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A RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA, AGREEING TO PAY SEVENTY-FIVE PERCENT OF ADDITIONAL GARAGE COSTS ARISING FROM THE DEVELOPMENT AGREEMENT ENTERED INTO BY THE CITY OF PORTSMOUTH, PORTSMOUTH REDEVELOPMENT AND HOUSING AUTHORITY AND MASTER DEVELOPMENT CORPORATION. 46 WHEREAS, the City of Portsmouth, Virginia, the Portsmouth Redevelopment and Housing Authority, ~nd Master Development Corporation entered into a Development Agreement dated August 13, 1985, a First Amendment to Development Agreement dated March 11, 1986, and a Second Amendment to Development Agreement dated July 25, 1986, and a Third Amendment to Development Agreement dated September 30, 1986 providing for the purchase and development of a certain parcel of waterfront property lying adjacent to Riverfront Park for the development of a high rise condominium apartment and commercial building and an adjacent parking garage; and WHEREAS, the Development Agreement, as amended, provides that the City and the Authority, jointly and severally, agree to pay to the developer seventy-five percent (75%) of all costs and expenses, up to the sum of six hundred and thirty-seven thousand, five hundred dollars ($637,500) actually incurred by the developer inlconnection with the construction of the garage; and WHEREAS, the Development Agreement, as amended, further provides that in the event it shall become apparent that the total garage cost will exceed the sum of eight hundred fifty thousand dollars ($850,000) the City shall determine by Resolution of the City Council whether to pay seventy-five percent (75%) of the additional garage cost after receiving notice from the developer that the total garage cost will exceed the agreed upon sum; and WHEREAS, the developer has notified the City that the total garage cost will exceed the sum of eight hundred fifty thousand dollars ($850,000) by an additional fifty thousand dollars ($50,000) and has requested that the City assume the obligation for its pro rata share of said fifty thousand dollars ($50,000) bringing its total cost and expense of the City up to six hundred seventy-five thousand dollars ($675,000); and WHEREAS, the Council of the City of Portsmouth is of the opinion that the paying of its pro rata share of the additional costs is in the best interest of the City and will assure the development of the parcel as previously approved by this Council.