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F t <br /> AGREEMENT REGARDING ADVANCEMENT OF ADDITIONAL <br /> CLEANUP COSTS <br /> I. BACKGROUND <br /> A. The parties to this Agreement are the City of Everett and the Housing Authority of the <br /> City of Everett ("EHA"), both of which are Washington state municipal corporations. <br /> B. The City and EHA entered into a written Agreement dated 22 July 2004 for the <br /> redevelopment and cleanup of ASARCO property("City/EHA July 22 Agreement"). <br /> C. The parties expect the cleanup activities at the smelter site to cost up to Nine Hundred <br /> Thousand Dollars ($900,000) (the"Shortfall") more than EHA is presently obligated for under <br /> agreements with ASARCO and Ecology. The parties believe that ASARCO is liable for such <br /> costs,but ASARCO will not pay such costs in a timely way because of ASARCO's bankruptcy <br /> filing. <br /> D. The Washington State Department of Ecology agreed to increase grant funding by up to <br /> Four Hundred Fifty Thousand Dollars ($450,000), which will cover half of the expected <br /> Shortfall. <br /> E. EHA and the City each intend to provide up to Two Hundred Twenty-five Thousand <br /> Dollars ($225,000) for a total of up to Four Hundred Fifty Thousand Dollars for the other half of <br /> the expected Shortfall. <br /> F. EHA expects to obtain its Two Hundred Twenty-Five Thousand Dollars from the sale of <br /> its Park Ridge condominium units. <br /> G. EHA does not expect to receive sufficient revenue from the sale of its Park Ridge <br /> condominium units in time to pay directly for its portion of the Shortfall and to close the sale of <br /> the property to Barclays North, Inc. <br /> H. The Ecology grant requires that funds be spent and then reimbursement is made on a 50% <br /> basis by Ecology. <br /> I. EHA has entered into a Purchase and Sale Agreement with Barclays North, Inc., dated <br /> July 27, 2005, in furtherance of the Community Renewal Plan approved by the City, whereby <br /> Barclays North Inc. has agreed to purchase the Asarco Fenced Area for$3.2 million upon <br /> certification by Ecology that the remediation has been completed. The proceeds from the sale of <br /> this property will pay for cleanup costs and enable residential redevelopment of the property. <br /> The public interest is best served by completion of the clean up work and consummation of the <br /> sale of the property to Barclays North, Inc. <br /> J. In order to complete the clean up work and consummate the sale of the property to <br /> Barclays North, Inc., EHA needs short term financial assistance. <br /> .i = ,. <br />