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$250, 000 and is contingent upon their determination, on or before December 31, 2010, that the condition of the property is acceptable to them and that various other conditions outlined in the various agreements have been met (amendment to parking agreement, special service district ordinance, obtaining permits to construct the project, obtaining financing and securing ofa rail stop). Currently it is anticipated that the closing will be completed by April 29, 2011. The HRA 's obligation to sell is also contingent upon the HRA 's determination, on or before January 14, 2011, that the City will secure a stop on the North Star Commuter Rail Line and construct a stop and station on or before July 1, 2012. b. Right of Reverter. The HRA has the authority to commence an action in court seeking an order that re -vests title of the property to the HRA and grants the HRA immediate possession of the property if the Developer fails to substantially complete construction on or before June 30, 2013, or if the construction lender commences proceedings to foreclose the construction loan prior to Developer's substantial completion of the project. The HRA agrees that the it will subject its interest in the property to the lien of tiny construction loan provided that the construction lender acknowledges in writing that if they foreclose and the HRA obtains a court order re -vesting title to them, the HRA shall be entitled to redeem the property project from foreclosure. Kurt Ulrich COR Apartments - Development Proposal and Terms of Development Agreement and Other Obligations December 14, 2010 Page 2 c. City Obligations. The City must substantially complete construction of an approximately 200 stall addition to the existing parking ramp on or before June 30, 2012, for which the City has a 3.5 million dollar CMAO grant as a funding source. The construction of these additional stalls will allow for the allocation of 350 stalls for transit use over the entire parking structure. The City must record an Amendment to the Parking Improvement Use and Maintenance Agreement that grants the Developer an exclusive easement to use 275 stalls in the expanded parking ramp, gives them a non-exclusive easement to use other parking spaces in the expanded parking ramp and allocates 25 spaces in the portion of the expanded parking ramp that is not subject to their exclusive easement to for purposes of proof of parking. In addition, the City must purchase and install way finding and stall designation signage in the parking ramp which the Developer is required to reimburse the City. d. Public Hearing. The HRA is required to have a public hearing on the sale of the land, which public hearing is scheduled for December 14, 2010. e. Relationship Between the Development Agreement and the Purchase Agreement. In an event ofa conflict between terms of the two agreements, the Development Agreement prevails. If the HRA or the Developer terminates the Purchase Agreement, the Development Agreement automatically terminates and only some terms may survive the termination. Likewise, if the City, HRA or Developer terminates the Development Agreement, the Purchase Agreement automatically terminates with the exception of provisions that state they survive termination. 3. Construction of Minimum Improvements a. Minimum Improvements. The Developer is required to construct a market rate rental project consisting of approximately 216 apartments and 14 town homes, along with approximately 3,000 sq ft of commercial space. b. Submission of Plans. The Developer must submit plans for review and approval on or before April 1, 2011. c. Commencement and Completion of Construction. The Developer shall commence construction of the project by June 30, 2011 and substantially complete the project by June 30, 2013 (eligible to receive a Certificate of Occupancy). If unavoidable delays arise that affect either commencing or completing construction, the Developer is required to give the City and HRA notice within 30 days of the unavoidable delay. 4. Tax Increment