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18. Expenses. Except as otherwise expressly provided herein, all costs and expenses <br /> (including, without limitation, all legal fees and expenses) incurred in connection with this <br /> Agreement and the activities contemplated hereby shall be paid by the Party incurring the same. <br /> Nothing in this Section is intended to or shall be interpreted to affect any City policy regarding <br /> payment of City fees for processing permits and approvals by applicants. <br /> 18.1 Developer's Payments. Developer shall be responsible for payment of the <br /> following costs incurred in connection with the Project: <br /> (a) City Planning, Engineering & Transportation staff services. Developer shall be <br /> responsible for payment of City Planning and Engineering & Transportation staff <br /> overtime costs and expenses that may be incurred for contract planner review and <br /> processing of application(s) for the Project. <br /> Developer will not be responsible for reimbursing the City for City's own legal counsel <br /> or for consultants representing the City in negotiations pertaining to any agreements <br /> between the Developer and the City. <br /> (b) EIR Consultant. Developer shall be responsible for payment of the Project EIR <br /> consultant's fee. City shall select the EIR consultant. Prior to the City's execution of a <br /> consultant services agreement with the selected EIR consultant, Developer shall deposit <br /> with City, fifty percent (50 %) of the consultant's fee. Developer shall pay thirty percent <br /> (30 %) of the fee upon the consultant's submittal of the administrative draft EIR and the <br /> remaining twenty percent (20 %) upon delivery of the final report; provided however, if <br /> the Consultant's fee schedule is more advantageous than the foregoing, then the <br /> Consultant's payment schedule shall apply to Developer. <br /> 18.2 Ground Lease Rent Credit. City will reimburse Developer for the following <br /> expenses by providing a credit against rent payable by Developer to City pursuant any ground <br /> lease for the Site (or portion thereof): <br /> (a) EIR Analysis of Boat Harbor Basin. City will provide a ground lease rent credit <br /> for the portion of the EIR consultant costs related to redevelopment of the boat harbor <br /> basin in the amount outlined in the EIR consultant's tasks and costs. <br /> (b) Design, Engineering and Permits. City will provide a ground lease rent credit for <br /> documented costs incurred by Developer specifically relating to design, engineering and <br /> permitting for the redevelopment of the boat harbor basin. Developer will provide <br /> quarterly reports to the City on expenses incurred during the previous quarter relating to <br /> the design, engineering and permitting for the redevelopment of the boat harbor basin. <br /> 18.3 Reimbursement of Harbor Basin Costs if Ground Lease is not Executed. If all of <br /> the conditions specified in this Section 18.3 have been satisfied but the City and Developer do <br /> not execute a ground lease for any portion of the Site, City will reimburse Developer for the <br /> portion of the EIR consultant's fees related to redevelopment of the boat harbor basin in the <br /> amount outlined in the EIR consultant's tasks and costs, and for the costs identified in paragraph <br /> (b) of Section 18.2. City's obligation to make such reimbursement is contingent upon <br /> 1741070.3 9 <br />