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. 1.6. Local Hiring . It is in the interests of the City, its residents and local businesses, to encourage development within the City boundaries that strengthens the local economy by providing jobs and increasing economic activity overall. The construction of the Project will directly create construction jobs and indirectly could increase ancillary and complementary jobs that support the Project's construction activities. The City has a strong public interest in encouraging hiring local firms and businesses for major projects within the City. In order to further these goals,Developer will make a good faith effort to contract with appropriate businesses located in San Leandro for both professionals and construction trades that will be working on the project construction, subject to the following standards: • For the purpose of this Section 1.6, a business is located in San Leandro if it has a physical presence within the City limits and has applied for and received a local business license; such business may also have offices outside the City; • Developer will conduct outreach to make City businesses aware of the availability of project related contracts by(a)advertising such opportunities in the local newspaper(s) and(b)holding at least two advertised open houses in the vicinity of the Project to encourage local businesses to come and learn about the project and how they might be engaged to work on the project. Developer shall keep records of these outreach efforts and shall provide them to the City upon request. • Developer and its contractors and subcontractors will consider in good faith all applications submitted by local businesses in accordance with their normal practice to engage the most qualified business for each position, and make a good faith effort to hire local businesses; • Developer retains the sole and absolute discretion to engage both professional and construction firms it deems best qualified for the tasks to be performed; • The requirements of this section shall continue until the issuance of the first temporary certificate of occupancy for each phase of the Project. • The requirements of this section are limited to the construction activities of the Project. 1.7. Project Approvals. Developer has applied for and obtained various environmental and land use approvals and entitlements related to the development of the Project, as described below. For purposes of this Development Agreement,the term "Project Approvals"means all of the approvals,plans and agreements described in this Section 1.7. City and Developer agree to work diligently and in good faith toward appropriate planning entitlements and building permit approvals for each phase of construction. 8