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ATTACHMENT A (b) Sections 2.2 through 2.13 below set forth in general the Predevelopment Activities to be accomplished during the Negotiating Period. The Predevelopment Activities are set forth in more detail in the Scope of Work attached as Exhibit A. The Predevelopment Activities are to be performed for each of the three (3) Development options outlined in the Scope of Work (the "Development Options"). As part of the Predevelopment Activities the Developer shall prepare a matrix which sets out the significant descriptions of each of the Development Options including number of units, unit mix, and development costs. (c) At the completion of the Predevelopment Activities, the Developer will present its report detailing specific information for each of the three development options and a recommended Development Option to the City. The City will then select its preferred Development Option (the "Preferred Development Option") or may chose not to proceed with the Development and terminate this Agreement. Upon selection of the Preferred Development Option by the City, the Parties will complete the negotiations of the DDA which will serve to document the Parties agreement as outlined in the Preferred Development Option and as outlined as "Task 2" in the Scope of Work. The parties acknowledge that this Agreement may require amendment after selection of the Preferred Development Option in order to reflect the specifics of that Development Option in order to finalize the negotiation of the DDA. (d) The Developer agrees to participate in public community meetings and work with the Task Force to update the community and the Task Force on the progress of the proposed Development options, as deemed necessary by the Developer and City staff. Section 2.2 Physical Adequacy Determination. The Developer shall conduct physical due diligence activities to determine whether the Site (the Kottinger Parcel, Additional Parcels and the Pleasanton Gardens Parcel) is suitable for development of the Development Options, taking into account the geotechnical and soils conditions, the presence or absence of toxic or other hazardous materials, and the other environmental and regulatory factors that the Developer deems relevant. Physical due diligence shall also include a review of the existing infrastructure and existing units to determine feasibility for retention as set forth in more detail in the Scope of Work. Section 2.3 Title Adequacy Determination. The Developer shall conduct a title analysis of the Site (the Kottinger Parcel and Additional Parcels) to determine whether there are any title issues that may affect the development of the Development Options on the Site. Section 2.4 HUD Requirements. The Developer and the City acknowledge that HUD will be involved in any proposed disposition of the Kottinger Parcel. The Developer shall review the HUD requirements applicable to the development of the Development. Section 2.5 Relocation. The Developer shall analyze the impact of the proposed Development Options on the need for relocation of existing tenants. Section 2.6 Site and Architectural Plans. The Developer shall prepare a preliminary site plan identifying the location, general configuration, and proposed design characteristics for each Development Option including showing views of the proposed conceptual massing and 4