6.0. EDSR 02-12-2001 - Laserfiche WebLink

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02/08/01 17:33 FAX LC8500 003 • Page 2 February 8, 2001 Failure to obtain the certificates of occupancy as required by the Redevelopment Agreement is a serious matter. There were many reasons for the development schedule set forth in the Redevelopment Agreement, including: • To ensure that adequate tax increment is available to fund City and Authority costs; and • To ensure that development of the business park, a primary objective of Tax Increment Financing District No. 19,proceeds in a timely manner. The development to date on the Shopping Center Property ensures that adequate tax increment will be generated from the Shopping Center Property,to meet the projections set forth in the Tax Increment Financing Plan for Tax Increment Financing District No. 19. However, it is still imperative that the primary goal of TIF District No. 19 and the Redevelopment Agreement, timely development of the business park,be realized. Pursuant to the Redevelopment Agreement, the Authority has a number of remedies for default available to it, including: • Suspension of payments due on the notes issued pursuant to the Redevelopment • Agreement (Section 3.5(a)); • Return of the initial payment made to Redeveloper(Section 4.4(a)); and • Termination of the Redevelopment Agreement(Section 8.2). This letter is to put Redeveloper on notice that an Event of Default has occurred and that Authority will suspend its performance under the Redevelopment Agreement and the Note until it receives assurances from Redeveloper, deemed reasonably adequate by the Authority, that Redeveloper will cure its default and continue its performance under the Redevelopment Agreement. Pursuant to Section 8.2 of the Redevelopment Agreement, these assurances should be received within thirty days of this notice to ensure that Authority does not enforce any of its remedies under the Redevelopment Agreement. If the Authority does not receive assurances within thirty days that Redeveloper will cure its default, Authority will determine at that time what remedies it will exercise. The Authority anticipates that the default which has occurred will be remedied and looks forward to hearing from you that: • The defaults identified in this letter will be remedied and a certificate of occupancy will be obtained for a minimum of 50,000 square feet of building space on the Business Park Property; and • Development of the Minimum Improvements will proceed as required by Section 3.2(i) of the Redevelopment Agreement and there will be no further defaults in the • development of the Minimum Improvements.