Common use of Construction by Landlord Clause in Contracts

Construction by Landlord. The provisions of this Section 24.03 shall apply only in the event of Construction by Landlord. Landlord shall promptly commence construction of the New Improvement and diligently pursue such construction to prompt completion, at Landlord’s sole cost and expense. In the event that Landlord seeks to obtain financing for construction of the New Improvement but is unable to do so within ninety (90) days of receiving plans and specifications for the New Improvement from Tenant (provided that if Landlord begins seeking financing within thirty (30) days of receiving plans and specifications and works diligently to obtain financing thereafter, then such ninety (90) day period shall be extended to one hundred twenty (120) days), then Landlord may elect to proceed with Construction by Tenant instead, by notifying Tenant in writing of such election on or before the last day of such period. Upon the date of occupancy of the New Improvement, the parties shall modify this Lease to (i) include the New Improvement as part of the Premises and (ii) increase the Monthly Base Rent amount payable by an amount equal to 0.75% (i.e., 9% annually, divided by 12 months) multiplied by Landlord’s total construction costs for the New Improvement (which costs shall include hard and soft costs, costs relating to obtaining necessary permits and zoning approvals, reasonable legal fees, building fixtures and furnishings, construction period interest, real estate taxes and sewer and water charges and utilities, design and engineering and other "pre-development costs" and construction period professional management and supervision fees). By way of example, if Landlords total construction costs for a New Improvement were $10,000,000, then the additional Monthly Base Rent would be $75,000 (($10,000,000*9.0%)/12 months = $75,000). The additional Monthly Base Rent resulting from a New Improvement will continue to increase over the Term in accordance with Section 5.06 hereof. The amount of the Security Deposit shall proportionately increase as a result of any increase in the Monthly Base Rent pursuant to this Section 24.03. For the avoidance of doubt, there will not be any additional increase in the Monthly Base Rent due to an increase in the value of the Land that is already part of the Premises.

Construction by Landlord. The provisions of this Section 24.03 shall apply only in the event of Construction by Landlord. Landlord shall promptly commence construction of the New Improvement and diligently pursue such construction to prompt completion, at Landlord’s sole cost and expense, shall provide Tenant leasehold improvements (“Tenant Improvements”) sufficient to build out the Premises ‘turn-key” in accordance with mutually agreed upon pricing plans (the “Pricing Plans”) which shall include, but not be limited to, hard and soft construction costs; building code compliance as mandated by local authorities; building standard window blinds; full architectural, mechanical, electrical, plumbing, and engineering drawings and construction documents; electrical wiring and data/phone wiring; mechanical alterations; move costs; no construction management, coordination fees or other “mark ups” on Tenant Improvements shall be charged by or payable to the Landlord. In As part of such costs, Tenant may work with _____________ for space planners/architects employed by Xxxxxxxx or choose their own space planner/architect with Xxxxxxxx’s reasonable consent. Landlord shall use its best efforts to complete construction of the event Tenant Improvements and cause the Lease to commence by_____________. The Tenant Improvements are estimated not to exceed and __/100 dollars ($ .00) (the ‘Tenant Improvement Allowance’). If the cost for the Tenant Improvements is less than $_____/RSF, Landlord shall make the balance available during the term of the Lease to pay for additional Tenant Improvements to the Premises; or, as a rent credit, to be applied toward the first month’s rent and continue until exhausted. Also, five and 00/100 dollars per rentable square foot ($5.00/rsf) of the Tenant Improvement Allowance can be used for moving, phone system and information systems infrastructure and phone/data cabling, security and furniture costs. Parties acknowledge the Landlord and Xxxxxx have mutually selected an architect satisfactory to the Parties (“Landlord’s Architect”). If, at any time, it becomes necessary to engage a new architect, Landlord shall first obtain Tenant’s approval, which approval shall not be unreasonably withheld, conditioned, or delayed. Landlord shall ensure that full architectural, mechanical, electrical, plumbing, and engineering drawings and construction documents are produced for the Tenant Improvements, which shall be submitted to Tenant for its approval. At a minimum, Landlord seeks will implement those building construction standards mandated by local building code. Tenant shall have ten (10) business days from receipt of the plans for the Tenant Improvements and specifications for the construction of the Tenant Improvements to approve the plans and specifications or provide written comments or objections thereto. Any such approval shall not be unreasonably withheld, conditioned, or delayed. Landlord or Landlord’s Architect shall obtain financing three (3) separate bids for construction of the New Improvement but is unable Tenant Improvements and will work with Tenant on an “open-book” basis. Tenant shall have the right to do so within ninety approve up to one (901) days of receiving plans general contractor on the bid list. Tenant and specifications Landlord shall mutually select the acceptable bidder to construct the Tenant Improvements. Landlord shall be responsible for contracting for the New Improvement from work on a not-to-exceed basis, approved in writing by the Tenant (provided that if Landlord begins seeking financing within thirty (30) days of receiving plans and specifications managing the general contractor’s performance. All contractors and works diligently to obtain financing thereafter, then such ninety (90) day period subcontractors shall be extended required to one hundred twenty (120) days)procure and maintain insurance against such risks, then in such amounts, and with such companies as Landlord may elect reasonably require. All work shall be performed in a good and workmanlike manner free of defects, shall strictly conform to proceed the Tenant Improvements and comply with Construction by Tenant insteadlaw, by notifying Tenant in writing of such election on or before including the last day of such periodAmericans with Disabilities Act. Upon Landlord shall provide all utilities, including electrical, HVAC, water, etc., during the date of occupancy construction of the New Improvement, the parties shall modify this Lease Tenant Improvements at no cost to (i) include the New Improvement as part of the Premises and (ii) increase the Monthly Base Rent amount payable by an amount equal to 0.75% (i.e., 9% annually, divided by 12 months) multiplied by Landlord’s total construction costs for the New Improvement (which costs shall include hard and soft costs, costs relating to obtaining necessary permits and zoning approvals, reasonable legal fees, building fixtures and furnishings, construction period interest, real estate taxes and sewer and water charges and utilities, design and engineering and other "pre-development costs" and construction period professional management and supervision fees). By way of example, if Landlords total construction costs for a New Improvement were $10,000,000, then the additional Monthly Base Rent would be $75,000 (($10,000,000*9.0%)/12 months = $75,000). The additional Monthly Base Rent resulting from a New Improvement will continue to increase over the Term in accordance with Section 5.06 hereof. The amount of the Security Deposit shall proportionately increase as a result of any increase in the Monthly Base Rent pursuant to this Section 24.03. For the avoidance of doubt, there will not be any additional increase in the Monthly Base Rent due to an increase in the value of the Land that is already part of the PremisesTenant.