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<br />(b) Lessee shall also use or cause the Project to be used in a manner consistent
<br />with all applicable zoning and environmental laws of any governmental authority having
<br />jurisdiction over the Project, and with all requirements of any Lenders. Subject to the next
<br />sentence, the Lessee agrees to comply with all applicable and lawful statutes, rules, orders,
<br />ordinances, requirements and regulations of the United States, the State of Cali fomi a, and of any
<br />other governmental authority having jurisdiction over the Project. The Lessee may, in good faith
<br />and on reasonable grounds, dispute the applicability of, or the validity of any charge, complaint or
<br />action taken pursuant to or under color of, any statute, rule, order, ordinance, requirement or
<br />regulation, defend against the same, and in good faith diligently conduct any necessary proceedings
<br />to prevent and avoid any adverse consequence of the same.
<br />
<br />3.4 rnn~tnlC~tl()n nfthp Imprnvpmpnt"
<br />
<br />The Lessee shall cornmence construction of the Improvements within ninety (90) days after
<br />the Date Of This Lease and shall diligently prosecute completion of the Improvements in
<br />accordance with the provisions of the Other Loan Documents, the City Loan Documents and the
<br />City HELP Loan Documents. If the Lessee Determines that completion of the Improvements is not
<br />feasible because Lessee discovers Hazardous Materials, as defined in Section 5.5, on the Property
<br />during its construction work, Lessee may terminate this Lease without fault.
<br />
<br />3.S M~intpn~n~p ofthp Projp~t
<br />
<br />Subject to Sections 6.1 and 6.2, during the Lease Term, the Lessee shall perform, or cause
<br />to be performed, all maintenance and repairs necessary to maintain the Project in good repair and
<br />tenantable condition. The Lessee shall not permit the accumulation of waste or refuse matter on the
<br />Land or in the Project. The Lessee shall commit no act of waste and shall take good care of the
<br />Project and the fixtures and appurtenances therein, and shall, in the use and occupancy of the
<br />Project, conform to all laws orders, and regulations of the federal, state, and municipal governments
<br />or any of their departments. From time to time, the Lessee may remodel, expand, rehabilitate,
<br />demolish in whole or in part, and reconstruct the Project, consistent with the requirements of this
<br />Lease, the City Loan Documents, the City HELP Loan Documents and the Other Loan Documents.
<br />If Lessee chooses to remodel, expand, rehabilitate, or demolish the Project pursuant to this Section,
<br />and such work will exceed One Hundred Thousand Dollars ($ 1 00,000), adjusted for inflation,
<br />Lessee must obtain prior written approval from the Lessor before commencing such work. The
<br />One Hundred Thousand Dollars ($100,000) shall be adjusted for inflation by increasing or
<br />decreasing said number by the percentage increase or decrease in the Consumer Price Index (as
<br />defined in 5.J(e)(3)) from the Date Of This Lease to the date of the repairs and reconstruction
<br />performed pursuant to this Section.
<br />
<br />Not later than the last day of the Lease Term, the Lessee shall, at the Lessee's expense,
<br />remove all of the Lessee's personal property and those improvements made by the Lessee that have
<br />not become the property of the Lessor; repair all injury done by or in connection with the removal
<br />of the Lessee's personal property and improvements, and surrender the Project in good condition.
<br />Lessor shall agree to accept the Property with any damage not caused by the misuse or neglect of
<br />the Lessee, the Lessee's agents, the Residents, and the Resident's visitors, including damage related
<br />to reasonable wear and tear resulting from the elements or any remaining damage caused by an
<br />
<br />144\ J 05\ 153233.23
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