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4. CHANGE IN USE OF JOINT USE FACILITIES. Since Community Development Block
<br />Grant (CDBG) funds are being used for construction of the Joint Use Facility, and to the extent required by
<br />applicable statutes or regulations, the use or planned use of any such property (including the beneficiaries of
<br />such use) from that for which the acquisition or improvement was made, cannot be changed, unless the City
<br />as the recipient and the District as the subrecipient, provide affected citizens with reasonable notice of, and
<br />opportunity to comment on, any proposed change, and either:
<br />A. The new use of such property qualifies as meeting one of the national objectives in 24
<br />CFR Sec. 570.208 (formerly Sec. 570.901) and is not a building for the general conduct
<br />of government; or
<br />B. The following requirements are met: If the recipient determines, after consultation with
<br />affected citizens, that it is appropriate to change the use of the property to a use which
<br />does not qualify under this section, it may retain or dispose of the property for the
<br />changed use if the recipient's CDBG program is reimbursed in the amount of the current
<br />fair market value of the property, less any portion of the value attributable to
<br />expenditures of non -CDBG funds for acquisition of, and improvements to, the property.
<br />C. If the change of use occurs after closeout, the provisions governing income from the
<br />disposition of the real property in 24 CFR Sec. 570.504(b)(4) or (5), as applicable, shall
<br />apply to the use of funds reimbursed.
<br />D. Following the reimbursement of the CDBG program in accordance with this section, the
<br />property no longer will be subject to any CDBG requirements.
<br />LIABILITY AND INDEMNIFICATION.
<br />A. District shall defend, indemnify and save and hold harmless City, its officers, officials,
<br />employees, and agents from and against any and all liability, loss, damage, expense, costs
<br />(including without limitation costs and fees of litigation of any nature) arising out of or in
<br />connection with District's performance of this Agreement or District's failure to comply
<br />with any of District's obligations contained in the Agreement caused by District, its
<br />officers, agents or employees except such loss or damage which was caused by the sole
<br />negligence or willful misconduct of City. In the event City is named as codefendant,
<br />District shall notify City of such fact and shall represent City in such legal action unless
<br />City undertakes to represent itself as codefendant in such legal action, in which case City
<br />shall bear its own litigation costs, expenses and attorney's fees.
<br />B. City shall defend, indemnify and save and hold harmless District, its officers, officials,
<br />employees, and agents from and against any and all liability, loss, damage, expense, costs
<br />(including without limitation costs and fees of litigation of any nature) arising out of or in
<br />connection with City's performance of this Agreement or City's failure to comply with
<br />any of City's obligations contained in the Agreement caused by City, its officers, agents
<br />or employees except such loss or damage which was caused by the sole negligence or
<br />willful misconduct of District. In the event District is named as codefendant, City shall
<br />notify District of such fact and shall represent District in such legal action unless District
<br />undertakes to represent itself as codefendant in such legal action, in which event District
<br />shall bear its own litigation costs, expenses and attorney's fees.
<br />6. INSURANCE. Both the City and the District shall maintain, for the period covered by this
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