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3.5. Community Development Director Noncompliance Finding. <br /> If the Community Development Director, acting in good faith, finds and determines that <br /> there is substantial evidence that Developer has not complied in good faith with the material <br /> terms and conditions of this Development Agreement and that Developer is in material breach of <br /> this Development Agreement for the year under review,the Community Development Director <br /> shall issue and deliver to Developer a written"Notice of Default" specifying in detail the nature <br /> of the failures in performance that the Community Development Director claims constitutes <br /> material noncompliance, all facts demonstrating substantial evidence of material noncompliance, <br /> and the manner in which such noncompliance may be satisfactorily cured in accordance with the <br /> Development Agreement. In the event that the material noncompliance is an Event of Default <br /> pursuant to Article 5 herein,the Parties shall be entitled to their respective rights and obligations <br /> under both Articles 3 and 5 herein, except that the particular entity allegedly in default shall be <br /> accorded only one of the 60-day cure periods referred to in Sections 3.6 and 5.1 herein. <br /> 3.6. Cure Period. <br /> If the Community Development Director finds that Developer is not in compliance,the <br /> Community Development Director shall grant a reasonable period of time for Developer to cure <br /> the alleged noncompliance. The Community Development Director shall grant a cure period of <br /> at least sixty(60)days and shall extend the sixty(60)day period if Developer is proceeding in <br /> good faith to cure the noncompliance and additional time is reasonably needed. At the <br /> conclusion of the cure period,the Community Development Director shall either(i) find that <br /> Developer is in compliance; or(ii) find that Developer is not in compliance. <br /> 3.7. Referral of Noncompliance to City Council. <br /> The Community Development Director shall refer the alleged default to the City Council <br /> if Developer fails to cure the alleged noncompliance to the Community Development Director's <br /> reasonable satisfaction during the prescribed cure period and any extensions thereto. The <br /> Community Development Director shall refer the alleged noncompliance to the City Council if <br /> Developer requests a hearing before the City Council. The Community Development Director <br /> shall prepare a staff report to the City Council which shall include, in addition to Developer's <br /> letter, (i) demonstration of City's good faith compliance with the terms and conditions of this <br /> Development Agreement; (ii)the Notice of Default; and (iii) a description of any cure <br /> undertaken by Developer during the cure period. <br /> 3.8. Delivery of Documents. <br /> At least five (5)days prior to any City hearing regarding Developer's compliance with <br /> this Development Agreement, City shall deliver to Developer all staff reports and all other <br /> relevant documents pertaining to the hearing and Developer's alleged non-compliance with this <br /> Agreement. <br /> 3.9. City Council Compliance Finding. <br /> If the City Council, following a noticed public hearing pursuant to Section 3.7, <br /> determines that Developer is in compliance with the material terms and conditions of this <br /> 16 <br />