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Amendments to DA No. 2004-01 June 14, 2010 Page 3 This development agreement was adopted in 2004 during different economic times. It required certain improvements and public benefits such as extensive street improvements, the relocation and restoration of the Twist-Basler House, the preleasing of 50 percent of the office building to investment grade tenants, and off-site improvements for the Orange County High School of the Arts (Exhibit 7). Proposed Amendments to the Development Agreement The applicant proposes to amend five sections of the development agreement (Exhibit 8): 1. Section 4.3 Assignment The development agreement requires that Michael F. Harrah retain a minimum of 51% ownership interest in the project. The applicant (Mr. Harrah) requests that the 51% required ownership be deleted in order to allow a joint venture arrangement where he and one or more joint venture partners will share the ownership interest. 2. Section 5.1.1 Offsite Mitigation Measures The development agreement requires the owner to deposit prior to the issuance of a building permit $1.2 million for neighborhood traffic plans ($200,000 each for six specified neighborhoods, including French Park, French Court, Willard, Floral Park, West Floral Park and Washington Square. The applicant requests that the timing of payment be changed to six months prior to issuance of any certificate of occupancy, but in no event later than 22 months after issuance of the building permit, and to be permitted to use a funded construction loan as further security for its offsite obligations. 3. Section 5.8 Condition Precedent to Issuance of Any Building Permit The development agreement requires that, before a building permit for the tower is issued, 50% of the net leasable area be leased to tenants who would qualify as "Investment Grade Tenants." The applicant requests that this section be deleted. 4. Section 5.8.2 No Redevelopment Subsidy The development agreement prohibits the applicant from requesting economic assistance from the Redevelopment Agency. 75A-17