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<br />existing improvements on the Leasehold Property without the express prior written consent of the
<br />City.
<br />Section 7.2 Operation and Use. At all times during the Term, or any Renewal Term,
<br />Lessee will operate and maintain the Improvements as a Boys and Girls Club for the purpose of
<br />providing educational, recreational, and social development opportunities to the youth of the city
<br />of Elk River and the surrounding area (“Permitted Use”). Lessee will not discriminate on the basis
<br />of race, color, creed, religion, national origin, sex, gender identity, marital status, disability, status
<br />with regard to public assistance, sexual orientation, or familial status in the sale, lease, rental, or
<br />in the use or occupancy of the Improvements or the Leasehold Property, or any part of the
<br />Improvements or Leasehold Property. Lessee will not use or operate the Leasehold Property in
<br />any manner that might interfere with the use and enjoyment of the adjacent real property for public
<br />park and recreational purposes, or for any other purpose than a Permitted Use or suspend or
<br />discontinue the use of the Leasehold Property, without the City’s prior written consent.
<br />Section 7.3 Covenants Running with the Leasehold Property. It is intended and agreed
<br />that the agreements and covenants set forth in this Article 7 shall be binding for the benefit and in
<br />favor of, and enforceable by, the City, its successors and assigns, and any successor in interest to
<br />the Leasehold Property, or any part thereof against Lessee, its successors and assigns, and every
<br />successor in interest to the Leasehold Property, or any part thereof or any interest therein, and any
<br />party in possession or occupancy of the Leasehold Property or any part thereof, for the Term or
<br />any Renewal Term.
<br />In amplification, and not in restriction, of the provisions of this Article 7, it is intended and agreed
<br />that the City and its successors and assigns shall be deemed beneficiaries of the agreements and
<br />covenants provided herein, both for and in their own right, and also for the purposes of protecting
<br />the interest of the community and the other parties, public or private, in whose favor or for whose
<br />benefit these agreements and covenants have been provided. Such agreements and covenants shall
<br />run in favor of the City without regard to whether the City has at any time been, remains, or is an
<br />owner of the Leasehold Property or interest therein to, or in favor of, which such agreements and
<br />covenants relate. The City shall have the right, in the event of any breach of any such agreement
<br />or covenant, to exercise all the rights and remedies, and to maintain any actions or suits at law or
<br />in equity or other proper proceedings to enforce the curing of such breach of agreement or
<br />covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled.
<br />Section 7.4 Liens. Lessee will: (a) duly and punctually pay for all labor performed and
<br />materials furnished in connection with the construction of any improvements; (b) keep the
<br />Leasehold Property and every improvement on the Leasehold Property free and clear from all liens
<br />for labor performed and materials furnished; provided, however, that Lessee shall not be required
<br />to pay any claim for labor performed or materials furnished so long as Lessee shall contest, in good
<br />faith, the existence, amount or the validity thereof by appropriate proceedings, which shall operate
<br />during the pendency to prevent a breach of this Section 7.4; (c) defend, at its own cost and expense,
<br />each and every lien asserted or filed against the Leasehold Property or any improvement thereon;
<br />and (d) indemnify and save the City harmless from all and every claim, demand, action or cause
<br />of action (including fees of attorneys) arising out of and connected with any act or omission
<br />occurring on the Leasehold Property or any improvements on the Leasehold Property.
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