Common use of Operating Covenant Clause in Contracts

Operating Covenant. Owner covenants to the City to continuously operate (for a period of not less than 8 hours per day for a minimum of four days per week), or cause a tenant of the Property (“Tenant”) to operate, a Business on the Property throughout the entirety of the Operating Period. Owner shall, for the entirety of the Operating Period, at Owner’s sole cost and expense (or at the expense of a Tenant, as applicable), obtain and maintain all franchises, permits, contractual arrangements, licenses, and registrations necessary for the continuous operation of the Business, or require the foregoing to be performed by a Tenant. Notwithstanding the foregoing, in the event the Business shall cease operation for any reason, Owner shall be permitted up to a period of six months to commence a new Business on the Property (or obtain a new Tenant to open a Business on the Property), provided that the Operating Period shall be extended by the same number of days as there was no Business in operation on the Property during such period; provided that in no event shall a Business not be in operation on the Property for more than six months during any twelve month period.