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subject to limitations set forth in this Section 3, Condition <br />14 of PUD and Attachment 3 to this Agreement. <br />3.2 Developer's Ri4ht of Protest. Subject to the terms <br />of this Agreement, Developer agrees to either (i) not protest <br />the establishment of assessment districts or benefit districts <br />to fund the Additional Mitigations, or (ii) to affirmatively <br />vote for the creation of such districts. Developer retains the <br />right to protest and litigate all matters other than the <br />validity of the formation of the district, including but not <br />limited to the type of improvements, cost and allocation of the <br />cost of the improvements among various properties. In the <br />event Developer initiates or participates in litigation <br />concerning allocation of the cost of improvements, Developer <br />shall allow formation of the district and placement of liens on <br />the Property so long as City enters a contract to pay the <br />amount of indebtedness that is in dispute in the event <br />Developer prevails in the litigation. The City may pay any <br />such indebtedness pursuant to Government Code Section 970.6 and <br />Developer agrees not to contest payment made pursuant to <br />Section 970.6. A good faith protest pursuant to this Section <br />shall not be construed as an action of noncompliance under the <br />terms of this Agreement. <br />4. LIMITATIONS ON OBLIGATION TO FUND ADDITIONAL MITIGATIONS. <br />Notwithstanding anything herein to the contrary, <br />Developer's obligations with respect to Additional Mitigations <br />shall be limited as follows: <br />-7- <br />