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(b) Lessee shall also use or cause the Project to be used in a manner consistent
<br /> with all applicable zoning and environmental laws of any governmental authority having
<br /> jurisdiction over the Project, and with all requirements of any Lenders. Subject to the next
<br /> sentence, the Lessee agrees to comply with all applicable and lawful statutes, rules, orders,
<br /> ordinances, requirements and regulations of the United States, the State of California, and of any
<br /> other governmental authority having jurisdiction over the Project. The Lessee may, in good faith
<br /> and on reasonable grounds, dispute the applicability of, or the validity of any charge; complaint or
<br /> action taken pursuant to or under color of, any statute, rule, order, ordinance, requirement or
<br /> regulation, defend against the same, and in good faith diligently conduct any necessary proceedings
<br /> to prevent and avoid any adverse consequence of the same.
<br /> Section 3.4 Construction of the Improvements
<br /> The Lessee shall commence construction of the Improvements within ninety (90) days after
<br /> the Date Of This Lease and shall diligently prosecute completion of the Improvements in
<br /> accordance with the provisions of the Other Loan Documents, the City Loan Documents and the
<br /> City HELP Loan Documents. If the Lessee Determines that completion of the Improvements is not
<br /> feasible because Lessee discovers Hazardous Materials, as defined in Section 5.5, on the Property
<br /> during its construction work, Lessee may terminate this Lease without fault.
<br /> Section 3.5 Maintenance of the Project
<br /> Subject to Sections 6.1 and 6.2, during the Lease Term, the Lessee shall perform, or cause
<br /> to be performed, all maintenance and repairs necessary to maintain the Project in good repair and
<br /> tenantable condition. The Lessee shall not permit the accumulation of waste or refuse matter on the
<br /> Land or in the Project. The Lessee shall commit no act of waste and shall take good care of the
<br /> Project and the fixtures and appurtenances therein, and shall, in the use and occupancy of the
<br /> Project, conform to all laws orders, and regulations of the federal, state, and municipal govemments
<br /> or any of their departments. From time to time, the Lessee may remodel, expand, rehabilitate,
<br /> demolish in whole or in part, and reconstruct the Project, consistent with the requirements of this
<br /> Lease, the City Loan Documents, the City HELP Loan Documents and the Other Loan Documents.
<br /> If Lessee chooses to remodel, expand, rehabilitate, or demolish the Project pursuant to this Section,
<br /> • and such work will exceed One Hundred Thousand Dollars ($100,000), adjusted for inflation,
<br /> Lessee must obtain prior written approval from the Lessor before commencing such work, unless
<br /> such work is required by a Lender. The One Hundred Thousand Dollars ($100,000) shall be
<br /> adjusted for inflation by increasing or decreasing said number by the percentage increase or
<br /> decrease in the Consumer Price Index (as defined in 5.1(e)(3)) from the Date Of This Lease to
<br /> the date of the repairs and reconstruction performed pursuant to this Section.
<br /> Not later than the last day of the Lease Term, the Lessee shall, at the Lessee's expense,
<br /> remove all of the Lessee's personal property and those improvements made by the Lessee that have
<br /> not become the property of the Lessor; repair all injury done by or in connection with the removal
<br /> of the Lessee's personal property and improvements, and surrender the Project in good condition.
<br /> Lessor shall agree to accept the Property with any damage not caused by the misuse or neglect of
<br /> the Lessee, the Lessee's agents, the Residents, and the Resident's visitors, including damage related
<br /> to reasonable wear and tear resulting from the elements or any remaining damage caused by an
<br /> event for which insurance coverage was not required under this Lease or the insurance coverage did
<br /> not allow a complete restoration. The Lessee shall remove all personal property by the last day of
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