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TO: Mayor Thomas J. Weisner
FROM: Alayne M. Weingartz, Corporation Counsel
DATE: May 9, 2014
SUBJECT:
Requesting approval of the assignment of the guarantee, rights and responsibilities pursuant to the Development Agreement with Heartland Recycling LLC, for the CCDD facility on Route 25 between Sullivan and Mettle roads.
PURPOSE:
Due to a change in the structure of the entities currently owning and operating this CCDD facility, there is a need for the guarantors to be changed, and also to change the entity which carries the rights and responsibilities pursuant to the Development Agreement.
BACKGROUND:
As part of the original purchase, organization and development of this formerly City-owned site as a CCDD facility, the City required certain guarantees be in place, along with certain rights and responsibilities, all as set forth in the Development Agreement approved August 23, 2011, between Heartland Recycling LLC and the City of Aurora. All such guarantees were previously delivered in writing to the City as required pursuant to the Development Agreement. At this time, Heartland Recycling LLC desires to assign all of its rights and responsibilities to a new entity, Heartland Recycling--Aurora CCDD. Thus there is a corresponding need to likewise change the guarantors involved, and issue new guarantees replacing certain of the former executed and accepted guarantees already in place, as well as an acceptance by the new entity undertaking all of the rights and responsibilities provided in the Development Agreement.
DISCUSSION:
The Development Agreement provides, at Section IV (D) thereof, the process for proposing an assignment. Outside Counsel has reviewed all of the documentation required to be provided for said assignment, and has found the supporting documentation supplied by Heartland to be satisfactory. Specifically, the requirements contained within the Development Agreement when an assignment is proposed include required docume...
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