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g. Remedy of De fault. I f the Developer (or the construction lender) does not cure various events of de fault as provided for in the various agreements, the City and or HRA may terminate the Development Agreement, Loan Agreement and TIF Note. Please contact me at 651-697-8506 with any questions. Notification: Public Notice is not required for action on the Development Agreement, however, it is required for the Purchase Agreement. Public Notice for the Purchase Agreement was published on December 3rd, 2010. Observations: Attached for your consideration as the HRA tonight is the Development Agreement, one of several components of the contract documents. Also attached to this case: • A summary of all documents, and the consideration dates for the various approvals by both the HRA and the City Council. • Memo from Ehlers , the HRA's financial consultant on this project. The City and F & C Ramsey, LLC ("F & C") are the principal parties to the Development Agreement. All parties obligations under the Development Agreement are subject to each parties performance of its obligations under the Purchase Agreement and if the Purchase Agreement is terminated for any reason, the Development Agreement terminates. F & C represents and warrants to the HRA (and the City) that F & C would not undertake the Project and that the Project would not be economically feasible without the assistance provided in the Development Agreement. F & C agrees to purchase the Development Property pursuant to the terms of the Purchase Agreement. F & C agrees to submit construction plans for the Project (a 216 unit, four story luxury apartment building consisting of 16 townhome style rental units and 200 apartment units) to the City for approval. Developer must substantially complete construction of the Project on or before June 30, 2013, subject to delays resulting from force majeure. Because a portion of the Project is not being used for housing and the pro rata share of the subsidies provided by the City in the Development Agreement plus the potential subsidy provided by the HRA relating to F & C's ability to lease the commercial space exceed $150,000, F & C must also enter into a business subsidy agreement which will be incorporated into the Development Agreement. Also, in the Development Agreement the HRA agrees that if the gross rent or gross rent equivalent received on the commercial space in years 2 through 4 is less than $16 per sq. ft., the HRA will reimburse Flaherty and Collins. Recommendation: Staff Recommends the HRA approve the Development Agreement. Funding Source: Cost of drafting legal documents was funded by the HRA budget. Subsidy associated with obligations of development agreement to be funded by city's existing TIF districts and new district. Please review Ehlers memo for detail on funding of subsidy.