11-27-2006 EDA Packet - Laserfiche WebLink

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1.6 Master Developer desires to assign, and Successor Developer desires to assume Master Developer's rights and obligations under the Contract with respect to the Subject Parcel. 1.7 City has approved the Subject Parcel for use consistent with the proposed Lakewood Development. On that basis, City and Authority are willing to approve an assignment of the Contract to Successor Developer and release Master Developer from the terms and conditions of the Contract subject to the terms and conditions of this assignment. THEREFORE, IT IS AGREED AS FOLLOWS: II. Agreement. 2.1 Master Developer hereby assigns, and Successor Developer hereby expressly assumes all of the rights and obligations of Master Developer under the Contract with respect to construction of the Lakewood Development on the Subject Parcel with a minimum market value of $7,450,000(the"Lakewood Improvements"). 2.2 The parties hereto agree and understand that the Lakewood Improvements constitute a portion of the Rental Housing Component and the Commercial Component of the Minimum Improvements under the Contract. 2.3 The Authority and the City hereby consent to and approve the assignment in sections 2.1 and 2.2 above. 2.2 From and after the effective date set forth above, Master Developer is released from its obligations under the Contract as to the Subject Parcel and as to the portion of the Rental Housing and Commercial Components represented by the Lakewood Improvements, subject to the following: (a) Master Developer remains liable under the Contract as to all other parcels subject to the Contract that are not released hereby or previously released, and as to all other provisions of the Contract. (b) Successor Developer agrees and understands that the Subject Parcel is subject to the Assessment Agreement between the Authority and Master Developer dated October 26, 2006 ("Assessment Agreement"), setting a minimum market value for the Subject Parcel and the Lakewood Improvements constructed thereon for the period described in the Assessment Agreement. (c) Satisfactory completion by Successor Developer of the Lakewood Improvements will be considered satisfaction of Developer's obligations as to a portion of the market value of Rental Housing and Commercial Component under Section 4.3 of the Contract, such portion being the minimum value of $7,450,000 or the actual value upon completion, whichever is greater. However, nothing in this agreement will relieve Developer of its obligation to construct the remainder of the Rental Housing and Commercial Components in accordance with the Contract. 2