Brownfield Redevelopment Authority

MANISTEE CITY BROWNFIELD REDEVELOPMENT AUTHORITY Meeting of June 7, 2016 2 pm - Council Chambers, City Hall, 70 Maple Street, Manistee, Michigan AGENDA I Call to Order II Roll Call III Approval of Agenda At this time the Brownfield Redevelopment Authority can take action to approve the June 7, 2016 agenda. IV Approval of Minutes At this time Brownfield Redevelopment Authority can take action to approve the February 9, 2016 meeting minutes. V Public Hearing VI Financial Reports Approval of Invoices At this time the Brownfield Redevelopment Authority will review the summary of paid invoices. Financial Statements Finance Director Ed Bradford will give a financial status update on the Brownfield Redevelopment Authority Funds. VII New Business Review of Responsibilities – South Washington Area Redevelopment Project Staff will review the responsibilities of the City of Manistee Brownfield Redevelopment Authority as detailed in the Development Agreement for the South Washington Area Redevelopment Project Project Updates Staff will update the Brownfield Redevelopment Authority on the status of current projects. 1|P age VIII Old Business Oath of Office/Section 6 Conflict of Interest Annually the Brownfield Redevelopment Authority members will take an Oath of Office and agree to abide by Section 6 Conflict of Interest of the By-Laws of the City of Manistee Brownfield Redevelopment Authority. At this time the members of the Brownfield Redevelopment Authority who were not in attendance at the January meeting will take their Oath of Office and agree to abide by Section 6 Conflict of Interest of the By-Laws of the City of Manistee Brownfield Redevelopment Authority. IX Public Comments and Communications At this time the Chair will ask if there are any public comments. X Correspondence At this time the Chair will ask if any correspondence has been received to be read into the record. XI Staff Reports At this time the Chair will ask Staff for their report. XII Members Discussion At this time the Chair will ask members of the Brownfield Redevelopment Authority if they have any items they want to discuss. XIII Adjournment 2|P age  Planning & Zoning 231.398.2805 Fax 231.723-1546 MEMORANDUM www.manisteemi.gov TO: Brownfield Redevelopment Authority Directors FROM: Denise Blakeslee, Planning & Zoning Administrator DATE: June 2, 2016 RE: June Meeting The next meeting of the Brownfield Redevelopment Authority Meeting will be on Tuesday, June 7, 2016. Staff will review the responsibilities of the City of Manistee Brownfield Redevelopment Authority as detailed in the Development Agreement for the South Washington Area Redevelopment Project. A copy of the agreement is enclosed minus the attachments. Binders have been prepared for each member that contains copies relating to the project and will be handed out at the meeting. If you are unable to attend the meeting please call me at 398.2805.  MANISTEE CITY BROWNFIELD REDEVELOPMENT AUTHORITY 70 Maple Street Manistee, MI 49660 MEETING MINUTES February 9, 2016 A meeting of the Manistee City Brownfield Redevelopment Authority was held on February 9, 2016 at 2pm in the Council Chambers, City Hall, 70 Maple Street, Manistee, Michigan. Meeting was called to order at 2:10 pm by Vice-Chair Steve Brower ROLL CALL Members Present: Steve Brower, Dave Carlson, Donald Kuk, Marlene McBride, Clinton McKinven- Copus, Members Absent: W. Frank Beaver (excused), Jeffrey Stege (excused) Others: T. Eftaxiadis (Consultant for River Parc), Ed Bradford (BRA Administrator), Denise Blakeslee (BRA Recording Secretary) and others APPROVAL OF AGENDA Motion by Don Kuk, seconded by Marlene McBride that the agenda be approved as prepared. With a Voice Vote this motion passed unanimously. APPROVAL OF MINUTES Motion by Don Kuk, seconded by Dave Carlson that the minutes of the July 28, 2015 Brownfield Redevelopment Authority Meeting be approved as prepared. With a Voice Vote this motion passed unanimously. There was not a quorum at the October 27, 2015 Meeting. PUBLC HEARING None FINANCIAL REPORTS Approval of Invoices – Members reviewed the summary of paid invoices. City of Manistee Brownfield Redevelopment Authority Meeting Minutes of February 9, 2016 Page 1 VENDOR NAME DATE INVOICE INVOICE SERVICE DESCRIPTION NUMBER AMOUNT Eftaxiadis Consulting Inc. 7/10/15 CMBRA-1506 $1,445.00 Consulting Services Eftaxiadis Consulting Inc. 8/5/15 CMBRA-1507 $1,275.00 Consulting Services Fibertec Environmental 9/1/15 INV69045-01 $1,239.00 Lighthouse Park – Metal Service Fibertec Environmental 9/1/15 INV69228-01 $ 294.00 Lighthouse Park - Metal Service Compliance Inc 9/1/15 46486 $2,560.25 Lighthouse Park Materials Fibertec Environmental 9/2/15 INV69045-02 $ 210.00 Hexavalent Chromium Solid Service Fibertec Environmental 9/10/15 INV69045-03 $ 284.00 SPLP As – Lighthouse Park Service Eftaxiadis Consulting Inc. 10/1/15 CMBRA-1509 $2,247.50 Consulting Services Fibertec Environmental 10/13/15 INV70013-01 $ 168.00 Percent Moisture, Metal Analysis Service Eftaxiadis Consulting Inc. 11/9/15 CMBRA-1510 $1,593.75 Consulting, Environmental Services TOTAL: $11,316.50 MOTION by Don Kuk, seconded by Marlene McBride to approve previously paid invoices. With a Voice Vote this motion passed unanimously Chair Clinton McKinven-Copus entered the meeting. BRA Financing Finance Director Ed Bradford reviewed the Balance Sheet and Revenue/Expenditure Report with the Directors (attached). MOTION by Don Kuk, seconded by Marlene McBride to approve the Balance Sheet and Revenue/Expenditure Report. With a Voice Vote this motion passed unanimously NEW BUSINESS Director Brower informed the Authority that he has a conflict of interest since his employer is financing a portion of the project. Director Brower will not participate in any discussion and will be abstaining from voting for all items relating to the South Washington Area Redevelopment Project. Development Agreement – South Washington Area Redevelopment Project A Development Agreement between the BRA, City of Manistee and private developer has been drafted regarding the South Washington Area Redevelopment Project. As one of the parties in the agreement the BRA needs to discuss and act on the agreement. City of Manistee Brownfield Redevelopment Authority Meeting Minutes of February 9, 2016 Page 2 Ed Bradford, Finance Director – Reviewed in detail the Agreement with the directors, and noted minor changes had been made to the agreement since the directors received their copies. This is a three party agreement between the Brownfield Redevelopment Authority, City of Manistee and Private Developer. This is a complex agreement, therefore he detailed the sections of the document, clarified the ownership of the properties/developer, eligible redevelopment activities, stages of the project, financial obligations by the developer and City, insurance requirements, and responsibilities of the City, Developer and BRA. Motion by Don Kuk, seconded by Marlene McBride to approve the South Washington Area Redevelopment Project Development Agreement with the changes discussed. With a Roll Call vote this motion passed 4 to 0 with Director Brower abstaining Yes: Kuk, McBride, Carlson, McKinven-Copus No: None Abstained: Brower Act 381 Work Plan – South Washington Area Redevelopment Project Area The Act 381 Work Plan for the South Washington Area Redevelopment Project had been drafted to secure approval by the State of Michigan for the BRA to capture state tax increments for use on the South Washington Area Redevelopment Project. The BRA needs to discuss and act on the Plan. T. Eftaxiadis, consultant for the Developer, reviewed the Act 381 Work Plan with the Directors. He reviewed each section. It was noted that the document has Draft 2015 on the front, but the copy the directors received had included updates thru February 5, 2016. The word DRAFT will be removed from the document and it will be dated the date of adoption by the Authority. The plan is formatted using the template required under Act 381 and the guidelines by the state. A correction of a typographical erroron Table 1 will be made. Motion by Don Kuk, seconded by Dave Carlson to approve the submittal of the Act 31 Work Plan for the South Washington Redevelopment Project to the State of Michigan (MEDC & MDEQ) with corrections and authorize BRA Administrator to submit the plan. With a Roll Call vote this motion passed 4 to 0 with Director Brower abstaining Yes: Kuk, McBride, Carlson, McKinven-Copus No: None Abstained: Brower BRA Responsibilities - South Washington Area Redevelopment Project Ed Bradford spoke that the Brownfield is responsible for approving budgets and invoices for the project and will need to hold more meetings. City of Manistee Brownfield Redevelopment Authority Meeting Minutes of February 9, 2016 Page 3 Election of Officers According to the By-Laws of the Manistee Brownfield Redevelopment Authority the election of officers is held at their annual meeting in January. Chair At this time the meeting was turned over to Ed Bradford who asked for nominations for the Position of Chair. Don Kuk, seconded by Steve Brower nominated Clinton McKinven-Copus for the position of Chair There being no other nominations, nominations were closed. With a unanimous voice vote, Clinton McKinven-Copus was elected Chair of the Brownfield Redevelopment Authority for 2016 Vice-Chair Chair McKinven-Copus asked for nominations for the Position of Vice-Chair. Steve Brower, seconded by Marlene McBride nominated Don Kuk for the position of Vice-Chair There being no other nominations, nominations were closed. With a unanimous voice vote, Don Kuk was elected Vice - Chair of the Brownfield Redevelopment Authority for 2016. Secretary Chair McKinven-Copus asked for nominations for the Position of Secretary. Don Kuk, seconded by Steve Brower nominated Marlene McBride for the position of Secretary There being no other nominations, nominations were closed. With a unanimous voice vote, Marlene McBride was elected Secretary of the Brownfield Redevelopment Authority for 2016. Appointment of a Recording Secretary 2016 Once Elected the Secretary may appoint a Recording Secretary to handle the administrative functions of the office. Marlene McBride appointed Denise Blakeslee to act as the Recording Secretary for the Brownfield Redevelopment Authority for the year 2016. City of Manistee Brownfield Redevelopment Authority Meeting Minutes of February 9, 2016 Page 4 By Law Review According to the By-Laws of the City of Manistee Brownfield Redevelopment Authority the commission shall annually review their By-Laws at the regularly scheduled meeting in January. Members received copies of the By-Laws in their meeting packets. No Changes were made to the By-Laws. Project Update Ed Bradford spoke to the Directors about the Joslin Cove development through a Manistee County Brownfield Plan, and how the developer is looking to move forward with the project. Ed Bradford noted that this is the first year that the 334 River Street project will generate tax increments to be captured by the BRA; the Administrator will work with the developer on submitting invoices for eligible expenses. T. Eftaxiadis gave the Directors the history on the Joslin Cove project. He also spoke of a potential request for redevelopment assistance for a former gas station on River Street. Oath of Office/Section 6 Conflict of Interest - Annually the Brownfield Redevelopment Authority members will take an Oath of Office and agree to abide by Section 6 Conflict of Interest of the By-Laws of the City of Manistee Brownfield Redevelopment Authority. Denise Blakeslee administered the Oath of Office and agreement to abide by Section 6 Conflict of Interest of the By-Laws of the City of Manistee Brownfield Redevelopment Authority to Ed Bradford, Finance Director and Steve Brower, Dave Carlson, Don Kuk, Marlene McBride, and Clinton McKinven- Copus. OLD BUSINESS Schedule Meeting Dates 2016 There was not a quorum at the October 27, 2015 Brownfield Redevelopment Authority Meeting. The Authority needs to schedule the remainder of their meetings for 2016. The By-Laws require that quarterly meetings be held in January, April, July, and October. The Directors discussed the need to hold additional meetings in 2016 due to the responsibilities for the North Washington Area Redevelopment Project. Staff recommends changing the meetings to the first Tuesday of the Month starting in April. MOTION by Steve Brower, seconded by Don Kuk that the City of Manistee Brownfield Redevelopment Authority Schedule their meetings for the first Tuesday of the Month starting on April 5, 2016 as follows: April 5, 2016 May 3, 2016 June 7, 2016 July 5, 2016 August 2, 2016 September 6, 2016 October 4, 2016 November 1, 2016 December 6, 2016 With a voice vote motion passed unanimously. PUBLIC COMMENTS AND COMMUNICATIONS None City of Manistee Brownfield Redevelopment Authority Meeting Minutes of February 9, 2016 Page 5 CORRESPONDENCE None STAFF REPORTS None MEMBERS DISCUSSION Director McBride spoke about the Senior Centers interest in purchasing the former Armory and an Open House they are holding on February 18th. The next regular meeting of the Brownfield Redevelopment Authority will be held on April 5, 2016. ADJOURNMENT Motion by Don Kuk, seconded by Marlene McBride that the meeting be adjourned. MOTION PASSED UNANIMOUSLY. Meeting adjourned at 4:20 pm MANISTEE CITY BROWNFIELD REDEVLOPMENT AUTHORITY ____________________________________ Denise J. Blakeslee, Recording Secretary City of Manistee Brownfield Redevelopment Authority Meeting Minutes of February 9, 2016 Page 6 City of Manistee Brownfield Redevelopment Authority Meeting Minutes of February 9, 2016 Page 7  CITY OF MANISTEE BROWNFIELD REDEVELOPMENT AUTHORITY SUMMARY OF INVOICES SUBMITTED FOR PAYMENT REPORTING PERIOD: January 1, 2016 – June 2, 2016 VENDOR NAME DATE INVOICE NUMBER INVOICE SERVICE DESCRIPTION AMOUNT Eftaxiadis Consulting Inc. 1/18/16 CMBRA-1412 510.00 Misc. Technical Services; H&K Redevelopment Assistance; 318 River Street Redevelopment Assistance Eftaxiadis Consulting Inc. 3/2/16 CMBRA-1602 807.50 Misc. Technical Services; H&K Redevelopment; 305 River Street Redevelopment; Joslin Cove TIF Mgmt; 334 River Street TIF Mgmt TOTAL: $1,317.50  CITYOFMANISTEE BROWNFIELDREDEVELOPMENTAUTHORITY DEVELOPMENT & REIMBURSEMENTAGREEMENT ThisDevelopment & ReimbursementAgreementismadeasofthis16th ___dayof February 2016, betweenMANISTEEINVESTMENTPARTNERS , LLC aMichiganlimitedliabilitycompany,300WashingtonAvenue, Suite100, GrandHaven, MI49417 ), RiverParcPlaceII,LLC,aMichigan limitedliabilitycompany; andNorthChannelInvestors,LLC,aMichiganlimited CITYOFMANISTEE amunicipal andthe , corporation, 70MapleStreet,Manistee,Michigan49660 CITYOF MANISTEEBROWNFIELDREDEVELOPMENTAUTHORITY aMichigan publicbodycorporate, 70MapleStreet,Manistee, Michigan49660 PREMISES A. Ownerwishestorehabilitateandredevelopthehistoricand/orblightedstructures andassociatedimprovementsforitsmixeduseprojectcommonly South WashingtonAreaProjectscribedonattachedExhibit A, B tobelocatedonthepropertydescribedonattachedExhibit B. Cityhasdeterminedinfurtheranceofitspublicpurposesthatitisinitsbest interest toacquire, construct,upgradeandmaintaincertainpublicfacilities,describedon attachedExhibit C( sewer, utilities,streets,sidewalks, riverwalks,retainingstructures, streetscapesand parkingtobelocatedonpropertydescribedinattachedExhibitD Developments Development. ThePublic ExhibitB) Exhibit E)collectively. C. Cityhasobtained,andmayseekfromOwneradditionalpubliceasementsas neededforPublicFacilitiesasdescribedinExhibitF. D. CityhasdeterminedforpurposesofthisAgreementthatitwillconstructPublic Facilitiesinfurtheranceof publicpurposeandthepublicpurposepromotedbythe constructionoftheEligibleActivitiesof Development. E. OwnerandCityhavedeterminedthatitwouldbetotheirmutualbenefitto coordinatetheirrespectiveconstructionprojects. F. OwnerandCityhavedeterminedthatitwouldbetotheirmutualinteresttoseek BlightEliminationandRentalRehabilitationgrantsfromtheStateofMichigantopartly 018999573 } 1 financetherehabilitationandredevelopmentoftheblightedandhistoricbuildingson Property. G. OwnerandCityhavedeterminedthatitwouldbetotheirmutualinterestto pursueshorttermabatementoftherealpropertytaxesfortheformerNorthChannel Outlet pursuanttotheObsoleteProperty RehabilitationAct,Act146,PublicActsof2000 . H. CMBRAhasbeenformedpursuanttoAct381,PublicActsofMichigan,1996, MCL125.2651et.seq. ("Act381") topromotetherevitalizationofblighted,functionally obsoleteorenvironmentallydistressedareas. CMBRAandCityCouncilhaveapproveda Brownfield , attachedtoasExhibitG DevelopmentandPublicDevelopmentlocatedwithin property (collectivelyreferr I. CMBRAhasdeterminedinfurtheranceofitspurposesandtoaccomplishits goals, itisin bestinteresttofinancecertain "eligibleactivities" asdefinedby Sec.2 (l)ofAct381withinEligibleProperty,asdefinedbelow. J. PursuanttotheBrownfieldPlanandtheAct381WorkPlan (attachedasExhibit H CMBRAwillcaptureandretain100%ofthetaxincrementrevenuesauthorizedby lawtobecapturedfromtheleviesimposedbytaxingjurisdictionsupontaxableproperty fortheEligiblePropertyconsistentwithAct381,asamended, andtheBrownfieldPlan approvedbytheCMBRAandCity (the "TaxIncrements"). Uponsatisfactionofthe conditionsexpressedinthisAgreement, CMBRAwilluseanddistributetheTax IncrementrevenuesasprovidedbylawandasdescribedinthisAgreement. InconsiderationofthepremisesandthemutualcovenantscontainedinthisAgreement, Owner,CityandCMBRAherebyenterintothisAgreementandcovenantandagreeas follows: ARTICLE1 Section1.1 DefinitionsThefollowingcapitalizedtermsusedinthisAgreementshall havethefollowingmeanings, excepttotheextentthecontextinwhichtheyareused requiresotherwise: a." Act381" meanstheBrownfieldRedevelopmentFinancingAct,Act381 ofMichiganPublicActsof1996,asamended,MCL125.2651etseq. b. tobeapproved H ,andincorporatedhereby byCMBRAandattachedasExhibit 018999573 } 2  reference, togetherwithanysubsequentamendmentsapprovedby CMBRAandMDEQ/MSF. c." Agreement" meansthisDevelopmentAgreement. d. underAct381,andadoptedbyCMBRAandCityCouncil, andattachedas G andincorporatedherebyreference. Exhibit e." BrownfieldTaxIncrements" meanstaxincrementrevenues, asdefined byAct381,fromalltaxablerealandpersonalpropertylocatedonEligible PropertyshownintheBrownfieldPlanduringthelifeofthePlan. f. Manistee. g. CouncilManisteeCityCouncil. h." CMBRA" meanstheCityofManisteeBrownfieldRedevelopment Authority,establishedbytheCityCouncilonJune6,2006,orits successors. i." County" meanstheCountyofManistee, Michigan. j." EligibleActivities" meansthoseactivitiesasdefinedbySec.2(1)ofAct 381,MCL125.2652,asamended,orapprovedbytheMichiganStrategic Fund () ortheMichiganDepartmentofEnvironmentalQuality includingashereafter amendedorsupplemented. k." EligibleProperty", meanstherealpropertyasdefinedbyMCL 125.2652asamendedforpurposesofcompletingEligibleActivitiesand describedinExhibit Dwhichmaybeamendedbythepartiestoreflectany transferoflandaftertheexecutionofthisAgreement.Suchamodification shallbebyamendmentofthisAgreementandshallbeinwritingsigned bytheparties. l. EnvironmentalC environmentalconsultingorcontractingfirmretainedorhiredbyOwner orCitytofulfillitsobligationsunderthisAgreement, includingEligible ActivitiessetforthintheAct381WorkPlan. m." EventofDefault" tocarryoutitsobligationsunderthisAgreementor,withrespecttoa party,ifanyrepresentationorwarrantyofsuchpartywasmateriallynot accuratewhenmade, andsuchobligationhasnotbeenperformedorsuch representationorwarrantycorrectedwithinthecureperiodandas 018999573 } 3  providedinArticle10below.Italsomeansanyfilingofbankruptcyor bankruptcyreorganizationbyOwner. n. obligationtopayforEligibleActivitiesandnottoexceedtheamountsset forthintheapprovedAct381WorkPlan,asamendedorsupplemented o. MichiganDepartmentofEnvironmentalQuality. p. MichiganStrategicFund. q.MSF meanstheworkplan submittedtoCMBRAbyOwnerandapprovedbyCMBRAoutlining EligibleActivitiesintheBrownfieldPlantobeperformedontheSitethat aresubjecttoreviewandapproval (oralreadyapprovedby)MSFand MDEQ,respectively. r. vironmentalProtectionAct beingAct451of1994. s."Owner" means, collectively,ManisteeInvestmentPartners, LLC,a Michiganlimitedliabilitycompany,RiverParcPlaceII,LLC,aMichigan limitedliabilitycompanyandNorthChannelInvestors, LLC,aMichigan limitedliabilitycompany, jointlyandseverally,300WashingtonAvenue, Suite100,GrandHaven, MI49417,anditssuccessors, affiliatesand permittedassigns. t." Owner utilities,andequipmentrelatingtoEligiblePropertyasdescribedon attachedExhibitAincorporatedherebyreference. u. Property asdescribedinattachedExhibitB,andmadeaparthereof. Owner Propertyanditsdescriptionmaybeamendedbythepartiestoreflectany transferoflandaftertheexecutionofthisAgreement. Sucha modificationissubjecttothe mutualagreementandshallbeby amendmentofthisAgreementinwritingandsignedbytheparties. v.CityManistee, aMichiganmunicipalcorporation. w. therealpropertyand Candincorporatedhereinby improvementsdescribedinExhibit reference. x. ans . 018999573 } 4  y. describedinattachedExhibit ,E andmadeaparthereof. z. fromalltaxablerealandpersonalpropertylocatedontheSiteduringthe lifeoftheBrownfieldPlan. aa."TransactionCosts" meansCM authorization,execution, administration, oversight, fulfillmentof CMBRA'sobligationsunderthisAgreementandasallowedbyAct381, whichsuchitemsshallinclude,butnotbelimitedto,directorindirectfees andexpensesincurredasaresultoftheapplication,amendmentstothe BrownfieldPlan,approvalsofthedevelopmentscontemplatedherein, printingcosts,costsofreproducingdocuments, filingandrecordingfees, attorneyfees, financialexpenses, insurancefeesandexpenses, administrationandaccountingforloanproceedsandtaxincrements revenues, oversightandreview,andallothercosts,liabilities, orexpenses, relatedtopreparationandcarryingoutorenforcingthePlans,theAct381 WorkPlanandthisAgreement, orotherrelatedagreementswithOwner,if any,andanyothercosts,charges, expenses, andprofessionalandattorney feesinconnectionwiththeforegoing. bb. E. thetermsoftheeasementforthesameattachedinExhibit cc. andnotsubjecttothetermsoftheeasementreferencedinparagraphbb. above, responsibilitytomaintain. Section1.2 NumberandGender Thedefinitionsoftermshereinshallapplyequally tothesingularandpluralformsofthetermsdefined. Wheneverthecontextmayrequire, anypronounshallincludethecorrespondingmasculine,feminine, andneuterforms. ARTICLE2 COVENANTSOFOWNERANDPUBLICDEVELOPER Section2.1 ConstructionofDevelopments OwnermayconstructtheOwner DevelopmentandCitymayconstructthePublicDevelopment, respectively, fortheir respectiveprojectsordevelopment,providedthateachshalluseproperconstruction standardsandthateachproceedwithduecareanddiligenceandcommenceandcomplete EligibleActivitiesandtheirrespectivedevelopmentsinaccordancewiththisAgreement, andinaccordancewithanyapplicablelaw,regulation, codeandordinancewithrespectto theirEligibleActivities. 018999573 } 5 governmentalpermitsandapprovalsnecessaryfortheconstructionofsame (the Approvalsonatimelybasis. ThephasingorstagingoftheconstructionofOwnerand PublicDevelopmentasitimpactstheredevelopmentscheduleandthegenerationand captureofTaxIncrementsshallbeasfollows: a)OwnerwillinitiateredevelopmentoftheRiverParcPlaceproperty, including theconstructionofparkingfacilitiesandEligibleActivitiesonthisproperty withinthree (3)monthsof boththeexecutionofthisAgreementandtheexecutionofBlightElimination GrantNo.1agreementsbetweenMSFandCMBRA/City,andCMBRA/City andOwner. Substantialcompletshallbe withintwelve (12)monthsofcommencementofsame, butmaybeextendedto atotaloffifteen (15)monthsofcommencementbythemutualagreementof theparties. subjectto b)OwnerwillinitiateredevelopmentofthecommercialcomponentoftheNorth ChannelOutletproperty,includingconstructionofparkingfacilities,and EligibleActivitiesonthisproperty withinsix (6)monthsaftercompletionofboth DevelopmentPhaseI,andexecutionofBlightEliminationGrantNo.2 agreementsbetweenMSFandCMBRA,andCMBRAandOwner.Substantial completion shallbewithinnine (9)months ofcommencementofsame, butmaybeextendedtoatotaloftwelvemonths ofcommencementbythemutualagreementoftheparties. commencementofOwn andthe completionoftheShortStreetStabilizationStructuredefinedbelow. c) SuOwner will constructaretainingwall,atleastaportionofwhichwillbelocatedonparcel ID51-211-100-03 publicroadwaycommonlyknownasShortStreet.. Theretainingwallwillbe ngineeringfirm (SpicerGroup,Inc.) expense, butwithinputfromboththeOwnerandtheCityaspertainstoboth designspecificationsandspecificlocation. Thepartieswillgrantsuch licensesand/oreasementsasarereasonablynecessarytopermitthe constructionandmaintenanceofsame. Constructionoftheretainingwall shallbeginwithinthree (3)monthsoftheexecutionofthisAgreement. The retainingwallcontemplatedbythissub-paragraph (c)willbereferredto hereinafteraConstructionshallbe substantiallycompletedwithintwelve (12)monthsofthecommencementof thesame. CostofconstructionoftheShortStreetStabilizationStructureshall 018999573 } 6  betheresponsibilityofOwner, subjecttothereimbursementprovisions containedwithinSection2.2. d)OwnerwillinitiateredevelopmentoftheresidentialcomponentoftheNorth withintwelve (12)monthsafterboth PhaseIIandexecutionofRentalRehabilitationgrantagreementsbetween MSHDAandCity,andCityandOwner.Substantialcompletion DevelopmentPhaseIIIshalloccurwithintwelve (12)monthsof commencementofsame, butmaybeextendedforanadditionalsix (6)months uponthemutualagreementoftheparties. Commencement DevelopmentPhaseIIIissubjectto Public DevelopmentPhasesIandIIdescribedbelow. e)CitywillinitiateorcausetobeinitiatedconstructionnecessarytosupplyCity water toandforthebenefitoftheRiverParcPlaceandNorthChannelOutlet buildings,andsidewalk & curbcutsonWashingtonStreetandFifthAvenue oftheexecutionofthisAgreement. Constructionshallbesubstantially completewithintwelve (12)monthsofcommencementofsame, butmaybe extendedtoatotaloffifteen (15)monthsofcommencementbythemutual agreementoftheparties. f) CitywillcommenceconstructionoftheSanitarySewerReplacement,River withinthree (3)months afterOwnercommences opmentPhaseIII.ConstructionofPublicDevelopmentPhase II shallbesubstantiallycompletewithinnine (9)monthsofcommencement ofsame, unlessextendedbythemutualagreementoftheparties. g)CitywillcommenceconstructionoftheWashingtonStreetStreetscapeandthe withinten (10)yearsoftheexecutionofthisAgreement, subjecttoreceiptof andcomplete eligibleexpenses. Section2.2 CovenanttoPayFinancialObligations OwnerandCitywillutilize theirownfundsfortheworkallocatedtotheminthisagreement, suchworkincluding, butinnowaylimitedtoEligibleActivities. Thepartiesheretowillreceive reimbursementfromCMBRA) totheextentofavailableBrownfieldTaxIncrement revenuesforpaymentoftheirparticularEligibleActivitiesinaccordancewiththeterms ofthisAgreement, theBrownfieldPlan, andtheAct381WorkPlan.Eachpartyshallbe entitledtoreimbursementasprovidedinthisAgreementfortheirparticularEligible Activities,regardlessofwhetheranyotherpartyhasperformedandcompletedits EligibleActivities.CaptureofTaxIncrementrevenuesandReimbursementofEligible Activitiesshallbeprioritizedandpaidasfollows: 018999573 } 7  a) First,capturedTaxIncrementrevenueswillbeappliedtoCMBRAannual administrativecostsinaccordancewithAttachmentAtotheBrownfieldPlanandas allowedbylaw; b) Second,inthefollowingorder: 1) reimburse, orsetasideTaxIncrementsforthecurrentandfutureeligible activityexpensesincurredbyOwnerandCity;and 2) reimburseOwnerbyallocating100%oftheTaxIncrementscapturedfrom theeligiblepropertiestoOwner annualinterestchargeperSection2.4 (g),associatedwiththeShortStreet StabilizationStructure andShortStreetStabilizationStructureExtension have beenreimbursedinfull;and 3) reimburseOwnerandCityforeligibleactivityexpenses,plustheannual interestchargeperSection2.4 (g),byallocating60%oftheTaxIncrements s eligibleactivityexpensesfortheredevelopmenthavebeenpaidinfull. c) Third,toreimburseorsetasidetaxincrementscapturedfromtheeligibleproperty afterpaymentshavebeenmadetotheCMBRA,OwnerandCityasprovidedin subparagraphs (a)and (b)above) forremainingeligibleactivityexpensesoftheCity,plus theannualinterestchargeperSection2.4 (g),asdescribedintheBrownfieldPlanand Act381WorkPlan. ItisanticipatedthattherewillbesufficientavailableTaxIncrementrevenuestomeetthe eligibleactivitiesandpublicdevelopmentexpensescontemplatedunderthisAgreement. However,ifforanyreasontheTaxIncrementrevenuesdonotresultinsufficient revenuestosatisfysuchobligation, OwnerandCityagreeandunderstandthattheywill havenoclaimorfurtherrecourseofanykindornatureagainstCMBRAexceptfrom availablecapturedTaxIncrementrevenues, andifforanyreasontherevenuesare insufficientortherearenone,thenOwnerandCityassumefullresponsibilityforany suchlossorcost. Section2.3 TransferofReimbursement. InadditiontoCityprimaryEligible Activities,CityandOwnermayauthorizeOwner,byseparatewrittenagreement approvedandexecutedbytheparties,toconstructorhaveconstructed,identifiedor additionalPublicDeveloperEligibleActivities;insuchcaseOwnerwilltransfer,asCity andOwnermayagreeasnecessary, totheCitybyeasementorotherformofconveyance theadditionalPublicDevelopmentorPublicFacility,andOwnershallreceive reimbursementfortheEligibleActivitiesexpensesassociatedwiththatPublic Developmentasprovidedinsuchseparateagreement. 018999573 } 8 Section2.4 ReimbursementConditions Itisexpresslyunderstoodandagreedthat thereimbursement byCMBRAtoapartyinthisAgreementissubjecttothefollowing conditionsapplicabletothatparty: a) ApprovalbyMDEQ,MSFandCMBRAoftheAct381WorkPlan,as amendedorsupplemented. b) Cityshallprovidesufficientproofofownership,easementorotherformof conveyance, overthePublicFacilitiesSites, andshallhaveperformedallofthe covenants, obligations, termsandconditionstobeperformedbyitpursuanttothis Agreement. c) Ownershallpaytherealandpersonalpropertytaxesleviedonthose portionsoftheOwnerDevelopmentthataresubjecttosuchtaxesandownedbyOwner onorbeforethedatethesamearepayablewithoutinterestorpenalty. d) AdherencetotheBrownfieldPlan. e) Ownershallprovideproofofownershipofthetitle,easementorother propertyinterestoftheOwner Propertyrequiredforeligibleactivitiesorinfrastructure, if applicable, andshallhaveperformedallofthecovenants, obligations, termsand conditionstobeperformedbyitpursuanttothisAgreementandanyotheragreement withCMBRAorCity. f) OwnerandCityshallprovideswornwrittenwaiversofliensby consultants, contractors, andsubcontractorsprovidingservicesfortheirrespective eligibleactivitiesasdescribedinthisAgreement. g) Totheextentcapturedrevenuesareavailable,CMBRAshallpayOwner andCityannualsimpleinterestonEligibleActivityexpensesasfollows: 1)InterestshallbepaidtotheCityandtheOwnerforEligibleActivities ataratenottoexceed5%,subjecttoapprovalbytheMFSandthe MDEQ. 2)Interestshallbepaidoneligibleexpensesandshallbeginaccruing afterallofthefollowing: i) InvoicesforEligibleActivitiesandexpenseareapprovedby CMBRAasprovidedherein;and ii)SubstantialcompletionoftheEligibleActivity. 3)IfthereisnotenoughBrownfieldTaxIncrementsinanyyeartopay forallEligibleActivitiesandinterest,paymentofEligibleActivities shallhavepriority. OnceanEligibleActivityispaidwithoutinterest beingpaid,theinterestowedshallnotaccrueanyfurtherinterest, but 018999573 } 9  accruedandunpaidinterestshallbepaidwhenTaxIncrementsare available. Section2.5 OtherDevelopers ReimbursementfromTaxIncrementFinancingrevenuesassetforthinthisAgreement undertheBrownfieldPlanasdesignatedandallocatedinanagreementbetweenOwner andsuchotherdeveloperandapprovedbyCMBRA, whichapprovalshallnotbe unreasonablydelayedordenied. Section2.6 IndemnificationofCMBRAandCity a) Ownershallbeconsideredanindependentcontractorandnotanagentor employeeofeitherCMBRAorCity,norshallanyagentoremployeeofOwnerbe consideredanagentoremployeeofCMBRAorCity.Ownershallremainresponsiblefor anyclaimsarisingoutofitsactsoromissionsfortheperformanceofitsowneligible activitiesasdescribedinthisAgreementasprovidedbylaw. Additionally,Owner,City andCMBRAshallnotbeconsideredengagedinajointventureorpartnership, and Owner,CityandCMBRAshallberesponsibleforanyclaimsarisingoutoftheirown actsoromissionsduringtheperformanceoftheirrespectiveeligibleactivitiesdescribed inthisAgreementasprovidedbylaw. b) Exceptforclaimsarisingoutof ownactsoromissions undersubparagraph (a),Ownershalldefend, indemnifyandholdCMBRAandCity harmlessfromanyloss,expense (includingreasonablecounselfees) orliabilityofany natureduetoanyandallsuits,actions,legaloradministrativeproceedings, orclaims arisingorresultingfrominjuriestopersonsorpropertyasaresultoftheownershipor operation,useormaintenanceoftheOwnerDevelopmentfromandafterthedatehereof. Ifanysuit,actionorproceedingisbroughtagainstCMBRAorCity,CMBRAand/orCity promptlyshallgivenoticetoOwnerandOwnershalldefendwithcounselselectedby Owner,butwhichcounselshallbereasonablysatisfactorytoCMBRA..Inanysuch proceeding, CMBRAand/orCityshallcooperatewithOwnerandOwnershallhavethe righttosettle,compromise,payordefendagainstanysuchclaimonbehalfofCMBRA and/orCity,exceptthatOwnermaynot, without priorwritten consent,settleorcompromiseanyclaimiftheeffectofdoingsowouldbetosubject CMBRAorCitytocivilorcriminalpenalties. Ownershallnotbeliableforpaymentor settlementofanysuchclaimorproceedingmadewithoutitsconsent. c) OwneralsoshallindemnifyCMBRAandCityforactualandreasonable costsandexpenses, includingactualandreasonable fees, incurredin successfullyenforcingorpursuinganyobligationoforclaimagainstOwnerunderthis Agreement. Totheextentthattheenforcementofsuchobligationorclaiminvolvesa claimagainstaconsultant, contractororsubcontractorwhoperformsworkorservices llbedeemedtobeathirdpartybeneficiary contractinfavorofCMBRAand/orCity. 018999573 } 10  d) Ownershalluseitsreasonablebesteffortstoassurethattotheextenta consultant,contractororsubcontractorprovidesservicestowardcompletionofany EligibleActivities,ataminimum,theconsultantshallprovidetoCMBRAandCitythe indemnityprovisionssetforthinSec. 6.12ofthisAgreement. e) OwnershalladdCMBRAandCityasadditionalinsuredstotheir respectivepropertyandgeneralliabilityandcomprehensiveliabilityinsurancepolicies fortheprojectsdescribedandcoveredbythisAgreement,theBrownfieldPlan,as amended, ortheAct381Plan, asamendedorsupplemented. Section2.7 SiteAccess Cityastothe PublicDevelopmentSite,shallgranttoCMBRA,CityandMDEQorMSF,ortheir designatedagents, accesstotheirrespectiveproperties,toexercisetheirrespectiverights relatedtothepurposesandpursuanttothetermsofthisAgreement. CMBRAshallgive eitherOwnerorCity,asappropriate, 24hourswrittennoticeofitsintenttoaccesseither theSiteorthePublicDeveloperSitewheneverpossible. Ifnoticecannotbegivendueto anemergencyoranyotherunforeseencircumstance, CMBRAshallgivenoticeasis reasonableandpracticableunderthecircumstances. Section2.8AgreementtoApproveTaxAbatements. Cityagreestoapprove, realpropertytaxabatements asfollows: a municipalapprovalto OwnerofanOPRAtaxabatementrequestontheNorthChannelOutletparcel, which abatementshallremainineffectforten (10)years. GrantoftherequestofanOPRAtax abatementissubjecttotheapprovaloftheMichiganStateTaxCommission. Theterms ofanyOPRAtaxabatementwillbeinaccordancewithandsubjecttotheprovisionsof theMichiganObsoletePropertyRehabilitationAct,MCL125.2781etseq. Section2.9 SeparateCovenantsandObligations City obligationstoCMBRAareseparatecovenantssolelyrunningtoandenforceableby CMBRA,MDEQ,orMSFasprovidedbylaw,andnootherparty,person, orentity. UnlessotherwiseexpresslyprovidedinthisAgreement,abreachordefaultbyOwneror CityofitsobligationtoCMBRAshallnotconstituteabreachordefaultoftheother andcovenantstoCM claims. Further, nothirdpartybeneficiaryrights,interest, orclaimsarecreatedby impliedcontract, operationoflaw,oranyothermeans. 018999573 } 11  ARTICLE3 CONDITIONSPRECEDENTTO RCITY OBLIGATIONS UNDERTHISAGREEMENT Section3.1 Development obligationstocompleteEligibleActivitiesandconstructthe Development, ascontemplatedherein,aresubjecttothefollowingconditionsprecedent whichmustbesatisfiedbyCMBRAasrequiredherein,exceptasexpresslyprovidedin thisAgreementorotherwisewaivedbyOwner: a) Noaction,suit,proceedingorinvestigationshallbepending beforeany court,publicboardorbodytowhichOwner,CityorCMBRAisaparty, orthreatenedagainstOwner,City orCMBRAcontestingthevalidityor bindingeffectofthisAgreementorthevalidityofthePlan,whichcould resultinanadversedecisionwhichwouldhaveoneormoreofthe followingeffects: 1) AmaterialadverseeffectupontheabilityofCMBRAtocollect anduseTaxIncrementsrevenuestorepayitsobligationsunderthis Agreement. 2) AmaterialadverseeffectonOwner's,City tocomplywiththeobligationsandtermsofthisAgreement, the BrownfieldPlan,ortheAct381WorkPlan. b) ThereshallhavebeennoEventofDefaultbyCMBRAorCity. c) CMBRAandCityshallhaveperformedallofthetermsandconditionsto beperformedbyitpursuanttothisAgreement. d) ApprovaloftheAct381WorkPlanbytheMDEQand/orMSF. Notwithstandinganythingcontainedi obligationsshallnotbeaffectedbyanyoftheconditionsdescribedaboveifthecauseof theoccurrenceistheact,orfailuretoact,oftheOwner. Section3.2 ConditionsPrecedenttoCityoConstructthePublic Development TheobligationsofCity tocompleteitsEligibleActivitiesandconstruct thePublicDevelopmentascontemplatedherein,aresubjecttothefollowingconditions precedentwhichmustbesatisfiedasrequiredherein,exceptasexpresslyprovidedinthis AgreementorotherwisewaivedbytheCity a) Noaction,suit,proceedingorinvestigationshallbependingbeforeany court,publicboardorbodytowhichOwnerorCityorCMBRAisaparty, orthreatenedagainstanyofthemcontestingtheBrownfield Planorthe 018999573 } 12  validityorbindingeffectofthisAgreement, whichcouldresultinan adversedecisionwhichwouldhaveoneormoreofthefollowingeffects: 1) AmaterialadverseeffectupontheabilityofCMBRAtocollect anduseTaxIncrementstopaytheobligationsunderthis Agreement. 2) obligationsandtermsofthisAgreement,theBrownfieldPlan, or theAct381WorkPlan. b) ThereshallhavebeennoEventofDefaultbyCMBRA c) OwnerandCMBRAshallhaveperformedallofthetermsandconditions tobeperformedbythempursuanttothisAgreement. d) TaxIncrementrevenueandotherneededrevenueareassuredfromthe actualdevelopment,imminentdevelopment,contractualobligationstopay theequivalenttaxes, andotherdesignatedsourcesotherthangeneraltax revenues. e) ApprovaloftheAct381WorkPlanbytheMDEQand/orMSF. f) Therehasbeennochangeinstatutesorotherlawwhichwouldhaveoneor moreoftheeffectsdescribedabove. g) OwnerandCityhaveexecutedpubliceasementdocumentsasneededfor thePublicDevelopment. h) TherehasbeennoEventofDefaultbyOwner. i) ProperzoningapprovalsfortheOwnerDevelopmentandthePublic Developmenthavebeensecured. j) TheCityhasreceivedtheconsentofanyaffectedutilityforrelocation, burialoranyotheractivitynecessarytoconstructthePublicDevelopment. k) TheDevelopmentAgreementremainsinfullforceandeffectandthereis nodefaultbyOwner. ARTICLE4 COVENANTSOFCMBRA Section4.1 AdoptionofPlan CMBRAwillprepareandsubmittheAct381Work Plan (andamendmentsasnecessary) inaccordancewithAct381whichwillprovidefor 018999573 } 13 thepaymentoftransactioncostsandreimbursementtoOwnerandCityofOwner'sand City accordancewiththescopeandtermsofthisAgreement,Act381,theBrownfieldPlan, andanyapplicableAct381WorkPlan, andapprovedbyCMBRApursuanttoitspolicies andprocedures. Thesepoliciesandproceduresinclude, butarenotlimitedto,CMBRA's standardsforlocaltaxincrementalfinancingeligibility. Section4.2 CompletionofEligibleActivities andCity completionoftheEligibleActivitiesdescribedintheAct381WorkPlan,asamendedor supplemented,pursuanttothisAgreement, andapprovedbyMDEQand/orMEGAand whereapplicableapprovedbyCMBRA,CMBRAshallreimburseOwnerandCityfor EligibleActivitiesexpensessubjecttoandinaccordancewiththetermssetforthinthis Agreement. OwnerandCityshallhavesoleresponsibilitytopaytheconsultantsorother contractorsorsubcontractorsforcompletionofsuchEligibleActivitiesandprovide writtenwaiverofanyliens. IfOwnerorCityincursanyexpensesorcostsforany activitiesotherthantheEligibleActivitiesorthecostsexceedtheMaximumCostof EligibleActivitiesassetforthintheBrownfieldPlan,theAct381WorkPlan,or approvaloftheCMBRA,OwnerorCityshallbearsuchcostswithoutanyobligationon thepartofCMBRA. IfthecostsofEligibleActivitiesarelessthantheMaximumCostof EligibleActivities, thenOwnerandCityshallhavenofurtherrightofreimbursement beyonditsactualcosts. Section4.3 CMBRAorContractManagerOversight CMBRAmayretainthe servicesofaqualifiedcontractmanagertoexerciseoversightofOwnerorCityandtheir consultants,contractors,orsubcontractorsforpurposesofassuringthattherespective activities, invoicesandaccountingbyOwnerandCityarefair,reasonable, andconstitute eligibleactivitieswithinthemeaningandscopeofthisAgreement,theBrownfieldPlan, theAct381WorkPlanandAct381. OwnerandCityshallprovidetoCMBRAand/orits ContractManageraccesstodata,reports, samplingresults, invoices, andrelated documentsreasonablynecessarytofulfilltheexerciseofsuchoversight. Itisexpressly understoodthatCMBRAhasnorighttocontrolortoexerciseanycontrolovertheactual servicesorperformancebyOwnerorCityoftheiroritsrespectiveEligibleActivities, exceptforthepurposeofassuringthatOwnerorCityhasmetitsortheirrespectiveand applicableconditionsandrequirementsofthisAgreement. ARTICLE5 CONDITIONSPRECEDENTTOCMBRA'SOBLIGATIONS Section5.1 ConditionsPrecedenttoCMBRA'sobligationtoreimburseEligible ActivitiesexpensesfortheOwnerDevelopmentandthePublicDevelopmentThe obligationsofCMBRArelatedtothereimbursementofcoststoOwnerorCityfor completionofEligibleActivitiesexpensesascontemplatedhereinshallbesubjecttothe followingconditionsprecedentwhichmustbesatisfiedbyOwnerorCityasrequired herein,exceptasexpresslyprovidedinthisAgreementorotherwisewaivedinwritingby CMBRA. ItisexpresslyagreedthatCMBRAmakesorgivesnoassuranceofpaymentto 018999573 } 14 theOwnerorCitybythemerefactthatanEligibleActivityoradollaramountforsuch EligibleActivityisidentifiedintheAct381WorkPlan,orashereaftersupplementedor amended, andthatitsdesignatedcontractmanager (ifany)shallhavetherighttoreview andapproveallwrittensummariesofandinvoicesforEligibleActivitiesforthe reasonablenessofservicesperformedbyanyconsultantorcontractorunderthis Agreement. However, solongasanEligibleActivitybyOwnerorCityhasbeen approvedandisauthorizedbyAct381andhasbeencompletedandapprovedin accordancewiththefollowingprocedureandthisAgreement, OwnerorCity,depending onwhichisresponsibleforundertakingtheEligibleActivity,shallbeentitledto reimbursementoftheirrespectiveEligibleActivitiesexpenses. a) BeforecommencingworkoneachstageofEligibleActivitiesand pursuanttothepoliciesadoptedbyCMBRA,CityorOwnerwillpresentaProjectBudget foreachstageorphaseofitsdevelopmentandeligibleactivitiestotheCMBRADirector atleasttwoweekspriortothenextregularmeetingofCMBRA, ifany. TheProject BudgetmustbeapprovedbyCMBRABoard. TheProjectBudgetwillbesubmittedat eachsuchstageorphaseoftheEligibleActivities: BEAactivities; duecare7(a) obligations; andadditionalresponseactivitiesand,ifapplicable, leadandasbestos abatement,demolition,sitepreparationandinfrastructure;andwillcontaindetailedline itemcostestimates. b) CityandOwnershallsubmitevidenceoftheirexpensesandawritten statementaffirmingcompletionofanyEligibleActivitiestotheCMBRADirector,for City oftheinvoice. CMBRAshallnothaveanyobligationtoreimburseanyinvoicethatis submittedtoCMBRAlaterthanoneyearaftertheoriginalinvoicedate,regardlessof whenpaymentontheinvoicewasmade. Within30calendardaysofreceiptofthe invoice,theCMBRA shallreviewtheinvoicetodeterminethereasonablenessofthe invoiceandactivityaseligible,andrecommendapprovalordenialoftheinvoice, inpart orinfull,atameetingofCMBRA. Intheeventofanobjectiontotheinvoice,the CMBRADirectorwillnotifyOwnerorCity,andOwnerorCityshallmeetwiththe CMBRADirectorandattempttoresolveorcuretheobjectionpriortoCMBRADirector makingarecommendationataCMBRAmeeting. IfCMBRAdoesnotauthorize paymentonaninvoice,thenthereshallbenoobligationon parttopaythe invoice. c) Noaction,suit,proceedingorinvestigationshallbependingbeforeany court,publicboardorbodytowhichCity,OwnerorCMBRAisaparty,orthreatened againstCity,OwnerorCMBRAcontestingthevalidityorbindingeffectofthis AgreementorthevalidityoftheBrownfieldPlanorwhichcouldresultinanadverse decisionwhichwouldhaveoneormoreofthefollowingeffects: 1) Amaterialadverseeffectupon abilitytocollectanduse TaxIncrementstopayCMCBRA obligationsunderthis Agreement. 018999573 } 15  2) AmaterialadverseeffectuponeitherOwner orCity to conductEligibleActivities. 3) AnyothermaterialadverseeffectonOwner's,City CMBRAwiththeobligationsandtermsofthis Agreement, orthePlan. d) ThereshallhavebeennoEventofDefaultbyCityorOwner. e) Properapprovalsrequiredunderapplicablefederalandstatelawsor regulations, andlocalordinances, codesorregulationsforlandusesandtheOwner DevelopmentandPublicDevelopment, havebeensecured. f) OwnerandPublicDeveloperhavetheconsentofanyaffectedutilityfor relocation, burialortheactivitytoaccomplishtheeligibleactivities. g) Thereisnochangeinlawthatwouldhaveoneormoreoftheeffects describedabove. ARTICLE6 Section6.1 EligibleActivitiesandDueCareObligation Ownercovenantto CMBRAthateachwillcontractwithcompetentandqualifiedconsultants, contractorsor subcontractors ("Contractors") toconductandcompleteitsortheirrespectiveEligible ActivitiessetforthinthisAgreementandassetforthintheAct381WorkPlan,as amendedorsupplemented, ortheBrownfieldPlan,asamendedorsupplemented, andto meetanyduecareobligationunderMCL324.20107a,ifapplicable, inaccordancewith anyMDEQrequirementsandapproval. Section6.2 Permits OwnerandCityshallensurethattheirrespectiveContractors examineallpermitsandlicensespertainingtoOwnerSite,PublicDevelopmentSite, OwnerDevelopmentorPublicDevelopmenttodeterminewhetherallpermitsand licensesrequiredtobeissuedbyanygovernmentalauthorityonaccountofanyorallof theactivitiesonOwnerSitehavebeenobtainedorissuedandareinfullforceandeffect, andwhetherOwnerSiteorandtheactivitiesthereareincompliancewiththetermsand conditionsofsuchpermitsandlicenses. Section6.3 ASTMandIndustryStandards. OwnerandCityshallensurethattheir respectiveContractorsperformallservicesandeligibleactivitiesunderthisAgreementin accordancewithanyapplicableMDEQ,ASTMorotherindustryStandards. 018999573 } 16 Section6.4 OtherServicesPerformedbyorforaParty Itisexpresslyunderstood thatCMBRAisnotresponsibleforpaymentorreimbursementofanyservicesforor expensesincurredbyOwnerorCitythatarenotwithinthescopeoforinaccordancewith alloftheterms,conditionsandprovisionsofthisAgreementandtheBrownfieldPlanand WorkPlan. ThisAgreementshallnotbedeemedorconstruedtocreateanyrightsto reimbursementorotherwisetotheContractors,oranysubcontractorsorotherthird parties;specifically, thisAgreementshallnotbeconstruedtocreateanythirdparty beneficiarycontractorclaim. Section6.5 OtherAgreements OwnerandCity eachcovenantthattheywillobtain awarrantyfromContractorthatitisnotapartytoanyotherexistingorprevious agreementorproceeding theserviceswithrespecttotheeligibleactivities. Section6.6 ContractorsandSubcontractors IfOwnerorCityhiresaContractoror retainsanyotherpersonorentitytoperformservicesrelatedtoeligibleactivitiesunder thisAgreement,Ownershallfirstsecurethewrittenacknowledgmentfromsuchparty thatsuchpartyisnotandshallnotbeoractasanagentoremployeeofCMBRA,nor assumeorcreateanyduty,commitmentorobligationonbehalfofnorbindCMBRAin anyrespectwhatsoever. Acopyofsuchwrittenacknowledgmentshallbeprovidedto CMBRA. Section6.7 Non-DiscriminationClause NopartyandnoContractor (includingany subcontractorsorindependentcontractors) shall discriminateagainstanemployeeorapplicantforemploymentwithrespecttohire, tenure, terms,conditions, orprivilegesofemployment, oramatterdirectlyorindirectly relatedtoemployment, becauseofrace,color,religion,nationalorigin,age,sex,height, weight,ormaritalstatus. Abreachofthisprovisionmayberegardedasamaterialbreach ofthisAgreement. Section6.8 IndependentContractor Contractorsshallperformservicesunderthis Agreemententirelyasindependentcontractors,andshallnotbedeemedagents, employeesorlegalrepresentativesofCMBRA. CMBRAandContractorsshalleach haveandmaintaincompletecontroloveralltheiremployees, agentsandoperators. Facts orknowledgeoverwhichContractorbecomesawareshallnotbeimputedtoCMBRA withoutcommunicationtoandreceiptbymanagerialofficialsoremployeesofCMBRA. Contractorsshallhavenoauthoritytoassumeorcreate,andwillnotassumeorcreate, anycommitmentorobligationonbehalfofCMBRAinanyrespectwhatsoever. Further, Contractorsshallexerciseindependentjudgmentfortheservicesprovidedinthis Agreement. Section6.9 DisposalofHazardousWaste Intheeventthatsamplesorother materialscontain "hazardouswaste" understateorfederallaw,OwnerorCityshall, underamanifestsignedbyitoritsagent, asthegenerator,havesuchmaterialtransported toafacilityproperlylicensedforthedisposalofhazardouswasteforfinaldisposal. Itis expresslyunderstoodthatCMBRAhasnooversightorothercontrolorauthorityover 018999573 } 17 Cityanyhazardous wasteundertheterms ofthisAgreement. Section6.10 ComplianceWithLaws WhileonOwnerSiteorPublicDevelopment Site; Owner,City, andContractorsshallimposeworkordersontheiremployees, agents andsubcontractorswhicharedesignedtoassurethattheycomplywithallapplicable federal, stateandlocallawsandregulations (includingoccupationalsafetyand environmentalprotectionstatutesandregulations) inperformingservicesunderthis Agreement, andshallcomplywithanydirectionsofgovernmentalagenciesrelatingto sitesafety, security,trafficorotherlikematters. Section6.11 ContractorInsurance OwnerandCityshallassurethatContractorsand allpersonsperforminganypartoftheEligibleActivitiescoveredbythisAgreement, shallobtainandmaintainthefollowingpoliciesofinsurance: a) ionalDiseaseInsuranceinthe amountsrequiredunderthelawsoftheStateofMichigan; b) ComprehensiveGeneralLiabilityandAutomobileInsuranceforbodily injury,deathorlossordamagetopropertyorthirdpersonsinthe minimumamountofatleast $1millionperoccurrence, whichpolicyshall nameCMBRAandtheCountyasadditionalinsuredtotheextentofthe indemnityprovidedinparagraph6.13. c) PollutionorEnvironmentalImpairmentInsuranceintheamountofatleast 1millionperoccurrence. d) OwnerandCityshallfurnishtoCMBRAacertifiedcopyofsuchpolicies within30calendardaysofthedateofthecommencementoftheEligible Activitiesandtheperiodofcoverageshallcommencewiththedateof performanceofthefirstEligible Activity. Thelimitsofinsuranceshall costsorexpensesunderthisAgreement. e) Uponshowingofnoorminimalenvironmentalimpairmentriskwith respecttotheactivitiestobeperformedbyanyspecificContractororsub- contractor, OwnerorCitymayrequestinwritingareductionofthe amountofcoverageinsubparagraph (b)to $500,000;uponthesame showing,OwnerorCitymayalsorequestastoaspecificContractora waiveroftheEnvironmentalImpairmentInsurancerequiredby subparagraph (c),whichwaivershallbeatthesoleandabsolutediscretion ofCMBRA. CMBRAwillprovidewrittendocumentationintheeventit approvesofsucharequest, whichshallbetreatedasanamendmenttothis Agreementeffectiveonthedateofsuchwrittenapproval. 018999573 } 18 Section6.12 ContractorIndemnityProvisions a) Defend,IndemnifyandHoldHarmless. Notwithstandinganyother provisionofthisAgreement, OwnerandCity shallobtainContractors agreements todefend,indemnifyandholdCMBRAharmlessagainstand fromallliabilities, losses, damages, costs,expenses (includingattorney fees), causesofaction,suits,claimsanddemandsforjudgmentarisingout of: 1) Contractors failure tocomplywiththeprovisionsofthis Agreement; and/or 2) Anyactsoromissions, negligentorotherwise,ofanyContractor employees, agents, contractors, orsubcontractorsinthe performanceoftheworkspecifiedinthisAgreement. b) SurvivorshipofCovenants andreleaseshallsurvivetheterminationofthisAgreement. c) Breach. Any breachoftheprovisionsofthisSection 6.12may, at option,constituteabreachofthisAgreement. d) AcknowledgementsFiled. Theindemnityandacknowledgements requiredbysubparagraphs (a)ofthissectionshallbefiledwithCMBRA beforeanyworkbeginsorbeforeanyreimbursementunderthetermsof thisAgreement. ARTICLE7 COORDINATEDCONSTRUCTION Section7.1 TemporaryConstructionEasements. OwnerandCity shallenterinto reciprocaltemporaryconstructioneasementsasneeded andreasonable toallowfor concurrentconstructionoftheOwnerDevelopmentandthePublicDevelopment. Section7.2 ConstructionCoordination. OwnerandCity may, upontheir mutual agreement, selectaprofessionaltomanageorcoordinatetheconcurrentconstructionof allorportionsoftheOwnerDevelopmentandthePublicDevelopment. ARTICLE8 REPRESENTATIONSANDWARRANTIES Section8.1 RepresentationsandWarrantiesofCMBRA CMBRArepresentsand warrantstoOwnerandCitythat: 018999573 } 19  a) CMBRAisapublicbodycorporate, establishedpursuanttoAct381,with allnecessarycorporatepowerspursuanttothatActtoenterintoandperformthis Agreement. b) TheexecutionanddeliveryofthisAgreementhasbeendulyauthorizedby allrequisiteactiononthepartofCMBRA, andthisAgreementconstitutesavalidand bindingagreementofCMBRAenforceableinaccordancewithitsterms,exceptas enforceabilitymaybelimitedbybankruptcy, insolvency, fraudulentconveyanceorother lawsaffectingcreditors'rightsgenerally, nowexistingorthereafterenacted, andbythe applicationofgeneralprinciplesofequity,includingthoserelatingtoequitable subordination. Section8.2 RepresentationsandWarrantiesoftheOwner Ownerrepresentsand warrantstoCMBRAandCitythat: a) OwnerisaMichiganLimitedLiabilitycompanywithpowerunderthe lawsofsuchstatetocarryonitsbusinessasnowbeingconductedandhasthepowerand authoritytoconsummatethetransactionscontemplatedunderthisagreement. b) TheexecutionanddeliveryofthisAgreementandtheconsummationof thetransactionscontemplatedherebyhavebeendulyauthorizedbyallrequisiteactionon part,andthisAgreementconstitutesavalidandbindingagreementofOwnerin accordancewithitsterms,. c) ExceptaspartoftheperformanceandcompletionofEligibleActivities underthetermsofthisAgreement,OwneranditsContractorsshallnotuseOwnerSite forthestorage, treatmentordisposalofhazardousortoxicwastesofunaffiliatedthird partiesandshallcomplywithallapplicablefederal,stateandlocallaws,regulations, rules,ordinances, codes, decreesandordersinconnectionwithanyuseoftheSite,and shallobtainallnecessarypermitsinconnectiontherewith. d) OwnerwarrantsthatitwillcomplywithallobligationsunderSec.7aof Part201oftheNREPA. e) Ownerhasnotmadeanymisrepresentationoffactintheinducementorin theperformanceoradministrationofthisAgreement. f) OnnoticefromCity,Ownerwillexecuteconveyancedocumentsforthe sitesreasonablynecessaryforthePublicFacilities. Further,Ownershall, uponthefull executionofthisAgreement, conveyaRiverwalkeasementovertheparcelimmediately westoftheRiverParcPlaceparcel (PropertyTaxID#51-511-100-03)insubstantially thesameformastheRiverwalkeasementpreviouslygrantedoverRiverParcPlace parcel, intheformoftheEasementattachedin 018999573 } 20 Section8.3 RepresentationsandWarrantiesofCity Cityrepresentsandwarrants toOwnerandCMBRAthat: a) CityisaMichiganmunicipalcorporation. b) TheexecutionanddeliveryofthisAgreementhasbeendulyauthorizedby allrequisiteactionon part,andthisAgreementconstitutes validandbindingagreement, enforceableinaccordancewithitsterms, c) NeithertheexecutionanddeliveryofthisAgreementnorthe consummationofthetransactionscontemplatedherebyisinviolationof anyprovisionofanyexistinglaworregulation, orderordecreeofany courtorgovernmentalentity,oranyagreementtowhichCityisapartyor bywhichtheyarebound. d) City warrantsthatitwillcomplywithallobligations, covenantsand conditionsrequiredofitoritsagentsorContractorsunderthetermsofthis Agreement. e) CityshallcomplywithallduecareobligationsunderSec. 7aofPart201 oftheNREPA. f) Cityhasnotmadeanymisrepresentationoffactintheinducementorin theperformanceoradministrationofthisAgreement. ARTICLE9 DEFAULT,REMEDIES,ANDTERMINATION Section9.1 RemediesUponDefault UpontheoccurrenceofanEventofDefault, thenon-defaultingpartymayterminatethisAgreementastothedefaultingpartyby givingwrittennoticetothedefaultingparty,andthedefaultingpartyshallhave30 calendardaystocurethedefault. Ifthedefaultisnotcuredwithinthistimeperiod,then thenon-defaultingpartyshallhavetherighttoterminatethisAgreementwiththe defaultingpartyor,attheelectionofsuchnon-defaultingparty,mayobtainanyformof reliefpermittedunderthisAgreement,andanyapplicablelawsandcourtrulesofthe StateofMichigan,includingtherighttoseekandobtainadecreeofspecificperformance ofacourtofcompetentjurisdiction. Anyrightorremedyprovidedbyaspecific provisionofthisAgreementshallbedeemedcumulativeto,andnotconditionedon,any otherremediesupondefault.Theprevailingpartyshallbeentitledtoanawardof occurspriortoreimbursementtoCityfromTaxIncrementrevenues, thefollowing expensesshallbereimbursedbyOwnertoCity: a) ShortStreetStabilizationStructureengineeringexpensesincurredbyCity; b) CostofcurbcutsonWashingtonStreetandFifthAvenue; and c) Costofestablishingwaterservicetodevelopmentproperties. 018999573 } 21  ARTICLE10 MISCELLANEOUS Section10.1 Term ThetermofthisAgreementshallcommenceonthedatefirst writtenaboveandshallexpireuponpaymentinfullofCMBRA'sobligations. Owner andCityshallproceedwithandcontinuetheirEligibleActivitiesasdescribedintheAct 381WorkPlan,asamendedorsupplemented. Thepartiesagreetomeetandconferas neededfollowingtheexecutiondateofthisAgreementtodiscussthereimbursement prioritiesandinterestinlightofdatawhichmaythenbeavailableprojectingTIFrevenue andrevenuefromothersourcesforthepublicandprivatedevelopments. Section10.2 SaleorTransferofEligiblePropertyorSitewithinthePlan Subject toapprovalbyCMBRAasprovidedinSection2.5above, Ownermayassignortransfer alloraportionofitsinterestintheprojectdescribedinthisAgreementtoanotherowner tocarryoutthepurposesandgoalsofthePlan,oranyexistingAct381WorkPlan, subjecttothe amendmentofthePlan. ThisdoesnotprohibitOwnerfromselling propertyorunitswithinstructurestothirdpartiesforthelandusesascontemplatedbythe Owner Development. mortgagesagainstanyEligiblePropertytosecurefinancing. Section10.3 Assignment NeitherthisAgreementnoranyoftherightsorobligations containedwithinitmaybeassignedorotherwisetransferredbyOwnerorCity,norshall thebenefitsofthisAgreementinuretothebenefitofanytrusteeinbankruptcy,receiver orcreditorofOwnerorCity,whetherbyoperationoflaworotherwise,without priorwrittenconsent, whichconsentshallnotbeunreasonablywithheldor delayed... AnyattempttoassignortransferthisAgreementoranyofitsrightswithout suchwrittenconsentshallbenullandvoidandofnoforceoreffect,andabreachofthis Agreement. Section10.4 Notices Allnotices, certificatesorcommunicationsrequiredbythis Agreementtobegivenshallbeinwritingandshallbesufficientlygivenandshallbe deemeddeliveredwhenpersonallyserved, orwhenreceivedifmailedbyregisteredor certifiedmail,postageprepaid, returnreceiptrequested,addressedtotherespective partiesasfollows: IftoCMBRA: Administrator CityofManisteeBrownfieldRedevelopmentAuthority 70MapleStreet Manistee,Michigan 49660 018999573 } 22 IftotheOwner: JohnGroothuis, ManagingMember ManisteeInvestmentPartners,LLC 300WashingtonAvenue, Suite100 GrandHaven,Michigan 49417 IftotheCity: CityManager CityofManistee 70MapleStreet Manistee,Michigan 49660 ortosuchotheraddressassuchpartymayspecifybyappropriatenotice. Section10.5 AmendmentandWaiver Noamendmentormodificationtoorofthis Agreementshallbebindinguponanypartyheretountilsuchamendmentormodification isreducedtowritingandexecutedbyallpartieshereto. Section10.6 EntireAgreement ThisAgreementcontainsallagreementsbetweenthe parties. Therearenootherrepresentations, warranties,promises, agreementsor understandings,oral,writtenorimplied,amongtheparties, excepttotheextentreference ismadetheretointhisAgreement. Section10.7 ExecutioninCounterparts ThisAgreementmaybeexecutedin counterparts, eachofwhichshallbeanoriginalandallofwhichshallconstitutethesame instrument. Section10.8 Captions ThecaptionsandheadingsinthisAgreementarefor convenienceonlyandinnowaylimit,defineordescribethescopeorintentofany provisionofthisAgreement. Section10.9 ApplicableLaw ThisAgreementshallbegovernedinallrespects, whetherastovalidity, construction, performanceandotherwise, bythelawsoftheState ofMichigan. EnforcementofthisAgreementordisputesarisinghereundershallbe resolvedintheStatecourtsofManisteeCounty,Michigan. Section10.10 MutualCooperation EachpartytothisAgreementshalltakeallactions requiredofitbythetermsofthisAgreementasexpeditiouslyaspossibleandin conformancewithspecifiedtimelinesprovidedherein,andshallcooperatetothefullest extentpossiblewiththeotherpartiestothisAgreementandwithanyindividual,entityor governmentalagencyinvolvedinorwithjurisdictionregardingthepurposesofthis Agreement. EachpartytothisAgreementshallexecuteanddeliveralldocuments necessarytoaccomplishthepurposesandintentofthisAgreement, including,butnot limitedto,suchdocumentsoragreementsasmayberequiredbythe lenders 018999573 } 23