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HomeMy WebLinkAbout08-254 • Resolution No. 08-254 RESOLUTION AUTHORIZING EXECUTION OF A FIRST AMENDMENT AGREEMENT WITH CHANNING SQUARE, L.L.C. FOR DEVELOPMENT OF THE FORMER CHANNING YMCA PROPERTY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Ed Schock,Mayor, and Diane Robertson, City Clerk,be and are hereby authorized and directed to execute a First Amendment Agreement on behalf of the City of Elgin with Charming Square,L.L.C., for development of the former YMCA property,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: October 22, 2008 Adopted: October 22, 2008 Vote: Yeas: 6 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk 10/10/08 FIRST AMENDMENT AGREEMENT THIS FIRST AMENDMENT AGREEMENT is made and entered into as of the 14th day of October,2008,by and between the CITY OF ELGIN,an Illinois municipal corporation(hereinafter referred to as the"City"); and CHANNING SQUARE,L.L.C.,an Illinois limited liability company (hereinafter referred to as"Developer"). WHEREAS, the City and the Developer entered into a development agreement dated October 24, 2007, providing in part for the conveyance of certain city-owned properties from the City to the Developer and the development of such properties by the Developer pursuant to the terms and conditions of such development agreement (such development agreement dated October 24, 2007, is hereinafter referred to as the "Subject Development Agreement"); and WHEREAS, the City and Developer have agreed that certain amendments to the Subject Development Agreement are necessary and desirable and in the best interests of the City and the Developer. NOW,THEREFORE,for and in consideration of the mutual undertakings as set forth herein, and the mutual undertaking set forth in the Subject Development Agreement,and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. Section 10B of the Subject Development Agreement be and is hereby amended by amending the seventh, eighth and twelfth sentences thereof to read as follows: "Developer shall complete the construction of the public improvements on the Channing Property on or before November 1, 2008. Developer shall commence construction of the three model homes on the Charming Property on or before May 1, 2010 and shall complete the construction of such three model homes on the Charming Property on or before November 1, 2010. y nP In any event,Developer shall complete the entire Channing Place Redevelopment on the Channing Property no later than December 31,2012(hereinafter referred to as the "Completion Date"), provided, however, that such Completion Date for the redevelopment of the Channing Property shall be extended by one day for each day of which construction is delayed or stopped due to accident, strikes, shortage of materials, extreme weather, acts of God or other causes not within Developer's reasonable control." 2. Section 11 of the Subject Development Agreement be and is hereby amended by amending the first sentence thereof to read as follows: "Prior to the Closing of the sale of any of the residential homes on the Channing Property the Developer shall submit to the City for the City's review and approval a draft declaration for a homeowners association which provides for easements, restrictions and covenants and by-laws for the Channing Place Redevelopment on the Channing Property(hereinafter referred to as the"Declaration")." 3. Section 12A of the Subject Development Agreement be and is hereby amended by amending the second and third sentences thereof to read as follows: "The City agrees to provide to the Developer monetary development assistance for the Charming Place Redevelopment on the Channing Property and the Redevelopment of the Spring Street Properties not to exceed the total amount of One Million Twenty Nine Thousand Nine Hundred Dollars($1,029,900). The City shall pay such total amount of $1,029,900 of monetary development assistance to Developer as follows: 4. Section 12A2 of the Subject Development Agreement be and is hereby amended by amending the first sentence thereof to read as follows: "$800,000 as partial reimbursement to the Developer toward the costs of mass grading, site remediation work, public utilities, public streets, alleys and public sidewalks to be constructed as part of the Channing Place Redevelopment on the Channing Property (hereinafter referred to collectively for convenience as the "Subdivision Improvements")." 5. Section 12A3 of the Subject Development Agreement be and is hereby amended by amending the first sentence thereof to read as follows: "$220,000 payable to Developer in thirteen (13) equal installments of Sixteen Thousand Nine Hundred Twenty Three Dollars and 7 cents($16,923.07)by paying to - 2 - . the Developer installments of$16,923.07 within thirty(30)days of the issuance of a building permit for each of the thirteen(13)residential homes to be constructed on the Charming Property. Notwithstanding the foregoing or anything to the contrary in the Subject Development Agreement, as amended, it is agreed and understood that the foregoing amount of monetary development assistance from the City to the Developer for the construction of the thirteen(13)residential homes in the amount of $220,000 payable in installments of $16,923.07 shall be further reduced by the amount of the costs incurred by the City for concrete repairs to the sidewalks and curbs and gutters on Division and/or Charming Streets" 6. The Subject Development Agreement be and is hereby further amended by adding new Sections 36-41 thereto to read as follows: "36. Public Improvements to Include Regrading and Reseeding. Notwithstanding anything to the contrary in the Subject Development Agreement,it is agreed and understood that the public improvements on the Charming Property to be completed by the Developer on or before November 1,2008,pursuant to Section l OB of the Subject Development Agreement,as amended by this First Amendment Agreement,and the Subdivision Improvements for which the City is providing development assistance pursuant to Section 12A2 of the Subject Development Agreement, as amended by this First Amendment Agreement, shall also include, but not be limited to, the re- grading and the seeding with grass seed of the Charming Property by the Developer following the completion of the construction of the curb and gutter and street improvements on the Channing Property. The plans for the re-grading and the grass seed mixture for the grass seeding of the Channing Property shall be subject to the review and approval of the City's General Services Manager. Developer shall also complete on or before November 1,2008,the driveway approach for the property at 472 Division Street, Elgin, Illinois. 37. Completion of Final Plat of Subdivision for Channing Property. Developer shall complete the final plat of subdivision for the Charming Property and present same to the City for the City's approval and for the recording of the final plat of subdivision for the Charming Property by the - 3 - • City on or before December 1,2008.The final plat of subdivision for the Channing Property shall be in a form as approved by the city engineer and shall be in conformance with the terms of the Subject Development Agreement, as amended, the terms of the Planned Development Ordinance for the Channing Property (Ordinance Number G61-07) and in conformance with all applicable city ordinances, specifications and other requirements of law. 38. Contingent Assignment of Plans and Specifications. A. Developer hereby contingently assigns all of its rights,title and interests in and to all plans,specifications,surveys,architectural renderings and drawings,soil test reports,other reports or examination of the Subject Properties, all warranties, guaranties and the right to use all names now or hereafter used by Developer in connection with the Subject Properties,and all permits,licenses or other approvals for the development of the Subject Property including,but not limited to,the plat of subdivision prepared by Land Surveying Services,Inc.,dated October 15,2007;the dimensional site plan prepared by BSB Design, dated August 8, 2007, last revised on October 11, 2007; the site landscapeplans sheet L1.1 and L1.2 prepared byBSB Design,dated August 8,2007,last revised on P P P 1� October 11, 2007; the preliminary engineering drawings prepared by Seton Engineering entitled "Proposed Improvements for Channing Square, Elgin,"sheets C.1-C.12, dated June 12, 2007, last revised October 10,2007;the engineering drawings prepared by Seton Engineering dated August 10, 2007,last revised December 6,2007;and the building plans and elevations,sections,and details for Concepts 1-3, and garage plans, elevations and sections,prepared by BSB Design, dated May 29, 2007, last revised August 17, 2007 (hereinafter collectively referred to as the "Plans and Specifications"). B. In the event the Developer fails to complete the construction of all of the 13 homes to be constructed on the Subject Properties, or in the event the Developer defaults under the Subject - 4 - Development Agreement, as amended, or in the event the Subject Development Agreement, as amended, is hereinafter terminated, it is agreed that the contingent assignment of the Plans and Specifications as provided for in this Section 39 shall become effective and that the City shall be deemed to hold all of the Developer's rights, title and interest in and to the Subject Plans and Specifications. Upon full performance and observance by the Developer of all of its obligations under the Subject Development Agreement, as amended, this contingent assignment shall automatically cease to exist. C. Developer shall not sell, transfer, assign,pledge, encumber or mortgage all or any portion of the Plans and Specifications or any interest therein without the prior written consent of the City, or permit anything to be done that may materially impair the value of any of the Plans and Specifications intended to be afforded by this assignment. D. Developer represents,warrants and covenants to the City that it is the sole owner of all right, title and interest of the owner under all of the Plans and Specifications and agrees that the Developer shall remain liable for all costs, fees and expenses which may be or become due and payable under the Plans and Specifications and for all responsibilities of the ownership of the Plans and Specifications. E. Developer represents,warrants and covenants to the City that it has not performed any act which might prevent Developer from performing its obligations hereunder or which might prevent the City from enforcing its rights pursuant the terms and provisions hereof. F. Until all of the obligations of the Developer under the Subject Development Agreement,as amended,are fully performed and completed,Developer agrees promptly to deliver to the City,true,complete and correct copies of each document or portion thereof comprising the Plans and Specifications. - 5 - G. Notwithstanding anything to the contrary contained in any of the Plans and Specifications,or otherwise provided for in the Subject Development Agreement,as amended,the interest of Developer in the Plans and Specifications is being assigned and transferred to the City by way of collateral security only, the City by its acceptance hereof shall not be deemed to have assumed or become liable for any of the obligations or liabilities of Developer under the Plans and Specifications,whether provided for by the terms thereof,arising by operation of law or otherwise. Developer hereby acknowledges that Developer shall remain liable for the due performance of Developer's obligations under the Plans and Specifications to the extent as though this assignment had not been made. It is expressly intended,understood and agreed that this assignment is made and entered into for the sole protection and benefit of the City and Developer, and their respective successors and assigns, and no other person or persons shall have any right of action hereunder or under the Subject Development Agreement,as amended,at any time;that no third party shall under any circumstances be entitled to any equitable lien as to the Subject Development Agreement, as amended. The relationship between the City and the Developer is not intended and shall not be construed as making the parties appear to be partners or joint ventures or creating any other employment relationship. H. Developer hereby agrees that no liability shall be asserted or enforced by Developer against the City in its exercise of the powers and rights herein granted,all such liability being hereby expressly waived and released by Developer. Developer hereby agrees to indemnify, defend and hold the City harmless from and against any and all liability,expense,cost or damage which the City may incur by reason of act or omission of Developer under any of the Plans and Specifications or other documents or agreements relating thereto. - 6 - 39. Reconveyance of Subject Properties to City. A. Within thirty(30)days of the entry into this First Amendment Agreement Developer shall reconvey to the City title to the Subject Properties by recordable special warranty deed,subject only to the matters affecting title set forth within Section 3 of the Subject Development Agreement. B. Not less than ten(10)days prior to the reconveyance of the Subject Properties to the City, the Developer at its own expense shall deliver or cause to be delivered to the City a title commitment for a 1970 ALTA owner's title insurance policy issued by Chicago Title Insurance Company(the"Title Company")in the minimum amount of insurance covering title to the Subject Properties on or after the date herein, showing title in the Developer,with extended coverage over the so-called general exceptions to title,subject only to: (a)title exceptions set forth in Section 3 of the Subject Development Agreement, (b)title exceptions pertaining to liens or encumbrances of a definite or ascertainable amount which may be removed by the payment of money at the time of closing and which the Developer shall so remove at that time, (c) acts of the City and all parties through or for the City, (d) zoning laws, statutes and ordinances, including, but not limited to, matters relating to the Tax Increment Act, the Elgin Central Area Tax Increment Redevelopment Plan and Project and the Elgin Historic Preservation Ordinance,and(e)other matters of title which the title which the title company is willing to insure without cost to the City. At closing, the Developer shall also furnish to the City(a)affidavits of title in customary form covering the date of closing and showing title in the name of Developer subject only to the permitted exceptions and(b) such other documents as are customary to complete the closing of this transaction. C. If the title commitment or plat of survey discloses either unpermitted exceptions or survey matters that render the title not in conformance with the provisions of this Agreement, the Developer shall within thirty (30) days from the date of delivery thereof have the exceptions - 7 - . • 1 • removed from the commitment or correct any survey defects or to have the title company commit at no cost to the City to insure against loss or damage that may be associated with such exceptions or survey defects, and, in such event, the time of the closing of the reconveyance of the Subject Property from the Developer to the City shall be thirty(30)days after the delivery of the commitment or the time specified in Section 6A of this First Amendment,whichever is later. D. General taxes shall be adjusted ratably as of the time of closing. If the amount of current general taxes is not then ascertainable, the adjusted thereof shall be made on the basis of 105%of the amount of the most recent ascertainable taxes. 40. Removal of the 272 N.Spring Property and the 279 N.Spring Property from the Subject Development Agreement. Notwithstanding anything to the contrary in the Subject Development Agreement, it is agreed and understood that upon the reconveyance of the 272 N. Spring Property and the 279 N. Spring Property from the Developer to the City as part of the reconveyance of the Subject Properties provided for in Section 39 hereof, that the 272 N. Spring Property and the 279 N. Spring Property be and are hereby removed from the Subject Development Agreement,as amended,and all references to either the 272 N. Spring Property or the 279 N.Spring Property in the Subject Development Agreement are hereby deleted and removed from the Subject Development Agreement. Without limiting the foregoing, upon reconveyance of the Subject Properties from the Developer to the City pursuant to Section 39 hereof, the term "Subject Properties"as used in the Subject Development Agreement shall no longer include the 272 N.Spring Property or the 279 N. Spring Property. 41. Reconveyance of Subject Properties to Developer. A. In the event the Developer obtains and provides to the City written evidence of an unconditional commitment for the financing necessary to provide for the construction of not less than - 8 - � w three (3) of the new homes on the Charming Property on or before January 1, 2010, the City shall within sixty(60)days after having been provided such written evidence of the financing necessary to provide for the construction of such three (3) homes on the Charming Property convey to the Developer title to the three(3)lots on the Charming Property(or such greater number of lots on the Channing Property for which the Developer has obtained the financing necessary to provide for the construction of the new homes, by recordable special warranty deed, subject only to the matters affecting title set forth within Sections 3 and 7 of the Subject Development Agreement. In the event the Developer fails to provide the City written evidence of the financing necessary to provide for the construction of not less than three(3)new homes on the Charming Property on or before January 1, 2010, the City may, upon written notice to Developer, declare this Agreement null and void and whereupon this Agreement shall be deemed terminated,null and void,without further obligations of the parties hereto. B. In the event the Developer obtains and provides to the City written evidence of an unconditional commitment for the financing necessary to provide for the construction of not less than an additional three(3)of the new homes on the Charming Property on or before January 1,2011,the City shall within sixty (60) days after having provided such written evidence of the financing necessary to provide for the construction of such additional three (3) homes on the Channing Property convey to the Developer title to an additional three (3) lots on the Charming Property(or such greater number of lots on the Charming Property for which Developer has obtained the financing necessary to provide for the construction of the additional new homes) by recordable wan-anty deed, subject only to the matters affecting title set forth within Sections 3 and 7 of the Subject Development Agreement. In the event the Developer fails to provide the City written evidence of the financing necessary to provide for the construction of the additional not less than - 9 - three(3)homes on the Channing Property on or before January 1,2011,the City may,upon written notice to the Developer,declare this Agreement null and void and whereupon the Agreement shall be deemed terminated without further obligations of the City. C. In the event the Developer obtains and provides to the City written evidence of an unconditional commitment for the financing necessary to provide for the construction of not less than an additional seven(7)of the new homes on the Channing Property on or before January 1,2012,the City shall within sixty (60) days after having provided such written evidence of the financing necessary to provide for the construction of such additional seven (7) homes on the Channing Property convey to the Developer title to an additional seven(7) lots on the Channing Property by recordable warranty deed,subject only to the matters affecting title set forth within Sections 3 and 7 of the Subject Development Agreement. In the event the Developer fails to provide the City written evidence of the financing necessary to provide for the construction of the additional not less than seven(7)homes on the Channing Property on or before January 1,2012,the City may,upon written notice to the Developer,declare this Agreement null and void and whereupon the Agreement shall be deemed terminated without further obligations of the City. D. Not less than ten(10) days prior to the reconveyance of any portion of the Subject Properties to the Developer as provided for in this Section 41, the City at its own expense shall deliver or cause to be delivered to the Developer a title commitment for the portions of the Subject Properties then being conveyed to the Developer as set forth in Section 7 of the Subject Development Agreement. At closing, the City shall also furnish to the Developer (a) Affidavits of Title in customary form covering the date of closing and showing title in the name of the City subject only to the permitted exceptions and(b)such other documents as are customary to complete the closing of the transaction. - 10 - E. In connection with the reconveyance of any portion of the Subject Properties to the Developer pursuant to this Section 41, if a title commitment or a plat of survey discloses either unpermitted exceptions or survey matters that render the title not in conformance with the provisions of this Agreement,the provisions of Section 8 of the Subject Development Agreement shall apply. F. In connection with the reconveyance of any portion of the Subject Properties to the Developer pursuant to this Section 41,general taxes shall be adjusted ratably at the time of closing. If the amount of the current general taxes is not then ascertainable,the amount thereof shall be made on the basis of 105%of the amount of the most recent ascertainable taxes. G. In addition to the other requirements of the Subject Development Agreement, Developer shall obtain a building permit for and shall commence the construction of the single family residence to be constructed on a lot which comprises a portion of the Subject Properties within sixty(60) days after the reconveyance of such lot from the City pursuant to this Section 41 and shall complete the construction of and obtain a final occupancy permit for any such single family residence as soon as is reasonably practicable but no later than eight (8) months after the reconveyance from the City of the lot upon which the single family residence is being constructed. In the event of any conflict between the provisions of this section and the provisions of any other section of the Subject Development Agreement, as amended, the provisions of this section shall control. H. In the event the Subject Development Agreement is terminated pursuant to this Section 41 or otherwise,after any portions of the Subject Properties has been reconveyed by the City to the Developer, the Developer's obligations under the Subject Development Agreement to commence and complete the construction of the single family residences on the portions of the Subject Properties previously reconveyed by the City to the Developer shall survive any such - 11 - •• • I. W termination. In the event of any conflict between the provisions of this section and the provisions of any other section of the Subject Development Agreement,as amended,the provisions of this section shall control." 7. Terms as used in this First Amendment Agreement shall have the same meaning and definitions as set forth in the Subject Development Agreement, except as amended by the terms of this First Amendment Agreement. 8. In the event of any conflict between the terms of this First Amendment Agreement and the terms of the Subject Development Agreement,the terms of this First Amendment Agreement shall supersede and control. 9. Except as specifically and expressly amended in this First Amendment Agreement, the terms of the Subject Development Agreement shall remain in full force and effect. IN WITNESS WHEREOF,the parties hereto have entered into and executed this agreement on the date and year first written above. CITY OF ELGIN, a municipal CHANNING SQUARE, . .C., corporation an Illinoi imited liab' i om y B ayor Its President Attest: Attest: f City Clerk F:\l egal Dept\Agreement\Development Agr-Charming Y-lst Amend-10-10-08-Clean.doc - 12 - October 16, 2008 TO: Mayor and Members of the City Council ► .� FROM: Olufemi Folarin, City Manager - �r�atNaity Siable William A. Cogley, Corporation Counsel Loy Government SUBJECT: Proposed First Amendment to the Development Agreement with Charming Square, L.L.C. PURPOSE Thepurpose of this memorandum is toprovide the Mayor and members of the CityCouncil with Y information on a proposed First Amendment to the Development Agreement between the City and Channing Square, L.L.C. RECOMMENDATION It is recommended that the Mayor and members of the City Council approve the proposed First Amendment to the Development Agreement with Charming Square, L.L.C. BACKGROUND The City and Charming Square, L.L.C. ("Developer") entered into a Development Agreement dated October 24, 2007. Such Development Agreement related to the redevelopment of the City- owned property at the northeast corner of Charming Street and Division Street (the "Channing Property") and the redevelopment of two City-owned lots at 272 N. Spring Street and 279 N. Spring Street. The Development Agreement provides for the construction of 13 new homes on the Channing Property and the construction of new homes at both the 272 N. Spring Street and the 279 N. Spring Street properties. In accordance with the Development Agreement, the Developer proceeded with the public improvements on the Channing Property including remediation of buried debris on the property and the completion of underground sewer and water utilities. The remaining public improvements to be completed on the Charming Property include curbs and gutters, streets and sidewalks. The Development Agreement currently provides for $700,000 of monetary development assistance from the City to the Developer for the public improvements to be constructed on the Charming Property. Approximately $600,000 of the $700,000 of monetary development Proposed First Amendment to Development Agreement with Charming Square, L.L.C. October 16, 2008 Page 2 assistance has been expended to date for the public improvements completed to date. Developer's cost to complete the public improvements have increased from the original estimate of$700,000 to approximately $800,000 as a result of several factors including utility conflicts in Division Street and increased costs related to the proposed street work. Developer has also been unable to maintain its financing to proceed with the construction of the three model homes which were to be constructed this year on the Charming Property. Based upon these circumstances, the Developer and City staff have been conducting discussions regarding proposed amendments to the Development Agreement. Attached is a proposed First Amendment to the Development Agreement. Such First Amendment may be summarized as follows: 1. Section 1 would amend Section 10B of the Development Agreement by extending the date the Developer must complete the construction of the public improvements on the Channing Property from August 1, 2008 to November 1, 2008. Such section would also extend the dates by which Developer must commence and complete the construction of the three model homes on the Channing Property from May 1 and November 1, 2008 to May 1 and November 1, 2010. Such section would also extend the date by which the Developer must complete the entire Charming Place redevelopment from no later than 48 months following the closing in 2007 until December 31, 2012. 2. Section 2 would amend Section 11 of the Development Agreement by extending the date by which the Developer must submit to the City a draft declaration for a homeowners association for the Channing Property from within 90 days of the closing in 2007 to prior to the closing of the sale of any of the residential homes on the Charming Property. 3. Section 3 would amend Section 12A of the Development Agreement by reducing the total amount of monetary development assistance from the City to the Developer from $1,059,900 to $1,029,900. Such reduction is a result of the removal of the two Spring Street lots from the Development Agreement as hereinafter described. 4. Section 4 would amend Section 12A2 of the Development Agreement by amending the amount of monetary development assistance from the City for the public improvements on the Charming Property from $700,000 to $800,000. Such $100,000 increase would be offset by the decrease in the monetary development assistance for the construction of the houses as described in Section 5. 5. Section 5 would amend Section 12A3 of the Development Agreement by reducing the amount of monetary development assistance from the City for the construction of the houses from $350,000 to $220,000. Such $120,000 reduction is attributable both to the $100,000 increase in the public improvement assistance and a reduction of the housing monetary assistance as a result of the removal of the two Spring Street properties. Such monetary development assistance for the construction of the houses would be further reduced by the amount of costs incurred by the City for concrete repairs to the sidewalks 1 .•• •r �• Proposed First Amendment to Development Agreement with Channing Square, L.L.C. October 16, 2008 Page 3 and curbs and gutters on the adjacent Division and/or Channing Streets. The City intends to perform this work this fall. 6. Section 6 would add new Sections 36-41 to the Development Agreement. The new Section 36 would provide that as part of the public improvements on the Channing Property to be completed by the Developer by November 1, 2008, that the Developer will also provide for the regrading and seeding with grass of the Channing Property. 7. The new Section 37 requires the Developer to complete the final plat of subdivision for the Channing Property and present same to the City for approval and recording on or before December 1, 2008. 8. The new Section 38 provides for the Developer to contingently assign all of its rights, title and interest in and to all of the plans, specifications, surveys, architectural renderings and drawings and other documentation regarding the subject properties. In the event the Developer fails to complete the construction of all of the 13 homes to be constructed on the Channing Property, the contingent assignment of the plans and specifications would become effective and the City shall be deemed to hold all of the Developer's rights in and to the plans and specifications. 9. The new Section 39 provides for the Developer to reconvey the Subject Properties to the City within 30 days into the entry of the First Amendment Agreement. 10. The new Section 40 provides for the removal of the 272 N. Spring property and the 279 N. Spring property from the Development Agreement. The Spring Street properties are being removed from the Development Agreement at the request of the City. It is proposed that the City will provide for the redevelopment of these properties independently of this Development Agreement. 11. The new Section 41 provides for the potential reconveyance of the Channing Property from the City back to the Developer. Such reconveyance would occur in phases by lots. The reconveyances would be subject to Developer obtaining and providing to the City written evidence of unconditional commitments for the financing necessary to provide for the construction of not less than three of the new homes on the Channing Property on or before January 1, 2010, for not less than an additional three homes on or before January 1, 2011, and for not less than an additional seven homes on or before January 1, 2012. Developer must obtain a building permit for and must commence construction of the houses within 60 days after the reconveyance of lots from the City pursuant to Section 41 and must complete the construction and obtain a final occupancy permit for any such house as soon as reasonably practicable but no later than eight months after the reconveyance from the City of such lot upon which the house is being constructed. In the event the Developer fails to provide the City such written evidence of the financing necessary to provide for the construction of such homes according to such schedule, the City may declare the Development Agreement null and void. Proposed First Amendment to Development Agreement with Charming Square, L.L.C. October 16, 2008 Page 4 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT The current total amount of monetary development assistance from the City to the developer is $1,059,900. The First Amendment Agreement would reduce this amount by $30,000 to $1,029,900 as a result of the removal of the two Spring Street lots from the Development Agreement. LEGAL IMPACT None ALTERNATIVES 1. The City Council may choose to approve the First Amendment Agreement as presented or in an amended form. 2, The City Council may choose not to approve an amendment to the Development Agreement. Respectfully submitted for Council consideration. mg