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CONSENT ITEM <br />MEMORANDUM <br />DATE:May 13, 2013 <br />TO:Honorable Mayor and City Councilmembers <br />Patrick Klaers, City Administrator <br />FROM:Jill Hutmacher, Community Development Director <br />SUBJECT:Assignment of Development Agreement <br />BudgetedAmount:Actual Amount:Funding Sources: <br />NANANA <br />Requested Action <br />Approve the Assignment of Development Agreement for 1201 County Road E. <br />Discussion <br />As a condition of the construction financing agreement between TAT Properties and BMO <br />Harris Bank,the bank wants to be able to assume the developer’s rights and responsibilities <br />under the development contract if the developer defaults on the loan.In effect, this would allow <br />the bank to step in and complete the project.Under the terms of the development contract <br />between the City and the developer,the City Council must approve the assignment agreement. <br />The agreement benefits the City by providing additional security that the underlying <br />development contract will be performed as promised. <br />The City Attorney has reviewed the Assignment of Development Agreementdocument. All of <br />the changes suggested by the City Attorney have been incorporated into the final document. The <br />City Attorney recommends City Council approval. <br />Recommendation <br />Approve the Assignment of Development Agreement for 1201 County Road E. <br />Attachment <br />Assignment of Development Agreement <br />11 <br />Page of <br />