Approving lease for public improvements between Redevelopment Authority and Redevelopment Commission

Home Browse Search

SECTION 3: RENTAL PAYMENTS. During the term of this Lease, the Lessee agrees to pay rental for the Studebaker Lot Portion of the Project at the annual rate not to exceed One Hundred Forty-four Thousand Dollars ($144,000.00) per year in equal semi-annual installments with increases in such annual rate as provided hereinbelow. The first semi-annual rental installment for the Studebaker Lot Portion shall be due on the day that the Studebaker Lot Portion is acquired by the Authority and is complete and ready for use, or July 25, 1999, whichever is later. Thereafter such rental for the Studebaker Lot Portion shall be payable in advance in equal on January 25 and July 25 of each year until such rental is increased as provided hereinbelow. On the date the Main and Jefferson Portion is complete and ready for use or July 25, 2003, whichever is later, the rental for the Project shall increase to an annual rate not to exceed Three Hundred Forty-four Thousand Dollars ($344,000) payable in equal semi-annual installments. The first increased semi-annual rental installment shall be due on the date the Main and Jefferson Portion is complete and ready for use or July 25, 2003, whichever is later. If completion of the Main and Jefferson Portion is later than July 25, 2003, the first increased rental installment following such completion of the Main and Jefferson Portion shall be in an amount which provides for rental at the actual annual rate prorated from the date of completion of the Main and Jefferson Portion until the first January 25 or July 25 following such date of completion. Thereafter, such rental for the Project shall be payable in advance in equal semi-annual installments on January 25 and July 25 of each year. The last semiannual rental installment due before the expiration of this Lease shall be adjusted to provide for rental at the rate for the Project set forth above for the applicable semiannual period, prorated from the date such installment is due to the date of the expiration of this Lease. Such rental shall be paid by the Commission pursuant to the Pledge Resolution. All rentals payable under the terms of this Lease shall be paid to Chase Manhattan Bank as fiscal agent for the Secretary of Housing and Urban Development, or any successor fiscal agent, or, at the election of the Authority, to an escrow agent (the "Escrow Agent") which may be designated by the Authority pursuant to the terms of an escrow agreement entered into by the Authority and the Escrow Agent (the "Escrow Agreement"). All payments so made shall be considered as payments to the Authority of the rentals payable hereunder. To the extent the Authority appoints an Escrow Agent, the Lessee shall receive a credit for interest earnings on rental payments made on each January 25 during the term of this Lease thereby permitting a reduction of the rental payments due on each July 25 during the term of this Lease, all pursuant to the terms set forth in the Escrow Agreement. For purposes of this Lease, the maximum lease rental is the largest annual rental payment expected to be paid over the entire term of the Lease. The actual annual lease rental is expected to vary over the term of the Lease (but will in no event exceed the amounts set forth above), and is expected to be substantially similar to the schedule shown at Exhibit C. The actual annual rental payment schedule shall be endorsed hereon as an amendment to this Lease. SECTION 4: CONDEMNATION. 4.01 Total Condemnation. If there shall be a total taking or a Constructive Total Taking of the Project in condemnation proceedings or by any right of eminent domain or by a conveyance ::ODMA\PCDOCS\SBDOCS 1\32001\1 -3-