Allowable Development Costs Clause Samples
The Allowable Development Costs clause defines which expenses are considered permissible and reimbursable in the context of a development project. It typically outlines specific categories of costs, such as materials, labor, permits, and professional fees, that the developer can claim under the agreement. By clearly specifying what constitutes an allowable cost, this clause helps prevent disputes over reimbursement and ensures both parties have a shared understanding of eligible project expenditures.
Allowable Development Costs. “Allowable Development Costs” means, collectively, the costs and expenses associated with the acquisition, development, construction, ownership, operation and maintenance of the Project through Completion to the extent provided in a line item included in the Project Budget, including, without limitation, interest, real estate taxes, marketing and other operating costs and expenses of the Project. Income from the Property received prior to the Completion Date shall be used only to pay Allowable Development Costs.
Allowable Development Costs. “Allowable Development Costs” means the lesser of (i) the ”Total Project Cost” provided in the Approved Development Budget and (ii) the actual, aggregate costs, as audited by Prudential, incurred by Owner for all line items set forth in the Approved Development Budget whether in connection with acquiring the Land or constructing the Improvements pursuant to the Construction Contract described in Section 4.5, other than Excluded Development Costs. Allowable Development Costs shall be reduced by all revenue from the Property prior to Closing. To the extent not otherwise included in the Approved Development Budget as the same may be adjusted pursuant to Sections 2.4 and 4.8 below, Extra Space shall be responsible for all cost overruns incident to Completion of the Improvements in accordance with the terms of this Agreement. Allowable Development Costs shall be calculated without duplication of costs in any category. Allowable Development Costs may not exceed the total amount set forth in the Approved Development Budget and may include the following to the extent the following do not constitute Excluded Development Costs: