Reso 2017-015 - Laserfiche WebLink

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4.3 Construction Contract. Not later than ten (10) days prior to the commencement of construction of the Improvements, Borrower shall submit to the City for its approval the proposed construction contract for the Improvements (the "Construction Contract"). The City's approval of the Construction Contract shall in no way be deemed to constitute approval of or concurrence with any term or condition of the construction contract except as such term or condition may be required by this Agreement. The City shall, if the construction contract submitted conforms to the provisions of this Agreement, approve the construction contract. Unless rejected by the City for its failure to comply with the foregoing requirements within five (5) days after receipt by the City, said construction contract shall be deemed accepted. If the construction contract is not approved by the City, the City shall set forth in writing and notify Borrower of the City's reasons for withholding such approval. Borrower shall thereafter submit a revised construction contract for City approval, which approval shall be granted or denied in five (5) working days in accordance with the procedures set forth above. 4.4 Development Budget. As of the date of this Agreement, the City has approved the Development Budget. Borrower may amend the Development Budget as reasonably necessary to complete the Project; provided however, no such amendment shall obligate the City to increase the Loan amount beyond the $800,000 currently contemplated by this Agreement. 4.5 Use of Project. (a) Following completion of the Improvements, and subject to this Section 4.4, Borrower shall lease the Premises to the Childcare Provider for use as a childcare center. (b) Borrower understands that the identity of the Childcare Provider is important to the City and that the City must approve the Childcare Provider. The Borrower has entered into a Memorandum of Understanding with a Childcare Provider (the "Proposed Childcare Provider") approved by the City. (c) If the Borrower and the Proposed Childcare Provider (i) do not enter into the Sublease within three (3) months of the Agreement Date (the "Sublease Deadline");or (ii) if the Sublease terminates prior to the Maturity Date ("Sublease Termination"), then, Borrower shall notify the City within ten (10) business days following the Sublease Deadline, or Sublease Termination of such event and the provisions of Section 4.5(d) shall apply. (d) Borrower shall then proceed to find a replacement childcare provider that is mutually acceptable to the Borrower and City (the "Replacement Childcare Provider"). If the Borrower has not entered into a new sublease for the use of the Premises with a Replacement Childcare Provider by a date that is six (6) months following the date of the Sublease Deadline, or Sublease Termination, as applicable (the "Search Period"), then the Borrower may, but is not obligated, to continue to seek a Replacement Childcare Provider for up to an additional six (6) month period (the "Additional Child Care Search Period "). (e) If Borrower does not sublease the Premises to a Replacement Childcare Provider during this Additional Child Care Search Period, or if Borrower does not elect to continue to seek a Replacement Childcare Provider during the Additional Child Care Search Period, then for 2743881.2 5