3385 Schedule "A" - To authorize a facade improvement loan and an upper storey residential loan agreement with 2117846 Ontario IncFa~;ade Improvement Loan Agreement -1-
Schedule "A" to By-law No. __ _
TillS AGREEMENT made this __ day of October, 2009.
BETWEEN: 2117846 ONTARIO INC.
hereinafter called the "Owner"
OF THE FffiST PART
and
THE CORPORATION OF THE TOWN OF TILLSONBURG
hereinafter called the "Town"·
OFTHESECONDPART
WHEREAS the Owner is the owner in fee simple of the lands municipally known as 41
Broadway, being Lot 1472 and Lot 1473, 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 and an Upper Storey
Residential Loan as part of a Community Improvement Plan within an area of downtown
Tillson burg which includes the said lands.
AND WHEREAS the Owner has applied to the Town for a facade improvement loan and upper
Storey Residential 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:
I. 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 $15,000 + $40,000 = $55,000 (hereinafter called "the principal
amount") as a facade improvement loan and upper storey residential 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
often (10) years, annually, beginning January I, 2010, 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 pay~t .of any of the installments required under·
paragraph 2 above, or, ,. .. ~.~
.. ·. '·.
Fa.yade Improvement Loan Agreement -2-
Schedule "'A" to By-law No. __ _
(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 Document General and Agreement shall be prepared and registered by the Town
and the Owner shall be responsible for the costs thereof, payable at the date of the
commencement of the term.
9. This Agreement shall enure 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.
OC-ToB~e. ~
Dated at Tillsonburg this .2J_ day ofNeocnrbci, 2009.
2117846 Ontario Inc.
Per: '~
THE CORPORATION OF THE TOWN OF TILLSONBURG
11/J~
Clerk-MichaeG?aves