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CITY COUNCIL CITY OF NEW BRIGHTON RESOLUTION NO. o 9 - o 2 OLUTION AUTHORIZING WRITTEN NOTICE OF DEFAULT TO SHERMAN 0CIATES, INC. UNDER CONTRACT FOR PRIVATE REDEVELOPMENT OF PROPERTY REFERRED TO AS THE FORMER LONG LAKE LANDINGS DEVELOPMENT IN THE NORTHWEST QUADRANT WHEREAS, the City of New Brighton and Sherman Associates, Inc. ("Sherman") were pai des to a redevelopment agreement dated June 22, 2004 for redevelopment of area referred to as i I te Northwest Quadrant. That original agreement was replaced by an "amended and restated" coz il ract executed by the parties on December 13, 2005; WHEREAS, the December 13, 2005 contract was the subject of a "First Amendment" excauted by the parties on August 22, 2006, which altered dates and the scope of the project due to ged circumstances but left many of the operative provisions in place. Together, the D -,ember 13, 2005 and August 22, 2006 contracts form the City's complete agreement with Sh4 and establish the parameters of the relationship ("Agreement"); WHEREAS, the City has met all of its obligations under the Agreement; WHEREAS, Article VIII of the Agreement defines "Events of Default" and establishes ,dies for the same. Subject to "unavoidable delays" as defined by the Agreement, default rs under Section 8.1 when the redeveloper fails to pay when due any funds required to be under the Agreement, fails to complete construction of the Site Improvements and mum Improvements pursuant to the terms of theA, or fails to substantially observe or irm any covenant, condition, obligation or agreement under the Agreement; WHEREAS, Section 8.2 of the Agreement establishes remedies for default and ions for exercising them. First, the party seeking to declare the other in default must le a written notice of the default, allowing thirty days to cure. In the event the thirty -day I passes without cure (or written assurances satisfactory to the non -defaulting party that a rill occur as soon as reasonably possible), the non -defaulting party can exercise its options the Agreement; WHEREAS, for the City, those options include suspending performance, taking whatever equitable, or administrative action it deems necessary, or termination of the Agreement; WHEREAS, Sherman is in default under the Agreement; WHEREAS, by letter dated January 30, 2009, the City informed Sherman that, due to an in negotiations that followed Shennan's failure to perform its obligations under the lent, "we feel that it is in everyone's best interest to move forward and close our ship by formally terminating" the Agreement;