Agmt 1997 American Golf Corp - Laserfiche WebLink

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including all obligations for labor, materials ad services. Lessor acknowledges its awareness that the golf courses will need to be temporarily closed during the Renovation. In connection with the Renovation, but excluding (i) any other capital improvement projects constructed by Lessee during the term of this Lease, (ii) Lessee's operation of the Leased Premises, Lessee, its contractors and subcontractors shall comply with the applicable provisions of the Labor Code pertaining to the payment of prevailing wages for public works contracts. 13.5 Lessor's Obligation. Lessor understands that the Renovation will include Lessee's importing substantial amounts of soil to the Leased Premises. Lessor agrees to designate a haul route for such soil reasonably acceptable to Lessee. 13.6 Completion. Lessor recognizes that in order to complete the Renovation, Lessee must not only complete construction of the improvements, but also must permit these improvements to "mature" in accordance with usual and customary golf course industry practice in order to attain the qualities ascribed to a golf course characterizes as a championship golf course. Only at such time as, in Lessee's reasonable determination, will improvements have been completed and the golf course is ready to play by the public will the Renovation be considered complete for purposes of this Lease. 13.7 Security. As security for the performance of its obligations under this Article 13, Lessee will deliver to Lessor an irrevocable letter of credit ("Letter of Credit") in a form approved by the City Attorney and in the amount of Five Hundred Thousand Dollars ($500,000) issued by a bank acceptable to Lessor and in favor of Lessor. Prior to commencement of the Renovation, Lessee will deliver to Lessor a completion bond or irrevocable letter of credit ("Bond"), in a form acceptable to the City Attorney and equal to one hundred twenty-five percent (125%) of Lessee's total budgeted Renovation costs. Provided that Lessee has delivered the Bond, Lessor will return the Letter of Credit to Lessee sixty (60) days after commencement of the Renovation. 13.8 Ownership of Improvements; No Liens. During the Term, all improvements shall be the property of Lessee. All improvements shall become the property of Lessor upon termination of this Lease unless otherwise agreed by Lessor in writing. Lessee shall not have the right to create or permit the creation of any lien attaching to Lessor's interest in the Leased Premises as a result of any construction of any improvements. -- LEASEAGREEMENT BETWEEN CITY OF SAN LEANDRO AND AMERICAN GOLF PAGE 17 11/13/97 FINAL J:\WPD\CSL\136\O1~pGREE\GOLFCOUR~gGREE\I,EA5E.CLN