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Development; provided, however, that the Owner shall remain responsible and liable for the <br />maintenance of the Property and the Development, at all times. <br />3.5.2 Maintenance Deficiency. If, at any time during the Term, there is an <br />occurrence of a material adverse condition on any area of the Property or the Development in <br />contravention of the Maintenance Standard (each such occurrence being a "Maintenance <br />Deficiency"), then the City may notify the Owner in writing of the Maintenance Deficiency. If <br />the Owner fails to cure or commence and diligently pursue to cure the Maintenance Deficiency <br />within thirty (30) calendar days following its receipt of notice of the Maintenance Deficiency, the <br />City shall have the right to enter the Property and/or the Development and perform all acts <br />necessary to cure the Maintenance Deficiency, or to take any other action at law or in equity that <br />may then be available to the City to accomplish the abatement of the Maintenance Deficiency. <br />Any sum expended by the City for the abatement of a Maintenance Deficiency pursuant to this <br />Section 3.5.2 shall be reimbursed to the City by the Owner within thirty (30) calendar days after <br />written demand to the Owner for payment. If any amount becoming due to the City under this <br />Section 3.5.2 is not paid within thirty (30) calendar days after written demand to the Owner for <br />payment, the Owner shall also pay Default Interest on such amount until paid in full. <br />3.5.3 Graffiti. Graffiti, as defined in Government Code Section 38772, that has <br />been applied to any exterior surface of a structure or improvement on the Property that is visible <br />from any public right-of-way adjacent or contiguous to the Property, shall be removed by the <br />Owner by either painting over the evidence of such vandalism with a paint that has been color - <br />matched to the surface on which the paint is applied, or graffiti may be removed with solvents, <br />detergents or water, as appropriate. If any such graffiti is not removed within seventy-two (72) <br />hours following the time of the discovery of the graffiti, or if Owner fails to commence and <br />diligently pursue to remove such graffiti within seventy-two (72) hours following the time of the <br />discovery of the graffiti, the City shall have the right to enter the Property and/or the Development <br />and remove the graffiti, without notice to the Owner. Any sum expended by the City for the <br />removal of graffiti pursuant to this Section 3.5.3, shall be limited to an amount not to exceed Five <br />Hundred Dollars ($500) per entry by the City and shall be reimbursed to the City by the Owner <br />within thirty (30) calendar days after written demand to the Owner for payment. If -any amount <br />becoming due to the City for graffiti removal under this Section 3.5.3 is not paid within thirty (30) <br />calendar days after written demand to the Owner for payment, the Owner shall also pay Default <br />Interest in such amount, until paid in full. <br />3.6 No City Responsibility for Development. The City shall have no responsibility for <br />any construction, installation, rehabilitation, management, operation or maintenance of the <br />Development or the Property. <br />3.7 Indemnity. <br />3.7.1 Owner's Indemnity Obligation. Owner shall indemnify, defend, and hold <br />the City and its elected officials, officers, employees and agents (collectively "City Parties") <br />harmless against any and all claims, suits, actions, losses, and liability of every kind, nature and <br />description made against it and expenses (collectively "Claims") which arise out of or in <br />connection with this Agreement to the extent such Claims arise from any wrongful intentional act <br />or negligence of Owner. Owner shall also indemnify City Party against any and all of the <br />REV: 05-20-25 LF <br />ATTY/AGR.2025.100.3/HEART-SV (417 Stambaugh - Regulatory Agreement) (Page 20 of 35) <br />