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Section 3.12 Use. The Qualified Designee hereby agrees that, unless otherwise approved <br />in writing by the City, the Affordable Site will be used in accordance with the restriction set forth <br />in this Agreement and the Affordable Housing Restrictive Covenant. <br />Section 3.13 Taxes and Assessments. Prior to the Close of Escrow, the Developer shall <br />pay all real and personal property taxes, assessments and charges and all franchise, income, <br />employment, old age benefit, withholding, sales, and other taxes assessed against it, or payable by <br />it, at such times and in such manner as to prevent any penalty from accruing, or any lien or charge <br />from attaching to the Affordable Site; provided, however, that Developer shall have the right to <br />contest in good faith any such taxes, assessments, or charges. In the event Developer exercises its <br />right to contest any tax, assessment, or charge against it, Developer, on final determination of the <br />proceeding or contest, shall immediately pay or discharge any decision or judgment rendered <br />against it, together with all costs, charges, and interest. <br />ARTICLE 4. <br />PRELIMINARY REQUIREMENTS FOR THE AFFORDABLE DEVELOPMENT <br />Section 4.1 Affordable Development Project Approvals. <br />(a) The Qualified Designee shall be responsible for complying with the <br />obligations and conditions set forth in the Affordable Development Project Approvals for <br />development and operation of the Affordable Development, including to the extent required, site <br />plan review, Architectural Permit, and lot line adjustment, tentative or final maps, subdivision and <br />other improvement plans, and all other necessary entitlements related to the Affordable <br />Development. <br />(b) On the miniversary of the Close of Escrow, the Qualified Designee shall <br />provide the City annual status reports outlining the Qualified Designee's progress toward <br />compliance with the Affordable Development Project Approvals, including the status of <br />application for building permits for the Affordable Development, and information related to <br />schedule for commencement of construction of the Affordable Development. This Section 4.1(b) <br />shall survive expiration or termination of this Agreement. <br />(c) If the Qualified Designees has not complied with the Affordable <br />Development Project Approvals, and has not been issued a building permit and commenced <br />construction of the Affordable Development within five (5) years of the date of the Close of <br />Escrow (the "Construction Commencement Period"), then the City shall have the right to <br />enforce any of its rights under the Irrevocable Offer to Dedicate (which is required to be recorded <br />as the Close of Escrow for the Land Donation). The Qualified Designee, may request to extend the <br />Construction Commencement Period for up to two (2) additional years by submitting a written <br />request to the City Manager not less than 90 days prior to the expiration of the Construction <br />Commencement Period, explaining the nature of the proposed extension, along with the annual <br />reports previously submitted, and a narrative on how the extension will meet the objectives of the <br />Affordable Housing Plan. Any extension may be granted at the City Manager's sole and absolute <br />discretion. This Section 4.1(e) shall survive expiration or termination of this Agreement. <br />ATTY/AGR/2025.084/920 SHASTA AFFORDABLE HOUSING LAND DONATION AGREEMENT <br />REV: 10-16-25 VR <br />Page 22 of 41 <br />