Agmt 2017 Dan and Gina Dillman Loan Agreement

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ARTICLE IV AFFIRMATIVE COVENANTS 4.1 USE OF FUNDS: CONSTRUCTION SCHEDULE. Operator covenants that it shall use the Loan Proceeds solely for purposes of financing some or all of the Project in accordance with Section 2.1. Operator shall commence improvements consistent with the Project within 120 days following the Effective Date, and shall complete construction of the Project Improvements and obtain certification from the City's Building Department in accordance with Section 4.2 no later than 730 days after the Effective Date. 4.2 CONSTRUCTION PURSUANT TO PLANS; CERTIFICATION. All construction related to the Project shall be undertaken pursuant to plans and specifications approved by City. Operator agrees to place a sign (with design to be provided by City) on the Property during construction acknowledging the City's participation. Promptly after completion of the Project, Operator shall obtain certification from the City's Building Department certifying that the Improvements have been completed in accordance with this Agreement. 4.3 USE AND MAINTENANCE OF THE PROPERTY. Operator shall use the Property pursuant to the approved conditional use permit (CUP No. PLN2008-00048, and Operator covenants for itself and its successors and assigns that throughout the term of the Loan, the Property shall be used only for such purposes. Operator shall keep the Property and the Improvements in good repair and condition, and from time to time make necessary repairs, renewals and replacements thereto so that the Property and Improvements shall be preserved and maintained. Operator agrees to keep the Property free from litter, graffiti, peeling paint, unkempt landscaping and other unsightly features as reasonably determined by the City or by City's Community Development Department, Economic Development Division, Building Division or other City of San Leandro department. 4.4 USE OF PROPERTY FOR CITY AND COMMUNITY EVENTS. Operator agrees to make the Property available to the City for City or community events at least four times per year until such time as the loan is forgiven or paid in full. Use of the Property will be subject to availability and City agrees to pay a fee to the Operator to cover operating costs associated with such events. 4.5 ACCOUNTING RECORDS; PROPERTY INSPECTION. Operator shall maintain accurate books and records with respect to the completion of the Project and the use of the Loan Proceeds and shall permit the City, during business hours and upon reasonable notice to inspect, audit and examine such books and records and to inspect the Property during normal business hours upon reasonable notice. 4.6 COMPLIANCE WITH LAWS. Operator shall comply with all federal, state and local laws, regulations, ordinances and rules applicable to the Property and the Project, including without limitation, all applicable requirements of state and local building codes and regulations, and all applicable statutes and regulations relating to accessibility for the disabled.