Minimum Development Obligations Clause Samples
The Minimum Development Obligations clause sets out the baseline requirements that a party, typically a licensee or developer, must meet in terms of developing a product, technology, or project. This clause often specifies measurable milestones, such as timelines for commencing development, minimum investment amounts, or production targets that must be achieved within certain periods. By establishing these clear benchmarks, the clause ensures that the party responsible for development remains committed and prevents stagnation or underperformance, thereby protecting the interests of the other party and ensuring the project's progress.
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Minimum Development Obligations. The Concessionaire shall undertake construction of atleast 2,69,462 sq.ft of built-up area (the “Minimum Development Obligations”). The construction works shall commence from the Appointed Date and shall be completed in accordance with the Project Completion Schedule as set forth in Schedule F.
Minimum Development Obligations. 6.2.1 The Developer shall be obliged to complete the construction of the Minimum Development Obligations in accordance with this Agreement, including without limitation, the Technical Specifications, Approved Drawings and Plan, and Applicable Permits, within 8 (eight) years from Commercial Operations Date of the Minimum Facilities (“Scheduled Construction Period-MDO”).
6.2.2 In the event that the Developer does not achieve the Completion of the Minimum Development Obligations prior to expiry of the Scheduled Construction Period- MDO unless the delay is on account of reasons solely attributable to the Mandi Board or due to Force Majeure, otherwise the Developer shall pay damages to the Mandi Board of a sum calculated at the rate of Rs. 40,000 for delay of each day until Completion of Minimum Development Obligation is achieved.
6.2.3 In the event that the Minimum Development Obligations are not completed within 360 days from the expiry of the Scheduled Construction Period-MDO, unless the delay is on account of reasons solely attributable to the Mandi Board or due to Force Majeure, otherwise the Mandi Board shall be entitled to terminate this Agreement.
Minimum Development Obligations. The Concessionaire shall be required to develop the project site into a 3 star or above category hotel, commercial, pertinent facilities and infrastructure. The Concessionaire shall undertake development of following facilities in addition to the existing facilities with flexibility to modify the existing facilities as well (including retrofitting, if required, without effecting any structural changes to the heritage structure), to optimise operational efficiency and quality of the project. The specifications in terms of sizes and service quality shall strictly be in accordance with MoT Guidelines for relevant category / classification and / or any other local guidelines as applicable including relevant architectural standards.
1. Development of Hotel with minimum 50 rooms
2. Commercial area, food court, etc. subject to a maximum of 35% of the total Built-up Area (BUA)
3. Fine dining restaurant
4. Gym
5. Activity Hall
6. All other facilities and infrastructure as required as per relevant category of hotel in accordance with the guidelines of Ministry of Tourism, Government of India
7. Banqueting facility
8. Upgrade the existing facilities and infrastructure in terms of quality and ambience to meet the relevant standards of 3-star or above category hotel.
Minimum Development Obligations. The lessee shall have the following Minimum Development Obligations –
i. The Selected Applicant shall construct minimum 25% of the maximum permissible built up area as per Clause 1 of RFP within 2 (two) years from the date of signing of this Agreement.
ii. The Selected Applicant shall complete the Project (Construction of minimum 85% of the maximum permissible built up area as per Clause 1 of RFP) in all respect, shall obtain the completion certificate from NRDA, start operation of the 5 Star Deluxe Resort Project and obtain classification for 5 Star Deluxe Category from Ministry of Tourism, GoI within 4 (four) years from the signing this Agreement.
Minimum Development Obligations. 2.2.1 The Developer shall meet the following minimum development obligations (the “Minimum Development Obligations”) while designing, renovating, developing, augmenting the Property:
a. The Developer shall upgrade/renovate/modernise the existing Project Facility and create/add other assets including overall development as required for the Property and shall make an investment of an amount equal to or greater than Rs (Rupees ).
b. Commit to finance, upgrade, develop, operate, manage and maintain the Property, Project Facility and Project Asset as per Good Industry Practice from the Appointed Date.
c. The Property, Project Facility and Project Asset under consideration shall be used only for providing Hospitality/Tourism services.
d. Complete the Initial Phase within 1 year from the Appointed Date and Modernisation Phase within 5 years from Appointed Date.
e. Augmentation/expansion/Development of the Property with prior approval from the Authority to be in line with the local building regulations, and other Applicable Laws.
f. Follow the Building bye-laws and Regulation of the nearest Urban Area for additional construction/development in case the Unit/Property is located in Rural Area.
g. Carry out new construction for providing additional rooms or additional facilities in the Property.
h. Non-violation of all applicable Environmental Standards and Pollution Control Norms as laid down by Central / State Pollution Control Board.
i. Existing local development controls, if any, will be binding if they are more limiting than the Project Specifications / Minimum Requirements.
j. Operate the Project without disturbing the natural surroundings and ensuring that the local flora and fauna are not disturbed.
k. Create an adequate waste disposal system for management and disposal of the waste generated through the Project.
l. Responsible for maintaining hygiene and quality standards at the Property and Project Facilities and providing quality services to tourists.
m. Responsible for providing adequate security for the tourists using the Project Facilities, and ensuring there is no damage or loss to Project Facilities.
Minimum Development Obligations. The development milestone has been made in a way to ensure completion of development of Social and Cultural Community Centre within Three years of date of issue of NoA.
i. The Developer shall secure all the required approvals permissions, NOC from the competent authority within six months from the date of execution of lease agreement
ii. The Developer shall complete minimum 50% of the construction work of approved built-up area and development of project in all respect within One and a half year from the date of execution of lease agreement
iii. The Developer shall complete 100% construction work of the approved built up area and commence operations of project activities in all respect within Three years from the date of execution of lease agreement