Approving a Lease for the St Joseph/Wayne Parking Facility

Home Browse Search

• liable for damage to the Lessee's property or to the property of any sublessee of the Lessee or of any other person which may be located in, upon or about said premises. Section 8. Alterations. Lessee shall have the right, without the consent of the Authority, to make all alterations, modifications and additions and to do all remodelings and improvements it deems necessary or desirable to the Facility, which do not reduce the rental value of the Facility. Section 9. Insurance. The Lessee, at its own expense, will, during the full term of the, Lease, keep the Facility insured against physical loss or damage, however caused, with such exceptions as are ordinarily required by insurers of buildings or facilities of a similar type, in good and responsible insurance companies acceptable to the Authority. Such insurance shall be in an amount at least equal to the greater of (i) the option to purchase price or (ii) one hundred percent (100%) of the full replacement cost of such Facility as certified by a registered architect, a registered engineer, or professional appraisal engineer, selected by the Authority, on the effective date of this Lease and on or before the first day of April of each year thereafter; provided that such certification shall not be required so long as the amount of such insurance shall be in an amount at least equal to the option to purchase price. Such appraisal may be based upon a recognized index of conversion factors. In no event shall the insurance be in an amount which causes the Lessee to be a co-insurer for the Facility. Such insurance may contain a provision for a deductible in an amount not exceeding $100,000. Lessee agrees to pay the deductible amount of any loss to the Authority. A blanket public institutional property insurance form may be used if: (a) the insurance on the Facility is not less than the amount required by this Section, (b) Lessee subordinates its claim for damage or destruction to other buildings to claims for damage or destruction of the Facility, and (c) the insurance proceeds related to damage to or destruction of the Facility are payable to Trustee. During the full term of this Lease, the Lessee will also, at its own expense, maintain rental or rental value insurance in an amount at least equal to the full rental specified in Section 3 for a period of two (2) years against physical loss or damage of the type insured against pursuant to the preceding requirements of this Section. Such policies shall be for the benefit of and shall be made payable to the Trustee. Section 10. Use of Insurance and Condemnation Proceeds. Proceeds of insurance against damage to or destruction of the -5-