3439 To authorize a facade improvement loan agreement with 1720658 Ontario Inc.THE CORPORATION OF THE TOWN OF TILLSONBURG
BY-LAW NUMBER 3439
A BY-LAW to authorize a facade improvement loan agreement with 1720658 Ontario Inc.
WHEREAS The Town of Tillsonburg is desirous of entering into a facade improvement loan
agreement with 1720658 Ontario Inc;
THEREFORE the Council of the Town of Tillsonburg enacts as follows:
1. THAT Schedule "A" attached hereto forms part of this by-law;
2. THAT the Mayor and Clerk be hereby authorized to execute the attached agreement
marked as Schedule "A" on behalf of the Corporation of the Town of Tillsonburg.
READ A FIRST AND SECOND TIME THIS 9th DAY OF August, 2010.
READ N,THIRD AND FINAL TIME AND PASSED THIS 9th DAY OF August, 2010.
f F -
MAYOR -Stephen Molnar
Facade Improvement Loan Agreement - l —
Schedule "A" to By-law No. 3439
THIS AGREEMENT made this, day of -r�: , --;' , 2010.
BETWEEN: 1.720658 ONTARIO INC.
hereinafter called the "Owner"
OF 'THE FIRST PART
and
THE CORPORATION OF THE TOWN OF TILLSONBURG
hereinafter called the "Town"
OF THE SECOND PART
WHEREAS the Owner is the owner in fee simple of the lands municipally known as 79-81
Broadway, being Lot 1480 and Part Lot 1481, Plan 500, in the Town of Tillsonburg, in the
County of Oxford (hereinafter called "the said lands"), more particularly described in Box (6) of
the Document General to be attached hereto prior to registration of this Agreement.
AND WHEREAS Section 28(7) of the Planning Act of Ontario authorizes municipalities to
make loans to owners of lands and buildings with a Community Improvement Project Area to
pay for the whole or any part of the cost of rehabilitating such lands and buildings in conformity
with a Community Improvement Plan.
AND WHEREAS the Town has approved a Facade Improvement Loan as part of a Community
Improvement Plan within an area of downtown Tillsonburg which includes the said lands.
AND WHEREAS the Owner has applied to the Town for a facade improvement loan to
renovate and improve certain parts of the building on the said lands in accordance with plans
submitted to the Town in support of such application, which plans are hereinafter called "the
said plans".
AND WHEREAS the Town has agreed to advance a loan to the Owner to carry out such
improvements on certain terms and conditions.
WITNESSETH that, in consideration for the advance of the said loan and as a condition of such
loan, the parties hereto covenant and agree one with the other as follows:
1. The Town shall advance to the Owner on the date of registration of this Agreement
(hereinafter called "the commencement of the term") and after completion of
construction, the sum of $61,575 (hereinafter called "the principal amount") as a facade
improvement loan for the said lands.
2. So long as the Owner is not in default hereunder, such principal amount shall be
repayable, plus interest at the annual prime rate, by additions to the tax roll, for a term
of ten (10) years, annually, beginning January 1, 2011, and repayable in full at anytime
without notice or bonus or penalty of any kind.
3. Notwithstanding the provisions of paragraph 2 above, the principal amount, or the
balance thereof remaining outstanding, shall, at the option of the Town, immediately
become due for payment in full on the happening of any one of the following:
(a) the Owner shall be more than 3 months in arrears with respect to any payment
of realty taxes, business taxes, or the Business Improvement Area levy for all or
any part of the said lands,
(b) the Owner shall, at any time, discontinue, remove or fail to maintain any part of
the improvements shown on the said plans,
(c) the Owner shall default in payment of any of the installments required under
paragraph 2 above, or,
FaVade Improvement Loan Agreement -2—
Schedule
2—
Schedule "A" to By-law No. 3439
(d) the Owner shall sell or transfer the said lands, or any part thereof, to a new
owner.
4. The Owner hereby agrees to complete and maintain the said facade improvements in
accordance with the said plans, which obligation shall continue until the principal
amount and any interest owing thereon is paid in full.
5. The Owner hereby charges the said lands with the obligation of repayment of the said
loan in accordance with -the terms and conditions herein.
6. This Agreement shall, on the date of the commencement of the term, be registered on
title to the said lands as provided for by Sections 28(8) and 32(3) of the Planning Act as
a first encumbrance prior to any mortgage or lien.
7. The execution of this Agreement by the C.A.O./Clerk for the Town shall constitute the
certificate provided for in Section 32(3) of the Planning Act with respect to the advance
and terms and conditions of such loan.
8. The Agreement shall be prepared by the Town and the Owner shall be responsible for
the registration thereof..
9. This Agreement shall inure to and be binding on the successors, assigns and legal
representatives of the Owner and of the Town.
IN WITNESS WHEREOF the respective parties have executed this Agreement as of the date
first above written.
Dated at Tillsonburg this day of August, 2010.
1720658 Ontario Inc.
Per:
THE CORPORATION OF THE TOWN OF TILLSONBURG
Per:
Mayor - Stephen Molnar
Clerk — Kelley Coulter