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Material, substances or wastes on, under or about the Leased Premises or the adjoining or
<br /> neighboring property; (viii) the quality of any labor and materials used in any improvements on
<br /> the Leased Premises, or(ix) the condition of title to the Leased Premises.
<br /> Section 2.7 Lessee to Rely on Own Experts. Lessee understands that notwithstanding
<br /> the delivery by Lessor to Lessee of any materials, including, without limitation, third party
<br /> reports, Lessee will rely entirely on Lessee's own experts and consultants and its own
<br /> independent investigation in proceeding with the leasing of the Leased Premises.
<br /> ARTICLE 3.
<br /> THE IMPROVEMENTS
<br /> Section 3.1 Construction. Lessee shall cause the Improvements to be constructed in
<br /> substantial compliance with the Construction Plans approved by City and the terms and
<br /> conditions of the land use permits and approvals and building permits, including any variances
<br /> granted for the Improvements to be approved by Lessor, within twenty-eight (28) months from
<br /> the award of a preliminary reservation of low income housing tax credits for the Improvements
<br /> from TCAC. Any and all Improvements constructed by or on behalf of Lessee shall be
<br /> constructed in a good and workerlike manner, in compliance with all applicable Legal
<br /> Requirements. Except as may be specified in the documents evidencing the City Loan and any
<br /> City financing for the Project that may be approved by the City in its sole discretion, Lessee shall
<br /> bear the entire and sole cost of planning, designing, engineering, financing, constructing,
<br /> supervising, and inspecting the Improvements, including all fees and mitigation measures. City
<br /> acknowledges that as of the Commencement Date, the City has approved the Construction Plans.
<br /> Section 3.2 Liens. Lessee shall not have any right, authority or power to bind Lessor,
<br /> Lessor's Estate, or any interest of Lessor in the Land or the Leased Premises, for any claim for
<br /> labor or material, or for any other charge or expense, lien or security interest incurred in
<br /> connection with Lessee's use of the Land, or the development, construction or operation of the
<br /> Improvements, or any change, alteration of addition thereto. Lessee shall have the right to
<br /> encumber Lessee's Estate with security instruments required in connection with the Approved
<br /> Loans, which Approved Loans shall not require the Lessor's consent, and with utility casements
<br /> and other customary easements necessary and incidental to the development, construction and
<br /> operation of the Improvements, provided that such easements are subject to the approval of
<br /> Lessor, which shall not be unreasonably withheld, conditioned or delayed.
<br /> The Lessee shall not create or permit or suffer to be created or to remain upon the
<br /> Lessor's Estate or any interest of Lessor in the Land or the Leased Premises, or upon the Leased
<br /> Premises, or any part thereof; and will discharge, any lien, including, but not limited to, the liens
<br /> of mechanics, laborers, materialmen, suppliers or vendors for work or materials alleged to be
<br /> done or furnished in connection with the Leased Premises or the Project, or any part thereof. If
<br /> any claim of lien is filed against the Lessor's Estate or any interest of Lessor in the Land or the
<br /> Leased Premises, or a stop notice is served on any other lender or other third party in connection
<br /> with the Leased Premises or the Improvements, or upon the Leased Premises, or any part thereof;
<br /> then the Lessee shall, within twenty (20) days after such filing or service, either pay and fully
<br /> discharge the lien or stop notice, effect the release of such lien or stop notice by delivering to the
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<br /> OAK 44834-9609-1684 v8
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