2020-090 -Approving a Disposition and Development Agreement

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(b) Operating Expenses of the Parking Structure. (c) City Debt Service. (d) Net revenue to Developer, provided the Hotel is operational. Should the Hotel be converted to residential, then net parking revenue shall be distributed forty percent (40%) of the net parking revenue to the City and sixty percent (60%) of the net parking revenue to the Developer. 5.13.4 Should the income from the Parking Structure be insufficient to service the debt which is estimated to be approximately $750,000 then Developer shall be responsible for paying the debt service. 5.13.5 After the debt service for the Public improvements is paid in its entirety, any income from the Parking Structure shall be distributed in the following order: (a) Payment of the Operator Fee as set forth in the Third Party Parking Agreement, if a one is executed by Developer in accordance with Section 5.13.2. (b) Operating Expenses of the Parking Structure. (c) Net revenue shall be distributed forty percent (40%) of the net parking revenue to the City and sixty percent (60%) of the net parking revenue to the Developer. 5.13.6 All revenue and expenses deriving from the operation of the parking operations may be verified through an audit as requested by the City. (a) At any time, and following 48 hours prior written notice to Developer, the City or its designee may enter and inspect the physical accounting records pertaining to the Developer's or third party pursuant to the Third Party Parking Agreement. City or its designee may request any other information it deems necessary to monitory compliance with the requirements set forth in this Agreement. City shall be permitted to inspect and photocopy same, and to retain copies, outside of the Developer's premises, of any and all records with appropriate safeguards, if such retention is deemed necessary by the City in its reasonable discretion. This information shall be kept by the City in strictest confidence allowed by law. (b) All books, records, documents and any other evidence referenced in this Section 5.13.6 shall be maintained or made available in a single location in Santa Ana. (c) Once every fiscal year, City may request an audit to be performed by an independent audit firm selected by City, Developer shall be solely responsible for the expense of this audit. City may perform additional audits during the fiscal year, but any additional audit(s) shall be at the sole expense of the City. 5.14 Developer's Option to Purchase Parking Structure. 5.14.1 Upon issuance of the last Certificate of Completion for the Project, City hereby grants to Developer the option to purchase the City Parcel within the Parking Structure 36 55394.00049\33239203. 12