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4.7 Manner of Disbursement. City may make any disbursement by check payable <br />to Developer; or on a voucher basis; or by check payable jointly to Developer and any <br />contractor, subcontractor or other claimant; or directly to any such claimant; or by any <br />other means reasonably selected by City. Disbursement will be made fifteen (15) days <br />from approval. <br />4.8 Cost Overruns. In the event that, at any time and for any reason, (a) the actual <br />cost reasonably estimated by City or Developer to be required to complete all matters <br />included in any line item in the Project Budget exceeds the amount allocated to that line <br />item in the Project Budget, (b) construction costs for any matters not covered by a <br />specific line item have been or will be incurred, or (c) the undisbursed portion of the <br />constriction portion is or may be insufficient to pay all construction costs that may be <br />payable under the City Loan Documents or otherwise in connection with the <br />constriction, Developer shall, within ten (10) days after it receives written notice thereof <br />from City of any of the foregoing matters, do one or more of the following: <br />(a) provide satisfactory evidence to City that Developer has <br />previously paid such excess or otherwise provided for such insufficiency (collectively, <br />the "Excess Cost ") with funds from a source other than the City Loan; <br />(b) reallocate sufficient Rinds to pay the Excess Cost from fiords <br />allocated to "Contingency" in the Project Budget; provided, however, that the <br />Executive Director's consent to any such reallocation shall be required; or <br />(c) deposit an amount equal to the Excess Cost in a non - interest <br />bearing account (the "Overran Account ") with City from which withdrawals may be <br />made only with the consent of the Executive Director but which will be exhausted prior <br />to any further disbursement for any line item, so that any resulting surplus in any line <br />item of the Project Budget will then be reallocated to the line item(s) in which the Excess <br />Costs are expected to be incurred. <br />City shall have no obligation to make further disbursements until Developer has paid or <br />otherwise provided for the overrun as required above. Amounts deposited by Developer <br />in the Overrun Account for any Excess Costs shall be disbursed by City prior to the <br />disbursement of any remaining construction portion proceeds in the manner described in <br />subsection 9.3(e). <br />4.9 Cost Savings. Upon completion of and disbursement for all matters covered by <br />any line items in the Project Budget, any remaining undisbursed amounts allocated to that <br />line item shall be reallocated to "Contingency" and thereafter be available for <br />disbursement in accordance with the terns of this Agreement. <br />4.10 Retainage. City will withhold a retainage of 10% from each Disbursement for <br />each of the hard cost line items of the project cost breakdown (and other line items <br />thereof designated for withholding of retainage) until all conditions to the final <br />disbursement of hard costs have been satisfied. In lieu of City's withholding retainage, <br />Developer can by written notice to City elect not to draw any overhead or profit as would <br />11 <br />