2010/08/04 Council Agenda Packet

obtain such Certificate of Completion. Failure by the City to furnish Developer with such detailed statement within such ten (10) business day period shall be deemed an approval by City of Developer's request for Certificate of Completion. Upon receipt of such detailed statement, Developer may either complete the Project or Improvements and cure the alleged default in a manner responsive to the stated reasons for disapproval or contest whether City has unreasonably withheld issuance of such Certificate of Completion through an appropriate legal forum. Section 8. Certificate of Stabilization. 8.1 When Developer Entitled to Certificate of Stabilization. Upon delivery of evidence reasonably acceptable to the City that the Project has reached Stabilization and satisfaction of the other conditions of this Section 8, the City will furnish Developer with a recordable Certificate of Stabilization signed by the Mayor of the City, substantially in the form attached hereto as Exhibit C. Notwithstanding the foregoing, City shall not be required to issue the Certificate of Stabilization to Developer if uncured Event(s) of Default exist or if the Certificate of Completion has not been recorded. 8.2 Meaning and Effect of Certificate of Stabilization. Issuance by the City and the recording of a Certificate of Stabilization shall terminate Section 3.3 of this Covenant. Any party thereafter acquiring any portion of the Improvements shall have any obligation whatsoever under Section 3.3 of this Covenant. 8.3 Procedure if City Does Not Issue. The City shall not unreasonably withhold, condition, or delay the issuance of the Certificate of Stabilization. If the City refuses to issue a Certificate of Stabilization, the City, within ten (10) business days after receipt of written notice clearly marked "Request for Certificate of Stabilization" from Developer, shall provide Developer with a detailed statement indicating the reasons for such refusal. Failure by the City to furnish Developer with such detailed statement within such ten (10) business day period shall be deemed an approval by the City of Developer's request for Certificate of Stabilization. Section 9. Termination of Covenant. This Covenant terminates on the Covenant Termination Date. Section 10. Inspection/Indemnity From Liens. 10.1 Inspection. Until the Certificate of Completion is recorded, City shall have the right, at all reasonable times and upon at least twenty-four (24) hours previous notice, to inspect the Property, including any construction work thereon, to determine compliance with the provisions of this Covenant. 10.2 Indemnity From Liens. In no event shall Developer, prior to recording of the Certificate of Completion, cause any lien to attach to any property owned by City in connection with any monetary obligation, including but not limited to mortgages, deeds of trust, mechanic's liens, attachment liens, judgment liens, execution liens, utility liens, security interests or encumbrances, unless Developer first obtains City's written approval thereto, which approval may be refused in the City's sole judgment. Developer shall indemnify and hold harmless City from and against all mechanics', materialmen's and laborers' liens and all costs, expenses and liabilities arising from construction of Improvements upon any property owned by City, except -14- 51083924.1