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9.b Memo re Redevelopment Agreement MEMORANDUM Date: February 6, 2020 To: City Administrator Ken Cammilleri From: City Attorney Eric Sherburne RE: Water Tower Barn – Scandia Heritage Alliance Redevelopment Agreement draft V.3 I reviewed the draft of the Redevelopment Agreement (V.3) prepared by Mr. Herman on January 31, 2020, which you forwarded to me on February 4. The document appears to be typical of documents of the type and consistent with the terms negotiated to this point between your office and SHA. I have only two continuing concerns. First, I recommend that “Barn” should be defined with enough objective detail that the tangible thing that is the Barn could be identified from the document. I would prefer to see a sentence in Section 1.a. something like: “Barn” means the wooden tank-house building measuring approximately ___’ wide by ___’ long by ___’ high, believed to have been originally constructed circa 1895, located at XXXXX Olinda Trail until 2014 when it was disassembled, and presently stored by __________ at __________ , pending reassembly.” (I do not have any personal knowledge of the specific facts; these details are from a couple of newspaper articles online.) The point is to describe what the Barn is as a tangible thing – not its importance, beauty, or historical significance, but objectively what it is. (Imagine instructing somebody to go out and get it or touch it.) The City should endeavor to avoid any potential confusion regarding what the Barn is, seeking to minimize any risk of inconsistent understandings between the parties. Second, in Section 15.5(d), there is a “recover actual damages” remedy which would enable SHA to sue the City, in the event of a breach by the City, to recover as much as SHA has spent on the project. Such as remedy, if included at all – it would offer greater protection for the City to exclude it entirely – should be limited to a breach by the City resulting from something seriously, willfully wrongful. I suggest inserting, at the beginning 15.5(d), “Only in the case MEMORANDUM February 6, 2020 Page 2 [24947-33966/2662531/1] of a malicious breach by the City,…” That would avoid exposing the City to a potential breach of contract claim for whatever amount SHA may have decided to spend on the project to that point, unless the City were to breach with a “screw you” attitude. (Please pardon the colorful language, but “screw you” is a very practical illustration of “malicious.”)