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pursuant to the Eminent Domain Law, in order to acquire one or more portions of the Offsite <br /> Property through the exercise of the City's power of eminent domain. Following such public <br /> hearing,the City will determine, in its sole and absolute discretion,whether or not to adopt the <br /> resolution(s)of necessity and to proceed with eminent domain. <br /> If the City adopts a resolution of necessity for any of the Offsite Property,then the City shall <br /> proceed diligently to: (1)file condemnation actions for those portions of the Offsite Property <br /> subject to the resolutions and exercise due diligence and best efforts in its prosecution to final <br /> judgment of such condemnation actions; (2)apply for and use its best efforts to obtain orders for <br /> possession to take possession of the applicable portions of the Offsite Property pursuant to the <br /> Eminent Domain Law; and(3)following procurement of orders of possession for any portion of <br /> the Offsite Property for which a resolution of necessity was adopted,diligently pursue the <br /> eminent domain actions until the final judgment is rendered. <br /> Subdivider acknowledges that the City has absolute discretion in determining whether or not it <br /> should adopt a resolution of necessity with regard to any portion of the Offsite Property, and, <br /> therefore agrees that nothing in this Agreement shall obligate the City to adopt a resolution of <br /> necessity with respect to all or any portion of the Offsite Property or subject the City to liability <br /> for the failure of the City to adopt such resolution. <br /> If the City exercises its eminent domain authority, Subdivider shall pay all costs associated with <br /> such acquisition or condemnation proceedings including but not limited to attorneys' fees, expert <br /> witness fees,and jury awards of any kind. At such time that the Subdivider requests the City to <br /> initiate and pursue acquisition of the Offsite Property, Subdivider shall present to the City and <br /> file with the City Clerk,a cash deposit in the amount of$15,000 to be deposited in a separate <br /> account and to be used to pay for the City's acquisition and condemnation costs. If the deposit is <br /> insufficient to cover the cost of the City's acquisition and condemnation costs, Subdivider shall <br /> pay the difference between the initial payment and the actual cost within 14 days of the City's <br /> notification. <br /> C. This Agreement is intended to serve as the agreement referred to in subdivision <br /> (c)of Government Code section 66462.5. <br /> 4. Inspection. City shall inspect all of said work through an inspector employed by City at the <br /> cost and expense of Subdivider and Subdivider shall pay City the cost of such inspection as <br /> fixed by Ordinance. The City Engineer has tentatively fixed the inspection costs due upon <br /> execution of this Agreement as follows: <br /> $213,537 <br /> 5. Soils Report. Subdivider has provided a preliminary soils report as required by Government <br /> Code §§66490 et. seq. Said data was compiled by a qualified soils testing engineer without <br /> expense to the City. <br /> 6. Plans. All of said work shall be done and materials furnished in strict accordance with the <br /> approved plans for said tract filed with the City Engineer, and in accordance with the <br /> Subdivision Agreement <br /> Tract 8245—Meritage of California,Inc. Page 3 of 8 <br />