The city has put the proposed rengotiated agreement with Asbury
Partners on its website. See Exhibit F. I am still digesting it and
will post my thoughts. To save you some trouble, I've cut and pasted
the proposed agreement below.
5th Avenue Pavilion
Façade and Emergency Repairs completed by June, 2006
1st Floor renovations complete by June, 2007
2nd Floor renovations complete by June, 2008
Arthur Pryor Band Shell restored within building
Estimated Project Cost in excess of $3 million.
Project will trigger obligation under the existing Redevelopment
Agreement
to renovate all the pavilions within 4 years (June 2010).
Convention Hall
Window Replacement by May, 2007
Life/Safety Repairs and Fire Code Violations by November, 2006
Arcade Interior Storefronts by September, 2006
Arcade Entrance Repairs complete by May, 2007
Exterior Storefronts complete by April, 2007
Design of renovations to exterior and interior of Convention Hall
by
September, 2007, with City input on renovation timeline and
enforceable
commitment to undertake renovations
Estimated Project Cost of $1,400,000
Casino
Arena - Concept drawings and stabilization will be completed before
demolition occurs
Arcade - New Roof completed by June, 2007
Arcade - Design of renovations by September, 2007, with City input
on
renovation timeline and enforceable commitment to undertake
renovations repairs
Carousel - New Roof by June, 2007
Carousel Exterior Protection complete by March, 2008
Carousel - Design of renovations by September, 2007, with City
input
on renovation timeline and enforceable commitment to undertake
renovations
Estimated Project Cost in excess of $1,350,000
New Roof by June, 2007
Design of renovations by September, 2007, with City input on
renovation timeline and enforceable commitment to undertake
renovations
Estimated Project Cost in excess of $212,000
V. Total Value of Projects is $6,017,500
Financial Commitments
Net Worth of $30 million
Certified by CPA
Maintained through completion of itemized Projects
Annually Updated
Subject to intra-year updating upon negative events
II. Liquid Security for Projects
Established at 25% of Project ($1,504,375)
Costs Deposited within 30 days of execution of Agreement
Escrowed Cash or Letter of Credit will be utilized
Released at direction of arbitrator or to complete a Project upon
Architect's certification
III. Performance Bonds
100% of actual construction cost will be provided before
construction is
begun
Each Project will be covered by Bond.
City will be named as co-insured on the Bond.
Penalties for Non-Performance
I. Scope of Agreement. Projects and obligations set forth in this
Agreement will be covered by remedies set forth in this Agreement.
Other obligations under the 2001 Redevelopment Agreement
remain covered by the remedies set forth in that agreement.
II. Two Step Process
Mediation 10 business day period
Binding Arbitration. Arbitration will provide timely dispute
resolution
technique. City and Master Developer will pick an arbitrator to be
ready
to hear disputes. 45 day period to arbitrate a matter.
Arbitrator's scope. Arbitrator will be empowered to address not
just fault,
but also direct remedies cure periods and release of performance
security
Default cure period will be six months but arbitrator can deviate
to
shorter or longer periods
Each party bears own cost but a party bringing frivolous motion to
arbitrate can be penalized
Arbitrator's award will be enforceable in Court
Disputes will be confidential
III. An improved approach to dispute resolution. Default and
remedies section of the 2001 Redevelopment Agreement became
ineffective. The requirement to formally default a party before
getting to arbitration created an environment where both parties
were reluctant to utilize the process. This resulted in an
environment where issues were addressed on an ad hoc basis with
no real ability to document or enforce a negotiated resolution to an
issue. Alternately, an issue was not resolved and lingered and an
unproductive environment was created. Each party became
frustrated with the efforts of the other party. This Agreement
provides a dispute resolution mechanism that has a softer trigger
and a more certain process so that legitimate disputes can be
resolved with a degree of certainty.
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