Common use of Renovation Work Clause in Contracts

Renovation Work. Promptly following the Effective Date of the Restated Lease, Lessee shall renovate the Premises and existing Improvements in accordance with the terms and provisions of this Section 5.1 and the Renovation Plan attached to this Lease as Exhibit B (the “Renovation Plan”), including the scope of work for the renovation of the building, common area, site area and interior of the units, as more fully described in Exhibit “B- 1,” attached hereto and incorporated herein by this reference (the “Renovation Scope”), and including the Final Plans and Specifications for such work, and in compliance with the time periods set forth in this Section 5.1. The renovation work described in this Section 5.1 and the Renovation Plan is referred to herein as the “Renovation Work.” The Renovation Work shall be performed in accordance with the Renovation Plan and the Final Plans and Specifications for the Renovation Work approved by Director prior to the Effective Date under the Option Agreement or, with respect to Alterations after the Effective Date, as established under Subsection 5.3.3 of this Lease. The Renovation Work shall not include any deferred maintenance, except such deferred maintenance as is included in the “RD: Part 4 Redevelopment” in that certain Leasehold Premise Maintenance Deficiency Report, dated August 7 through 8, 2017, as hereinafter updated or revised, prepared by the Department and shall be reconciled with said Maintenance Deficiency Report. Lessee shall be responsible for the acquisition and compliance with all required governmental (including, without limitation, County, Coastal Commission, and Design Control Board) planning and entitlement approvals required to perform the Renovation Work. The Renovation Work shall include without limitation the following: (a) Lessee shall improve public access to the Premises, by removing certain locked gates and constructing a Promenade along the waterfront connecting to the adjacent County park; such Promenade shall incorporate colored pavers, decomposed granite, landscape, seating areas, drinking fountain, bike racks and pet parks, and shall include an appropriate landscape buffer separating the public Promenade space from the private residential space on the Premises. Existing physical constraints of the lease line, which terminates at the top of the revetment and the footprint of the existing buildings located along the waterfront, will dictate that the width of the Promenade may vary from twenty (20) feet to twenty-eight (28) feet; (b) Lessee shall protect the urban forest appearance of the Premises, including the maintenance and protection of approximately nine hundred fifty (950) mature trees, and the renovation of the meandering manmade streams, waterfalls and other water features throughout the undulating grounds on the Premises; (c) Lessee shall replace and repair certain infrastructure improvements, including without limitation the replacement of the central hot water boiler system with an energy efficient system, the replacement of the exterior site lighting with energy efficient LED fixtures, the location and repair, as needed, of wet utility obstructions created by the mature trees, the trenchless reline of those damaged underground waste lines and drainage lines, and the repaving of three private streets (Northwest Passage, Captains Row and Old Harbor Lane); (d) Lessee shall renovate the exterior of the buildings on the Premises, including the renovation of the exterior facades of the eleven (11) different building types (nine (9) different residential buildings, one (1) retail building and one (1) parking cores structure), including new vinyl windows, fiberglass patio doors and aluminum patio/balcony railings, and the installation of new roofing, roof fascia, rain gutters, downspouts, scuppers, deck coatings, and the painting of the stucco facades and stain to the wood facades; (e) Lessee shall renovate and improve the interior space of the village building, including upgrades to the leasing and management offices including new light fixtures, door hardware, flooring and wall finishes), upgrades to the amenities available to residents (such as new fitness equipment, and upgrades to the business center, men’s and women’s locker rooms and saunas, and the multi-purpose room), and shall install a state-of-the-art communication/data systems in the village building; (f) Lessee shall renovate the interiors of all buildings on the Premises, including the renovation of the building corridors, laundry rooms, and common areas, including installation of new wall finishes, flooring and light fixtures; and (g) Lessee shall renovate and update the interior of all nine hundred eighty one (981) apartment units in the Premises (it being understood that the market rate units and the Affordable Units shall receive the same upgrades), including (i) kitchen upgrades (wood cabinetry, quartz or granite countertops, appliances such as stoves, side by side refrigerators, dishwashers and microwaves), plumbing fixtures, light fixtures, door hardware, tile flooring and wall finishes, (ii) bathroom upgrades, including wood cabinetry, quartz or granite countertops, plumbing fixtures, light fixtures, door hardware, tile flooring, wall finishes, bathtub enclosures and mirrors, (iii) renovation of the living areas (living rooms, dining rooms, bedrooms and dens), including wall finishes, light fixtures, door hardware, window coverings, engineered wood flooring and state of the art communication/data systems, and (iv) the updating of all smoke detectors, carbon monoxide detectors, and GFI protected outlets. Nothing herein shall obligated Lessee to remove popcorn ceilings, install air conditioning within units or install washer/dryers.

Renovation Work. Promptly following the Effective Date of the Restated LeaseDate, Lessee shall renovate the existing Improvements, including the renovation of the interior of all of the existing 224 residential units, building facades, interior and exterior common areas, landscaping, hardscape, the immediately adjacent round-about and center median within the public right-of-way that provides access to the Premises, the Promenade and the parking areas, with all required parking for the Premises and Improvements to be provided on the Premises. The foregoing renovation work shall include the replacement of all building systems, including all heating, ventilation and air conditioning, electrical (at least from the panel to switches and plugs, as well as from the panel to the meter to the building panel to the extent required by any applicable governmental authority due to electrical capacity requirements), plumbing (except if Lessee demonstrates to the satisfaction of the Department through a third party review acceptable to the Department that the useful life of the existing Improvements plumbing system extends beyond the remaining Term of the Lease), elevator and other building systems and equipment. The landscaping and construction process for the foregoing work shall take into consideration the preservation of wildlife habitat on the Premises. The work described above in this Section 5.1 shall be performed in accordance with the terms and provisions of this Section 5.1 and the Renovation Plan renovation plan attached to this Lease as Exhibit B (the “Renovation Plan”), including the scope of work for the renovation of the building, common area, site area ) and interior of the units, as more fully described in Exhibit “B- 1,” attached hereto and incorporated herein by this reference (the “Renovation Scope”), and including the Final Plans and Specifications for such work, and in compliance with the time periods set forth in this Section 5.1. The renovation work described in this Section 5.1 and the Renovation Plan is referred to herein in this Lease as the “Renovation Work.” The Renovation Work shall be performed in accordance with the Final Plans and Specifications for the Renovation Plan and Work (as established under the Option Agreement to the extent that the Final Plans and Specifications for the Renovation Work are approved by Director prior to the Effective Date under the Option Agreement or, with respect to Alterations after the Effective Date, or as established under Subsection 5.3.3 of this Lease. The below to the extent that the Final Plans and Specifications for the Renovation Work shall are not include any deferred maintenance, except such deferred maintenance as is included in approved by Director until after the “RD: Part 4 Redevelopment” in that certain Leasehold Premise Maintenance Deficiency Report, dated August 7 through 8, 2017, as hereinafter updated or revised, prepared by the Department and shall be reconciled with said Maintenance Deficiency ReportEffective Date). Lessee shall be responsible for the acquisition and compliance with all required governmental (including, without limitation, County, Coastal Commission, Commission (if applicable) and Design Control Board) planning and entitlement approvals required to perform the Renovation Work. The Lessee shall be solely responsible for all costs and expenses incurred in connection with the performance of the Renovation Work (including all design, entitlement and construction activities). Lessee shall include without limitation expend not less than the following: Required Cost Amount (as defined below) for the out-of-pocket hard construction costs (excluding all soft costs, financing charges, the Option Fee or the value of the existing leasehold or existing Improvements) to perform the Renovation Work. For purposes of this Section 5.1, hard construction costs shall include: (a) Lessee shall improve public access to the Premises, by removing certain locked gates and constructing a Promenade along the waterfront connecting to the adjacent County park; such Promenade shall incorporate colored pavers, decomposed granite, landscape, seating areas, drinking fountain, bike racks and pet parks, and shall include an appropriate landscape buffer separating the public Promenade space from the private residential space on the Premises. Existing physical constraints cost of the lease line, which terminates at the top of the revetment general contractor; and the footprint of the existing buildings located along the waterfront, will dictate that the width of the Promenade may vary from twenty (20) feet to twenty-eight (28) feet; (b) actual hard costs of utilization of in-house construction labor for actual services rendered and at market rates for comparable services provided by third party laborers (but not greater than the hourly rate actual paid by Lessee shall protect the urban forest appearance to such in-house laborers). The calculation of the Premises, including the maintenance amount of hard construction costs shall be subject to confirmation and protection reasonable approval by Director of approximately nine hundred fifty (950) mature trees, and the renovation of the meandering manmade streams, waterfalls and other water features throughout the undulating grounds on the Premises; (c) Lessee shall replace and repair certain infrastructure improvements, including without limitation the replacement of the central hot water boiler system with an energy efficient system, the replacement of the exterior site lighting with energy efficient LED fixtures, the location and repair, as needed, of wet utility obstructions created by the mature trees, the trenchless reline of those damaged underground waste lines and drainage lines, and the repaving of three private streets (Northwest Passage, Captains Row and Old Harbor Lane); (d) Lessee shall renovate the exterior of the buildings on the Premises, including the renovation of the exterior facades of the eleven (11) different building types (nine (9) different residential buildings, one (1) retail building and one (1) parking cores structure), including new vinyl windows, fiberglass patio doors and aluminum patio/balcony railings, and the installation of new roofing, roof fascia, rain gutters, downspouts, scuppers, deck coatings, and the painting of the stucco facades and stain to the wood facades; (e) Lessee shall renovate and improve the interior space of the village building, including upgrades to the leasing and management offices including new light fixtures, door hardware, flooring and wall finishes), upgrades to the amenities available to residents (such as new fitness equipment, and upgrades to the business center, men’s and women’s locker rooms and saunas, and the multi-purpose room), and shall install a state-of-the-art communication/data systems in the village building; (f) Lessee shall renovate the interiors of all buildings on the Premises, including the renovation of the building corridors, laundry rooms, and common areas, including installation of new wall finishes, flooring and light fixtures; and (g) Lessee shall renovate and update the interior of all nine hundred eighty one (981) apartment units in the Premises (it being understood that the market rate units and the Affordable Units shall receive the same upgrades), including (i) kitchen upgrades (wood cabinetry, quartz or granite countertops, appliances such as stoves, side by side refrigerators, dishwashers and microwaves), plumbing fixtures, light fixtures, door hardware, tile flooring and wall finishes, (ii) bathroom upgrades, including wood cabinetry, quartz or granite countertops, plumbing fixtures, light fixtures, door hardware, tile flooring, wall finishes, bathtub enclosures and mirrors, (iii) renovation of the living areas (living rooms, dining rooms, bedrooms and dens), including wall finishes, light fixtures, door hardware, window coverings, engineered wood flooring and state of the art communication/data systems, and (iv) the updating of all smoke detectors, carbon monoxide detectors, and GFI protected outlets. Nothing herein shall obligated Lessee to remove popcorn ceilings, install air conditioning within units or install washer/dryerscosts.