JL CONSTRUCTION - REIMBURSEMENT AGMT FOR CANYON MEADOWS OFF-SITE IMPROVEMENTS

EXHIBIT I CONDEMNATION PROCEDURE In conjunction with review of improvement plans for Dublin Canyon Road, the City has determined that a realignment of Dublin Canyon Road is necessary to maintain public safety. This realignment requires the acquisition of a one to two- acre parcel located in the Kolb property (the "Right-of-Way) In order to provide for expeditious acquisition and appropriate reimbursement relating to the required Right-of- Way, the following procedure will be followed: 1. Proberty Description Developer's engineer will prepare a property description of the required Right-of-Way. 2. Neaotiations Developer will negotiate in good faith with the owner of the required Right-of-Way for a period of at least three (3) weeks after deed description has been prepared. If said negotiations are at an impasse after that time, Developer may notify the City Attorney that an impasse has been reached. 3. Initiation of Eminent Domain Upon notification of an impasse in the negotiations for purchase of the Right-of-Way, the City Attorney or his designee shall initiate the local agency procedures leading up to City Council consideration of a Resolution of Necessity. At that time, the City Council will determine whether to proceed with an action in eminent domain to acquire and improve the Right-of-Way as a public street. 4. Reimbursement of Costs to Cit If it becomes necessary for the City to expend any funds in acquiring the Right-of-Way, Developer agrees to reimburse the City for any funds which the City may spend in acquiring the Right-of-Way in accordance with the following procedure: a. City shall bill Developer by invoice for reimbursement on a periodic basis as City incurs costs, except as provided in subsection (b) and (c) below. Reimbursement payments shall be made to 22