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Term of Ground Lease. The Ground Lease shall become effective <br /> on the Closing Date (defined below) and shall have a term of not <br /> less than seventy-five (75) years. <br /> ii. Taxes and Assessments. The tenant shall be responsible for the <br /> payment of any and all property taxes and assessments levied <br /> against the leasehold estate and the Property during the term of the <br /> Ground Lease subject to any abatement available therefrom. <br /> iii. Project Use. The Property shall be used during the term of the <br /> Ground Lease only for affordable housing (and related community <br /> serving uses). <br /> iv. Rent. Developer shall pay City a capitalized rent payment(the <br /> "Capitalized Rent"), which shall be due upon execution of the <br /> Ground Lease, in the amount of$3,954,000, which is equal to the <br /> fair market value of the Land(as determined by an MAI appraiser) <br /> as of the date of this Agreement. To fund the Capitalized Rent, <br /> City shall provide a"carryback loan" in the amount of the <br /> Capitalized Rent("Takeback Loan"), and Developer shall repay <br /> the Takeback Loan in accordance with a promissory note executed <br /> by Developer in favor of the City.. <br /> v. Rehabilitation and Operation of the Project. Developer shall be <br /> responsible, at its sole cost, for construction, operation, and <br /> maintenance of the Project during the Ground Lease term. <br /> vi. Title to Property. The Ground Lease shall provide that City will <br /> own fee title to the Land, and that the Developer will own all <br /> improvements constructed or otherwise located on the Land, <br /> during the Ground Lease term. Pursuant to the Ground Lease City <br /> will execute and deliver, at the permanent loan closing for the <br /> Project, a lease rider to the Ground Lease in favor of the California <br /> Tax Credit Allocation Committee ("TCAC"), in the form required <br /> by TCAC. <br /> vii. Disposition of Improvements at End of Lease. At the end of the <br /> Ground Lease term, title to all the improvements shall <br /> automatically vest in City without further action required by either <br /> Party, and without any obligation by City to pay any compensation <br /> therefor. <br /> viii. Mortgagee Protections. The Ground Lease shall include standard <br /> mortgagee protection provisions. <br /> ix. Defaults; Right to Cure. City will provide any notice of any <br /> defaults under the Ground Lease to the Developer's limited <br /> 3 <br /> OAK#4811-5363-1135 v2 <br />