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the end of the Term would be December 31, 2025. If, on the other hand, the Owner requests its
<br />first Grant Payment in 2019 (based on revenues generated in 2018), the end of the Term would
<br />be December 31, 2028.
<br />ARTICLE 3. OBLIGATIONS OF OWNER
<br />Section 3.01. Site Redevelopment. The Owner shall redevelop the site as a "Class A"
<br />retail shopping center. For purposes of this Agreement, "Class A" shall mean that the
<br />development will have a tenant mix and finished building, landscape, parking and site
<br />improvements designed to attract such tenant mix, similar in character to that within the existing
<br />developments at 1890 Ranch in Cedar Park, Texas, University Oaks in Round Rock, Texas, and
<br />Southpark Meadows in Austin, Texas. It is expressly understood that storage rental facilities are
<br />inconsistent with the meaning of a "Class A" retail shopping center under this paragraph, and no
<br />portion of the Site shall include storage rental facilities.
<br />Section 3.02. Capital Investment. The Owner shall make a capital investment for
<br />redevelopment of the Site, including land acquisition cost, and all land development costs, of at
<br />least $27,500,000.00. This investment shall be verified by actual receipts for costs expended by
<br />the Owner, together with associated invoices or other documentation, such as HUD -1 Settlement
<br />Statements, provided to the City by the Owner. For purposes of this Agreement, land
<br />development costs are customary costs and expenses incurred by the Owner for land acquisition,
<br />architectural, engineering and construction management services, building demolition and
<br />demising, new construction, exterior improvements, parking lot improvements, landscape
<br />improvements, signage, and the Owner contribution to interior and exterior improvements for
<br />tenants within the Site. For purposes of this Agreement, land development costs shall not
<br />include, inventory, leasing or real estate sales commissions or interest carry.
<br />Section 3.03. Tenant Capital Investment. The Owner shall facilitate capital investment
<br />by tenants on the Site, including all land development costs, currently estimated to be
<br />approximately $7,000,000.00. The tenants on the Site are not parties to this Agreement and the
<br />Owner does not have access to or control over each tenant's capital investment expenditures.
<br />Section 3.04. Sign Installation. After the Effective Date, the Owner shall be eligible to
<br />submit one or more sign permit applications and to receive a permit from the City for installation
<br />of signs substantially in accordance with the height and area specifications and locations in
<br />Exhibit "B." The City Manager of the City, or the City Manager's designee shall, first,
<br />determine whether final sign plans are substantially in accordance with Exhibit "B" before any
<br />associated sign permit may be issued by the City. The architectural styles of the signs in Exhibit
<br />"B," however, are conceptual. Accordingly, the actual architectural style may vary from the
<br />drawings in Exhibit "B" provided that such signage is of the same general architectural design
<br />character. For the avoidance of any doubt, the square footage stated for each sign in Exhibit "B"
<br />refers to the maximum amount of square footage for the sign panels on one side of a sign. Except
<br />as specifically waived by the City under Article 4 of this Agreement, the installation of such
<br />signs shall comply with the requirements of all City of San Marcos processes, approvals,
<br />procedures, ordinances, rules, regulations and standards governing the installation of signs,
<br />including, but not limited to, the location requirements under Section 6.3.1.7 of the ( "LDC ").
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