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Sunflower Hill to use for preliminary project design costs, architectural work, feasibility studies <br />and other pre -development costs related to the Project. Sunflower Hill shall submit a proposed <br />budget for use of such funds, not otherwise payable by Developer, for review and approval by <br />the City's Assistant City Manager. After the budget is approved, Sunflower Hill shall submit <br />invoices consistent with the budget to the City's Housing Specialist for reimbursement. <br />a. Except as otherwise approved as a pre -development cost paid for by this grant, all <br />costs and expenses (including, without limitation, staff, consultant and legal fees and expenses) <br />incurred in connection with this Agreement shall be paid by the party incurring such expense. <br />b. Sunflower Hill shall at all times keep the Inclusionary Parcel free and clear of all <br />liens and encumbrances affecting title arising from any work or services contracted for by <br />Sunflower Hill. Sunflower Hills' indemnification obligations to discharge liens arising from <br />any work or services contracted for by Sunflower Hill that attach to the Inclusionary Parcel as set <br />forth in this Section 1 shall survive the expiration or earlier termination of this Agreement For <br />any work or services contracted by Sunflower Hill to occur on the Inclusionary Parcel, <br />Sunflower Hill shall require that Sunflower Hill, its contractors and agents carry at least <br />$1,000,000 of general liability insurance per occurrence, and workers compensation insurance <br />as required by law, and provide that Irby Ranch, LLC, is named as an additional insured for <br />such policies, and provide certificates of insurance to Irby Ranch, LLC. <br />c. Funding provided under this Agreement is to identify preliminary project <br />feasibility and it is understood that the commitment of additional funding for predevelopment <br />activities or other project financing may only occur under the conditions described in Section <br />2c. For any reason if the project is found by Sunflower Hill or the City to be infeasible, the <br />funding provided to Sunflower Hill through this Agreement shall become a grant to the project <br />and shall not be repayable. Otherwise, funds provided under this Agreement shall be included <br />as part of any future loan provided by the City and would be included within the maximum City <br />support described in Section 2.d., below. <br />2. Activities & Milestones for Sunflower Hill. Sunflower Hill will use due diligence to <br />refine the Project's concept to serve as a basis for further negotiations of the DDA and shall <br />achieve the following milestones under this Agreement: <br />a. Development Partner. Sunflower Hill will partner with a qualified and <br />experienced developer and/or operator for the Project. Such partner shall be presented to and <br />subject to approval by the Assistant City Manager no later than March 29, 2019. <br />b. Project Plans. Sunflower Hill will submit an application to the City for a planned <br />unit development (PUD) plan following the parameters described in Recital D, above, on or <br />before June 1, 2020. <br />(i) Sunflower Hill Studies. During the Term of this Agreement, Sunflower Hill <br />shall use its best efforts to prepare, or have prepared, studies, surveys, plans, specifications <br />and/or reports that Sunflower Hill deems necessary or desirable to determine the suitability of the <br />Inclusionary Parcel for the Project and as needed to support the negotiations of a DDA. Such <br />2 <br />