12-17-08 Meeting of the La Porte Redevelopment Authority

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(b) Port Crossing shall cause bid packages for construction of the Project to be submitted to qualified contractors in accordance with all applicable Governmental Requirements. Port Crossing shall recommend to City a contractor for selection in accordance with applicable Governmental Requirements, without any further approval of 65 LaPorte, provided that the bid of the winning contractor is consistent with the Plans and the Approved Budget. Once the winning contractor is selected, Port Crossing shall cause to be executed by City and the contractor and issued all construction contracts, service contracts, bonds and/or other security or contracts (collectively, the "Contract") required in connection with construction, completion and/or maintenance of the Project. (c) Once City selects the winning contractor ("Contractor") and the Contract is fully executed, City shall have full and complete authority to administer and oversee the execution of the Contract and the construction of the Project, without any further approval of the Owners, except as otherwise set forth herein. (d) In no event shall City be obligated to take any action that requires City to incur any expenses beyond those approved in this Agreement, unless City has received written commitments from Port Crossing and 65 LaPorte of such Owners' agreement to pay the entire additional amount of the costs and expenses relating to the Project in accordance with the provisions of Section 2.3 below. Section 2.2. Other Obligations. In connection with the construction of the Project, City is hereby authorized and obligated to use commercially reasonable efforts to cause the Contracts, any bonds and/or other security to remain in full force and effect during the entire term of construction of the Project and thereafter if required pursuant to the terms thereof, except in the event of the default by a the Contractor, in which event, City may terminate such contract and retain a substitute contractor acceptable to Governmental Authorities to complete the Project. Section 2.3. Costs of Design and Construction of Project. The cost and expense of the design, engineering, permitting, construction and related costs of the Project pursuant to this Agreement shall be borne by the Owners in accordance with their respective Proportionate Shares. Each party hereby agrees to pay its Proportionate Share. Port Crossing and 65 LaPorte shall, within fifteen (15) days of execution of the Agreement, pay the full amount of each party's respective Proportionate Share to City, to be held by City in escrow and used by City (the "Escrowed Funds") for the duration of the administration of the Contract. City hereby agrees that it shall pay the amounts due and payable in any and all invoices received from the Contractor ("Contractor Invoices") to the Contractor from the Escrowed Funds. City further agrees that in the event the amount of the Escrowed Funds is insufficient to pay the cost of the Contractor Invoices submitted by Port Crossing, then City shall immediately provide written notice to the Owners ("Insufficient Funds Notice"). If, during the course of City's administration of the Contract and oversight of the construction of the Project, the costs of the Project exceed the costs approved in the Approved Budget and paid by Port Crossing and 65 LaPorte in accordance with this Section 2.3, then City shall promptly notify Owners of same and provide Contractor's written estimate of additional cost ("Additional Cost"). Owners shall, within fifteen (15) days of receipt of notice from City of an Insufficient Funds Notice or an Additional Cost, pay to City the amount of such Additional Cost or amount due under the Insufficient Funds H-Public _ Right_ oC Way_Improvement _ and ]UndiDlL Agreement _ v9(738385 _9)(1].DOC 3