Agenda - Council Work Session - 09/02/2003

Home

[DRAFT] ARTICLE 15 REMEDIES UPON DEFAULT 15. l CITY'S REMEDIES. Except as set forth in this Section 15.1 or .in Section 15.6, if the Developer fails to perform one or more of its obligations under this Master A~eement or fa/is tO abide by one or more restrictions this Master A~eement imposes on the Developer, the City shall give the. Developer Formal Notice of the default and the Developer shall have thirty (30) days to cure the default. If, however, the Developer undertakes or permits Development in violation of the restrictions set forth in sections 3.3~4. t, 4.2 or 4.3 of this Master Development A~eement, the City shall give the Developer Formal Notice of the default and the Developer shall have {forty-eight (48) hours} to cure the default. In addition, ifI=f the Developer fails to pe~:form one or more of its obligations Sections 7.6.7 7, 7.'S.7.12, 7.1~, 7.14, 1_.3, 12.4. 13.1, 13.2, and 15.1 (e) the City shall give the Developer Formal Notice of the default and the Developer shall have {five (5) days{ to cure the default.. If the Developer does not cure the default within the required period or such longer period as may be necessary if the default may not reasonably be cured within such period, provided the Developer pursues the cure with reasonable diligence~ then the City ma5, avail itself of an5, remedy afforded by la,a, and any of the following cumulati ye, non-exclusi ye remedi es. (a) the City may specifical]y enforce this Master Ag-reement, including without limitation, the use of temporary restraining orders, temporaD, injunctions and permanent in, junctions; (b) the City may suspend an5, work, improvement or obligation to be performed by the City until the City receives assurances from the Developer, deemed adequate by the City, that the Developer will-cure its default and continue its performance under the Master A=oTeement; (c) the City may collect on an}, secu.riU, provided by the Developer pursuant to Article 12 below~ to the extent necessary to cure the defaultl if the security, is a Letter of Credit, the City may ti_raw on the Letter of Credit for any amount _u~_ to the full amount of the Letter of Credit. If the City draws on a Letter of Credit. the City must deposit thc-proceeds of the Letter of Credit ~n a bank account in the City's name. If the Cit3? elects to perform (or to engage third parties' to p_erform) obli~,oations of the Developer pursuant to subsection 15(e) below, the City may withdraw from said account and retain an amount equal to the total amount of the costs and expenses which the City incurs in connection with the performance of such obligations. If the Citw elects to perform obli~oations of the Developer under this Master Agreement, Developer is entitled to recover from the Cit~, any balance of the proceeds of the Letter of Credit remainin[ after the City has reimbursed itself for all costs and expenses which the City incurs in connection with the full performance of the Developer's obligations and Developer is personalh, liable to the Citq~ for the amount by which the costs 'and expenses which the City incurs in connection with the performance of the Developer's obligations under this Master Agreement exceed the proceeds of the Letter of Credit. If the Cit3.' elects to commence a civil action to recover its damages (to the 1555730.red V8 tp V6; 8,~ ~ 9/03 4O