EXHIBIT 10(43)
Mayor\City of Detroit
1126 City-County Building
Detroit, MI 48226
Corporation Counsel
City of Detroit
First National Building
000 Xxxxxxxx Xxxxxx
Xxxxx 0000
Xxxxxxx, XX 00000
The Economic Development Corporation
of the City of Detroit
000 X. Xxxx Xxxxxx
Xxxxx 000
Xxxxxxx, XX 00000
Reference is made to the Amended and Restated Casino Development Agreement
among the City of Detroit ("City"), the Economic Development Corporation of the
City of Detroit ("EDC") and MGM Grand Detroit, L.L.C. ("Developer") for the
City of Detroit Development Project, dated as of April 9, 1998, as amended as of
June 25, 1998 (the "Development Agreement"). Capitalized terms not otherwise
defined herein shall have the meanings ascribed to them in the Development
Agreement. To induce the City Administration to submit to the City Council for
their approval, a Conveyance Agreement amended in the form set forth on
Exhibit A attached hereto, the Developer agrees, subject to satisfaction of the
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conditions set forth below, as follows:
1. Approval of Revised Schedules A and B. In reliance upon the
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representation by City and EDC that Developer or its consultants have been
furnished with all Supporting Material (as defined in Section 3.03 of the form
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of Conveyance Agreement annexed to the Development Agreement) reasonably
required by Developer or its consultants to make an informed decision as to the
accuracy of Revised Schedules A and B in the form attached hereto ("Revised
Schedules A and B") which will be submitted as contemplated by Section 2.18 of
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the Development Agreement, Developer hereby approves and accepts Revised
Schedules A and B.
2. Developer Waiver Regarding Revised Schedules A and B. Developer
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hereby waives any and all rights that it may have to claim or assert that the
information set forth on Revised Schedules A and B, or the Supporting Material
on which they are based, is incomplete, inaccurate or requires further revision
in any respect. Developer hereby acknowledges that the amounts set forth on
Revised Schedules A and B are estimates and agrees that Xxxxxxxxx's waiver shall
not be affected if final costs exceed such estimates.
3. Agreement To Amend Conveyance Agreement. Developer agrees that the
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form of Conveyance Agreement to be submitted by the City Administration to City
Council for its approval shall be amended in the form set forth on Exhibit A
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attached hereto.
4. Agreement to Complete Legal Description. Developer agrees that
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within two weeks of the date hereof, it will reach agreement with the Other
Developers as to the correct legal description of the Property, as that term is
defined in the Conveyance Agreement (the "Legal Description").
5. Conditions to Developer's Agreements. Developer's agreements
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hereunder are expressly subject to and conditioned upon the following:
A. The Conveyance Agreement being amended in the form of Exhibit A
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attached hereto, and such Conveyance Agreement, as so amended, being duly
approved by the City, the City Council and the EDC.
B. The City not amending or revising Revised Schedules A or B to add any
new matter.
C. The accuracy of the City's and EDC's representation in paragraph 1
above, provided that such representation shall not be deemed inaccurate if
Developer's or its consultant's failure to receive any Supporting Material would
not have reasonably resulted in a conclusion that Revised Schedules A and B are
inaccurate or incomplete.
D. The City not having withheld from Developer any information which, in
the exercise of its good faith judgment, would have been reasonably required to
make an informed decision as to the accuracy of Revised Schedules A and B.
E. The City not including as the cost of a Response activity on a
revised Schedule A a matter that reasonably could be classified as an
Infrastructure Improvement.
F. Receipt by the Developer of an ALTA boundary survey of the land to be
included in the Land-Based Casino Developments together with
currently-effective title insurance commitments sufficient to assure the
Developer, in the exercise of its reasonable judgment, that it will acquire all
the Property pursuant to the Conveyance Agreement subject to no restrictions or
encumbrances which would materially prevent or impede the development of the
Casino Complex.
January 26, 1999
MGM GRAND DETROIT, LLC, a Delaware
limited liability company
By: /S/
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Its: Vice Chairman
Revised Schedule A*
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(i) The City's best estimate of the aggregate of the
Feehold Compensation $ 151,801,800
(ii) The cost of all Infrastructure Improvements 88,694,880
(iii) The costs of all of the above and below ground
environmental Response activity necessary in order
to obtain a covenant not to sue in favor of the City,
EDC, Developer and the Other Land-Based Casino Developers
issued by the Michigan Department of Environmental
Quality with respect to the Casino Area and the Public
Land. 9,187,647
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Total of (i), (ii) and (iii) $ 249,684,327
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*Capitalized terms have the same meanings ascribed to them in the Agreements
Revised Schedule B
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I. St. Xxxxx Corridor
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A. Reconstruct Jefferson Ave. Bridge for 6-lane roadway section. $1,520,000
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B. Roadway Section from South line of Jefferson to Antietam
bridge, including utility relocations, four-lane roadway with future
rail provision, new bridges at Jefferson, Larned, Lafayette and
Antietam and one pedestrian bridge. 29,710,000
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C-1. Gratiot/I-75 intersection at grade including utility relocation
and signage to prohibit left turns onto St. Xxxxx and Chene. 11,387,200
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C-2. PLD ducts and related work for signals and lights. 1,340,000
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D. Environmental remediation on land at Gratiot and in corridor. 3,041,030
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II. Roadways
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X. Xxxxxxx 5 land roadway from Xxxxxx to Chene along existing
alignment widened to north from Xxxxxxxx to Chene and to south
from Xxxxxxxx to Xxxxxx; 15 foot sidewalk on north to be on private
property with utility easement. 4,400,000
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X. Xxxxxxx same as above from Xxxxxx to New Boulevard. 931,000
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X. Xxxxxxxx from Xxxxxxxxx to Xxxxxxx widened and reconstructed
with public sidewalks both sides. 710,000
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X. Xxxxx from Xxxxxxxxx to Xxxxxxx widened and reconstructed
with public sidewalks both sides. 819,000
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E. Upgrade existing traffic signal at Chene & Jefferson
intersection. 228,000
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F. New traffic signals for:
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1. I-375 (New Boulevard) & Atwater 202,000
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2. Atwater & Xxxxxxxx 157,000
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3. Atwater & Dequindre 202,000
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4. New Street (N-S) & Atwater 202,000
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5. Jefferson & Xxxxxxxx 187,000
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6. Atwater & Chene 187,000
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G. Traffic signal feed extension and traffic signal intra connect
extension. 634,000
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H. Roadway trail blazing signs on City streets and on MDOT
freeways. 712,000
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III. Other
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Purchase of trolley buses for Atwater route: 2 natural gas fueled
decorative "trolleys" at $250,000 each. 500,000
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Contingency 25,000,000
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Total
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Detroit Based Enterprise Premium (2%) 883,420
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Wage escalation for labor (3%) 1,325.130
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GMP Expense, overhead and profit (10%) 4,417,000
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Grand Total $88,694,880
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