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SUBRECIPIENT AGREEMENT FY 2005-2006 - FOOD BANK RENOVATIONS - MORTGAGE AND MORTGAGE NOTE ... _~:- If RSC Food - 03.03.06 CITY OF CLEARWATER, FLORIDA AND RELIGIOUS COMMUNITY SERVICES, INC. FY2005-2006 SUBRECIPIENT AGREEMENT (Food Bank Renovations) THIS SUBRECIPIENT AGREEMENT as entered into on this 1 sl day of March 2006, by and between the City of Clearwater, a Florida municipal corporation, having its principal office at 112 South Osceola Avenue, Clearwater, Florida, hereinafter referred to as the "City", and Religious Community Services, Inc., hereinafter referred to as the "Provider". WITNESSETH: WHEREAS, the City has entered into an agreement with the U.S. Department of Housing and Urban Development (HUD) for the purpose of conducting a Housing and Community Development Program with federal financial assistance under Title I of the Housing and Community Development Act of 1974, as amended, hereinafter called "Act"; and the Cranston-Gonzalez National Affordable Housing Act of 1990; and WHEREAS, the City has entered into an agreement with the U. S. Department of Housing and Urban Development for the purpose of conducting the HOME Investment Partnership Program (HOME) with federal assistance under Title II (42 U.S.C. 12701-12839) of the Cranston-Gonzalez National Affordable Housing Act of 1990, as amended; and WHEREAS, the City has entered into an agreement with the State of Florida for the purpose of conducting the State Housing Initiatives Partnership (SHIP) Program with State of Florida assistance under the William E. Sadowski Housing Act (Section 420.907 - .9079 Florida Statutes, Rule 67-37, Florida Administrative Code) which was signed into law on July 7, 1992; and WHEREAS, the City has determined through its Fiscal Year 2005-2010 Consolidated Plan and FY2005-2006 Consolidated Action Plan, which was adopted on August 4, 2005, the necessity for providing funding for funding for the development of a food pantry for low to moderate income families in Clearwater; and WHEREAS, the City desires to engage the Provider to render certain services in connection therewith: NOW, THEREFORE, the parties hereto agree as follows: .r f RSC Food - 03.03.06 SECTION I: SCOPE OF SERVICES The Provider agrees to use the City funds provided to renovate their existing Food Bank, located at: 700 Druid Road. Clearwater. Florida. 33755, all in accordance with the projected accomplishments attached and made a fully binding part of this Agreement, as Appendix 1. The food pantry provides emergency and government food to low income families in need. SECTION II: CONDITION OF SERVICE The Provider hereby agrees to the following: A. The Program shall serve eligible very-low and moderate-income persons living in Clearwater. The Provider shall certify that the activities carried out with funds provided under this Agreement will meet one or more ofthe CDBG program's National Objectives - 1) benefit low to moderate income persons, 2) aid in the prevention or elimination of slum and blight, 3) meet community development needs having a particular urgency - as defined in 24 CFR 570.208 and all applicable rules and regulations as contained in the federal HOME Investment Partnership and State of Florida State Housing Initiatives Partnership (SHIP) programs. B. The Provider shall maintain in its file the documentation on which basis it determines that the project benefits low and moderate-income persons, minorities and residents of Clearwater. Such records shall include, but not be limited to profiles identifying financial classification, head of household, ethnicity, race and gender, or area benefit data, as required. C. The Provider shall maintain a citizen participation mechanism, which will include, but not be limited to the following: 1 Logging citizen comments or complaints when received. 2. Copies of comments and/or complaints received in writing. 3. Copies of responses to complaints and/or explanations of resolutions to complaints. D. The Provider shall comply with Subpart c - Post Award Requirements of the Office of Management and Budget (OMB) Circular No. A-II 0, "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations", incorporated by reference into this Agreement. E. Costs incurred under this program shall be in compliance with Federal Management Circular No. A-I22, "Cost Principles for Non-Profit Organizations", incorporated by reference into this Agreement. F. The Provider shall abide by those provisions of 24 CFR Part 570 subpart J, when applicable, incorporated by reference into this Agreement. 2 f~ f RSC Food - 03.03.06 G. No expenditures or obligations shall be incurred for the program prior to approval and release of funds from the U.S. Department of Housing and Urban Development and/or the State of Florida. Further, it is expressly understood that in the event no funds are released from the U.S. Department of Housing and Urban Development and/or the State of Florida in connection with this Program, then the City is not liable for any claims under this contract. H. The Operating Agency hereby certifies that, in the implementation of projects funded by this Agreement and in all of its other operations, it will comply with all requirements of Section 504 of the Rehabilitation Act of 1973 (29 USC 794) (and the implementing regulations at 24 CFR 8), the Americans with Disabilities Act of 1990 (PL 101-336), and all state and local laws requiring physical and program accessibility to people with disabilities, and agrees to defend, hold harmless and indemnify the City from and against any and all liability for any noncompliance on the part ofthe Operating Agency. (1) Notification by HUD to the City that said project is ineligible because of project location, services provided, or any other reason cited by HUD; (2) Notification by HUD to the City that said project is deficient and that continued support of the project is not providing an adequate level of services to low income and minority people; or (3) Written notification from HUD to the City that the program funds made available to the City are being curtailed, withdrawn, or otherwise restricted. (4) Fails to file required reports or meet project progress or completion deadlines; (5) Materially fails to comply with any provision ofthis Agreement (which may result in suspension or termination in accordance with 24 CRF 85.43 or OMB Circular A-II 0, Attachment L); (6) Expends funds under this Agreement for ineligible activities, services or items; (7) Implements the project prior to notification from the City that the federal environmental review process has been completed; (8) Violates Labor Standards requirements; or (9) Fails to comply with written notice from the City of substandard performance under the terms of this Agreement. I. The Provider shall certify, pursuant to Section 109 of the Act, that no person shall be denied the benefits of the program on the ground of race, color, national origin or sex. J. The Provider agrees that to the extent that it staffs the Program with personnel not presently employed by said party, it will take affirmative action in attempting to employ low income persons residing in the City of Clearwater, particularly minority group members. 3 RSC Food - 03.03.06 K. The Provider shall comply with the provisions of24 CFR 570.504 (c), "Program Income" and meet the definition of program income defined in 24 CFR 570.500 which generally states that program income is gross income received by the recipient or a subrecipient directly generated from the use ofCDBG funds. All program income generated through the use of Community Development Block Grant, HOME Investment Partnership Program, and State Housing Initiatives Partnership programs shall be returned to the City within 45 days after receipt by the subrecipient. In those instances where the City allows the sub-recipient to retain program income, these funds shall be expended for CDBG eligible activities, previously approved by the City in accordance with the projected accomplishments and budget descriptions attached to this Agreement. L. The Provider shall transfer to the City any CDBG funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG funds. All real property acquired or improved in whole or in part with CDBG funds in excess of $25,000 shall be: (1) Used to meet one of the national objectives in Section 570.208 until five years after expiration of the agreement, or fro such longer period of time as determined to be appropriate by the City; or (2) If not used as stated above, the provider shall pay to City an amount equal to the current market value of the property less any portion of the value attributable to expenditures on non-CDBG funds for the acquisition of or improvement to, the property. The payment shall be considered program income. M. The Provider shall adhere to the applicable requirements contained in the "Acknowledgement of Economic Development Activities", attached hereto and made a part hereof as Appendix 2, if applicable. N. The Provider shall comply with First Amendment Church/State principles, as follows: 1. It will not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion. 2. It will not discriminate against any person applying for public services on the basis of religion and will not limit such services or give preference to persons on the basis of religion. 3. It will provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provision of such public services. 4. The portion of a facility used to provide public services assisted in whole or in part under this Agreement shall contain no sectarian or religious symbols or decorations. 4 RSC Food- 03.03.06 5. The funds received under this Agreement shall not be used to construct, rehabilitate, or restore any religious facility which is owned by the Provider and in which the public services are to be provided. However, minor repairs may made if such repairs are directly related to the public services; are located in a structure used exclusively for non-religious purposes; and constitute, in dollar terms, only a minor portion of the CDBG expenditure for the public services. O. The Provider shall transfer to the City upon expiration of this Agreement, any CDBG, HOME and/or SHIP funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG, HOME and/or SHIP funds. The following restrictions and limitations apply to any real property under the Provider's control, which was acquired or improved in whole or in part with CDBG funds in excess of$25,000: 1. Any real property under the Provider's control must be used to meet one of the National Objectives in the CDBG Regulations. Part 570.208 until five years or such longer period of time as determined appropriate by the City after expiration of the Agreement. Land- banking is a prohibited activity under the City's programs. 2. If the real property is sold within the period of time specified above, the property must be disposed of in a manner which results in the City being reimbursed in the amount of the current fair market value of the property, less any portion thereof attributable to expenditures on non-CDBG funds for acquisition of, or improvement to, the property. Such reimbursement is required. P. The Provider agrees that when sponsoring a project financed in whole or in part under this Agreement, all notices, informational pampWets, press releases, advertisements, descriptions of the sponsorship of the project, research reports, and similar public notices prepared and released by the Provider shall include the statement: FUNDED BY THE CITY OF CLEARWATER COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIP, AND STATE HOUSING INITIATIVES PARTNERSHIP PROGRAMS In written materials, the words "CITY OF CLEARWATER COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS, HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS, AND STATE HOUSING INITITATIVES PARTNERSHIP PROGRAM FUNDS ADMINISTERED BY THE HOUSING DIVISION OF THE CITY OF CLEARWATER - ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT" shall appear in the same size letters or type as the name of the Provider. Q. The Provider shall ensure the following when entering into a sub-contract agreement: 1. The full correct legal name of the party shall be identified. 2. The "Scope of Services" shall describe the activities to be performed. 5 RSC Food - 03.03.06 R. The Provider shall maintain sufficient records in accordance with 24 CFR 570.502 and 570.506 to determine compliance with the requirements of this Agreement, the Community Development Block Grant Program and all applicable laws and regulations. This documentation shall include, but not be limited to, the following: 1. Books, records and documents in accordance with generally accepted accounting principles, procedures and practices which sufficiently and properly reflect all revenues and expenditures of funds provided directly or indirectly by this Agreement, including matching funds and program income. 2. Time sheets for split-funded employees who work on more than one activity, in order to record the CDBG, HOME, and/or SHIP activity delivery cost by project and the non- CDBG related charges. 3. How the Statutory National Objective(s) and the eligibility requirement(s) under which funding have been received, have been met. These also include special requirements such as necessary and appropriate determinations, income certifications, and written agreements with beneficiaries, where applicable. S. The Provider is responsible for maintaining and storing all records pertinent to this Agreement in an orderly fashion in a readily accessible, permanent and secured location for a period of three (3) years after expiration of this Agreement, with the following exception: if any litigation, claim or audit is started before the expiration date of the three year period, the records will be maintained until all litigation, claims or audit findings involving these records are resolved. The City shall be informed in writing after closeout of this Agreement, of the address where the records are to be kept. SECTION III: OTHER CONTRACTUAL PROVISIONS A. Labor Standards Except with respect to the rehabilitation of residential property designed for residential use for less than eight households, the provider and all subcontractors engaged in contracts in excess of $2,000 for the construction, completion, rehabilitation, or repair of any building or work financed in whole or in part with assistance provided under this Agreement are subject to the federal labor standards provisions which govern the payment of wages and the ratio of apprentices and trainees to journey workers. Under the terms of the Davis-Bacon Act, as amended, the provider is required to pay all laborers and mechanics employed on construction work wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor, and shall pay overtime compensation in accordance with and subject to the provisions of the contract Work Hours and Safety Standards Act (40 USC 327-332), and the provider shall comply with all regulations issued pursuant to these Acts and with other applicable Federal laws and regulations pertaining to labor standards, including the Copeland "Anti-Kickback" Act. Provided, that if wage rates are higher than those required under the regulations are imposed by 6 RSC Food - 03.03.06 State or local laws, nothing hereunder is intended to relieve the provider of its obligation, if any, to require payment of the higher rates. B. Flood Disaster Protection This Agreement is subject to the requirements of the Flood Disaster Protection Act of 1973 (PL 93-234). Use of any assistance provided under this Agreement for acquisition or construction in an area identified as having special flood hazards shall be subject to the mandatory purchase of flood insurance in accordance with the requirements of Section 102(a) of said Act. C Clean Air and Federal Water Pollution Control Act (Applicable to Contracts and Subcontracts Which Exceed $100,000 The provider shall comply with and require each subcontractor to comply with all applicable standards of the Clean Air Act of 1970 (42 USC 1857 et seq.) as amended, the Clean Air Act of 1990, the Federal Water Pollution Control Act (33 USC 1251 et seq.), as amended, and the regulations of the Environmental Protection Agency with respect thereto, at 40 CFR Part 15, as amended from time to time. D. Provision of the Hatch Act Neither the provider program nor the funds provided therefore, nor the personnel employed in the administration of the program shall be in any way or to any extent engaged in the conduct of political activities in contravention of Chapter 15 of Title 5, United States Code. E. Lead-Based Paint Any grants or loans made by the provider for the rehabilitation of residential structures with assistance provided under this Agreement shall be made subject to the provisions for the elimination oflead-based paint hazards under 24 CFR Part 35. Operating Agency will comply with the requirements of 24 CFR 570.608 for notification, inspection, testing, and abatement procedures concerning lead-based paint. Such regulations require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may contain lead-based paint Such notification shall point out the hazards of lead- based paint and explain the symptoms, treatment, and precautions that should be taken when dealing with lead-based paint poisoning. F. Special Assessments Provider shall not attempt to recover any capital costs of public improvements assisted in whole or in part with funds provided under Section 106 of the Act or with amounts resulting from a guarantee under Section 108 of the Act by assessing any amount against properties owned and occupied by persons oflow and moderate income, including any fee charged or assessment made 7 RSC Food - 03.03.06 as condition of obtaining access to such public improvements, unless (1) funds received under Section 106 of the Act are used to pay the proportion of such fee or assessment that relates to the capital costs of such public improvements that are financed from revenue sources other than under Title 1 of the Act, or (2) for purposes of assessing any amount against properties owned and occupied by persons of moderate income, the grantee certifies to the Secretary of HUD that lacks sufficient funds received under Section 106 of the Act to comply with the requirements of subparagraph (1). G. Acquisition, Rehabilitation, and Demolition of Real Property and Displacement of Persons and Businesses Provider shall comply with the "City of Clearwater, Housing Division, Community Development Block Grant Program Plan for Minimizing the Displacement of Persons As a Result of Community Development Block Grant Funded Activities" and "City of Clearwater, Housing Division, Community Development Block Grant Program Residential Anti-displacement and Relocation Assistance Plan." Provider shall conduct any acquisition, rehabilitation, or demolition of real property, and any negotiations for acquisition, rehabilitation or demolition of real property in compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, Section 1 04( d) of the Act, and the implementing regulations at 49CFR 24 and 24 CFR 570.606. Unless specifically permitted, the provider shall not cause either temporary or permanent involuntary displacement of persons or businesses. If the provider causes the involuntary temporary or permanent displacement of any person or business as a result of Community Development Block Grant activities, it shall comply with the City's "Plan to Assist Persons Actually Displaced by Community Development Block Grant Activities," and Operating Agency shall provide all notices, advisory assistance, relocation benefits, and replacement dwelling units as required by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, Section 1 04( d) of the Act, and the implementing regulations at 49 CFR 24 and 24 CFR 570.606. The Provider hereby agrees to defend, to pay, and to indemnify the City from and against, any and all claims and liabilities for relocation benefits or the provision of replacement dwelling units required by federal statutes and regulations in connection with activities undertaken pursuant to this Agreement. H. Lobbing Restrictions Provider certifies that, to the best of its knowledge and belief: No Federal Appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with this Federal contract, grant loan or cooperative agreement, it will complete and 8 RSC Food - 03.03.06 submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and It will require that the language of this paragraph L be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352 Title 31, United States Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. SECTION IV: TERM OF AGREEMENT This Agreement shall be deemed effective upon approval and release of funds by the U.S. Department of Housing and Urban Development and/or the State of Florida and being duly executed by both parties, whichever is later. The term of this agreement shall be from March 1, 2006 to December 31, 2006. The term may be amended if both execute a written agreement. SECTION V: TERMINATION The City and the Provider agree: A. This Agreement may be terminated by either party hereto by written notice of the other party of such intent to terminate at least thirty (30) days prior to the effective date of such termination. B. This Agreement may be terminated in whole or in part, for convenience, when both parties agree " upon the termination conditions. A written notification shall be required and shall include the following: reason for the termination, the effective date, and in the case of a partial termination, the actual portion to be terminated. However, if, in the case of a partial termination, the City determines that the remaining portion of the Agreement will not accomplish the purposes of such Agreement, the City may terminate such in its entirety. C. The City may place the Provider in default of this Agreement, and may suspend or terminate this Agreement in whole, or in part, for cause. 1. Cause shall include, but not be limited to, the following: a. Failure to comply and/or perform in accordance with this Agreement, or any federal statute or regulation. b. Submitting reports to the City, which are late, incorrect or incomplete in any material respect. 9 RSC Food - 03.03.06 c. Implementation of this Agreement, for any reason, IS rendered impossible or infeasible. d. Failure to respond in writing to any concerns raised by the City, including substantiating documents when required/requested by the City. e. Any evidence of fraud, mismanagement, and/or waste, as determined by the City's monitoring of the subrecipient, and applicable HUD rules and regulations. 2. The City shall notify the Provider in writing when the Provider has been placed in default. Such notification shall include actions taken by the City, such as withholding of payments, actions to be taken by the Provider as a condition precedent to clearing the deficiency and a reasonable date for compliance, which shall be no more than fifteen (15) days from notification date. 3. The City shall notify the Provider in writing when sufficient cause is found for termination of this Agreement. The Provider shall be given no more than fifteen (15) days in which to reply in writing, appealing the termination prior to final action being taken by the City. D. Let it be further understood that upon curtailment of, or regulatory constraints placed on, the funds of the u.S. Department of Housing and Urban Development and/or the State of Florida, this Agreement will terminate effective as of the time that it is determined such funds are no longer available. E. Costs of the Provider resulting from obligations incurred during a suspension or after termination, are not allowable unless the City expressly authorizes them in the notice of suspension or termination or subsequently. Other costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if: 1. The costs result from obligations which were properly incurred before the effective date of suspension or termination, are not in anticipation of it, and in the case of termination, are noncancelable, and 2. The costs would be allowable if the award were not suspended or expired normally at the end of the Agreement in which the termination takes effect. F. Upon termination of the Agreement, the Provider and the City shall meet to discuss the City's determination if any amounts are to be repaid to the City or if additional amounts are due the Provider. SECTION VI: AMENDMENTS Any alterations, variations, modifications or waivers of this Agreement shall only be valid when they have been reduced in writing and duly signed by both parties. Any changes, which do not substantially change the scope of the project and/or the Project Implementation Schedule or increase, the total amount payable 10 RSC Food - 03.03.06 under this Agreement, shall be valid only when reduced to writing and signed by the City Administration and the Provider. The City shall not reimburse the Provider for outlays in excess of the funded amount of the Agreement unless and until the City officially, in writing, approves such expenditure by executing a written modification to the original Agreement. SECTION VII: METHOD OF PAYMENT It is expressly understood and agreed that the total compensation to be paid hereunder for actual expenditures incurred shall be reserved in the amount of ONE HUNDRED EIGHTY SEVEN THOUSAND FIVE HUNDRED ($187,500) for the renovation of the Provider's current food banle The funds must be expended in accordance with the terms and conditions of the Agreement. Funds set aside for this agency may increase or decrease, subject to production performance. Production will be reviewed quarterly and will be based upon the goals the Provider established in their program implementation schedule. Any remaining balance of funds shall revert to the City or other approved provider(s). Such compensation shall be paid in accordance with the projected accomplishments and budget descriptions attached hereto and made a part hereof as Appendix 1. A. The Provider shall submit monthly requests for payment for actual expenditures, including applicable back-up documentation, no later than the tenth (10th) day of the succeeding month and the City will provide reimbursement, upon approval, within ten (10) working days after receipt of the same, if submitted by the deadline data for inclusion on the drawdown request. B. The City agrees to pay the Provider for expenditures incurred under this Agreement on an as needed basis in accordance with the Budget and Project Implementation Schedule attached hereto and made a part hereof as Appendix 1. Line item transfers are allowable only within each component and may not exceed in the aggregate fifteen percent (15%) of each line item without prior written approval of the City. All changes amounting to more than fifteen percent (15%) require prior written approval. SECTION VIII: EQUAL EMPLOYMENT OPPORTUNITY During the performance of this contract, the Operating Agency agrees as follows: 1. The Operating Agency shall not discriminate against any employee or applicant for employment because of race, color creed, religion, sex age, handicap, disability, sexual orientation, ancestry, national origin, marital status, familial status, or any other basis prohibited by applicable law. The Operating Agency shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex age, handicap, disability, sexual orientation, ancestry, or national origin. Such 11 RSC Food - 03.03.06 action shall include, but not be limited to the following: Employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other forms of compensation, and selection for training including apprenticeship. The Operating Agency agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Operating Agency will, in all solicitations or advertisements for employees placed by or on behalf ofthe operating Agency, state that all qualified applicants will receive consideration for employment without regard to race, color creed religion, sex age, handicap, disability, sexual orientation, ancestry, national origin, marital status, or any other basis prohibited by applicable law. 3. The Operating Agency will send to each labor union or representative of workers with which is has a collective bargaining agreement or other contract of understanding, a notice to be provided advising the said labor union or workers; representatives ofthe Operating Agency's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Operating Agency will comply\ with all provisions of Executive Order 11246, Equal Employment opportunity, of September 24, 1965, as amended by Executive Orders 11373 and 12086, copies of which are on file and available at the City and of the rules regulations, and relevant orders of the Secretary of Labor. 5. The Operating Agency will furnish all information and reports required by Executive Order 11246 of September 24, 1965, as amended, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to its books, records, and accounts by HUD and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. 6. In the event ofthe Operating Agency's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in whole or in part and the Operating Agency may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, as amended, and such other sanctions may be imposed and remedies invoked as provided in Executive order 11246 of September 24, 1965, as amended, or as otherwise provided by law. 7. The Operating Agency will include the portion ofthe sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor, issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, as amended, so that such provisions will be binding upon each subcontractor or vendor. The Operating Agency will take such action with respect to any subcontract or purchase order as HUD may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event an Operating Agency becomes involved in, or is threatened with, litigation with a 12 RSC Food - 03.03.06 subcontractor or vendor as a result of such direction by HUD, the Operating Agency may request the United States to enter into such litigation to protect the interests ofthe United States. A. Equal Opportunity in Participation Development Act of 1974, and in conformance with City policy and all requirements imposed by or pursuant to the Regulations ofHUD (24 CFR Part 570.601 and 570.602) issued pursuant to Section 109, no person in the United States shall on the ground of race, color creed, religion, sex, age, handicap, disability, sexual orientation, ancestry national origin, marital status, familial status, or any other basis prohibited by applicable law be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, and program or activity funded in whole or in part with Community Development Block Grant Program funds. B. Specific (not exclusive) Discriminatory Actions Prohibited: The Provider may not directly or through contractual or other arrangements, on the ground of race, color, creed, religion, sexual orientation, ancestry, national origin, marital status, familial status, age handicap, disability, sex or any other basis prohibited by applicable law: (1) Deny any facilities, services, financial aid, or other benefits provided under the program or activity. (2) Provide any facilities, services, financial aid, or other benefits, which are different or are provided in a different form from that provided to others under the program or activity. (3) Subject to segregated or separate treatment in any facility, or in any mater or process related to receipt of any service or benefit under the program or activity. (4) Restrict in any way access to, or the enjoyment of any advantage or privilege enjoyed by others in connection with facilities, services, financial aid or other benefits under the program or activity. (5) Treat an individual differently from others in determining whether the individual satisfies any admission, enrollment, eligibility, membership, or other requirements or condition which the individual must meet in order to be provided any facilities, services, or other benefit provided under the program or activity. (6) Deny any person with the legal right to work an opportunity to participate in a program or activity as an employee. C. Business and Employment Opportunities/or Lower Income Residents, Women-Owned Business Enterprises, and Minority-Owned Business Enterprises The Provider shall conform with the rules and regulations set forth under Section 3 of the Housing and Urban Development Act of 1968, (12 USC 1701u), as amended, and the HUD regulations issued pursuant thereto at 24 CFR Part 135. This Act requires that, to the greatest extent feasible, opportunities 13 RSC Food - 03.03.06 for training and employment be given to lower income residents of the project area, and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by, persons residing in the area ofthe project. In all solicitations for bids, the contractor must, before signing the contract, provide a preliminary statement of the workforce, needs and plans for possible training and employment of lower income persons. When an Operating Agency utilizes the bidding procedure to let a bid, the invitation or solicitation for bids shall advise prospective contractors ofthe requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, and the clause shall be inserted as a component part of any contract or subcontract. Please see Appendix 4. If an Operating Agency solicits or requests an invitation for bids, every effort feasible will be made to contact minority-owned and women-owned business enterprises for a response to the solicitation or invitation for bidders. D. Nondiscrimination in Federally Assisted Programs The Provider shall comply with Title VI of the Civil Rights Act of 1964 (PL 88-352, 42USC 2000d et seq.) and the Fair Housing Act (42 USC 3601-20). In accordance with City policy and Title VI of the Civil Rights Act of 1964(PL 88-352), in the sale, lease of other transfer ofland acquired, leased or improved with assistance provided under this Agreement, the deed or lease for such transfer shall contain a covenant prohibiting discrimination upon the basis of race, color, creed, religion, sex handicap, disability, sexual orientation, ancestry, national origin, marital status, or familiar status, in the sale, lease or rental, or in the use or occupancy of such land or any improvements erected or to be erected thereon. The Provider will comply with Title VIII ofthe Civil Rights Act of 1968 (PL 90-284) as amended and will administer all programs and activities related to housing and community development in a manner to affirmatively further fair housing. SECTION IX: CONFLICT OF INTEREST The Provider covenants that no person, under its employ who presently exercises any functions or responsibilities in connection with Community Development Block Grant Program, HOME Investment Partnership Program and State Housing Initiatives Program funded activities, has any personal financial interests, direct or indirect, in this Agreement. The Provider covenants that in the performance of this Agreement, no person having such conflicting interest shall be employed. The Provider covenants that it will comply with all provisions of24 CFR 570.611 "Conflict of Interest", and the State Statutes governing conflicts of interest. The Provider shall disclose, in writing, to the City any possible conflicting interest or apparent impropriety that is covered by the above provisions. This disclosure shall occur immediately upon knowledge of such possible conflict. The City will then render an opinion, which shall be binding on both parties. SECTION X: INDEMNIFICATION AND INSURANCE The Provider shall indemnify and hold harmless the City from any and all claims, liability, losses and causes of action, which may arise out of the Agreement. The Provider shall pay all claims and losses of any nature whatsoever in connection therewith and shall defend or pay to defend all suits brought against the City, when requested, and shall pay all costs and judgments which may be issued thereon. 14 RSC Food - 03.03.06 Automobile and vehicle coverage shall be required when the use of automobiles and other vehicles are involved in any way in the performance of the Agreement. The Provider shall submit to the City an ORIGINAL Certificate oflnsurance. All liability insurance coverage shall be approved by the City's Risk Management Office prior to the release of any funds under this Agreement. Generally, the amount of coverage necessary would be at a minimum of $300,000. Further, in the event evidence of the required insurance is not forwarded to the Risk Management Office within thirty (30) days after the execution of this Agreement, this Agreement may be terminated at the City's option and any payments then due may be permanently withheld by the City and the City will have no further obligation under this contract or any subrecipient contract. SECTION XI: REPORTING AND EVALUATION REQUIREMENTS Maintaining credibility for the community development effort rests heavily on the ability to produce an impact in low/moderate income areas, through progress in accomplishing scheduled activities. An effective method for maintaining project progress against a previously established schedule is through project evaluation and reporting, which will consist of both written reports and staff discussions on a regular basis. The Provider also assures prompt and efficient submission of the following: A. Monthlv Reports - are due no later than the tenth (10th) day of the succeeding month and shall include the request for payment when applicable. Contents of the Monthly Report, attached hereto and made a part hereof as Appendix 3, shall include but not necessarily be limited to the following: 1. The Narrative Report Form 2. The Financial Summary Form, which shall include the request for payment and documentation, as applicable. 3. The Client Profile Form B. Final Evaluation - Within twenty (20) days of contract completion, a final report documenting how the Statutory National Objective and the eligibility requirements were met, must be submitted by the Provider to the City's Housing Division for review and approval. The contents of it shall include a cumulative total of the data submitted during the program's operation. Further, such report shall include statistical findings, which depict program efficiency; i.e., the number of dollars spent, including non-CDBG funding sources, to render actual service to program recipients, and an overall evaluation of the program's effectiveness, and quantitative results. The final report will be evaluated and the Provider will be notified if additional data is necessary or that the project/activity is considered "closed-out". C Other ReportinJ! Requirements may be required by the City in the event of program changes, need for additional information or documentation and/or legislation amendments. The Provider shall be informed, in writing, if any changes become necessary. 15 RSC Food - 03.03.06 Reports and/or requested documentation not received by the due date, shall be considered delinquent, and may be considered by the City as sufficient cause to suspend CDBG, HOME, and SHIP payments to the Provider. SECTION XII: AUDIT AND INSPECTIONS At any time during normal business hours and as often as City and/or Federal Government representatives may deem necessary, there shall be made available to representatives of the City and/or the Federal Government an opportunity to review, inspect or audit all records, documentation, and any other data relating to all matters covered by the Agreement. An annual organization audit shall be submitted to the City 120 days after the end of the Provider's fiscal year. The submitted audit shall include any management letters and agency responses to the management letters. The audit shall be performed in accordance with OMB Circular A-110 Attachment F, OMB Circular A-133 or OMB Circular A-128, as applicable. If this Agreement is closed-out prior to the receipt of an audit report, the City reserves the right to recover any disallowed costs identified in an audit after such closeout. SECTION XIII: REVERSION OF ASSETS The Provider shall transfer to the City any CDBG, HOME or SHIP funds on hand (including program income) or any accounts receivable attributable to the use of CDBG, HOME or SHIP funds should the agency close its doors. The Provider shall also transfer to the City any real property in the Provider's control that was acquired or improved in whole or in part of with CDBG, HOME or SHIP funds, unless it is used to (1) meet one of the national objectives in Section 570.208 until five years after the expiration of this agreement, or for such longer period of time as determined to be appropriate by the recipient; or (2) if not used for eligible activity, the Provider shall pay to the City an amount equal to the current to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG, HOME or SHIP funds for the acquisition of or improvement to, the property. SECTION XIV: COMPLIANCE WITH LOCAL. STATE & FEDERAL REGULATIONS The Provider agrees to comply with all applicable federal regulations as they may apply to program administration. Additionally, the Provider will comply with all state and local laws and ordinances hereto applicable; SECTION XV: ADDITIONAL CONDITIONS AND COMPENSATION It is expressly understood and agreed by the parties hereto that monies contemplated by this Agreement to be used for compensation originated from grants of federal Community Development Block Grant Funds, HOME Investment Partnership Program Funds and State Housing Initiatives Partnership Funds, and must be implemented in full compliance with all ofHUD's and the State of Florida rules and regulations. It is expressly understood and agreed that in the event of curtailment or non-production of said federal grant funds, that the financial sources necessary to continue to pay the Provider compensation will not be 16 RSC Food - 03.03.06 available and that this Agreement will thereby terminate effective as of the time that it is determined that said funds are no longer available. In the event of such determination, the Provider agrees that it will not look to, nor seek to hold liable, the City or any individual member of the City Commission thereof personally for the performance of this Agreement and all of the parties hereto shall be released from further liability each to the other under the terms of this Agreement. 17 RSC Food- 03.03.06 IN WITNESS WHEREOF. the parties hereto have caused this Agreement to be executed by their duly authorized officials on the day and date first above indicated. RELIGIOUS COMMUNITY SERVICES, INC. cz- ")~ Pr~nt C C.a 5'~ot. /fd/ fd!~ 'E A,~ Date o/j'/d~ Countersigned: CITY OF CLEARWATER, FLORIDA ni~/~ Mayor-Councilmember By: ~'B,~~ William B. Home, II City Manager Continued: Attest: Bry . Ruff ASSIstant City Attorney ..-' .,-.;...... ~ 18 RSC Food - 03.03.06 APPENDIX 1 Provider's Program Budget Gategory Amount Other Funds Other Funding Total Requested Sources Proposed Committed Mechanical $60,000.00 $60,000.00 Largo CDBG $60,000.00 Finishes; Conveying Systems; Doors; $150,000.00 $150,000.00 County CDBG $150,000.00 HVAC Electrical; Fire County CDBG (Prior Protection; Plumbing; $100,000.00 $100,000.00 Years) $100,000.00 Framing Contingency; GC Foundations; Grants; Fee; General Fundraising; Donations Conditions; Architectural & $190,517.00 $190,517.00 Engineering; Site Work Site work; Interior; City of Clearwater Architecture; General CDBG Conditions $187,500.00 $187,500.00 - Total $497,500.00 $190,517.00 $688,017.00 RSC Food - 03.03.06 APPENDIX 1 Provider's Program Implementation Schedule Planned Mar Apr May Jun Jul Aug Sep Oct Nov Dee Jan Feb Implementation Steps Renovation of Food Pantry X X X X X X X X X X X X 2 RSCFood - 03.03.06 APPENDIX 2 ACKNOWLEDGEMENT OF ECONOMIC DEVELOPMENT ACTIVITIES If the Provider will be using CDBG funds for an Economic Development Activity, the following federal requirements must be acknowledged: The provider will be responsible for the day-to-day administration of the Clearwater Economic Development Loan Program. The Provider will administer all tasks in connection with the aforesaid program in compliance with all applicable Federal, state, and local rules and regulations governing these funds, and in a manner satisfactory to the City. The Provider with limited input from the City shall be responsible for the economic development loan program procedures and forms, outreach, loan applications, underwriting assessment, loan collateral, establishing and conducting the loan review committee, loan closing, maintaining job creation files, monitoring for job creation/retention, and maintenance of records. The City will provide loan servicing and loan portfolio management. In addition, the City will sit on the loan review committee, monitor the Provider for compliance and provide technical assistance. LOW/MODERA TE INCOME JOBS Criteria A low/moderate jobs activity is one, which creates or retains permanent jobs, at least 51 % of which are taken by low/moderate income persons or considered to be available to low/moderate income persons. In counting lobs created or lobs retained, the following policies apply: . Part-time jobs must be converted to full-time equivalents. . Only permanent jobs count. . Temporary jobs may not be included. · Regardless of the sources of funding, all permanent jobs created by the activity must be counted. · Trickle-down jobs (jobs indirectly created by the assisted activity may not be counted). For lobs retained, the following additional criteria apply: · There is clear and objective evidence that permanent jobs will be lost without CDBG assistance. Such evidence includes: a notice by the business to affected employees, a public announcement by the business, or relevant financial records. RSC Food - 03.03.06 . Retained jobs are considered to involve the employment oflow/moderate income persons if 51 % of such jobs are known to be held by low/moderate income persons when CDBG assistance is provided. Jobs are considered to be available to low/moderate income persons when both the following conditions are fulfilled: . Special skills that can only be acquired with one or more years of training or work experience, or education beyond high school, are not a pre-requisite to fill such jobs, or else the business nevertheless agrees to hire unqualified persons and train them; and . The Provider ensures that the assisted business adheres to the principles of "first consideration" by: using a hiring practice that in all likelihood will result in over 51 % of those hired being low/moderate income persons; seriously considering a sufficient number of low/moderate income job applicants to meet this intent; determining that the distance from the job applicant's residence is close to the job site or that transportation is available to the job site. RECORDS TO BE MAINTAINED Where the low/moderate income benefit is based on lob creation, the Provider's files must include the documentation described in either (A) or (B) below: (A) For activities where at least 51 % of the jobs will be available to low/moderate income persons, documentation for each assisted business must include: A copy of a written agreement containing: . A commitment by the business that it will make at least 51 % of the jobs available to low/moderate income persons and will provide training for any of those jobs requiring special skills or education; . A listing by job title of the permanent jobs to be created, indicating which jobs will be available to low/moderate income persons, which jobs require special skills or education, and which jobs are part-time; . A description of actions to be taken by the Provider and business to ensure that low/moderate income persons receive "first consideration" for these jobs; and . A listing, by job title, of permanent jobs filled, and which jobs were available to low/moderate income persons, as well as a description of how "first consideration" was given to such persons for those jobs. The description must include what type of hiring process was used; which low/moderate income persons were interviewed for a particular job and which interviewees were hired. (B) For activities where at least 51% of the jobs will be taken by low/moderate income persons, documentation for each assisted business must include: RSC Food - 03.03.06 A copy of a written agreement containing: . A commitment by the business that at least 51 % of the jobs, on a full-time equivalent basis, will be taken by low/moderate income persons and a listing by job title of the permanent jobs created; . A listing, by job title, of the permanent jobs filled and which jobs were initially held by low/moderate income persons; . Information on the size and annual income of the persons' immediate family prior to the low/moderate income person being hired for the job. Where low/moderate income benefit is based on iob retention, the files must include the following documentation: . Evidence that jobs would be lost without CDBG assistance . A listing, by job title, of permanent jobs retained, indicating which of those jobs are part-time and (if known) which are held by low/moderate income persons at the time the assistance is provided. . Identification of any retained jobs not already held by low/moderate income persons who are projected to become available to low/moderate income persons through job turnover within two years of the time CDBG assistance is provided. (Job turnover projections should also be included in the record.) . Information on the size and annual income of the low/moderate income persons' immediate family for each retained job claimed to be held by a low/moderate income person. Acceptable documentation on job applicant/ employee family income includes anyone of the following: o Notice that job applicant/employee is a referral from state, county, or local employment agency or other entity that agrees to refer individuals determined to be low/moderate income according to HUD criteria. (These entities must maintain documentation for city or federal inspection.) o Written certification, signed by the job applicant/employee, of family income and size to establish low/moderate income status by showing: the actual income of the family, or a statement that the family income is below CDBG low/moderate income requirements. (These certifications must include a statement that they are subject to verification by the local or federal government.) o Evidence that job applicant/employee qualifies for assistance under another program with income qualification criteria at least as restrictive as those used by the CDBG program, such as referrals from the Job Training Partnership Act (JTP A) Program, except for referrals under the JTP A Title III Program for dislocated workers. ADDITIONAL CONSIDERATIONS The Provider must prepare a "necessary or appropriate" determination whenever CDBG assistance is provided for a private, for-profit entity carrying out economic development. RSC Food - 03.03.06 APPENDIX 4 EQUAL EMPLOYMENT OPPORTUNITY CLAUSE FOR CONTRACTS SUBJECT TO EXECUTIVE ORDER 11235 The applicant hereby agrees that it will incorporate or cause to be incorporated into any contract for construction work, or modification thereof, as defined in the regulations of the Secretary of Labor at 41 CFRChapter 60, which is paid for in whole or in part with funds obtained from the Federal Government or borrowed on the credit of the Federal Government pursuant to the grant, contract, loan insurance, or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance, or guarantee, the following Equal Opportunity clause: During the performance of this contract, the contractor agrees as follows: (1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of payor other forms of compensation; and selection of training, including apprenticeship. The contractor agrees to post in a conspicuous place, available to employees and applicants for employment, notices to be provided setting forth the provision of this nondiscrimination clause. (2) The contractor will, in all solicitations or advertisements for employees placed by or behalf of the contractor, will state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. (3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representative of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (5) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (6) In the event of the contractor's non-compliance with the non-discrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further government RSC Food- 03.03.06 contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (7) The contractor will include the portion of the sentence immediately preceding paragraph (1), and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for non-compliance provided, however, that in the event a contractor becomes involved in or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the contractor may request the United States to enter into such litigation to protect the interest of the United States. The applicant further agrees that it will be bound by the above Equal Opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: provided that, if the applicant so participating is a State or local government, the above Equal Opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract. The applicant agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the Equal Opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance. The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, government contracts and federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the administering agency of the Secretary of Labor pursuant to Par II, Subpart D of the Executive Order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: cancel, terminate, suspend in whole or in part this grant (contract, loan, insurance guarantee); refrain from extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings. RSC Food - 03.03.06 FEDERAL - SECTION 3 CLAUSE A. The work to be performed under this contract is on a project assisted under a program providing direct Federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u. Section 3 requires that to the greatest extent feasible, opportunities for training and employment be given to lower income residents of the project area, and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the area of the project. B. The parties to this contract will comply with the provision of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR 135.20, and all applicable rules and orders of the Department issued there under prior to the execution of this contract. The parties to this contract certify and agree that they are under no contractual or other disability, which would prevent them from complying with these requirements. C. The contractor will send to each labor organization or representative of workers with which he has a collective bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization of workers' representative of his commitments under this Section 3 Clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. D. The contractor will include this Section 3 Clause in every subcontract for work in connection with the project and will, at the direction of the applicant for or recipient of Federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR 135.20. The contractor will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation ofregulations under 24 CFR 135.20, and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. E. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135.20, and all applicable rules and orders of the Department issued hereunder prior to the execution of the contract, shall be a condition of the federal financial assistance provided to the project, binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall subject the applicant or recipient, its contractors and subcontractors, its successors, and assigns to those sanctions specified by the grant or loan agreement or contract through which Federal assistance is provided, and to such sanctions as are specified by 24 CFR 135.20. CITY OF CLEARWATER ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT- HOUSING DIVISION '06 MfiR 10 HM11:42 MORTGAGE Prepared by: Howie Carroll City of Clearwater Economic Development & Housing Dept. P.O. Box 4748 Clearwater, FL 33758-4748 PURPOSE OF LOAN: Food Bank Renovations THIS MORTGAGE, made on or as of this 1st of March. 2006 between Religious Community Services., jointly and severally hereinafter called "Mortgagor", residing at: 700 Druid Road, Clearwater, FL 33755 and the CITY OF CLEARWATER, a municipal corporation in the state of Florida, whose address is P. O. Box 4748, Clearwater, Florida 33758, County of Pinellas, State of Florida, hereinafter called "Mortgagee" or "Lender". WITNESSETH, that to secure the payment of an indebtedness in the principal amount of ONE HUNDRED EIGHTY SEVEN THOUSAND FIVE HUNDRED and NO/I00 DOLLARS ($187.500.00) with, if applicable, interest thereon, which shall be payable in accordance with a certain note, bond, or other obligation, which obligation is hereinafter called "Note", bearing even date herewith, and all other indebtedness which the Mortgagor is obligated to pay to the Mortgagee pursuant to the provisions of the Note and this Mortgage, the Mortgagor hereby grants, conveys, and mortgages to the Mortgagee: ALL that certain lot, piece, or parcel of land situate and being in Pinellas County, Florida, described as follows: SEE ATTACHED LEGAL DESCRIPTION - EXHIBIT "A" COMMONLY KNOWN AS: 700 Druid Road Clearwater, Florida 33755 TOGETHER with all appurtenances thereto and all the estate and rights of the Mortgagor in and to such property or in anyway appertaining thereto: all buildings and other structures now or hereafter thereon erected or installed, and all fixtures and articles of personal property now or hereafter attached to, or used in, or in the operation of, any such land, buildings, or structures which are necessary to the complete use and occupancy of such buildings or structures for the purposes for which they were or are to be erected or installed, including, but not limited to, all heating, plumbing, bathroom, lighting, cooking, laundry, ventilating, refrigerating, incinerating, and air-conditioning equipment and fixtures, and all replacements thereof and additions thereto, whether or not the same are or shall be attached to such land, buildings, structures in any manner, lot improvements, roads, and all other infrastructure improvements, and; TOGETHER with any and all awards now or hereafter made for the taking of the property mortgaged hereby, or any part thereof (including any easement) by the exercise of the power of eminent domain, including any award for change of grade of any street or other roadway, which awards are hereby assigned to the Mortgagee and are deemed a part of the property mortgaged hereby, and the Mortgagee is hereby authorized to collect and receive the proceeds of such awards, to give proper receipts and acquaintance therefore, and to apply the same toward the payment of the indebtedness secured by this Mortgage, notwithstanding the fact that the amount owing thereon may not then be due and payable; and the Mortgagor hereby agrees, upon request, to make, execute, and deliver any and all assignments and other instruments sufficient for the purpose of assigning each such award to the Mortgagee, free, clear and discharged of any encumbrances of any kind or nature whatsoever, and Res Food Mortgage - 03.06.06 TOGETHER with all right, title, and interest of the Mortgagor in and to the land lying in the streets and roads in front of and adjoining the above described land (all of the above described land, buildings, other structures, fixtures, articles of personal property, awards and other rights and interests being hereinafter collectively called the "mortgaged property") TO HAVE AND TO HOLD the mortgaged property and every part thereof unto the Mortgagee, its successors and assigns forever for the purposes and uses herein set forth. MORTGAGOR further covenants and agrees with the Mortgagee, as follows: 1. The Mortgagor will promptly pay the principal of and interest on the indebtedness evidenced by the Note, and all other charges and indebtedness provided therein and in this Mortgage, at the times and in the manner provided in the Note and in this Mortgage. 2. The Mortgagor will pay when due, as hereinafter provided, all ground rents, if any, and all taxes, assessments, water rates and other governmental charges, fmes, and impositions, of every kind and nature whatsoever, now or hereafter imposed on the mortgaged property, or any part thereof, and will pay when due every amount of indebtedness secured by any lien to which the lien of this Mortgage is expressly subject. 3. This Mortgage and the Note were executed and delivered to secure monies advanced in full to the Mortgagor by the Mortgagee as or on account of a loan evidenced by the Note, for the purpose of acquiring property and/or making improvements to or on the mortgaged property, which improvements are hereinafter collectively called "Improvements", and for such other purpose, if any, described or referred to therein, including acquisition and improvements of the property. The Mortgagor shall make or cause to be made all the improvements. If the construction or installation of the improvements shall not be carried out with reasonable diligence, or shall be discontinued at any time for any reason, other than strikes, lock-outs, acts of God, fires, floods, or other similar catastrophes, riots, war or insurrection, the Mortgagee, after due notice to the Mortgagor, is hereby authorized (a) to enter upon the mortgaged property and employ any watchmen, protect the improvements from depreciation or injury and to preserve and protect such property, (b) to carry out any and all then existing contracts between the Mortgagor and other parties for the purpose of making any of the improvements, (c) to make and enter into additional contracts and incur obligations for the purposes of completing the improvements pursuant to the obligations of the Mortgagor hereunder, either in the name of the Mortgagee or the Mortgagor, and (d) to pay and discharge all debts, obligations, and liabilities incurred by reason of any action taken by the Mortgagee as provided in this Paragraph, all of which amounts so paid by the Mortgagee, with interest thereon from the date of each such payment, at the rate as set forth in the Note plus three percent (3%) per annum, not to exceed the maximum allowed by law, shall be payable by the Mortgagor to the Mortgagee on demand and shall be secured by this Mortgage. Funds provided under this mortgage may have been partially provided by the US Department of Housing and Urban Development (HUD), and State of Florida - Florida Housing Finance Corporation (FHFC) and are subject to various regulations. Funds provided by HUD under this mortgage may be used only for the acquisition of real property, the construction of residential dwellings, or the repair or replacement of existing structures. Funds provided by other sources may be used for the new construction of improvements. 4. No building or other structure or improvement, fixture of personal property mortgaged hereby shall be removed or demolished without the prior written consent of the Mortgagee. The Mortgagor will not make, permit or suffer any alteration of or addition to any building or other structure or improvement now or which may hereafter be erected or installed upon the mortgaged property, or any part thereof, except the improvements required to be made Pursuant to Paragraph 3 hereof, nor will the Mortgagor use, or permit or suffer the use of any of the mortgaged property for any purpose other than the purpose or purposes for which the same is now intended to be used, without the prior written consent of the Mortgagee. The Mortgagor will maintain the mortgaged property in good condition and state of repair and will not suffer or permit any waste to any part thereof, and will promptly comply with all the requirements of Federal, state and local governments, or of any departments, divisions or bureaus thereof, pertaining to such property or any part thereof. 5. Preservation, Maintenance and Protection of the Property. Borrower shall not destroy, damage, or impair the Property, allow the Property to deteriorate or commit waste on the Property. Borrower shall maintain the Property in order to prevent the Property from deterioration or decrease in value due to its condition. Borrower shall comply with all City Codes relating to maintenance of the Property and shall repair or restore the Property upon Notice by the City. Failure to comply with this provision may result in Borrower's loan being placed in default. 6. The Mortgagor will not voluntarily create, or permit or suffer to be created or to exist, on or against the mortgaged property, or any part thereof, any lien superior to the lien of this Mortgage, exclusive of the lien or liens, if any, to which this Mortgage is expressly subject, as set forth in the granting clause above, and will keep and maintain the same free from the claims of all parties supplying labor or materials which will enter into the construction or installation of the improvements. 2 Res Food Mortgage - 03.06.06 7. (a) The Mortgagor will keep alJ buildings, other structures and improvements, including equipment, now existing or which may hereafter be erected or installed on the land mortgaged hereby, insured against loss by ftre and other hazards, casualties and contingencies, in such amounts and manner, and for such periods, all as may be required from time to time by the Mortgagee. Unless otherwise required by the Mortgagee, all such insurance shall be affected by Standard Fire and Extended Coverage Insurance policies, in amounts not less than necessary to comply with the coinsurance clause percentage of the value applicable to the location and character of the property to be covered. All such insurance shall be carried in companies approved by the Mortgagee and all policies therefore shall be in such form and shall have attached thereto loss payable clauses in favor of the Mortgagee and any other parties as shall be satisfactory to the Mortgagee. All such policies and attachments thereto shall be delivered promptly to the Mortgagee, unless they are required to be delivered to the holder of a lien of a mortgage or similar instrument to which this Mortgage is expressly subject, in which latter event, certiftcates thereof, indicating Mortgagee's interest with the standard mortgage clause, satisfactory to the Mortgagee, shall be delivered promptly to the Mortgagee. The Mortgagor will pay promptly when due, as hereinafter provided, any and all premiums on such insurance, and in every case in which payment thereof is not made from the deposits therefore required by this Mortgage, promptly submit to the Mortgagee for examination receipts or other evidence of such payment as shall be satisfactory to the Mortgagee. The Mortgagee may obtain and pay the premium on (but shall be under no obligation to do so) every kind of insurance required hereby if the amount of such premium has not been deposited as required by this Mortgage, in ~hich event the Mortgagor will pay to the Mortgagee every premium so paid by the Mortgagee, as set forth in Paragraph 3, above. (b) In the event of loss or damage to the mortgaged property, the Mortgagor will give to the Mortgagee immediate notice thereof by mail, and the Mortgagee may make and me proof of loss if not made otherwise promptly by or on behalf of the Mortgagor. Each insurance company issuing any such policy is hereby authorized and directed to make payment hereunder for such loss to the Mortgagor and the Mortgagee jointly, unless the amount of loss is payable frrst to the holder of a lien under a mortgage or similar instrument to which this Mortgage is expressly subject; and all the insurance proceeds, or any part thereof, if received by the Mortgagee, may be applied by the Mortgagee, at its option, either in reduction of the indebtedness hereby secured, or to the restoration or repair of the mortgaged property damaged. In the event of foreclosure of this Mortgage, or of any transfer of title to the mortgaged property in extinguishment of such indebtedness, all right, title, and interest of the Mortgagor in and to every such insurance policy then in force, subject to the rights and interest of the holder of any such prior lien, shall pass to the grantee acquiring title to the mortgaged property together with such policy and appropriate assignment of such right, title and interest which shall be made by the Mortgagor. 8. (a) In order more fully to protect the security of this Mortgage, the Mortgagor shall deposit with the Mortgagee together with, and in addition to, if applicable, the payment of principal and interest monthly on account of the Note secured hereby, until the Note is paid in full, an amount of money equal to the total amount of (i) ground rents, if any, next becoming due, (ii) the premiums next becoming due on the policies of frre and all other hazard insurance required by this Mortgage with respect to the mortgaged property, (iii) taxes, assessments, water rates and other governmental charges next becoming due on the mortgaged property (all the foregoing amounts as estimated by the Mortgagee and set forth in a written notice of such estimate by the Mortgagee to the Mortgagor from time to time), less all amounts that may already have been paid therefore, divided by the number of calendar months to elapse before one calendar month prior to the date when such ground rents, premiums, taxes, assessments, water rates and other governmental charges, respectively, will become due and payable. If any amount referred to in clauses (i) through (iii) hereof is required to be deposited by the Mortgagor under a mortgage or similar instrument having priority over the lien of this Mortgage, the Mortgagor shall make the deposits required by this Paragraph 8 only in the event of the termination of such obligation or the occurrence of the last mentioned event. All such amounts so deposited with the Mortgagee shall be held by the Mortgagee, or any agent designated by it, in trust to be used only for the payment of such ground rents, premiums, taxes, assessments, water rates and other governmental charges. No interest shall be payable by the Mortgagee on any sum so deposited. (b) All amounts required to be deposited with the Mortgagee monthly in accordance with Paragraph 8(a) hereof, and the amount of principal and interest to be paid each month on account of the Note, shall be added together, and the aggregate amount thereof shall be paid by the Mortgagor to the Mortgagee in a single payment to be applied by the Mortgagee on account of the indebtedness of the Mortgagor pursuant to the Note and this Mortgage (to the extent that monies are available from the amount so deposited), in the order, any provision of the Note to the contrary notwithstanding, as follows: FIRST, to the amount of such ground rents, if any, frre and other hazard insurance premiums, taxes, assessments, water rates, and other governmental charges required to be paid under the provisions of this Mortgage, in whatever sequence the Mortgagee may exclusively determine; SECOND, to interest due on the Note; THIRD, to the principal due on the Note; and 3 Res Food Mortgage - 03.06.06 FOURTH, the remainder to the late charges, if any, referred to in the Note. Any deficiency in the amount of any such aggregate monthly payment shall, unless paid by the Mortgagor prior to the due date of the next such deposit payable, constitute an event of default under this Mortgage. (c) Any excess funds that may be accumulated by reason of the deposits required under Paragraph 8 (a) hereof, remaining after payment of the amounts described in clauses (i), (ii), and (iii) hereof, shall be credited to subsequent respective monthly amounts of the same nature required to be paid hereunder. If any such amount shall exceed the estimate therefore, the Mortgagor shall forthwith pay to the Mortgagee the amount of such deficiency upon written notice by the Mortgagee of the amount thereof. Failure to do so before the due date of such amount shall be an event of default under this Mortgage. If the mortgaged property is sold under foreclosure or is otherwise acquired by the Mortgagee, after default by the Mortgagor, any remaining balance of the accumulations under Paragraph 8 (a) hereof, shall be credited to the principal amount owing on the Note as of the date of commencement of foreclosure proceedings for the mortgaged property, or as of the date the mortgaged property is otherwise acquired. 9. The Improvements and all plans and specifications therefore shall comply with all applicable municipal ordinances, regulations and rules made or promulgated by lawful authority, and upon their completion, shall comply therewith and with the rules of the Board of Fire Underwriters having jurisdiction. 10. Upon any failure by the Mortgagor to comply with or perform any of the terms, covenants, or conditions of this Mortgage requiring the payment of any amount of money by the Mortgagor, other than the principal amount of the loan evidenced by the Note, interest and other charges, as provided in the Note, the Mortgagee may at its option make such payment. Every payment so made by the Mortgagee (including reasonable attorneys fees incurred thereby), with interest thereon from the date of such payment, as set forth in Paragraph 3, above, except any payment for which a different rate of interest is specified herein, shall be payable by the Mortgagor to the Mortgagee on demand and shall lien secured by this Mortgage. This Mortgage with respect to any such amount and the interest thereon shall constitute a lien on the mortgaged property prior to any other lien attaching or accruing subsequent to the lien of this Mortgage. With the development of the Woodlawn Oaks subdivision, as homes are sold, the Mortgagor will provide partial releases from this encumbrance on a pro-rata share of original loan amount. A portion of the pro-rata funds remaining in each completed property will be in the form of a deferred payment loan and/or grant. 11. The Mortgagee, by any of its agents or representatives, shall have the right to inspect the mortgaged property from time to time at any reasonable hour of the day. Should the mortgaged property, or any part thereof, at any time require inspection, repair, care or attention of any kind or nature not provided by this Mortgage as determined by the Mortgagee in its sole discretion, the Mortgagee may, after notice to the Mortgagor, enter or cause entry to be made upon the mortgaged property and inspect, repair, protect, care for or maintain such property, as the Mortgagee may in its sole discretion deem necessary, and may pay all amounts of money therefore, as the Mortgagee may in its sole discretion. deem necessary. 12. The principal amount owing on the Note together with interest thereon and all other charges, as therein provided, and all other amounts of money owing by the Mortgagor to the Mortgagee pursuant to and secured by the Mortgage, shall immediately become due and payable without notice or demand upon the appointment of a receiver or liquidator, whether voluntary or involuntary, for the Mortgagor or any of the property of the Mortgagor, or upon the filing of a petition by or against the Mortgagor under the provisions of any State insolvency law, or under the provisions of the Bankruptcy Act of 1898, as amended, or upon the making by the Mortgagor of an assignment for the benefit of the Mortgagor's creditors. The Mortgagee is authorized to declare, at its option, all or any part of such indebtedness immediately due and payable upon the occurrence of any of the following events of default: (a) (b) (c) (d) Failure to pay the amount of any installment of principal and interest, or other charges payable on the Note, which shall have become due, prior to the due date of the next such installment. Nonperformance by the Mortgagor of any covenant, agreement, term or condition of this Mortgage, or of the Note (except as otherwise provided in subdivision (a) hereof) or of any other agreement heretofore, herewith or hereafter made by the Mortgagor with the Mortgagee in connection with such indebtedness, after the Mortgagor has been given due notice by the Mortgagee of such nonperformance; Failure of the Mortgagor to perform any covenant, agreement, term or condition in any instrument creating a lien upon the mortgaged property, or any part thereof, which shall have priority over the lien of this Mortgage; The Mortgagee's discovery of the Mortgagor's failure in any application of the Mortgagor to the Mortgagee to disclose any fact deemed by the Mortgagee to be material, or of the making therein, or in any of the agreements entered into by the Mortgagor with the Mortgagee (including but not limited to the Note and this Mortgage) of any misrepresentation by, on behalf of, or for the benefit of the Mortgagor; 4 Res Food Mortgage - 03.06.06 (e) The sale, lease or other transfer of any kind or nature of the mortgaged property, or any part thereof, without the prior written consent of the Mortgagee; (f) Failure of Mortgagor to maintain primary residence in the secured property, without the prior written consent of the Mortgagee. The Mortgagee's failure to exercise any of its rights hereunder shall not constitute a waiver thereof. Upon any event of default, as enumerated in this Paragraph, the Note shall become, or may be declared to be, immediately due and payable. 13. The Mortgagee may from time to time cure each default under any covenant or agreement in any instrument creating a lien upon the mortgaged property, or any part thereof, which shall have priority over the lien of this Mortgage, to such extent as the Mortgagee may exclusively determine, and each amount Paid, if any, by the Mortgagee to cure any such default shall be paid by the Mortgagor to the Mortgagee, and the Mortgagee shall also become subrogated to whatever rights the holder of the prior lien might have under such instrument. 14. (a) After the occurrence of any default hereunder, the Mortgagor shall upon demand of the Mortgagee, surrender possession of the mortgaged property to the Mortgagee, and the Mortgagee may enter such property, and let the same and collect all the rents there from which are due or to become due, and apply the same, after payment of all charges and expenses, on account of the indebtedness hereby secured, and all such rents and all leases existing at the time of such default are hereby assigned to the Mortgagee as further security for the payment of the indebtedness secured hereby, and the Mortgagee may also dispossess, by the usual summary proceedings, any tenant defaulting in the payment of any rent to the Mortgagee. (b) In the event that the Mortgagor occupies the mortgaged property or any part thereof, the Mortgagor agrees to surrender possession of such property to the Mortgagee immediately after any such default hereunder, and if the Mortgagor remains in possession after such default, such possession shall be as a tenant of the Mortgagee, and the Mortgagor shall pay in advance, upon demand by the Mortgagee, as a reasonable monthly rental for the premises occupied by the Mortgagor, an amount at least equivalent to one-twelfth of the aggregate of the twelve monthly installments payable in the current calendar year, plus the actual amount of the annual ground rent, if any, taxes, assessments, water rates, other governmental charges, and insurance premiums payable in connection with the mortgaged property during such year, and upon the failure of the Mortgagor to pay such monthly rental, the Mortgagor may also be dispossessed by the usual summary proceedings applicable to tenants. This covenant shall become effective immediately upon the occurrence any such default, as determined in the sole discretion of the Mortgagee, who shall give notice of such determination to the Mortgagor, and in the case of foreclosure and the appointment of a receiver of the rents, the within covenant shall inure to the benefit of such receiver. 15. The Mortgagee in any action to foreclose this Mortgage shall be entitled to the appointment of a receiver without notice, as a matter of right and without regard to the value of the mortgaged property, or the solvency or insolvency of the Mortgagor or other party liable for the payment of the Note and other indebtedness secured by this Mortgage. 16. The Mortgagor, within ten (10) days upon request in person or within twenty (20) days upon request by mail, will furnish promptly a written statement in form satisfactory to the Mortgagee, signed by the Mortgagor and duly acknowledged, of the amount then owing on the Note and other indebtedness secured by this Mortgage, and whether any offsets or defenses exist against such indebtedness or any part thereof. 17. The Mortgagor will give immediate notice by registered or certified mail to the Mortgagee of any fire, damage or other casualty affecting the mortgaged property, or of any conveyance, transfer or change in ownership of such property, or any part thereof. 18. Notice and demand or request may be made in writing and may be served in person or by mail. 19. In case ofa foreclosure sale of the mortgaged property, it may be sold in one parcel. 20. The Mortgagor will not assign the rents, if any, in whole or in part, from the mortgaged property, or any part thereof, without the prior written consent of the Mortgagee. 21. The Mortgagor is lawfully seized of the mortgaged property and has good right, full power and lawful authority to sell and convey the same in the manner above provided, and will warrant and defend the same to the Mortgagee forever against the lawful claims and demands of any and all parties whatsoever. 22. The Mortgagor hereby waives the benefit of all homestead exemptions as to the debt secured by this Mortgage and as to any expenditures for insurance, taxes, levies, assessments, dues or charges incurred by the Mortgagee pursuant to any provision of this Mortgage. 5 Res Food Mortgage - 03.06.06 . 23. This Mortgage and all the covenants, agreements, terms and conditions herein contained shall be binding upon and inure to the benefit of the Mortgagor and the heirs, legal representatives and assigns of the Mortgagor and, to the extent permitted by law, every subsequent owner of the mortgaged property, and shall be binding upon and inure to the benefit of the Mortgagee and its assigns. If the Mortgagor, as defmed herein, consists of two or more parties, this Mortgage shall constitute a grant and mortgage by all of them jointly and severally, and they shall be obligated jointly and severally under all the provisions hereof and under the Note. The word "Mortgagee" shall include any person, corporation, or other party who may from time to time be the holder of this Mortgage. Wherever used herein, the singular number shall include the plural, the plural number shall include the singular, and the use of any gender shall be applicable to all genders wherever the sense requires. IN WITNESS WHEREOF, this Mortgage has been duly signed and sealed by the Mortgagor on or as of the day and year fITst above written. In the presence of: ~~i~m~nity Services, Inc. i I STATE OF FLORIDA ] COUNTY OF PINELLAS ] k The foregoing instrument was acknowledged before me this rltay ofM~2806 by Religious Community Services, Inc., I:ersonally known to me or who have produced a drivers license as identification. My Commission expires: ..5""- d1- ,;J. ~t:J 8 ;.1eaL~~ ....~-.:~::~"" BETTE A. SPRUill lJ'~ :'~\Notary Public. State of Florida ;. : : . ~C6nvniIIIonI?lcpi&sMJV2.2CDI ;~, :"~l Commission # 00291561 "~ Of: f\.U"." '"""...... Bonded By NatIonal Notary AIIn. 6 . J tI Res Food Mortgage - 03.06.06 < EXHIBIT "A" Lots 1 through 3, and Lots 6 through 10 inclusive, Block 21, and a portion of Lots 1 through 5 inclusive, Block 26, Magnolia Park as recorded in Plat Book 3, Page 43, Public Records of Pin ell as County, Florida, and more Specifically described as follows: Commence at the intersection of the Northerly right-of-way line of Druid Road and the Easterly right-of-way line ofC.S.X. Railroad for a point of reference (P.O.R.), thence run Northeasterly 268.53 feet along a curve concave Northwesterly, said curve having a radius of 3.060.69 feet, and a chord of268.45 feet which bears N.05 o36'79"E. To the point of beginning (P.O.B), thence run 157.25 feet along a curve concave Northwesterly, and said having a radius of3,060.69 feet, and a chord of 157.23 feet which bears N.OI o37'12"E, thence N.00008'54''E. 347.29 feet to the southerly right-of-way line ofTumer Street, thence S.89011 '19"E. along said right-of-way line 165.00 feet, thence S.00004'18''W, 175.00 feet, thence S.8901 '21"E., 110.00 feet to the Westerly right-of-way Myrtle Avenue, thence S.0002'58"W along said right-of-way line 338.88 feet, thence N.8904'04"W 149.86 feet, thence N.0005'56''E., 9.58 feet, thence N.8904'04"W. 130.70 feet to the point of beginning (P.O.B.) and containing 2.7845 Acres, More or Less. 7 Res Food Note - 03.06.06 CITY OF CLEARWATER MORTGAGE NOTE $187.500.00 Clearwater, Florida ,2006 Property Address: 700 Druid Road, Clearwater, Florida Legal Description: (SEE ATTACHED EXHIBIT "A") 1. BORROWER'S PROMISE TO PAY For value received, the undersigned promises to pay the sum of One Hundred Ei2htv Seven Thousand Five Hundred and NO/I00 Dollars ($187.500.00) in u.s. dollars (this amount is called "principal") to the order of the Lender. The Lender is the City of Clearwater, organized and existing under the laws of the State of Florida and located at 112 S. Osceola Avenue, Clearwater, Florida 33756. The Lender or anyone who takes this Note by transfer and who is entitled to receive the value as evidenced by this Note ("Security Instrument") is called the "Note Holder". 2. INTEREST There will be no interest charged during the life of this loan. 3. PAYMENTS The payments on this loan shall be deferred during the life of the loan provided that the borrower does not default and the acquired property continues to be used to benefit the Borrower. The entire principal amount of Note shall be due and payable if the Borrower sells or transfers ownership, and/or does not continue to use the acquired property to benefit the Borrower's organization, or refmances (subject to Subordination Policy, as amended). The Note Holder shall have the optional right to declare the amount of the total balance hereof to be due and forthwith payable in advance of the Due Date upon the occurrence of any Event of Default or failure to perform in accordance with any of the terms and conditions set forth in the Mortgage, described below. The indebtedness evidenced by this Note, and any other financial obligations which may hereafter be imposed on me by the Lender, is subordinate to the indebtedness evidenced by a Note payable to a senior lender, which Note is secured by a first mortgage on the Property. 4. BORROWER'S RIGHT TO PREPAY The undersigned has the right to prepay the balance due on this Note according to the amount owed as listed below. A payment of principal only is known as a "prepayment". When a prepayment is made, the undersigned must notify the Note Holder, in writing, that they are doing so. Full prepayment or partial prepayments may be made without paying any prepayment charge. The Note Holder will use all prepayments to reduce the amount of principal that is owed under this Note. If a partial prepayment is made, there will be no change in the Due Date, unless the Note Holder agrees, in writing, to this change. Should the borrower sell, refmance (subject to Subordination Policy, as amended), rent or otherwise transfer title of the property or if the property should cease to be the principal residence the full amount of the Note will be due to the Note Holder. Res Food Note - 03.06.06 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected in connection with this loan exceed the permitted limit, then any sum already collected which exceeded permitted limits shall be credited as a payment of principal, unless the undersigned shall notify the Note Holder, in writing, that the undersigned elects to have such excess sum returned to it forthwith. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Default The Note shall be come due and payable if the borrower should sell, refmance (subject to Subordination Policy, as amended), rent or otherwise transfer title of the property secured in this Note or if the property in this Note should cease to be used for the benefit of the Borrower and its Food Bank Program. Should the Borrower default against any provisions contained in this Note and corresponding Mortgage, the outstanding principal will bear an interest rate of seven percent (7%) per annum. (B) No Waiver By Note Holder The remedies of the Note Holder, as provided herein, or in the Mortgage Instrument shall be cumulative and concurrent and may be pursued regularly, successively or together, at the sole discretion of the Note Holder, and may be exercised as often as occasion therefore shall arise. No act of omission or commission of the Note Holder, including specifically any failure to exercise any right, remedy or recourse, shall be deemed to be a waiver or release of the same, such waiver or release to be effected only through a written document executed by the Note Holder, and then only to the extent specifically recited therein. A waiver or release with reference to anyone event shall not be construed as continuing as a waiver or release of any subsequent right, remedy or recourse as to a subsequent event. Even if, at a time when the undersigned is in default, the Note Holder does not require immediate payment in full, as described above, the Note Holder will still have the right to do so if a default occurs at a later time. (C) Payment of Note Holder's Costs and Expenses In the event the Note is collected by law or through an attorney at law, or under advice therefrom, the Note Holder will have the right to be paid back for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorney's fees, which are defmed to include, without limitation, all fees incurred in all matters of collection and enforcement, construction and interpretations, before, during and after trial, proceedings and appeals, as well as appearances in reorganization or similar proceedings, and the cost of paraprofessional personnel working under supervision of an attorney. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given under this Note will be given by delivering it or by mailing it by first class mail to the undersigned at the Property address Noted above. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder, at the address stated in Section 1 or at a different address if you are given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note; each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that anyone of us may be required to pay all of the amounts owned under this Note. Res Food Note - 03.06.06 9. WAIVERS All persons now or at any time liable, whether primarily or secondarily, for the payment of the indebtedness hereby evidenced, for themselves, their heirs, legal representatives, successors and assigns respectively, hereby (a) expressly waive the rights of presentment, demand for payment, notice of dishonor, protest, notice of nonpayment or protest, and diligence in collection. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give Notice to other persons that amounts due have not been paid. (b) consent that the time of all payments or any part thereof may be extended, rearranged, renewed or postponed by the Note Holder hereof and further consent that the collateral security or any part thereof may be released, exchanged, added to or substituted for by the Holder hereof, without in anyway modifying, altering, releasing, affecting or limiting their respective liability or the lien of any security instrument; (c) agreed that the Note Holder, in order to enforce payment of this Note, shall not be required frrst to institute any suit or to exhaust any of its remedies against the undersigned or any other person or party to become liable hereunder. This Note and the instruments securing it have been executed and delivered in, and their terms and provisions are to be governed and construed by the laws of the State of Florida. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage ("Mortgage Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if the undersigned does not keep the promises which are made in this Note. The Mortgage Instrument described how and under what conditions the undersigned may be required to make immediate payment in full of all amounts owed under this Note. The Note Holder may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by the Note Holder if exercise is prohibited by federal law as of the date of this Instrument. If the Note Holder exercises this option, the Note Holder shall give the Borrower written notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which the Borrower must pay all sums secured by this Security Instrument. If the Borrower fails to pay these sums prior to expiration of this period, the Note Holder may invoke any remedies permitted by this Security Instrument without further notice or demand on the Borrower. 11. If more than one party shall execute this Note, the term "undersigned", as used herein, shall mean all parties signing this Note and each of them, who shall be jointly and severally obligated hereunder. In this Note, whenever the context so requires, the neuter gender includes the feminine and/or masculine, as the case may be, and the singular number includes the plural. 12. COPY RECEIVED Borrower hereby acknowledges receipt of a copy of this instrument. Notice to Borrower Do not sign this Note if it contains blank spaces. All spaces should be completed before you sign. IN WITNESS WHEREOF, the undersigned have executed this Note on the day and year first above mentioned.y Relig;ous Commuuity serviee~%A BY:~~ Title: C C ~ ~ Res Food Note - 03.06.06 EXHIBIT" A" Lots 1 through 3, and Lots 6 through 1 0 inclusive, Block 21, and a portion of Lots 1 through 5 inclusive, Block 26, Magnolia Park as recorded in Plat Book 3, Page 43, Public Records of Pinellas County, Florida, and more Specifically described as follows: Commence at the intersection ofthe Northerly right-of-way line of Druid Road and the Easterly right-of-way line ofC.S.X. Railroad for a point of reference (P.O.R.), thence run Northeasterly 268.53 feet along a curve concave Northwesterly, said curve having a radius of3.060.69 feet, and a chord of268.45 feet which bears N.05 036'79"E. To the point of beginning (P.O.B), thence run 157.25 feet along a curve concave Northwesterly, and said having a radius of3,060.69 feet, and a chord of 157.23 feet which bears N.01 037' 12"E, thence N.00008'54"E. 347.29 feet to the southerly right- of-way line of Tumer Street, thence S.89011 '19"E. along said right-of-way line 165.00 feet, thence S.00004' 18"W, 175.00 feet, thence S.8901 '21 "E., 110.00 feet to the Westerly right-of-way Myrtle Avenue, thence S.0002'58"W along said right-of-way line 338.88 feet, thence N.8904'04"W 149.86 feet, thence N.0005'56"E., 9.58 feet, thence N.8904'04"W. 130.70 feet to the point of beginning (P.O.B.) and containing 2.7845 Acres, More or Less.