11-133 - Tukwila Pool Metropolitan Park District (TPMPD) - Loan and Repayment Terms

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1. LOAN AMOUNT AND DISBURSEMENT The City agrees to lend sufficient funds from its General Fund to the Tukwila Metropolitan Park District Fund and agrees to disburse funds in a total principal sum not to exceed $1,100,000.00 (the "Loan which principal is subject to interest at the rate of two percent per year, according to the following schedule: a. October 15, 2011 $375,000.00 b. April 15, 2012 $375,000.00 c. October 15, 2012 $350,000.00 Should the Metropolitan Park District find that it is not in need of some or all of the principal amounts identified above, the Park District will notify the City not less than 15 (fifteen) days prior to the scheduled loan disbursement date. 2. LOAN REPAYMENT TERMS AND SCHEDULE The Park District agrees to assume and accept the financial obligation to repay the Loan in the maximum amount of $1,100,000.00, plus interest thereon at the rate of two percent per year, within a ten -year period. The Park District obligation hereunder constitutes a non -voted general obligation of the Park District to which its full faith, credit and resources are pledged. This Loan will be repaid in semi annual payments to the City beginning in 2013. The first payment will be due May 15, 2013 and will be due every November 15 and May 15, thereafter. The City will invoice the Park District for the amount owing for the relevant time period. Should the Park District desire to pre -pay any of the loan amount, pre payment shall include accrued interest, through the date of payment. 3. EVENTS OF DEFAULT AND REMEDIES 3.1 Events of Default. Each of the following shall be a "Loan Default a. Monetary Defaults. Any failure by the Park District to make any required monetary payments when due to the City pursuant to Paragraph 2 of this Agreement. If an event which would constitute a Monetary Default shall occur, the City shall provide prompt telephone notice confirmed in writing (which may be by facsimile or electronic transmission) to the Park District Executive Director, and demand a cure thereof (provided, that failure by the City to send such written notice shall not constitute waiver of or prevent the occurrence of a Loan Default), and if such event is not cured within fifteen days of the scheduled payment date, then such event shall constitute a Loan Default and the City may, in its sole discretion, proceed with its remedies under Paragraph 3.2 of this Agreement. INTERLOCAL AGREEMENT Page 2 of 6