11/14/2005 Council Packet - Laserfiche WebLink

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• • • 1.7 City has approved the Subject Parcel for use consistent with the proposed Hotel 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 hotel on the Subject Parcel with a minimum market value of $3,750,000 (the "Hotel Improvements "). 2.2 The parties hereto agree and understand that the Hotel Improvements constitute a portion of 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 Commercial Component represented by the Hotel 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 Developer dated , 2005 ( "Assessment Agreement "), setting a minimum market value for the Subject Parcel and the Hotel Improvements constructed thereon for the period described in the Assessment Agreement. (c) Satisfactory completion by Successor Developer of the Hotel Improvements will be considered satisfaction of Developer's obligations as to a portion of the market value of Commercial Component under Section 4.3 of the Contract, such portion being the minimum value of $3,750,000 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 Commercial Component in accordance with the Contract. • 2