Agmt12 Hunter/Storm, LLC Negotiation of Disposition and Development Agmt

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t ORIGIN�,�. REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF REDWOOD CITY AND HUNTER/STORM,LLC FOR NEGOTIATION OF DISPOSITION AND DEVELOPMENT AGREEMENT THIS REIMBURSEMENT AGREEMENT�"Agreement") is dated far informational purposes only as of the ��day of ��y.✓J� , 2012 by and between the CITY OF REDWOOD CITY, a charter city and California municipal corporation ("City"), and HUNTER/STORM, LLC, a California limited liability company ("Developer") (referred to herein individually as"Party," or collectively,the "Parties"). RECITALS A. By Resolution No. 14609, adopted in September 2004, City established a Cost Recovery Policy for major planning applications that requires an applicant for planning approvals to pay the costs of processing the application. Reimbursement includes among other things the cost for City staff, consultants, inc�uding environmental consultants, and special legal counsel. Although Developer has not filed an Application with the City which would be governed by Resolution No. 14609, consistent with the intent and framework of Resolution No. 14609, the Parties agree to enter into this Agreement requiring Developer to reimburse City for City resources expended during its evaluation of Developer's proposed development of Depot Circle. B. City owns real property in the Downtown area known as Block 2, as depicted in the attached Exhibit A (the "Property"). City prepared and circulated a Request for Qualifications ("RFQ") dated August 30, 20l l to parties interested in developing Block 2. Developer submitted a proposal for acyuisition and development of the Property or portion thereof("Proposal" or "Developer's Proposal") on or about March 30, 2012, and City selected Developer for negotiating a potential disposition and development agreement. C. The Parties previously entered into that certain Reimbursement Agreement Between the City of Redwood City and Hunter Storm, LLC dated April l6, 2012 (the "Preliminary Reimbursement Agreement"), which provided for reimbursement of City to cover the costs of City's review and evaluation of Developer's Proposal. The Preliminary Reimbursement Agreement terminated on May 2l, 2012 ("Preliminary Reimbursement Agreement Termination Date"), which was the date on which the City Council authorized staff to initiate negotiations with Developer for Developer's Proposal. D. The Parties are presently in the process of negotiating (1) a non-binding term sheet to detail the material deal points of a potential disposition and development for the Property (or a portion thereo�, and (2) a proposed disposition and development agreement between City and Developer that will provide, among other things, for Developer's acyuisition of the Property (or a portion thereo fl, and development, use, operation and/or maintenance of a high yuality office development, conference center, and public improvements. ATTY/AGR/2012.094/HUNTER STORM DDA REIMBURSEMENT AGREEMENT BLOCK 2 REV:07-20-12 VR Page 1 of 10