898-Sanford Airport Authority LOAN AGREEMENT
THIS LOAN AGREEMENT, entered into this ~nct day of k:~OtembeF, 2001, by
and between the SANFORD AIRPORT AUTHORITY ("Borrower") and the CITY OF
SANFORD, FLORIDA ("Lender")
WITHESSETH: ~
WHEREAS, the Borrower has entered into joint participation agreements with the ~
Florida Department of Transportation ("FDOT") to provide seventy-five percent (75%) of
the funds necessary for land acquisition to expand Runway 9L-27R at the Orlando Sanford .~.
Airport; and ~-
WHEREAS, due to the eminent extension of East Lake Mary Boulevard/Silver Lake
Drive by Seminole County, Florida, Borrower expects [and values in the area to escalate in the
near future, making land acquisition by Borrower significantly more expensive; and
WH EREAS, the Borrower does not presently have the funds available to take advantage
of the FDOT joint participation agreements; and
WHEREAS, the Lender has agreed to lend the Borrower the sum of up to Three
Hundred Eighty-Eight Thousand Seventy-Five Dollars ($388,075.00) to assist Borrower with
its local share of the FDOT joint participation agreements for land acquisition, upon the terms
and conditions contained in the Promissory Note of even date herewith and as set forth below,
NOW, THEREFORE in consideration of the sum often Dollars ($10.00), the mutual
promises and covenants contained herein, as well as other good and valuable consideration not
specifically mentioned, the parties agree as follows:
1, RATES AND TERMS:
a. The $388,075.00 loan will not be amortized but will be payable in
~fty-nine (59) monthly interest payments on the unpaid principal
balance beginning thirty (30) days after the Borrower receives any
portion of the $388,075.00 from the Lender (the "Funding Date").
The entire principal balance and all accrued interest shall be due and
payable in full sixty (60) months after the Funding Date.
b. The interest rate charged will be variable and will be equivalent to the
Florida State Board of Administration rate received by Lender on its
accounts or interest charges on Lenders' line of credit. The intervals for
interest rate adjustment will be adjusted as the rate is adjusted on
Lender's other funds. The Promissory Note includes provision for
adjustment of interest installments concurrent with interest rate changes.
c. The loan will be documented by a Promissory Note from the Borrower
to the Lender on terms set forth above.
2. USE OF FUNDS:
a. Loan funds will be utilized to pay for the Borrower's local share of FDOT
joint participation agreements provided for the purpose of land
acquisition to expand Runway 9L-27R.
b. No loan funds may be used for the payment of any costs unrelated to
land acquisition except by written agreement of the parties.
3. SECURITY:
a. A general pledge on the revenues of the operation of the Orlando
Sanford Airport, which pledge shall be subordinate to all past pledges.
4. MISCELLANEOUS:
a. The Lender and Borrower will insure that all local, State, or Federal laws
and requirements are met in connection with this Loan Agreement.
b. The Lender and Borrower will insure that loan funds are disbursed for
planned loan purposes only.
c. The Borrower has approved of the loan through its board of directors.
d. The Borrower shall be responsible for payment of any required state
documentary stamp taxes on the Promissory Note.
5. ADVERSE CHANGE: Prior to any disbursement under the loan, Borrower shall
advise Lender if there has been an unremedied adverse change since the date of the Loan
Agreement in the financial or any other condition of the Borrower which may warrant
withholding or not making such disbursement.
SANFORD AIRPORT AUTHORITY
BY~r~J~~eal)
its Chairman
Attested by'~~ '~ (Seal)
its Presidenc/CEO
CI OF SANFORD, FLORIDA
By~ · (Seal)
Mayor
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