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7 <br />of good faith substantial compliance by Owner with the terms of this <br />Development Agreement. Pursuant to Government Code Section 65865.1, <br />as amended, Owner shall have the duty to demonstrate by substantial <br />evidence its good faith compliance with the terms of this Development <br />Agreement at the periodic review. <br />6.2 Review Letter. If Owner is found to be in compliance with this <br />Development Agreement after annual review, City shall, upon written <br />request by Owner, issue a Review Letter to Owner (the "Letter ") stating <br />that based upon information known or made known to the City Council, <br />the City Planning Commission and /or the Executive Director of the <br />Planning and Building Agency, this Development Agreement remains in <br />effect and Owner is not in default. Owner may record the Letter in the <br />Official Records of the County of Orange_ <br />6.3 Failure to Conduct Annual Review. City's failure to review at least <br />annually Owner's compliance with the terms and conditions of this <br />Development Agreement shall not constitute or be asserted by any Party <br />as a breach of this Development Agreement by Owner or City. <br />7.1 Events of Default. Owner is in default under this Development <br />Agreement upon the happening of one or more of the following events or <br />conditions: <br />(a) If a warranty, representation, or statement made or furnished by <br />Owner to the City is false or proves to have been false in any <br />material respect when it was made; <br />(b) A finding and determination made by the City Council following a <br />periodic review under the procedure provided for in Government <br />Code Section 65865.1 that upon the basis of substantial evidence <br />the Owner has not complied in good faith with one or more of the <br />terms or conditions of this Development Agreement; <br />(c) Failure to comply with Governmental Requirements; <br />(d) Any other event, condition, act, or omission which materially <br />interferes with the intent and objectives of this Development <br />Agreement. <br />7.2 Procedure upon Default. The following principles and procedures shall <br />be applied in the determination of any Default: <br />(a) Upon the occurrence of default, City shall give Owner (the <br />"defaulting party ") thirty (30) days written notice specifying the <br />nature of the alleged default and, when appropriate, the manner in <br />75A=80 <br />