principal installment of all unpaid principal due at <br />maturity. <br /> <br />Interest Rate: <br /> <br />Prior to Conversion by HUD of Section 108 Loan: Interest rate on Section 108 Loan (currently LIBOR + <br />20 bps, floating) <br />After Conversion by HUD of Section 108 Loan: Interest rate on Section 108 Loan (a fixed rate based on <br />market conditions when sold annually (traditionally lower yields than federal agency securities (ex. Fannie <br />Mae)) <br /> <br /> <br />Prepayment: <br /> No prepayment after conversion to fixed rate unless (i) permitted by HUD under the <br />corresponding Section 108 loan to the City, which allows for defeasance, or (ii) unless consented by <br />Agency in its sole and absolute discretion. Prior to conversion may be pre-paid in whole or in part at any <br />time. <br /> <br />Beam shall pay to the Agency the ratable portion of any fees and charges charged to or incurred by the <br />Agency or the City in connection with the City’s Section 108 Loan from HUD, including fiscal agent <br />and/or trustee’s fees and conversion fees. <br /> <br /> <br />Tranche 2: BEDI <br /> <br />Amount: $1,313,000 <br /> <br />Term/Amortization: <br /> The earlier of (i) 50 years or (ii) the date on which Beam achieves a 13% rate of <br />return on capital, to be measured according to a mutually agreed formula. All unpaid principal due at <br />maturity. Tranche 2 may be subject to debt forgiveness upon sale of the Property if Beam fails to achieve a <br />13% rate of return on capital. Pursuant to Section 13.3.1 of the Agreement, the payment of the deferred <br />development fee is subordinated to the repayment of Tranche 2. <br /> <br />Interest Rate: <br /> 0% <br /> <br />Prepayment: <br /> May be pre-paid in whole or in part at any time. <br /> <br />Payment Dates: <br /> Payments of principal and interest due on the first day of each August, November, February and <br />May. <br />Default Rate Interest: <br />5% above the otherwise applicable rate <br />Conditions Precedent to Centre Court/ Vacant Lot Construction Loan Closing: <br />Page - 38 <br /> <br />
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