The Redeveloper & the Redevelopment Agreement Selecting a Redeveloper The selection of redevelopers can generally occur in one of two ways. First, the redeveloper may be known ahead of time and through discussions with the municipality may have actually initiated the redevelopment process. In this instance, the designation of the redeveloper becomes a legal formality after the plan is adopted. In certain situations, the redevelopment plan actually is a reflection of the proposed development plan submitted by the developer. The governing body may opt to use the developer's plan as part of the redevelopment plan for the area, with or without modifications. The other, and more common way of selecting a redeveloper in a competitive process after the redevelopment plan has been adopted. In this approach, the municipality issues either a Request For Qualifications (RFQ) or a Request For Proposals (RFP) to solicit interest from prospective redevelopers. The Redevelopment Agreement Probably the single most important document in the redevelopment process after the redevelopment plan is the redeveloper agreement. As its name implies, the redeveloper agreement is a contract. It is no different than any other contract between two parties, except that a redeveloper agreement must contain at least the mandatory provisions set forth in Section 9 of the Local Redevelopment and Housing Law. Section 9 in the Local Redevelopment and Housing Law requires the following provisions in any Redevelopment Agreement. The redeveloper must agree to the uses permitted in the redevelopment plan. The agreement must include a date (schedule) by which construction of improvements will commence. Transfer of all or part of the development rights to a redevelopment area or redevelopment project must have consent of redevelopment entity or municipality. A Certificate of Completion must be issued by the redevelopment entity upon its determination that a redevelopment project is completed. Optional Provisions Section 9 in the Local Redevelopment and Housing Law also allows for a variety of covenants, provisions and controls to be included in the Redevelopment Agreement if deemed necessary to effectuate purposes of the statute. Options include: Termination provisions Terms for dispute resolution A "Force Majeure" clause that protects the redeveloper from default should an unanticipated and/or uncontrollable event occur. Syndication of redeveloper rights and obligations; A Reverter clause that transfers property back to the redevelopment entity in the event that the redeveloper defaults under the agreement.