Res 2005-076 - Laserfiche WebLink

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Global Rock agrees to execute and deliver the lien documents in favor of the City at the Closing. Section 2.07. Global Rock agrees not to grant or create any liens against the Property that are superior to the City's lien unless the liens are to secure funds to acquire the Property, or funds to construct the Project. PART 3. OBLIGATIONS OF THE CITY Section 3.01. Prior to the Closing, the City will prepare documents to establish a lien on the Property in favor of the City in the Grant Amount stated in Section 3.02, to serve as security for the performance of Global Rock's obligations under this Agreement. The City agrees that its lien will be subordinate to other liens granted by Global Rock on the Property to secure funds to acquire the Property, or funds to construct the Project. Section 3.02. As consideration for Global Rock's acquisition ofthe Property, construction of the Project, and compliance with all of its obligations under this Agreement, the City agrees to provide an economic development grant to Global Rock in the amount of$175,000 (the "Grant Amount"). The City will provide the Grant Amount to Global Rock by August 31, 2005. Section 3.03. The City agrees to waive all City fees (the "Fee Waiver") associated with zoning, the platting process, and construction permits and inspections associated with the construction ofthe Project. The Fee Waiver does not extend to water and wastewater impact fees charged by the City. Section 3.04. The City agrees to consider any other reasonable requests made by Global Rock in order to assist it in constructing the Project. PART 4. DEFAULT Section 4.01. If Global Rock violates or fails to perform any of its obligations under this Agreement, the violation or failure to perform will constitute an event of default under this Agreement. Section 4.02. In the event of a default by Global Rock, the City will give written notice to Global Rock, and Global Rock will have 30 days from the date of the notice to cure the default. If a default remains uncured at the end of this notice period, the City will have the right to terminate this Agreement. Section 4.03. If this Agreement is terminated by the City based upon a default by Global Rock, the City may require Global Rock to pay to the City the following within 60 days of the termination date: A. The Grant Amount, reduced by 20% of the Grant Amount for each one-year period after the Effective Date that Global Rock has not been in default under this Agreement. City of San Marcos/Global Rock Economic Development Agreement Page 3 of6