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<br /> . Net Deht Service meaIIS, for a calendar year, the difference between (i) the aggregate
<br /> amount of principal and intereSt paid ~y the Parmersh~~ during ~h peri?d with respect to
<br /> indebtedness incurred to construct or unprove the Facility, and (n) the telmbursement payments,
<br /> whether principal or intereSt, made by the City to the Partnership pursuant to this Agreement,
<br /> during sllCh period.
<br /> Net Debt Service Covernf!e means, for a calendar year, the difference between (i) the Debt
<br /> Service Coverage for such period, and (ii) the reimbursement payments, whether principal or
<br /> interest, made by the City to the Parmership pUISUant to this Agreement, during such period.
<br /> Net Ooeratinf! Ca~h Flow means, for a calendar year, the difference between the Operating
<br /> Revenue and the Operating Expenses for such year.
<br /> Net Ooeratin!! Cash Flow After Debt Service means, for a calendar year, the difference
<br /> between Net Operating Cash Flow and Net Debt Service for sllCh year.
<br /> Onernrinp' Expenses means, for a calendar year, all operating expenses of the Partnership
<br /> which are paid during such period with respect to the Facilities that appear as "Opernting -'
<br /> Expenses" on the Annual Cashflow Schedule for such calendar year, including, without limitation
<br /> or duplication, inStallments of special assessments; real estate taxes; insurance premiums for
<br /> . liability, fire and extended coverage insurance; accounting, monitoring and audit fees, including
<br /> attorneys' fees relating thereto; taxes assessed upon or payable in respect of personal or real
<br /> property comprising the Facilities; marketing or leasing fees; management fees, to the extent they
<br /> do not exceed, a reasonable fee charged for management services provided, in light of management
<br /> fees then customarily charged in the Twin Cities metropolitan area by an unrelated patty for
<br /> providing substantially equivalent management services for an elderly rental housing facility of size
<br /> . and character substantially similar to the Facility; funding the Capital Replacement Reserve Fund in
<br /> an amount equal to $6,000, and any amounts paid to the City under the second paragraph of
<br /> Section 4.09 hereof; but not including the following paid during such period: (1) depreciation; (2)
<br /> interest expense; and (3) amortization of financing expenses.
<br /> Ooeratinl! Revenue means, for a.calendar year, all revenues received by the Partnership
<br /> during such period from operating the Facility that appear as "Operating Revenue" on the Annual
<br /> Cashflow Schedule for such calendar year, including, without limitation or duplication, rents
<br /> received from tenants, parking or garage rentals or fees, storage facility rentals or fees, interest
<br /> income on bank accounts of the Parmership relating to the Facilities, miscellaneous revenues or
<br /> rents arising from laundry or vending machines, but not including the following received during
<br /> such period: (1) any prepaid rents (other than when applied to rents then due); (2) tenants' security
<br /> or reservation deposits (other than when forfeited) or other similar items; (3) reimbursement
<br /> payments, whether principal or interest, made by the City to the Partnership pursuant to Section
<br /> 3.01 of this Agreement; (4) any Rent Subsidy; (5) any Rent Subsidy Interest; (6) extraordinary
<br /> gains; and (7) proceeds of any borrowing,
<br /> Section 4, Partnershio's Undertakinas.
<br /> 4.01. Ownershio of ProoertV: Declaration of Covenants. The Partnership hereby
<br /> represents and warrants that, as of the date hereof, the Parmership is the owner in fee simple of the
<br /> Property, and there are no liens, defects or other encumbrances upon title to the Property that
<br /> would hinder the development of the Property by the Partnership as contemplated by this
<br /> Agreement. Contemporaneously with the execution and delivery of this Agreement, the
<br /> Partnership will execute and deliver the Declaration of Covenants., of even date herewith (the
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