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Item 16 - Affordable Housing Project at 801, 807, 809 and 809 ½ E. Santa Ana Blvd
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Item 16 - Affordable Housing Project at 801, 807, 809 and 809 ½ E. Santa Ana Blvd
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City Clerk
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Agenda Packet
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Clerk of the Council
Item #
16
Date
12/7/2021
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<br />Page | 16 <br />9138-126780\1512539.3 <br />releases. Upon completion of the construction of any Improvements, Tenant shall record a notice of <br />completion in accordance with applicable law. Promptly after the Improvements have been <br />completed, Tenant shall (or shall cause Contractor to) record a notice of completion as defined and <br />provided for in California Civil Code section 8000 et seq. <br />(d) Lessor’s Rights. If Tenant (or any contractor or subcontractor, as <br />applicable) does not cause to be recorded the bond described in California Civil Code section 8000 et <br />seq. or otherwise protect the Premises and Improvements under any alternative or successor statute, <br />and a final judgment has been rendered against Tenant by a court of competent jurisdiction for the <br />foreclosure of a mechanic’s, materialman’s, contractor’s or subcontractor’s lien claim, and if Tenant <br />fails to stay the execution of judgment by lawful means or to pay the judgment, Lessor shall have the <br />right, but not the duty to pay or otherwise discharge, stay or prevent the execution of any such <br />judgment or lien or both. Upon any such payment by the Agency, Tenant shall immediately upon <br />receipt of written request therefor by the Agency, reimburse the Agency for all sums paid by Agency <br />under this paragraph together with all Agency’s reasonable attorney’s fees and costs , plus interest at <br />the Interest Rate from the date of payment until the date of reimbursement. <br />5.1.10. No Responsibility. Any approvals by the Agency with respect to any <br />Improvements shall not make the Agency responsible for the Improvement with respect to which <br />approval is given or the construction thereof. Tenant shall indemnify, defend and hold Lessor <br />harmless from and against all liability and all claims of liability (including, without limitation, <br />reasonable attorneys’ fees and costs) arising during the Term of this Lease for damage or injury to <br />persons or property or for death of persons arising from or in connection with the Improvement or <br />construction thereof, but excluding any liability resulting from the gross negligence or willful <br />misconduct of Lessor or any Lessor Parties, and excluding any liens resulting from the actions of, or <br />work performed by, the Lessor. <br />5.2 Construction Contracts. <br />5.2.1. Construction Contract. Tenant shall enter into a written contract with a <br />general contractor (“Contractor”) for construction of the Initial Improvements. All construction of <br />the Initial Improvements shall be performed by contractors and subcontractors duly licensed as such <br />under the laws of the State of California. Tenant shall give Lessor a true copy of the contract or <br />contracts with the Contractor. <br />5.2.2. Assignment to Agency. Tenant shall obtain the written agreement of the <br />Contractor that, at Agency’s election and in the event that Tenant fails to perform its contract with <br />the Contractor, such Contractor will recognize Agency as the assignee of the contract with the <br />Contractor, and that Agency may, upon such election, assume such contract with credit for payments <br />made prior thereto. Notwithstanding the foregoing, Agency’s rights under this Section 5.2.2 are <br />hereby made subject and subordinate to the lien of each Leasehold Mortgage. <br />5.3 Reserved. <br />5.4 Ownership of Improvements. <br />5.4.1. For purposes of this Section 5.4, “Term” shall have the meaning stated in <br />Section 2.2.3. <br />EXHIBIT 5
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