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I-JOBS Affordable Housing Program AwardMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: I -Jobs Affordable Housing Program Award DATE: March 26, 2010 Dubuque An- AmdlcaCity 1 ' 2007 As part of the strategy to promote homeownership in the Washington Neighborhood, the Housing Department applied to Iowa Finance Authority (IFA) for I -Jobs Program funding to assist in the conversion of the Historic Washington Row Houses located on Washington Street. An award of $240,000 has been approved. These funds will be used as part of a $700,000 budget to acquire the six rowhouse apartments, perform an historic rehabilitation in accordance with HUD requirements and re -sell the units as owner - occupied homes to income - qualifying households. The target price for completed town homes is $80,000. Housing and Community Development Department Director David Harris recommends City Council approval of the contract with the Iowa Finance Authority for the $240,000 funding award. I concur with the recommendation and respectfully request Mayor and City Council approval. 1 / / . I Mich el C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director Masterpiece on the Mississippi TO: Michael Milligen, City Manager FROM: David H r Housing and Community Development Department ty SUBJECT: I -Jobs Affordable Housing Program Award DATE: 25 March 10 Dubuque AFAmeaicaCfty 1 2007 Introduction The purpose of this memorandum is to request the City Council to authorize the Mayor's signature on the attached contract from the Iowa Finance Authority (IFA.) Discussion As part of the strategy to promote homeownership in the Washington Neighborhood, the Housing Department applied to IFA for I -Jobs Program funding to assist in the conversion of the Historic Washington Row Houses located on Washington Street. An award of $240 000 has been approved. These funds will be used as part of a $700 000 budget to acquire the six rowhouse apartments, perform an historic rehabilitation in accordance with HUD requirements and re -sell the units as owner - occupied homes to income - qualifying households. The target price for completed town homes is $80 000. An RFP for interested developers has been issued. An interdepartmental committee of City staff will be assembled to review proposals received and select a developer to acquire, rehab and re -sell the units as outlined in the IFA grant application. Other funds to be used in this project include Ian IFA OurHome construction loan and City CDBG funding. Action Step The action requested of the City Council is to approve the attached IFA contract for the $240 000 funding award. Project #: IJH -26 Grantee Name: City of Dubuque I -JOBS AFFORDABLE HOUSING ASSISTANCE GRANT FUND IOWA FINANCE AUTHORITY Iowa Finance Authority I N V E S T I N G I N H O M E A N D C O M M U N I T Y GRANT AGREEMENT TABLE OF CONTENTS This Table of Contents is not a part of this Grant Agreement and is only for convenience of reference. ARTICLE I - AMOUNT AND TERMS OF THE GRANT The Grant 2 Making the Grant 2 Disbursement and Use of Proceeds 2 Obligation to Repay Grant Upon Certain Events of Default 2 ARTICLE II - CONDITIONS OF THE GRANT SECTION 2.01. Conditions Precedent to the Grant 3 SECTION 2.02. Further Conditions Precedent to the Grant 3 ARTICLE III - REPRESENTATIONS, COVENANTS AND WARRANTIES SECTION 3.01. Representations and Warranties of the Grantee 3 SECTION 3.02. Covenants of the Grantee 5 SECTION 3.03. Accounts, Records and Reports 7 ARTICLE IV - EVENTS OF DEFAULT SECTION 4.01. Events of Default 8 SECTION 4.02. Remedies After an Event of Default 9 ARTICLE V - MISCELLANEOUS SECTION 5.01. Waivers, Consents 9 SECTION 5.02. Notices, Etc. 10 SECTION 5.03. No Waiver; Remedies 10 SECTION 5.04. Indemnity; Fees and Expenses 10 SECTION 5.05. Binding Effect; Governing Law 11 SECTION 5.06. Assignments 11 SECTION 5.07. Counterparts 11 SECTION 5.08. Severability 11 SECTION 5.09. Amendments, Changes and Modifications 12 SECTION 5.10. Term of the Agreement 12 SECTION 1.01. SECTION 1.02. SECTION 1.03 SECTION 1.04. EXHIIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E EXHIBIT F EXHIBIT G Grant Data Project Budget Activity Status Report Financial Report Addresses for Notices and Demands Payment Request Form Certificate Regarding Expenditures -i- This GRANT AGREEMENT, dated as of the date indicated in Exhibit A attached hereto, which by this reference is made a part hereof, between the Iowa Finance Authority (the "Authority ") and the City of Dubuque (hereinafter the "Grantee"). WITNESSETH: WHEREAS, the Authority is a public instrumentality and agency of the State of Iowa authorized and empowered by the provisions of Chapter e of decent, safe, and (the for low— assist in the development and maintenance and n moderate — income families; and WHEREAS, the Affordable Housing Assistance Grant Fund program (the "Program ") has been created within the Authority to provide financial assistance for certain specified uses, in accordance with the Iowa JOBS program created by 2009 Iowa Acts, Senate File 376 (creating new Iowa Code section 16.187) and rules promulgated by the Authority r and set forth in the Iowa the Affordable Housing Assistance Administrative Grant Code 265 — Chapter 35, including the Allocation Plan Fund Dated June 2009 (collectively, the "Rules "); and WHEREAS, the Grantee desires to receive monies pursuant to the Program in order to finance a portion of the costs of the Project described in Exhibit A attached hereto (the "Project "); and WHEREAS, the Grantee has applied for and received approval for funding through the Program NOW THEREFORE, for and in consideration of the premises and the respective covenants, agreements and representations hereinafter contained, the Grantee and the Authority hereby agree as follows: ARTICLE I AMOUNT AND TERMS OF THE GRANT SECTION 1.01. The Grant to make e The Authority agrees, upon the terms and conditions not to exceed set he amount hown in Exhibit Grantee under the Program (the "Grant ") in an hereto in order to fmance a portion of the costs of the Project. SECTION 1.02. Making the Grant. Upon fulfillment of the applicable conditions set forth in Article II, the Authority will make the Grant available to the Grantee from time to time, subject to the provisions of Section 1.03. SECTION 1.03. Disbursement and Use of Proceeds. (a) Disbursements of grant proceeds may be made by the Authority to the Grantee, following compliance by the Grantee with any Special Conditions as set forth in Exhibit A required to be satisfied prior to disbursement of Grant proceeds, upon the receipt and approval by the Authority, in its sole discretion, of a written payment request from the Grantee, in the form set out in Exhibit F attached hereto, for the purpose of financing that portion of the Project to be financed by the Grant, as described in the Project Budget attached hereto as Exhibit B (the "Qualified Costs "), but only if such costs were paid or incurred subsequent to the Date of Application Approval by the Authority as shown in Exhibit A hereto or, if incurred prior to such date, only if such costs have been approved in writing by the Authority. (b) The Grantee shall submit to the Authority such supporting evidence as may be reasonably requested by the Authority to substantiate all payments which are to be made out of any requisition and/or to substantiate all payments then made with respect to the Project. SECTION 1.04. Obligation to Repay Grant Upon Certain Events of Default. Upon the occurrence of an Event of Default under paragraphs (a) or (b) of Section 4.01 hereof, the Authority may demand repayment of all or a portion of Grant proceeds disbursed hereunder. Grantee understands and agrees that the Grant is made in consideration of Grantee's covenants and warranties with respect to the Project and for the purpose of providing housing benefits for low - income families, and that upon violation of such covenants or warranties, Grantee is obligated to immediately repay such amounts as are determined by the Authority to have been received by Grantee without fulfillment of Grantee's obligations with respect to such proceeds, up to the full amount of Grant proceeds which have been disbursed hereunder. Grantee agrees to pay to the Authority the amount specified in a written demand for repayment from the Authority, with interest on such amount at ten percent (10 %) from the date of such written demand until paid. 2 ARTICLE II CONDITIONS OF THE GRANT SECTION 2.01. Conditions Precedent to the Grant. The obligation and agreement of the Authority to make the Grant is subject to the conditions precedent that the Authority shall have received on or before the date of the Grant the following, in form and substance satisfactory to the Authority: (a) Evidence that the Local Contributing Effort is available to Grantee in the form and amount specified in Exhibit A hereto; (b) Evidence that the Grantee has complied with any and all Special Conditions as set forth in Exhibit A required to be satisfied prior to Grant closing; (c) A completed and fully executed Certificate Regarding Expenditures, in the form attached hereto as Exhibit G, as such form may be revised by the Authority form time to time; and (d) Such other certificates, opinions, documents, and instruments, which the Authority may request. SECTION 2.02 Further Conditions Precedent to the Grant The obligation of the Authority to make the Grant shall be subject to the further conditions precedent that on the date of the Grant the following statements shall be true: (a) The representations and warranties contained in Section 3.01 of this Agreement, the covenants contained in Section 3.02 of this Agreement, and all representations and certifications contained in the Application are correct on and as of the date of the Grant as though made on and as of such date; and (b) No event has occurred and is continuing, or would result from the Grant, which constitutes an Event of Default but for the requirement that notice be given or time elapse or both. ARTICLE III REPRESENTATIONS, COVENANTS AND WARRANTIES SECTION 3.01. Representations and Warranties of the Grantee. The Grantee represents and warrants as follows: 3 (a) All necessary authorizations or approvals or other actions by, or filings with, any governmental authority or regulatory body that may be required for the due execution, delivery and performance by the Grantee of this Agreement and other documents and agreements required to be delivered by the Grantee pursuant to this Agreement, have been obtained by the Grantee; (b) This Agreement and other documents and agreements required by this Agreement when delivered hereunder are and will be, legal, valid and binding obligations of the Grantee enforceable against the Grantee in accordance with their respective terms; (c) Neither the execution, delivery or performance of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement conflicts with or results in a breach of any of the terms, conditions or provisions of any restriction in any organizational document or any agreement or instrument to which the Grantee is now a party or by which the Grantee is bound, or constitutes a default under any of the forgoing; (d) The estimated cost of the Project is set forth in Exhibit B hereto and has been determined in accordance with generally accepted accounting principles and all of the proceeds of the Grant will be used to finance that portion of the cost of the Project specified to be financed under the Program, as set forth in Exhibit B, and no part of the proceeds of the Grant will be used to finance ineligible costs, within the meaning of the Rules; (e) There is no litigation or proceeding pending or, to the knowledge of the Grantee, threatened against the Grantee affecting in any manner whatsoever the right of the Grantee to execute this Agreement or the other agreements required to be executed by the Grantee under this Agreement, or the ability of the Grantee to comply with the Grantee's obligations contained herein or therein; (f) The Grantee agrees that the Authority shall have no responsibility nor incur any expense for maintenance or preservation of the Project or for the payment of any taxes, assessments or other governmental charges assessed or levied with respect to the Project; (g) The certifications and representations of the Grantee and other information contained in the Application were true and correct as of the date made and are true and correct on the date hereof, except as information in the Application may have been amended with the written approval of the Authority; (h) There has been no adverse change since the date of the Application in the financial condition, organization, operation, business prospects, fixed assets, or key personnel of the Grantee; (i) No payment of any bonus or commission has been made by the Grantee for the purpose of obtaining approval of the Application, or has or will be made for the purpose of obtaining approval of applications for additional assistance, or any other approval or concurrence of the Authority required under this Agreement or the Rules; provided, however, that reasonable fees for bonafide technical, consultant, managerial or other such services, other than actual solicitation are not hereby prohibited if otherwise eligible as Qualified Costs. 4 (j) No officer, member, or employee of the Authority and no members of its board, and no other public official of the governing body of the locality or localities in which the Project is situated who exercises any functions or responsibilities d in the rev relating or approval o of the en d whi r c h nng or carrying out of this Project, has participated in any partnership or association in which he is his personal interest or the interest of any corporation, p p� directly or indirectly interested or has any personal or financial interest, direct or indirect, in this Agreement or the proceeds of the Grant. SECTION 3.02. Covenants of the Grantee. The Grantee covenants as follows: (a) Grantee will commence work on the Project no later than the Commencement Date set in forth in Exhibit A, and will complete the Project on or such Completion Completion Exhibit A, provided that, at the request of the Grantee, upon written approval royal of such modification Date may be modified, in the discretion of the Authority, up by the Executive Director of the Authority or designee. (b) Grantee will complete the Project in accordance with the Project Budget attached hereto as Exhibit B, provided that, at the request of the Grantee, such Project Budget may be modified, in the discretion of the Authority, upon written approval of such modifications by the Executive Director of the Authority or designee. (c) Grantee will complete the Project in order to provide the benefits described under the heading "Housing Benefits to Eligible Recipients" in Exhibit A. (d) Grantee will comply with all Special Conditions as set forth in Exhibit A. (e) [Reserved.] (f) If a nonprofit organization, the Grantee agrees that it shall maintain its existence as a corporation organized under the laws of the State of Iowa and shall not merge or consolidate with any other entity and shall not transfer or convey all or substantially all of its property, re consolidate s is and licenses; provided, however, the Grantee may, without violating any provision with or merge into another entity or permit one or more other entities to consolidate with or merge into it, or transfer all or substantially all of its assets to another entity, but only on the condition that: (i) the assignee entity or the entity resulting from or surviving such merger (if other than the Grantee) or consolidation or the entity to which such transfer is made expressly assumes in writing and agrees to perform all of the Grantee' s obligations hereunder; (ii) the surviving entity shall preserve and keep in full force and effect all licenses and permits necessary to the proper conduct of its business; 5 (iii) the surviving entity will have a net worth at least equal to the net worth of the Grantee prior to the merger, consolidation or transfer; and (iv) the surviving entity will be duly qualified and authorized to conduct business in the State of Iowa. (g) Grantee shall not materially change the Project, abandon the Project, or allow the Project to be seized or operated by others. (h) Grantee covenants to comply with the provisions of Section 16.9 of the Act and Sections 216.8 and 216.8A of the Iowa Code and with the provisions of the Fair Housing Act, as amended, which compliance shall include, but not be limited to, the following: (i) Grantee shall not refuse to rent, or otherwise make unavailable or deny, a dwelling to any person because of race, creed, color, sex, sexual orientation, gender identity, familial status, national origin; age, disability or religion; (ii) Grantee shall not discriminate against any person on the terms, conditions, or privileges of rental of a dwelling, or in the provision of services or facilities in connection therewith, because of race, creed, color, sex, sexual orientation, gender identity, familial status, national origin, age, disability or religion; (iii) Grantee shall not make or publish any notice, statement or advertisement, with respect to the rental or availability of a dwelling, that indicates any preference, limitation or discrimination based on race, color, creed, sex, sexual orientation, gender identity, familial status, national origin, age, disability or religion; (iv) Grantee shall not refuse to permit, at the expense of a disabled person, reasonable modifications of existing premises to be occupied by such person if such modifications may be necessary to afford such person full enjoyment of the premises. (i) Grantee shall, in all solicitations or advertisements for employees, state that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, sexual orientation, gender identity, national origin, age, or disability. (j) Grantee shall not discriminate against any qualified employee or applicant for employment because of race, color, religion, creed, sex, sexual orientation, gender identity, national origin, age or disability. Grantee agrees to post notice setting forth the provisions of the nondiscrimination clause in conspicuous places so as to be available to employees. (k) The Grantee will comply in all material respects with all applicable laws, rules, ordinances, regulations and orders, such compliance to include, without limitation, paying before the same 6 become delinquent all taxes, assessments and governmental charges imposed upon the Grantee or upon the Grantee's property except to the extent contested in good faith. (1) The Project shall recognize during its construction phase the financial contribution made by the State of Iowa through the Iowa Jobs Program in the form of appropriate signage. directions format, graphics, and materials of such signs shall be as directed by the Authority, which may be posted on the www.ijobsiowa.gov web site. The Project may deviate from such directions only with the written consent of the Authority. Following construction, the Project shall recognize in by the a permanent manner reasonably acceptable to the Authority Wri a the ass�steds are to be State of Iowa through the Iowa Jobs Program, except The Grantee shall notify the Authority o to commemorate, celebrate, ebra e, or mark the than ten (10) days prior to any event held by the groundbreaking, opening, dedication of the Project. SECTION 3.03. Accounts, Records and Reports. Grantee covenants to comply with the following accounting, recordkeeping, and reporting requirements: (a) The Grantee shall maintain books, records, documents, and other evidence pertaining to all costs and expenses incurred and revenues received under this Agreement to the extent and in such detail as will properly reflect all costs, direct and indirect, of labor, materials, equipment, supplies, services, and other costs and expenses of whatever nature, for which payment is requisitioned under this Agreement. (b) At any time during normal business hours and as frequently as is deemed necessary, the Grantee shall make available to the Authority, its auditor or the State Auditor, for their examination, all of its records pertaining to all matters covered by this agreement and uch records, permit these parties to audit, examine, make conditions of employment, employment, all other contract, invoices, payrolls, personnel records, matters in connection with the Grant made under this Agreement. (c) If requested in writing by the Authority, the Grantee is required to have an audit of the Project conducted, to include all income and expenditures of Grant proceeds and other contributions to the Project. This audit may be part of the next regular audit following Project completion. If required, the audit report shall be submitted to the Authority within thirty (30) days after audit completion. Audits shall be performed in accordance with applicable provisions of law and tax codes. (d) All records pertaining to this Agreement and the Grant shall be retained for a period of three (3) years beginning with the date upon which the final disbursement under this Agreement is made. All records shall be retained beyond the three -year period if audit findings have not been resolved shall retapned for a acquired under this Agreement three-year (3) period after the final e disposition of such property. 7 (e) During each year for which any of the Grant proceeds were used, the Grantee shall submit the following reports to the Authority, at the following times, in form and substance satisfactory to the Authority: (1) an Activity Status Report as set forth in Exhibit C attached hereto, due within 10 calendar days of the end of each reporting period; and (2) a Financial Report, as set forth in Exhibit D attached hereto, due within 10 calendar days of the end of each reporting period. The Authority may, in its discretion, waive in writing the submission of any one or more of the above reports for a particular time or period. No waiver of a particular report at a particular time shall preclude the Authority from subsequently requiring such reports as specified herein. The Authority reserves the right to require more frequent submission of the reports specified in paragraph (e) above if, in its opinion, more frequent submissions would help improve the Project. (1) ARTICLE IV EVENTS OF DEFAULT SECTION 4.01. Events of Default The following events each constitute an Event of Default: (a) Any representation or warranty made by the Grantee under or in connection with this Agreement shall prove to have been incorrect in any material respect when made and shall not be made good within thirty (30) days after notice thereof to the Grantee by the Authority; or (b) The Grantee shall fail to perform or observe any other term, covenant, or agreement contained in this Agreement and any such failure shall remain unremedied for thirty (30) days after written notice thereof shall have been given to the Grantee by the Authority; or (c) The Grantee shall (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of all or a substantial part of the Grantee's property, (ii) admit in writing the Grantee's inability, or be generally unable, to pay the Grantee's debts as they become due, (iii) make a general assignment for the benefit of the Grantee's creditors, (iv) commence a voluntary case under the Federal Bankruptcy Laws (as now or hereafter in effect), (v) file a petition seeking to take advantage of any other law relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of debts, (vi) acquiesce in writing to, or fail to controvert in a timely or appropriate manner, any petition filed against the Grantee in an involuntary case under such bankruptcy laws, or (vii) take any action for the purpose of effecting any of the forgoing; or 8 (d) A case or other proceeding shall be commenced, without the application or consent of the Grantee, in any court of competent jurisdiction, seeking the liquidation, reorganization, dissolution, winding up, or composition or readjustment of debts, of the Grantee, the appointment of a trustee, receiver, custodian, liquidator or the like of the Grantee or of all or any substantial part of its assets, or any similar action with respect to the Grantee under any laws relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of debts, and such case or proceeding (other than an involuntary case under the Federal Bankruptcy Laws) shall continue undismissed, or unstayed and in effect, for a period of sixty (60) days, or in an involuntary case under the Federal Bankruptcy Laws (as now or hereinafter in effect) an order for relief against the Grantee shall be entered. SECTION 4.02. Remedies After an Event of Default. (a) Upon any occurrence of an Event of Default, the Authority or its agent may: (1) make no further disbursements under the Grant; and (2) take whatever action at law or in equity may appear necessary or desirable to enforce performance and observance of any obligation, agreement or covenant of the Grantee under this Agreement. (b) Upon an occurrence of an Event of Default under paragraph (a) or (b) of Section 4.01, the Authority may: (1) by written notice to the Grantee, demand repayment from the Grantee, in accordance with Section 1.04 hereof, of all or a portion of amounts previously disbursed under the Grant, whereupon such amounts shall become due and payable, without presentment, demand, protest or further notice of any kind, all of which are expressly waived by the Grantee; and (2) take whatever action at law or in equity may appear necessary or desirable to enforce Grantee's obligation under Section 1.04 to repay all or a portion of the Grant proceeds and to recover Grant proceeds. No remedy herein conferred upon or reserved to the Authority is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. Upon the occurrence of an Event of Default and at any time thereafter, the Authority or its agent may, at its option, exercise any and all of the rights and remedies available to it. ARTICLE V MISCELLANEOUS SECTION 5.01. Waivers, Consents. 9 No waiver by the Authority of any default hereunder, nor consent to any departure by the Grantee from the provisions of this Agreement, shall in any event be or effective shall be effective only in the writing and signed by the Authority and then purpose for which given, and shall not operate as a waiver or specific instance and for the specific pure consent with respect to any other default or departure or the same default or departure on a future occasion. SECTION 5.02. Notices, Etc. mailed or All notices and other communications provided for hereunder or, in party, r t ng a s other w delivered to the persons and addresses set forth n�n notice to the other parties. All such notices address as shall be designated by such party in and communications shall, when mailed or telegraphed, be effective when deposited in the mail or delivered to the persons respectively, addressed as aforesaid. SECTION 5.03. No Waiver Remedies. No failure on the part of the Authority to exercise, and no delay in exercising, any right under this Agreement shall operate as a waiver thereof; nor shall any hereof or the exercise of any other right. this Agreement preclude any other or further exercise remedies The remedies provided in this Agreement are cumulative and not exclusive of any provided at equity or by law. SECTION 5.04. Indemnity; Fees and Expenses. (a) The Grantee will indemnify and save harmless the Authority and its officers and employees from and against any and all losses, by it or them while it o they safeguard are acting in ood faith its or theirgnterests or the transactions contemplated by this Agreement or determine or carry out its or their obligations under this Agreement, or any law or contract applicable to said transaction; (b) The Grantee will, upon demand, pay to the Authority the amount of any and all reasonable luding the vale expenses, including the reasonable fees and expenses agents, which the mayuncur Ge General Counsel' s time, if any, and of any experts and g ents connection with (i) the exercise or enforcement of any of the rights of the Authority hereunder, (ii) the failure by the Grantee to perform or observe any of the provisions hereof, and (iii) on demand recovery of any proceeds misappropriated by the Grantee. The Grantee will also pay, upon any other reasonable expenses of the Authority related to the Project or this financing (including reasonable attorneys' fees) which are not otherwise expressly required to be paid by the Grantee under the terms of this Agreement; (c) The Grantee agrees to pay, as and if applicable, all appraisal fees, survey fees, recording fees, license and permit fees, insurance premiums, taxes, charges, and assessments in connection with the Project. 10 It is the intention of the parties that the Authority shall not incur pecuniary liability by reason of required the terms of this Agreement, (ii) the undertaking s q uired act of the Authority hereunder, (iii) the r, , requested of any act required of it by this Agreement or (iv) the performance of any ct reqed employed st st or serving it by the Grantee. Accordingly, if the Authority e Authority, such per son ons hereinafter included in all servg as an officer or a member of liability, then in such references to the Authority in this Section) d hold harmless the Authority against pecuniary claims y or on behalf event the Grantee shall indemnify and any person, firm or corporation, arising out of the same, and on or all proceeding brought thereoneT connection with any such claim or in conn es tt hat the Authority shall not be liable for, and agrees to Grantee releases the Authority from, agrees and hold the Authority harmless from, (i) any liability for any loss or damage to property or any injury to, or death of, any person that may be occasioned by any cause whatsoever pertaining to the Project, or (ii) any liabilities, losses or damages, its or covenants contained sing n o this Agr or claimed failure of the Grantee to comply with and hold the including, in each such case, any attorneys' fees. The Grantee agrees to indemnify Authority harmless to the fullest extent permitted incurred by los them as thee case be sin ( including attorneys' fees), judgments and liabilities connection with any action, suit or proceeding instituted or threatened in connection with the transaction contemplated by this Agreement. The obligation of the Grantee under this Section shall survive the termination of this Agreement. SECTION 5.05. Binding Effect; Governing Law. ority This Agreement shall be binding upon and inure to the benefit antee of hall not the righto a sign and their respective successors and assigns, except that the its rights hereunder or any interest herein without the prior �w ho consent l of the he thority. Iowa. Agreement shall be governed by, and construed in accordance SECTION 5.06 Assignments, This Agreement may not be assigned by the Grantee without the prior written consent of the Authority. SECTION 5.07. Counterparts. This Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall be an original, and such counterparts shall together constitute one and the same instrument. SECTION 5.08. Severability If any provision of this Agreement shall be held or deemed to be or shall, in fact, be illegal, inoperative or unenforceable, the same shall not affect any other provision or provisions herein contained or render the same invalid, inoperative, or unenforceable to any extent whatever. 11 SECTION 5.09. Amendments Chan es and Modifications. Except as provided in Section 3.02(a) and (b), this Agreement may not be effectively amended, f the authorized changed, modified, altered or terminated without the Director f the Authority, designee, is the representatives of the parties hereto. The Exec h u e l Authorized Representative of the Grantee is as authorized representative of the Authority. �, specified in Exhibit A. SECTION 5.10. Term of the Agreement. This Agreement shall be in full force and effect from the date hereof and shall continue in effect until March 31, 2012. 12 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date indicated in E_ hereto. (SEAL, if any) (SEAL) CITY OF DUBUQUE By: Title: Roy D. Buol. Mayor IOWA FINANCE AUTHORITY By: Joseph O'Hern, Executive Director 13