Reso 1997-146 to 150 - Laserfiche WebLink

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13.9 Establishment of Capital Improvement Fund. Beginning in the second Lease Year of Phase III, the Parties will establish a Capital Improvement Fund ("CIP Fund"). The purpose of the CIP fund will be to refurbish and improve (and not to maintain) the Golf Facility. As long as the total unexpended CIP Fund is less than $500,000, the Parties will deposit into the CIP Fund annually in arrears an amount equal to four percent (4%) of gross green fee, cart fee and driving range fee revenues for such Lease Year. One-half of such amount will be deposited by Lessor and one- half of such amount will be deposited by Lessee. When the total in the CIP fund reaches Five Hundred Thousand Dollars ($500,000), no further deposits will be made until amounts are expended from the CIP Fund in which case deposits will resume until the total again reaches $500,000. 13.10 CIP Budget and Expenditures. Beginning at the third Lease Year of Phase III and annually thereafter, Lessee will submit to Lessor for its review and approval a proposed five (5) year budget ("CIP Budget") for major capital improvements, refurbishment and enhancements for the Facility. Expenditures from the CIP Fund may be made only for capital improvement projects costing more than $7,500 approved by Lessor and Lessee and completed in the Lease Year to which approval relates. Expenditures from the CIP shall be made by joint check executed by Lessor's and Lessee's respective representatives (or any similar dual consent process acceptable to the Parties). Lessor will approve such projects annually concurrently with CIP Budget approval. Lessee may undertake any such approved projects. Any amounts remaining in the CIP Fund at expiration of the Term will be paid over to Lessor. 13.11 Other Capital Improvement Projects. Apart from the Renovation and apart from capital improvements authorized pursuant to Section 13.10, Lessee will have the right subject to Lessor's consent, which will not be unreasonably withheld or delayed, to construct such alterations, additions and improvements to the Facility that Lessee deems necessary and appropriate. 13.12 Closure. Lessor acknowledges its awareness that in constructing any improvements contemplated by this Lease, Lessee may periodically close one or both of the golf courses located on the Leased Premises. 14. MAINTENANCE AND REPAIRS. 14.1 Lessee's Obligations. Lessee shall, at its sole cost, maintain and repair the Leased Premises and keep the Leased Premises in good order and in a condition comparable to the condition of other first class municipal golf courses in the area LEASE AGREEMENT BETWEEN CITY OF SAN LEANDRO AND AMERICAN GOLF PAGE 18 11/13/97 FINAL, 1:\WPD\CSL\136\0IWGP.EE\GOLFCOURWGREE\LEASE.CLN