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The obligations of City and Developer pursuant to this Section 6.3 shall be <br /> suspended as provided in Section 1.4 in the event Ordinance adopting the Development <br /> Plan is challenged by a referendum petition, or in the event Ordinance adopting this <br /> Agreement is challenged by a referendum petition. <br /> Section 6.4 Defaults. Any failure by either party to perform any term or <br /> provision of this Agreement, which failure continues uncured for a period of thirty(30) days <br /> following written notice of such failure from the other party(unless such period is extended by <br /> mutual written consent), shall constitute a default under this Agreement. Any notice given <br /> pursuant to the preceding sentence ("Default Notice") shall specify the nature of the alleged <br /> failure and, where appropriate,the manner in which said failure satisfactorily may be cured. If <br /> the nature of the alleged failure is such that it cannot reasonably be cured within such 30-day <br /> period,then the commencement of the cure within such time period, and the diligent prosecution <br /> to completion of the cure thereafter, shall be deemed to be a cure within such 30-day period. <br /> Upon the occurrence of a default under this Agreement, the non-defaulting party may institute <br /> legal proceedings to enforce the terms of this Agreement or, in the event of a material default, <br /> terminate this Agreement. If the default is cured,then no default shall exist and the noticing <br /> party shall take no further action. In the event City or Developer defaults under the terms of this <br /> Agreement, City or Developer shall have all rights and remedies provided under law. No default <br /> hereunder shall render invalid the lien of any deed of trust; ortgage or security interest in or <br /> upon the Project Site or any improvements or fixtures at any time located thereon. <br /> Section 6.5 Periodic Review. <br /> (a) Conducting the Periodic Review. Throughout the Term of this <br /> Agreement, at least once every twelve(12)months following the Effective Date, City <br /> shall review the extent of good-faith compliance by Developer with the terms of this <br /> Agreement. This review(the"Periodic Review") shall be conducted by the Director of <br /> Community Development or his/her designee and shall be limited in scope to compliance <br /> with the terms of this Agreement pursuant to California Government Code Section <br /> 65865.1. <br /> (b) Notice. At least ten(10) days prior to the Periodic Review, and in the <br /> manner prescribed in Article 10 of this Agreement, City shall deposit in the mail to <br /> Developer a copy of any staff reports and documents to be used or relied upon in <br /> conducting the review and,to the extent practical, related exhibits concerning <br /> Developer's performance hereunder. Developer shall be permitted an opportunity to <br /> respond to City's evaluation of Developer's performance, either orally at a public hearing <br /> or in a written statement, at Developer's election. Such response shall be made to the <br /> Director of Community Development. <br /> (c) Good Faith Compliance. During the Periodic Review,the Director of <br /> Community Development shall review Developer's good-faith compliance with the terms <br /> of this Agreement. At the conclusion of the Periodic Review,the Director of Community <br /> Development shall make written findings and determinations, on the basis of substantial <br /> evidence, as to whether or not Developer has complied in good faith with the terms and <br /> conditions of this Agreement. The decision of the Director of Community Development <br /> 12 <br />