Agenda - Economic Development Authority - 12/01/2003

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any sum whatsoever on account thereof, whether or not the City. shall have approved the contract or subcontract. 12.3 CI, TY COSTS. Except to the extent provided in this Section 12.3, the Developer must reimburse the City for ail fees and charges the City incurs and pays to third parties in connection with the Development of the Subject Property, including, but not limited to, legal, planning, ~ngineermg and inspection fees and expenses incurred in connection with the preparation of this Master Agreemem, the review and approval of plans and. specifications for improvements contemplated in this Master Agreement or the Master Development Plans and the monitonng and 2nal inspection of the Developer's profess, performance, construction and installation of the Developer Public Improv'~ments. Developer must also reimburse the City for the City's staff time. A schedule of the reimbursement rates for City staff time are attached as Exhibit ~. Notwithstanding the foregoing, the Developer is not obligated to reimburse the City for the City's staff time or to reimburse the City for fees and charges the City incurs and pays to third parties in connection with the Development of any subsequent Phase, including, but not limited to, legal, planning, en=-dneenng and inspection fees and expenses incurred in connection with the preparation of a Secondary Development Agreement, the review and apProval of plans and specifications for improvements contemplated in a Secondary Development Agreement or the Final Plans for a Phase and the monitoring and final inspection, of a Secondary Developer's pro~ess, performance, consnmction and installation of Phase PubLic Improvements, m'Sess so obligated under the terms of a Secondary Development Agreement to-which the Developer is a party. The City. represents that the reimbursement rates set forth on the attached Exhibit I are the same reimbursement rates the City charges to other developers. The City. may, from time to time, change the reimbursement rates described on the attached E.'d:dbit I provided that the changes are also applicable to the reimbursement rates the City charges other developers. The Developer must reimburse the City for out-of-pocket costs the City pays and must reimburse the City for City staff within 30 business days of the City's delivery of a notice to the Developer setting forth the amount of the City's out-of-pocket costs or stafftxm¢ expenses through the date of the notice. As provided in Section 1.1, the Memorandum of Understanding is terminated. The Developer ag-tees to pay bona fide invoices rendered under the terms of the Memorandum of Understanding for work performed prior to the date the Developer executes this Agreement within 10 business days after the submission of such invoices to the Developer. In addition, the Developer agrees to pay the City $250,000 in cash or wire transferred funds payable in two inszallments of $125,000 on January 1, 2004 and January 1, 2005. The payments are intended to assist the City in recruiting and retaining new City employee positions of Associate Planner, Building Inspector, En~nee.fi.ng Technician and Executive Human Resources Assistant, but the City may use the funds for any purpose. The Developer agrees to keep in force the $50,000 Letter of Credit that the Developer has akeady delivered to the City to secure the Developer's performance of its obligations under this Section 12.3 until December 31,200Z. 12.4 LETTERS OF CREDIT AND ALTERNATIVE SECURITY. Various provisions of ti-tis Master Agreement require the Developer to deliver letters of credit to the City to secure the Developer's performance of various obligations. The City Council may, in its sole and absolute discretion, consider accepting the following alternative security arrangements '(or combinations thereof) in lieu of requiring a letter of credit: 1~55730vl3 3 1