City as its sole tenant. To implement these changes, Carley proposed a series of new development agreements, beginning with the outlines of such an agreement set forth in a letter dated June 12, 1986, to City Manager Williams.
37. City representatives negotiated with Carley in good faith concerning a revised development agreement, particularly concerning proposed City leases for the revised Washington Tower West and a Social Service Building to replace the Courthouse project. At one point, the city council authorized a counteroffer to Carley's new development proposal. The counter offer was transmitted to Douglas Harbit on August 22, 1986. Furthermore, on September 9, 1986, the city council approved actual leases with Carley for the Washington *1394 Tower West and Social Service Buildings, which leases were never executed for variousother reasons.
38. In the spring of 1986, the City had cooperated with Carley in submitting a UDAG application to the Department of Housing & Urban Development for the Washington Tower West project. And when the initial proposal did not meet HUD's threshold requirements and was rejected, the City cooperated with Carley in submitting a revised proposal based upon the reduced-in-scope Washington Tower West project, in the summer of 1986.
39. That revised Washington Tower West proposal reduced the square footage to 125,000 square feet, and required the City to enter into a lease for only 34,000 square feet, with Carley, or the City, having the right to cancel the lease at the end of seven years if an acceptable substitute tenant could be found. The proposal called for $8.2