HomeMy WebLinkAbout1993-050 Grant - Pugh/CusickCITY OF ASHLAND GRANT AGREEMENT
Agreement made this 15th day of June, 1993, between the City of Ashland ("City") and
Lance K. Pugh, Elizabeth Ann Pugh and Tim Cusick ("Grantee").
RECITALS:
A. City has submitted an application for a State of Oregon Economic
Development Department Regional Strategies grant. The grant is subject to a contract
between the State and the City (further referred to in this agreement as the "grant
agreement") containing the City obligations for the grant.
B. The funds received through the grant agreement are to be in turn granted to
the Grantee to improve Grantee's facilities to provide for the Ashland Armory Multi-
Media Center (further referred to in this agreement as "the project").
D. City and Grantee's enter into this agreement to bind Grantee to the terms
and conditions in the grant agreement.
City and Grantee agree:
1. Grant Funds: Upon receipt of the funds from the grant agreement, City agrees,
subject to the terms and conditions of this agreement, to provide these grant funds to
Grantee.
2. Grantee's obligations: Grantee shall comply with the terms and conditions
imposed upon City in the grant agreement and specifically shall perform, on behalf of
City, the following requirements contained in the grant agreement:
2.1. Section 3.05: Obtain and use project matching funds in accordance with
the project budget set out in Exhibit C (of the grant agreement).
2.2. Section 4.01: Demonstrate to the satisfaction of the State of Oregon that it
has obtained and invested all non-Regional Strategies funds as set out and described
in Exhibits A, B and C (of the grant agreement).
2.3. Section 5: Comply with all covenants required of City.
3. Plans and specifications: Grantee shall file plans and specifications for the project
with the City before soliciting bids. The City shall review the plans and specifications
and may require reasonable modifications.
If the City does not suggest modifications within 15 days of its receipt of the
plans and specifications, they shall be deemed approved. The Grantee shall construct
the project only in accordance with the approved plans and specifications.
1-A?mory Grant Agreement (p:agree\armory.k)(June 6, 1993)
4. Security for Grantee's obligations: Obligations of grantees under this agreement
shall be secured by a trust deed on the property located at 208 Oak Street, the site of
the project. City agrees to release the property from the trust deed upon certification
from the State of Oregon to the City that Grantee has performed all the requirements
of the grant, or that the grant has expired. City also agrees to subordinate the trust
deed lien for a construction loan to be obtained by Grantee for the project.
5. Use of grant funds: The use of the grant funds are expressly limited to the
activities specified in the grant agreement and no part of the grant shall be used for
any ineligible activities as that phrase is used in the grant agreement.
6. Unexpended funds: Any grant funds held by the Grantee remaining after the
project is completed or this agreement is terminated shall be returned to City within 20
days of completion of the project or termination, unless written permission has been
given by the State and City has been notified of the change.
7. Inspection: City and its agents may, at any and all reasonable times, during the
term of this agreement, inspect the project for any purpose arising from the
performance of this agreement.
8. Assigns: The respective successors and assigns of Grantee shall be bound to
observe the terms of this agreement.
9. Records: Grantee shall give City and any authorized representative of the City
access to and the right to examine all books, records, papers or documents relating to
the project.
10. Indemnification: Grantee shall defend and indemnify City against all claims, liens,
demands, encumbrances or litigation arising directly or indirectly out of Grantee's
operation and use of the project or use of grant funds, and shall reimburse City for all
loss, damage and expense which it may suffer by reason of such claims, liens,
encumbrances or litigation. Grantee shall be responsible for and shall defend and
indemnify City against any cost, liability or expense arising out of any injuries to
persons or property resulting from the use and operation of the project.
11. Waiver: Failure of either party to insist upon the strict performance of the terms,
covenants and conditions of this agreement shall not constitute or be construed as a
waiver or relinquishment of such party's right to thereafter enforce such term,
covenant or condition, but the same shall continue in full force and effect.
12. Default: Time is of the essence of this contract. A default shall occur under any
of the following circumstances:
12.1. Failure of Grantees to perform any other obligation contained in this
agreement within 30 days after notice from City specifying the nature of the default or,
if the default cannot be cured within 30 days, failure within such time to commence
and pursue curative action with reasonable diligence; or
2-Armory Grant Agreement (p:agree\armory.k)(June 6, 1993)
12.2. Failure of Grantees to proceed expeditiously with, or to substantially
complete, the project or any segment or phase of the project in accordance with the
plans and schedules approved by the City; or
12.3. Failure of Grantees to enter into binding legal agreements with all private
parties necessary to complete the project within the time allowed by the grant; or
12.4. Determination by the City that significant corrective actions are necessary
to protect the integrity of the grant, and those corrective actions are not, or will not by
made within a reasonable time; or the Grantees (1) apply for or consent to the
appointment of, or the taking of possession by, a receiver, custodian, trustee or
liquidator of the project, (2) admits in writing its inability, or is generally unable to pay
its debts as they become due, (3) makes a general assignment for the benefit of its
creditors, (4) commences a voluntary case under the Federal Bankruptcy Code (as
now or hereafter in effect), (5) is adjudicated a bankrupt or insolvent, (6) files a petition
seeking to take advantage of any other law relating to bankruptcy, insolvency,
reorganization, winding-up, or composition or adjustment of debt, or (7) fails to
controvert in a timely and appropriate manner, or acquiesces in writing to, any petition
filed against it in an involuntary case under such Bankruptcy Code;
13. Remedies on Default: In the event of a default, City may take any one or more of
the following steps:
13.1. Specifically enforce the terms of this contract by suit in equity.
13.2. Pursue any or all of the remedies available at law or in equity. Such
remedies may include, but are not limited to, termination of the agreement, stopping
payment on the grant and payment of interest earned on the grant to City.
14. Amendments: The terms of this agreement, including time frames for project
completion, will not be waived, altered, modified, supplemented, or amended in any
manner except by written instrument signed by the parties. Such written modification
will be made a part of this agreement and subject to all other agreement provisions.
GRANTEE
El[zab~J~VAnn Pugh
CITY OF ASHLAND
Mayor uathy ~lden¢~'~/-'~
Nan Franklin, City Recorder
3-Armory Grant Agreement (p:agree\armory.k)(June 6, 1993)