Common use of Project Covenant Clause in Contracts

Project Covenant. It is acknowledged that the Authority’s willingness to enter into this Contract and carry out the Authority’s obligations under the Transaction Documents is based on the anticipated benefits (the “Public Benefits”) to be derived in the City through the Redeveloper’s completion of the Project and the proper maintenance of the Project and/or any Project Improvements. Accordingly, and as a material inducement to the Authority to enter into this Contract and consummate the transactions contemplated by the Transaction Documents, the Redeveloper covenants and agrees that it will at all times during the term of this Contract, as may be amended from time to time: (a) properly complete and operate the Project and the Project Improvements; (b) properly maintain the Property and the Project Improvements; and (c) observe and perform every other term, covenant, condition, or agreement to be observed or performed by Redeveloper under this Contract (the “Project Covenant”).