SANTA ANA HOUSING AUTHORITY (2) - Laserfiche WebLink

Home Browse Search

Schedule11-Y Determinine FMRR, Far proposes ofdetermining the FMRR, the following procedure shall apply: I If Teriarn duty exercises any Extension Option and duly rejects Landlord's determination (in its Market Rent Notice of the FMRR for the Extension, then Landlord and Tenant shall endeavor to agree upon the FMRR for the Extension 'term on or before the Outside Agreement Date (defined below). If Landlord and Tenant ore unable to agree upon the FMRR for the Extension Term on or before the Outside Agreement Date, then the FMRR for the Extension Tenn shall be determined by arbitration pursuant to Section 2 orthis Schedule'?-3". The "Outside Agreement Date" means the date that is ten (10) business days alter the date that Tenant notifies Landlord, in its Market Rent Response Notice that Tenant has rejected Landlord's initial determination of the FMRR tor the Extension Term. 2 If Landlord and Tenant shall fail to agree upon the FMRR for the Extension Perm on or before the applicable Outside Agreement Date, then within ten (10) business days thereafter, each of Landlord and Tenant shall submit to the other its final determination of the FMRR for the Extension Term and such final determinations shall be submitted to arbitration (as Tenant's and Landlord's "Submitted FMRR," respectively) in accordance with the following: 2.1 Landlord and Tenant shall each appoint one arbitrator who shall by profession be areal estate broker who shall have been active in the leasing of the Project and the Comparable Buildings over die five (5) year period ending on the date of such appointment. The determination of the arbitrators shall be limited solely to the issue as to whether Landlord's or Tenant's Submitted FMRR is the closest to the actual FMRR for the Extension Term, as determined by the arbitrators, taking into account the requirements of this Schedule '13". Each such arbitrator shall be appointed within fifteen (15) business days after the Outside Agreement Date. 2.2 The two arbitrators so appointed shall, within ten (10) business days of the date of the appointment of the second appointed arbitrator, agree upon and appoint a third arbitrutorwho shall be qualified under the same standard as described in Section 2.1 of this Schedule "J-3" (with respect to appointment of the initial two arbitrators). 2.3 The three arbitrators shall, within thirty (30) days of the appointment of the third arbitrator, reach a decision as to whether the parties shall use Landlord's or Tenant's Submitted F1vIRR and shall notify Landlord and Tenant thereof, provided that: (a) if either Landlord or Tenant fails to appoint an arbitrator within fifteen (13) business day period described in Section 2.1 of this Schedule "J-3", then the arbitrator appointed by the other party shall solely reach a decision as to the FMRR for the Extension Tenn and notify Landlord and Tenant thereof within thirty (30) days following expiration of such fifteen (15) business day period, and such arbitrator's decision shall be binding upon Landlord and 'tenant, and (b) if the two arbitrators fail to agree upon and appoints third arbitrator, or both parties fail to appoint mr arbitrator, then the appointment of the third arbitrator orally arbitrator shall be dismissed and the matter to be decided shall be promptly submitted to arbitration under the provisions of the American Arbitration Association (die "AAA"), but subject to die Instructions set forth in this Schedule J.3". 2.4 The decision of the mnjority of the three arbitrators (or in the case of a decision made under clause (a) or (b) of Section 2.3 of this Schedule "1-3", the decision of the single arbitratoror the orbltrator(s) appointed by the AAA) shall be binding upon Landlord and Tenant, shall be in writing and shall be non -appealable, and counterpart copies thereof shall be delivered to Landlord and Tenant. A judgment or order based upon such nward may be entered in any court of competent jurisdiction. In rendering their decision and award, the arbitrators shall have no power to vary, modify or amend any provision oftris lease. 2.5 Landlord and Tenunt shell( each bear 50%of the cost orthe arbitration described in this Section 2 ofthis Schedule "J-3". 80 lf'Chrh, Center Dr —CIO, of Sanrn Ana Lend 3- Exhibit 1