06-09-2025 - Agenda Packet City Council - regular meeting

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initial installation and construction of Orono Industrial Boulevard. 2. AMENDMENT OF PARAGRAPH 16 OF THE DEVELOPMENT AGREEMENT. Paragraph 16 of the Development Agreement is deleted in its entirety and restated to read as follows: 16. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the terms of this Development Agreement, payment of the costs of all Public Improvements and construction of all remaining Public Improvements, the Developer and Pine Corner shall each furnish the City with a Letter of Credit, in substantially the form attached hereto, from a bank ("security"). The Letter of Credit required for each entity shall be based on updated costs of Public Improvements from the original Development Agreement with contingency amounts and the appropriate pro rata shares for the cost of Orono Industrial Boulevard pursuant to Paragraph 1 as follows: Public Improvements Lot 1, Block 1 Lot 1, Bock 2 Orono Industrial Boulevard (75% Developer and 25% Pine Corner) TOTAL COST SECURITY AMOUNT (x125%) $ Developer Pine Corner $ 73,137.50 $ 401-870.00 $247 051.88 $ 82,350.63 $320,189.38 $123,220.63 $4009346.73 $1549025.79 The construction of Orono Industrial Boulevard shall be constructed in a manner consistent with applicable law. The Letters of Credit for Developer and Pine Corner currently held by the City shall be replaced with new Letters of Credit in the amounts provided this Paragraph. The breakdown provided above is for historical reference; it is not a restriction on the use of the security. The bank and the form of security shall be subject to the approval of the City Administrator. In the event Developer or Pine Corner default under their respective obligations under the Development Agreement, as hereby amended, the City may draw down the security, after notice, for any violation of the terms of the Development Agreement, subject to the cure periods provided in this Development Agreement. If the required Public Improvements are not completed at least thirty (30) days prior to the expiration of the security, or the City receives a notice of non -renewal of a letter of credit from the issuer thereof, the City may also draw it down and hold the funds as a cash escrow to secure compliance by the Developer or Pine Corner. With City approval, which shall not be unreasonably withheld, conditioned or delayed, the security may be reduced from time to time as financial obligations are paid, but in no case shall the security be reduced to a point less than 10% of the original amount until (1) all improvements t] 173864v9 153