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1. The City hereby confirms that it did, as above stated, grant a deferment from its <br />applicable code requirements whereby only 51 of the required 71 parking spaces need be <br />constructed on the Property at this time, subject, however, to the terms and conditions of this <br />Agreement. <br />2. If the City Council shall hereafter determine, in the Council’s sole and absolute <br />discretion, that there have been five or more parking shortage incidents at the Property within a <br />six month period, and that additional parking spaces are therefore required on the Property, <br />Grantee will, at its sole cost and expense, construct such additional parking spaces as the City <br />Council shall then require, up to the 71 parking spaces shown on the Plan. The City Council <br />need not require that all of the additional parking spaces be constructed at any one time, but may <br />require additional parking spaces be constructed from time to time as they deem them necessary, <br />again in the Council’s sole and absolute discretion, until the maximum number of parking spaces <br />as shown on the Plan have been constructed. The additional parking spaces from time to time <br />required by the City Council shall be built in full compliance with the Plan and the then <br />applicable City ordinances; provided, however, that Grantee may prepare and present to the City <br />a new parking plan for review and approval by the City Council, and if approved by the City <br />Council (which approval may be withheld for any reason or cause), such additional parking <br />spaces may then be constructed pursuant to the new parking plan, as approved, and subject to the <br />then applicable code requirements of the City, except as such code requirements may be waived <br />by deferments, if any, then granted. As above stated, the City Council shall be the sole judges of <br />whether or not additional parking is required, from time to time, and if so, how much is to be <br />constructed at any given time. <br />3. If the City Council determines that additional parking is required, the City shall <br />give written notice to Grantee of the determination that additional parking spaces are then <br />required, setting forth in the notice the number of spaces then required to be constructed, up to <br />the maximum shown on the Plan. Grantee within thirty (30) days after such notice is given, shall <br />give written notice to the City as to whether or not they will construct such additional parking <br />spaces pursuant to the Plan or will submit a new plan as above allowed. In the event a new plan <br />is to be submitted, it shall accompany the notice given to the City. If notice is not given to the <br />City within the 30-day period, Grantee shall be deemed to have agreed to construct such <br />additional spaces pursuant to the Plan. <br />4. Grantee shall commence construction of such additional parking spaces as are <br />then required by the City within ninety (90) days after the notice is given, unless Grantee elects <br />to submit a new parking plan, in which case such construction shall commence within ninety <br />(90) days after approval or rejection by the City Council of the proposed new plan. The 90-day <br />period may be extended for delays due to weather, labor disputes, material shortages or <br />unavailability of material, unavoidable casualty, acts of God, the public enemy, or other causes <br />beyond the reasonable control of Grantee, in which case the 90-day period shall be extended by a <br />period of time equal to any such delays; provided, that no extension shall be given for any such <br />delay unless written notice of such delay is given to the City within ten (10) days after the <br />commencement of the delay. Once commenced, the construction shall be completed with all due <br />diligence as soon as possible thereafter. The City shall be the sole judge of whether Grantee is <br />using due diligence in completing such construction. <br />2 <br />