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VII. Payment In Lieu of Construction <br /> The parties agree that in lieu of being paid for contracting or force account work,the City will <br /> receive a lump sum payment of $5,380,000 in exchange for accepting jurisdiction of the three <br /> roadway segments identified in this agreement. This represents a value determined through the <br /> County Cost Share Policy and direct negotiations with both the City and State. The figures are better <br /> defined in Exhibit B, the Roadway Turn Back Memorandum of Agreement between the City and <br /> County. <br /> As shown in Exhibit B,the City is responsible for an estimated$372,000 towards the proposed <br /> interchange at State Highway 371 and CSAH 11. The State will require payment for local cost share <br /> items prior to construction beginning on the 4-lane expansion. It is anticipated that these costs will <br /> be due in the fall of 2015. The County will fund the City's share of the interchange in 2015. The <br /> amount requested by the State will be subtracted from the other amounts indicated in Exhibit B to <br /> determine the final lump sum payment due to the City from the County. To allow the City to <br /> proactively prepare for the road turnbacks prior to the effective release date, the County shall make <br /> payment to the City for an amount equal to 50%of the negotiated amounts for CSAH 11 and CR 112 <br /> by June 1, 2017. This amount equates to $776,000. The remainder of the final lump sum payment <br /> will be made prior to the effective release date, anticipated to occur in April, 2018. <br /> In addition, the County will perform, or have performed, a Phase I Environmental Site <br /> Assessment (ESA) to identify recognized environmental conditions for the roadway segments, <br /> including adjacent properties. Any found recognized environmental conditions will have a Phase II <br /> ESA conducted to determine if contamination is present within the roadway segments. Should it be <br /> determined that any locations have identified contamination, the County will attempt to obtain "No <br /> Association Determination"(or other appropriate documentation)from the MPCA. If a contaminated <br /> site requires mitigation,the County and City agree to negotiate an amendment to the Agreement and <br /> work cooperatively to access funding opportunities. This shall be done prior to the effective release <br /> date. <br /> VIII. Release of Claims; Covenant Not to Sue <br /> By accepting the payment provided for in this agreement, the City releases the County from <br /> any and all claims related to the condition of the roadway segments,regardless of whether such claims <br /> result from surface or sub-surface conditions, and regardless of whether such conditions were known <br /> or unknown at the time of reversion. The City may perform its own geotechnical explorations and <br /> will not rely on previous geotechnical studies performed by the County. In consideration of the <br /> turnback payment provided by the County, the City covenants not to sue the County or any of its <br /> officials with respect to the County's decision to make the reversion or for any claim arising out of <br /> the condition of the roadway segments. <br /> IX. TERMINATION <br /> This Agreement may be terminated by either party only for breach of this Agreement <br /> or by mutual consent of the parties. <br /> IX. NOTICE <br /> 3 <br />