08-22-2001 Council Agenda - Laserfiche WebLink

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provision that the insurer shall not cancel or modify it without giving written notice to the Developer and the City at least thirty (30) days before the cancellation or modification becomes effective. Not less than fifteen (15) days prior to the expiration of any policy, the Developer shall furnish the City evidence, satisfactory to the City, that the policy has been renewed or replaced by another policy conforming to the provisions of this Section 8. In lieu of separate policies, the Developer may maintain a single policy, or blanket or umbrella policies, or a combination thereof, which provide the total coverage required herein, in which event the Developer shall deposit with the City a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. The policies of insurance referenced in Section 8.1(a)(i) and 8.1(b)(i) must identify the City as a loss payee and the policies and insurance identified in Section 8.1(a)(ii) and Section 8.1(b)(ii) must identify the City and the Authority as additional insured. The policies of insurance described under Section 8.1(a)(ii) and 8.1(b)(ii) may be subject to a deductible or for provisions providing for the Developer's retention of liability provided the amount of the deductible retained liability does not exceed $5,000. 8.2. Casualty Loss Notice and Repair Obligations. If the Minimum Improvements are damaged by fire or other casualty the Developer must notify the City of the nature and extent of the damage within five Business Days of the occurrence of the damage; provided, however, the Developer is not obligated to notify the City if the Developer reasonably determines the cost of repairing the damage is less than $100,000. The Developer must promptly repair any damage to the Minimum Improvements or, if the damage to the Minimum Improvements cannot be repaired, replace the damaged portion of the Minimum Improvements. Notwithstanding the preceding sentence, the Developer is not obligated to repair or replace Minimum Improvements damaged as a result of fire or other casualty if, in lieu of such repair or replacement, the Developer pays to the City from the Net Insurance Proceeds or other funds of the Developer an amount equal to the present value of the City's reasonable estimate of the Tax Increments the City would have received from the real estate taxes due and payable with respect to the Development Property between the date of the damage or destruction and the Termination Date. Upon the Developer's payment of such amount, the City will terminate the Assessment Agreement. 8.3. Insurance Proceeds. Unless otherwise required by the terms of a First Mortgage, insurance proceeds payable to Developer as a result of damage in the amount of $100,000 or less may be paid directly to the Developer. Subject to the terms of a First Mortgage which allow the First Mortgagee to apply the proceeds of an insurance claim to the payment of the debt the First Mortgage secures or to control the disbursement of the insurance proceeds, the Developer must deposit Net Insurance Proceeds in excess of $100,000 with a trustee the City, the Developer and the First Mortgagee jointly select (or to any other person the City, Developer and First Mortgagee joint select) and will be disbursed pursuant to reasonable disbursement procedures mutually agreed upon by the Developer, the City and the First Mortgagee to fund the repair or the replacement of the Minimum Improvements. Page 57 1316916v1