Common use of Predevelopment Clause in Contracts

Predevelopment. Manager agrees within 3 months of the date of this Agreement to undertake a feasibility study with respect to the expansion of the Properties listed on Exhibit G and within 6 months of the date of this Agreement to undertake a feasibility study with respect to each of the other Properties. If, based upon the results of the study with respect to any Property, Manager believes that such Property should be expanded or improved, Manager shall recommend such action to the Owner. If the Owner decides to proceed with the expansion of such Property, the Owner shall so notify the Manager. Within 30 days from the date of receipt by the Manager of such notice, the Manager shall prepare and deliver to the Owner a proposed budget and schedule with respect to the Predevelopment Costs (as defined below) which would be incurred in connection with the expansion of such Property. The budget shall list each fee or other cost which will be incurred prior to the commencement of the construction or renovation of the Property including, without limitation, land use study, preconstruction plan, legal, licensure and zoning, working drawings, environmental report, a market analysis and financing plan (the "Predevelopment Costs"). Following approval of the budget and schedule, by the Owner, the Manager shall, as Owner's agent, contract for each of the services listed in the budget and the schedule and approved in writing by the Owner (the "Predevelopment Services"). The Owner shall be responsible for the payment of each of the Predevelopment Costs in accordance with the budget. Following performance of the Predevelopment Services and based upon the results thereof, the Manager shall develop a development plan (the "Development Plan") which shall be submitted to the Owner.