Res 2009-120 - Laserfiche WebLink

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City of San Marcos Airport construction shall be in accordance with sealed plans for the complete project prepared by an architect or structural engineer licensed or registered in the State of Texas. The plans must be accompanied by the architect or engineer's estimated cost of the construction and the time schedule for completion of the construction. The plans and the time schedule shall be subject to approval by the City. 5.02. The LESSEE shall substantially begin the construction of the FACILITIES within ninety (90) days of the date of completion of the INFRASTRUCTURE IMPROVEMENTS, and shall diligently and continuously pursue the construction to completion, and shall fully complete the FACILITIES, subject to delays described in paragraph 15.06, within eighteen (18) calendar months of the date of the issuance of a building permit from the City. Subject to paragraph 15.06, any delay or lack of progress in the construction will constitute a default by the LESSEE, and will authorize the LESSOR to pursue all remedies available to it as described in Article 11 of this LEASE, following the notice and cure period prescribed by paragraph 11.01(8) below. Within thirty (30) days of written request by LESSOR, which LESSOR may only request on or after the date LESSOR sends out its request for bids to third party contractors for the construction of the INFRASTRUCTURE IMPROVEMENTS, LESSEE shall deliver to LESSOR, in order to secure its timely completion of the FACILITIES, either (i) a letter of credit or bond (the "Letter of Credit ") in favor of LESSOR in an amount equal to 10 percent of the minimum estimated cost of the FACILITIES as stated in paragraph 5.03, and in a form reasonably acceptable to LESSOR, or (ii) cash (the "Cash Deposit ") in an amount equal to 10 percent of the minimum estimated cost of the FACILITIES as stated in paragraph 5.03; the Cash Deposit will be held by LESSOR in trust in an interest bearing account pursuant to the terms of this paragraph 5.02. In the event the FACILITIES are not timely completed, and following the notice and cure period prescribed by paragraph 11.01(B), LESSOR, as its sole and exclusive remedies, may draw upon the Letter of Credit or Cash Deposit, as applicable, and terminate the LEASE. However, if the FACILITIES are timely completed (with completion deemed to occur upon issuance of a shell certificate of occupancy for the FACILITIES), LESSEE shall be deemed to have satisfied its obligations secured by the Letter of Credit or Cash Deposit, and the Letter of Credit or Cash Deposit (plus accrued interest), as the case may be, shall be released to LESSEE. In the event LESSEE fails to complete the FACILITIES as provided herein, LESSEE also agrees (i) to deliver a complete set of plans and specifications for the FACILITIES to LESSOR, and (ii) to assign to LESSOR, or any third party, including any future LESSEE, approved by LESSOR, to the extent assignable, all of LESSEE'S right, title and interest, in and to such plans and specifications. 5.03. The FACILITIES constructed on the LEASED PREMISES will constitute a minimum investment of $1,500,000 in capital improvements. 5.04. The LESSEE shall not make any further alterations, additions, or improvements to the LEASED PREMISES without the prior written consent of LESSOR. All Commercial Land Lease Page 6 of 22