Resolution No 16-2024 - Related to Property Conveyance to McCormick Company Lathrop St.

Home Browse Search

or the temporary use of, the Project or the leasehold estate of the Lessee in the Project created by this Lease or any part of either thereof shall be taken under the exercise of the power of eminent domain by any governmental body or by any person, firm or corporation acting under governmental authority, the Lessee shall be obligated to continue to make the rental and all other payments specified in Section 5.3 hereof. The Lessor, the Lessee and the Trustee will cause the Net Proceeds received by them or any of them from any award made in such eminent domain proceedings, to be paid to and held by the Trustee in a separate trust account, to be applied in one or more of the following ways as shall be directed in writing by Lessee: (a) The restoration of the improvements located on the Leased Land to substantially the same condition as they existed prior to the exercise of the said power of eminent domain. (b) The acquisition, by construction or otherwise, by the Lessor of other improvements suitable for the Lessee's operations on or adjacent to the site of the Project (which improvements shall be deemed a part of the Project and available for use and occupancy by the Lessee without the payment of any rent other than as herein provided to the same extent as if such other improvements were specifically described herein and demised hereby); provided, that such improvements shall be acquired by the Lessor subject to no liens or encum- brances prior to the lien of the Indenture, other than Permitted Encumbrances. (c) Redemption of any of the Bonds together with accrued interest thereon to the date of redemption; provided, that no part of any such condemnation award may be applied for such redemption, unless (i) all of the Bonds are to be redeemed in accordance with the Indenture upon exercise of the option to purchase pro- vided for by Section 11.2(b) hereof, or (ii) in the event that less than all of the Bonds are to be redeemed, the Lessee shall furnish to the Lessor and the Trustee a certificate of an Independent Ergineer acceptable to the Lessor and the Trustee stating (i) that the property forming a part of the Project that was taken by such condemnation proceedings is not essential to the Lessee's use or occupancy of the Project, or (ii) that the Project has been restored to a condition substantially equivalent to its condition prior to the taking by such condemnation proceedings, or (iii) that improvements have been acquired which are suitable for the Lessee's operations at the Project as contemplated by the fore- going subsection (b) of this Section. 2A ..235 VII-3