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SECTION 3. <br />TEEN CENTER DESIGN AND IMPROVEMENTS <br />3.1. Design and Improvements. Subject to Section 3.2 below, Owner shall, at its sole <br />cost and expense, design and construct the Teen Center. The space of the Teen Center shall include, <br />but is not limited to the following: a private secure office space for the exclusive use of the Teen <br />Center staff, non-exclusive adequate restroom facilities; a multi-purpose area; study rooms; <br />laundry facilities; a workshop room; a reception area; a kitchenette; and appropriate social areas. <br />Owner shall also install or provide for adequate audio and visual display capabilities, and interior <br />furnishings appropriate for the afore -described uses. <br />(a) Construction Cost Cap. The Owner's maximum costs for the design and <br />installation of the interior improvements to the Teen Center shall be capped at Three Million Eight <br />Hundred Fifty Thousand Dollars ($3,850,000) ("Construction Cost Cap"). In the event that the <br />Owner determines that the design and installation of interior improvements are likely to exceed <br />this amount, the Owner shall promptly notify the City and the Parties shall meet in good faith to <br />determine how the design may be altered or amended in order to meet the Construction Cost Cap <br />amount, in the manner and procedure set forth in Section 3.2(a) below. <br />3.2 City Approval of Design. Prior to commencement of construction, Owner shall <br />provide the City with the opportunity to review and give final approval of the spatial layout, <br />elements, and design of the space and shall make a good faith effort to provide the City the <br />proposed design six (6) months prior to the commencement of construction of the Teen Center <br />space. The City agrees to conduct a timely review and approval of the plans, to the extent consistent <br />with applicable laws. <br />(a) Material Change of Design Plans. After City approval of the plans, Owner <br />may make material changes to such plans only with prior written consent of the City, not to be <br />unreasonably delayed. For purposes of this Lease, "Material Change" shall mean any significant <br />changes to the approved interior improvements, including color, design or proposed use of a <br />designated space. If Owner wishes to make a Material Change to the approved design, Owner shall <br />submit the revised plans to the City Manager for approval, which approval will not be unreasonably <br />withheld or delayed. <br />3.3 Timing of Construction. Once the design is approved by the City, consistent with <br />applicable laws, Owner shall apply for building permits for the construction of the Teen Center <br />improvements prior to or concurrently with applying for the first vertical building permit for the <br />Office Development Project, as that term is defined in the Development Agreement ("Vertical <br />Building Permit"). Owner agrees to use reasonable efforts to cause construction of the Teen <br />Center to be commenced promptly after issuance of the first Vertical Building Permit of the Office <br />Development Project. <br />3.4 Private Work/Contract. Owner, in its sole discretion, and in full compliance with <br />all applicable laws and regulations, shall select the general contractor and shall make all necessary <br />improvement for the Teen Center project; the City shall have no involvement in the selection of <br />the contractor or in the construction of the Project. The City shall not provide any public fiords, in <br />