Background/Discussion
City and Parcel A Owner have been in discussions regarding the potential construction of a data center (the "Project") on a parcel of land under contract by Parcel A Owner. The parcel of land, containing approximately 20 acres, will be subdivided and will be known as Parcel A, being a portion of Lot 4, SouthPointe Subdivision Phase II, City of Council Bluffs, Iowa ("Parcel A").
The location of the Project will be accessed by Gifford Road a public road that must be reconstructed to meet City standards. The proposed street improvements for Gifford Road are identified in Exhibit "A" (the "Gifford Road Improvements").
City has agreed to undertake the design and construction of the Gifford Road Improvements with the understanding that, in the event Parcel A Owner in fact acquires Parcel A and goes forward with the Project, Parcel A Owner will reimburse City all costs associated with the initial design and initial construction of the Gifford Road Improvements.
To assure City that it will be reimbursed by Parcel A Owner, Parcel A Owner has agreed to place into an escrow account with Escrow Agent, to be held in a financial institution mutually agreeable to the parties, a sum of money equal to 110% of the estimate for the Gifford Road Improvements. City will be allowed to draw down upon the escrow account to cover the costs of progress payments to both the engineers and contractor engaged by City.
If Parcel A Owner has completed all aspects of the Project (other than the Gifford Road Improvements) to the point where the Project would normally be considered eligible for a temporary certificate of occupancy ("TCO") and, ultimately, the final Certificate of Occupancy ("CO"), then the status of the Gifford Road Improvements will not be the basis for not granting the TCO and/or the CO