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Section 3.8 Acquisition of Required Right t of Way. <br /> (a) Following the approval of the design of the Project Improvements by the <br /> City Engineer,the City will specify the Project Right of Way and shall initiate and diligently <br /> pursue acquisition of the Project Right of Way. To the extent that the City is unable to acquire <br /> any of the Project Right of Way through a voluntary acquisition,the City agrees to make a good <br /> faith effort to schedule a hearing for the purpose of considering a resolution of necessity <br /> authorizing the use of the City's eminent domain authority,pursuant to the Eminent Domain <br /> Law, in order to acquire one or more portions of the Project Right of Way through the exercise <br /> of the City's power of eminent domain. Following such public hearing,the City will determine, <br /> in its sole and absolute discretion,whether or not to adopt the resolution(s)of necessity and to <br /> proceed with eminent domain. <br /> If the City adopts a resolution of necessity for any of the Project Right of Way,then the <br /> City shall proceed diligently to: (1) file condemnation actions for those portions of the Project <br /> Right of Way subject to the resolutions and exercise due diligence and best efforts in its <br /> prosecution to final judgment of such condemnation actions, (2)apply for and use its best efforts <br /> to obtain orders for possession to take possession of the applicable portions of the Project Right <br /> of Way pursuant to the Eminent Domain Law; and(3)following procurement of orders of <br /> possession for any portion of the Project Right of Way for which a resolution of necessity was <br /> adopted,diligently pursue the eminent domain actions until the final judgment is rendered. <br /> (b) Costco acknowledges that the City has absolute discretion in detennining <br /> whether or not it should adopt a resolution of necessity with regard to any portion of the Project <br /> Right of Way, and, therefore agrees that nothing in this Agreement shall obligate the City to <br /> adopt a resolution of necessity with respect to all or any portion of the Project Right of Way or <br /> subject the City to liability for the failure of the City to adopt such resolution. <br /> (c) The City has adopted a Resolution of intent to adopt a transportation <br /> mitigation fee on proposed development in the JDEDZ("JDEDZ Transportation Fee"). If the <br /> JDEDZ Transportation Fee is adopted,the City may also acquire portions of the Project Right of <br /> Way from other property owners in the JDEDZ in exchange for a fee credit against their <br /> obligations to pay the JDEDZ Transportation Fee. In such an event,Costco shall not be <br /> obligated to reimburse the City for any portion of the JDEDZ Transportation Fee credit granted <br /> by the City. For the avoidance of doubt, Costco shall not be obligated to reimburse the City for <br /> any portion of the value of Project Right of Way that is dedicated to the City and for which the <br /> City did not make a payment(and fee credits shall not be deemed a"payment" for which the <br /> City is to be reimbursed)to the owner for such acquisition. <br /> Section 3.9 Payment of Required Right of Way Costs. Within six (6)months <br /> following the City's acceptance of the Project Improvements, the City shall submit to Costco a <br /> cost certification of all Required Right of Way acquisition costs expended by the City, including <br /> any costs incurred in exercising its powers of eminent domain. Costco shall pay the City fifty <br /> percent (50%)of the amount expended by the City for Required Right of Way acquisition cost <br /> within thirty(30)days following Costco's receipt of the City's cost certification ("Costco <br /> Acquisition Costs"). If lire City is required to incur additional City acquisition costs related to <br /> 8 <br /> 1310 OV22188701 <br /> 217j20I 8 <br />