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Agreement shall have priority over any deeds of trust, liens, encumbrances, or <br /> financing instruments secured by or in any way associated with the Owner's <br /> leasehold interest in the Premises that would otherwise have priority over the <br /> Covenant Agreement, including but not limited to any deed of trust to which the <br /> City may subsequently agree to subordinate the Deed of Trust. <br /> The Covenant Agreement provides among other things, that Owner's leasehold <br /> interest in the Premises shall be operated exclusively as a workforce development <br /> center associated with the low-income supportive housing on the Property and <br /> available to Very Low-income persons until December 31, 2043. The Covenant <br /> Agreement also provides for an easement in gross to the City, its agents and <br /> employees to enter the Premises at the time on reasonable notice to inspect the <br /> condition of the property; to interview workforce training program participants of the <br /> Premises and to verify income information and any other matters relevant to the <br /> Covenant Agreement; and to inspect and copy any documents maintained by the <br /> owner or its agent relevant to the Covenant Agreement. <br /> X. SUBORDINATION AGREEMENTS, SUBSEQUENT PRIORITY INSTRUMENTS <br /> If the Owner intends, simultaneously with the taking of the Loan, to take loans for <br /> the Project from other lenders, the Owner covenants that, unless otherwise agreed <br /> by the City in a priority agreement or other written instrument, there will be no <br /> lender or person or party with an interest in the Owner's leasehold interest in the <br /> Premises recorded prior to the City's Covenant Agreement or the City's Loan. <br /> The Owner shall cause any subsequent mortgagee or lien holder to be approved in <br /> writing by the City and shall require such mortgagee or lien holder to agree, by <br /> separate agreement with the City to subordinate the lien of its security instruments, <br /> if any, to the Covenant Agreement. <br /> If there exists any lender or person or part with an interest in the Owner's leasehold <br /> interest in the Premises recorded prior to the date of the City's Covenant <br /> Agreement, the Owner shall, unless otherwise agreed by the City in a priority <br /> agreement or other written instrument, require such lender to subordinate the lien <br /> of its security instruments, if any, to the Covenant Agreement. <br /> If the Owner requests that the lien of a subsequent or prior lender to the Owner for <br /> the Project be prior and superior to the lien of the City and if the City agrees to that <br /> request, the documents effecting such subordination of the City's mortgage and <br /> lien rights shall, prior to their execution, be subject to review and approval by the <br /> City Attorney. <br /> XI. MANAGEMENT OF THE PROJECT <br /> A. In General <br /> The Owner agrees to keep the Premises in good condition and repair; not <br /> to remove or demolish any building thereon; to complete or restore <br /> promptly and in good and workmanlike manner any building on the <br /> Premises that may be constructed, damaged, or destroyed, and to pay <br /> when due all claims for labor performed and materials furnished therefore; <br /> 5 <br />