THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A (3).

Home Browse Search

ARTICLE IV LEASE OF PROPERTY; LEASE PAYMENTS Section 4.1. Sublease of Property by the Authority Back to the City. (a) The Authority hereby subleases the Property to the City, and the City hereby subleases the Property from the Authority, upon the terms and conditions set forth in this Lease Agreement. (b) The leasing of the Property by the City to the Authority pursuant to the Site and Facility Lease shall not affect or result in a merger of the City's subleasehold estate pursuant to this Lease Agreement and its fee estate as lessor under the Site and Facility Lease. Section 4.2. Term. The Term of this Lease Agreement commences on the date of recordation of this Lease Agreement or a memorandum hereof and ends on January 1, 2028, or the date on which all of the Lease Payments have been paid in full pursuant to the terms of this Lease Agreement. If on January 1, 2028, the Lease Payments payable hereunder shall have been abated at any time and for any reason and not otherwise paid from rental interruption insurance or other sources, or the City shall have defaulted in its payment of Lease Payments hereunder or any Event of Default has occurred and continues without cure by the City, then the term of this Lease Agreement shall be extended for the actual period of abatement or for so long as the default remains uncured, as necessary to accommodate the final payment of all Lease Payments due hereunder, not to exceed ten (10) years. The provisions of this Section 4.2 are subject to the provisions of Section 6.1 relating to the taking in eminent domain of the Property or any portion thereof. Section 4.3. Lease Payments. (a) Obligation to Pay. Subject to the provisions of Sections 6.1 and 6.3 and the provisions of Article IX, the City agrees to pay to the Authority, its successors and assigns, the Lease Payments (denominated into components of principal and interest) in the amounts specified in Exhibits C -1, C -2, C -3 and C -4 attached hereto (with the total of all Lease Payments shown in Exhibit C -5 attached hereto) (including any supplements thereto) and by this reference incorporated herein, to be due and payable in immediately available funds on each of the respective Lease Payment Dates specified in Exhibits C -1, C -2, C -3 and C -4; provided, hozuever, that if any Lease Payment Date is not a Business Day, such Lease Payment shall be due on the next succeeding Business Day and shall continue to accrue interest to the next succeeding Business Day. The Lease Payments payable in any Rental Period with respect to the Property shall be for the use of the Property during such Rental Period. The interest component of the portion of the Lease Payments specified in Exhibits C -1, C -2 and C -3 has been calculated based on an interest rate of 3.32% per annum, on the basis of a 360 -day year of twelve 30 -day months. The interest component of the portion of the Lease Payments specified in Exhibit C -4 has been calculated based on an interest rate of 3.75% per annum, on the basis of a 360 -day year of twelve 30 -day months. If, for any reason, the interest component of the Lease Payments becomes includable in the gross income of the Assignees for federal income tax purposes under the Code based upon a final determination thereof by the Internal Revenue Service, the City, at the option of the Assignees, shall pay to the Assignees within thirty days of such determination, the amount which, with respect to Lease Payments previously paid and taking into account all penalties, fines, interest and additions to tax (including all federal, state and local taxes imposed on the interest component of the Lease Payments due through the date of such determination) that are imposed on the Assignees as a result of the loss of the exclusion, will restore the Assignees to the same after -tax yield on the transaction evidenced by this Lease Agreement (assuming tax at the actual marginal corporate -12-