Common use of Budget and Business Plan Clause in Contracts

Budget and Business Plan. Owner and Pinnacle have established a budget and business plan for operation and management of the Project (the "Plan"). The Plan shall act as a general guide for the management of the Project by Pinnacle, and shall be updated and revised annually to reflect changes in conditions and actual Project operation and submitted to Owner for Owner's approval. Any expenditure in excess of $5,000.00 not specifically set forth in the Plan shall require Owner's advance approval, except as provided in Section 4.2 hereof. Owner agrees that the Plan is a budgeting tool only and does not constitute a guarantee of actual operating performance. The preliminary annual budget will be provided to Owner by October 1st and will be attached hereto as Exhibit A, with the final budget due to Owner by November 1st. The Plan shall include, at a minimum, the following: A. MINIMUM LEASING GUIDELINES established jointly by Owner and Pinnacle, setting forth target rental rates and premiums for each unit type and amenity package, together with maximum leasing incentive allowances for promotional purposes. In no event will Pinnacle execute any lease (or any renewal or extension thereof) on terms which vary from the minimum leasing guidelines without notification to Owner. B. CAPITAL IMPROVEMENT PLAN: Owner and Pinnacle have set forth a plan for implementing initial capital improvements to upgrade the rental units and correct maintenance items addressed during Owner and Pinnacle's pre-acquisition inspection of the property (if applicable). Should the capital plan fall within industry standards for normal property management duties, Pinnacle shall be responsible for obtaining bids, coordinating and scheduling the work at the property. A minimum of three (3) complete bids will be obtained for each Improvement Plan line item of more than $10,000.

Budget and Business Plan. Owner and Pinnacle have established a budget and business plan for operation and management of the Project (the "Plan"). The Plan shall act as a general guide for the management of the Project by Pinnacle, and shall be updated and revised annually to reflect changes in conditions and actual Project operation and submitted to Owner for Owner's approval. Any expenditure in excess of $5,000.00 not specifically set Bridge Creek Apartments (Property ID res15931) Property Management Agreement forth in the Plan shall require Owner's advance approval, except as provided in Section 4.2 hereof. Owner agrees that the Plan is a budgeting tool only and does not constitute a guarantee of actual operating performance. The preliminary annual budget will be provided to Owner by October 1st and will be attached hereto as Exhibit A, with the final budget due to Owner by November 1st. The Plan shall include, at a minimum, the following: A. MINIMUM LEASING GUIDELINES established jointly by Owner and Pinnacle, setting forth target rental rates and premiums for each unit type and amenity package, together with maximum leasing incentive allowances for promotional purposes. In no event will Pinnacle execute any lease (or any renewal or extension thereof) on terms which vary from the minimum leasing guidelines without notification to Owner. B. CAPITAL IMPROVEMENT PLAN: Owner and Pinnacle have set forth a plan for implementing initial capital improvements to upgrade the rental units and correct maintenance items addressed during Owner and Pinnacle's pre-acquisition inspection of the property (if applicable). Should the capital plan fall within industry standards for normal property management duties, Pinnacle shall be responsible for obtaining bids, coordinating and scheduling the work at the property. A minimum of three (3) complete bids will be obtained for each Improvement Plan line item of more than $10,000.