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• A lease shall require a majority vote of all members of the City Council. The length of <br />lease term shall be based on the sale price or lease rental income from disposition of <br />City -owned real estate assets and interests and that provides substantial Community <br />Benefits, as defined in Section I of the policy, to City residents, especially its <br />Vulnerable Residents. <br />Lease Amendments: Amendments to long term leases require City Council approval. The <br />City's agreement to an amendment may be contingent upon updating sections of the lease to <br />incorporate current City standard lease provisions and an adjustment to fair market rent. <br />Subleases: A lessee may sublease all or part of the leased property to a qualified sub- <br />lessee subject to approval by the City. No sublease shall be approved which would be <br />detrimental to the City's rights under the master lease or for a use that is not consistent with <br />uses allowed by the master lease. The City Manager may authorize subleases which meet <br />these conditions and which do not require amendment of the master lease. Unless special <br />circumstances exist, leases shall provide for the City to receive a minimum of fifty percent <br />(50%) of the incremental gross rental revenues due to the lessee from subleases. <br />Leasehold Financing: The City will not subordinate its fee interest to encumbrances placed <br />against any leasehold by a lessee. The City Manager may approve appropriate financial <br />encumbrances of the leasehold interest, which provide that all loan proceeds are used for <br />authorized improvement of the property until the leasehold is fully developed in accordance <br />with the lease. City staff shall take appropriate steps to review the proposed financing and <br />insure that loan proceeds go into the leasehold. Maximum loan proceeds shall not be in <br />excess of seventy-five percent (75%) loan -to -value, where "value" refers to the leasehold <br />60A-35 <br />