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a management entity shall not relieve Owner of its primary responsibility for proper
<br /> performance of management duties. City hereby approves MidPen Property Management
<br /> Corporation, a California nonprofit public benefit corporation, as the initial management entity
<br /> for the Project. Any subsequent management entity shall be subject to City review and approval,
<br /> which shall not be unreasonably withheld or delayed. Upon City determination and delivery of
<br /> written notice to Owner that Owner has failed to operate the Project in accordance with this
<br /> Agreement, subject to any applicable cure period and the approval of the Project lenders and
<br /> equity investors, City may require Owner to contract with a qualified management agent selected
<br /> by City and approved by the Project lender and equity investor, to operate the Project, or to make
<br /> such other arrangements as City deems necessary to ensure performance of the required
<br /> functions.
<br /> 6.3 Repair, Maintenance and Security. Throughout the term of this Agreement,
<br /> Owner shall at its own expense, maintain the Property and the Project in good physical condition,
<br /> in good repair, and in decent, safe,sanitary,habitable and tenantable living conditions in
<br /> conformity with all applicable state, federal, and local laws, ordinances, codes, and regulations.
<br /> Without limiting the foregoing, Owner agrees to maintain the Project and the Property(including
<br /> without limitation,the residential units,common areas, meeting rooms, landscaping,driveways,
<br /> parking areas and walkways) in a condition free of all waste, nuisance, debris, unmaintained
<br /> landscaping, graffiti, disrepair, abandoned vehicles/appliances, and illegal activity, and shall take
<br /> all reasonable steps to prevent the same from occurring on the Property or at the Project. Owner
<br /> shall prevent and/or rectify any physical deterioration of the Property and the Project and
<br /> shall make all repairs, renewals and replacements necessary to keep the Property and the
<br /> improvements located thereon in good condition and repair. Owner shall provide adequate
<br /> security measures for the Project, including without limitation,the installation of adequate
<br /> lighting and deadbolt locks.
<br /> 6.3.1 Additional Requirements. All construction work and professional services
<br /> for the Project shall be performed by persons or entities licensed or otherwise authorized to
<br /> perform the applicable work or service in the State of California and shall have a current City of
<br /> Pleasanton business license if required under local law. To the extent allowed by state and
<br /> federal laws, Owner shall limit the installation of satellite dish, antenna and other such
<br /> equipment to screened locations on the Property as approved by the City. Owner shall diligently
<br /> work to resolve complaints related to noise, parking, litter or other neighborhood concerns.
<br /> 6.4 City's Right to Perform Maintenance. In the event that Owner breaches any of the
<br /> covenants contained in Section 6.3, and such default continues for a period of ten (10) days after
<br /> written notice from City(with respect to graffiti, debris, and waste material) or thirty(30)days
<br /> after written notice from City(with respect to landscaping, building improvements and general
<br /> maintenance), then City, in addition to any other remedy it may have under this Agreement or at
<br /> law or in equity, shall have the right, but not the obligation, to enter upon the Property and
<br /> perform all acts and work necessary to protect, maintain, and preserve the improvements and the
<br /> landscaped areas on the Property. All costs expended by City in connection with the foregoing,
<br /> shall constitute an indebtedness secured by the Deed of Trust, and shall be paid by Owner to City
<br /> upon demand. All such sums remaining unpaid thirty(30) days following delivery of City's
<br /> invoice therefor shall bear interest at the lesser of 10%per annum or the highest rate permitted by
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