Agenda - Council - 11/09/2004 - Laserfiche WebLink

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District for AUAR Roadway Improvements) will be of no further force or affect, and the City will execute documentation consenting to the release $836,556.33 currently held in escrow to RTC; provided, however, if, at the time of disbursement, the RTC owes the City any amounts pursuant to the terms of the Development Agreement, including, but not limited to Section 12.3 thereof, the escrowed funds must be disbursed first too satisfy the Developer's obligations to the City. RTC is solely responsible for obtaining the consent of the other parties to the escrow agreements. Contemporaneously with their execution of the Development Agreement Amendment, the City and RTC will execute an Option Agreement which grants the City an option to purchase all or any portion of the property described on Exhibit B (the "Option Property"). Prior to the execution of the Development Agreement Amendment and the Option Agreement, the City and RTC will prepare a master plan for the property within the preliminary plat of Ramsey Town Center 5th Addition which master plan may alter the definition of the Option Property and, if so, this definition will be incorporated into the Option Agreement. The City may exercise the Option at different times with respect to different portions of the Option Property. The City may only exercise the option to purchase property if the City is acquiring the Option Property for, public facilities, a community center, a health club, a cinema or other uses described in the Option Agreement (a "Permitted Use"). If the City exercises the option, the purchase price for the Option Property (or any part thereof) shall be $1.00 plus 1) the amount of any special assessments RTC has paid with respect to the property purchased; and 2) the prorata share of the costs RTC has incurred in grading the property and constructing storm water improvements to serve the property; provided the formula to be used to calculate such prorate share must be set forth in the Option Agreement. The City shall assume any special assessments levied or pending against the property it purchases. The Option will terminate on the date three years from the date of the Option Agreement provided, however, the City shall have the right to extend the Option for two, one year periods with respect to specified portions of the Option Property if the City demonstrates that the City is actively working on design development and funding for the development of the specified portion of the Option Property for a Permitted Use. The Bank must execute the Option Agreement and agree therein that it will release any portion of the Option Property that is subject to the Bank's mortgage from the mortgage (and any other related financing documents) upon the City's acquisition of the property pursuant to the Option Agreement. 4. The City, RTC and the Bank amend the Development Agreement, effective immediately, to provide for the Developer's submission of one or more Letters of Credit in the total amount of $3.0 million as security for the performance of the Developer's obligations under Sections 10..1.,11.1 11.2 and 12.3 of the Development Agreement.. The Developer or applicable Secondary Developers will remain obligated to provide Letters of Credit pursuant to the existing provisions in the Development Agreement to secure obligations other than those set forth in Sections 10.1, 11.1, 11.2 and 12.3 and not withstanding herein to the contrary, the City shall comply with its City Code provisions relating to 2