Reso 2024-3761 - Laserfiche WebLink

Home Browse Search

EXECUTION COPY 6.5.2. LESSEE's Proportionate Share (as hereinafter defined), if any, of Operating Expenses (as hereinafter defined) in accordance with and in the manner as set forth herein. 6.5.3. The construction management fee equal to three percent (3%) of LESSEE's total cost for LESSEE's Work in the Leased Premises, as set forth in Section 11. 6.6. Operating_Expenses. As used in this Lease the term "Additional Rent" shall mean all payments of Sales Tax plus LESSEE's Proportionate Share of Operating Expenses. 6.6.1. As used herein, the term "Operating Expenses" shall mean all costs of managing, operating, repairing, replacing, maintaining and insuring the Property and all parking and surrounding areas serving the Leased Premises, as determined by standard accounting practices, and shall include, by way of illustration but shall not be limited to, all costs and charges relating to: lawn maintenance; landscaping; labor; materials; supplies; equipment and tools; permits; licenses; inspection fees; management fees; Common Areas maintenance and repair expenses; legal and environmental compliance; programming and activation services; and the amortization of costs (including debt service and lease payments) of installation of capital investment items (other than the original materials and equipment used to complete the Building and other structures on the Property) which are primarily for the purpose of reducing operating cost, or enhancing the Property in a manner beneficial to LESSEE, or as may be required by governmental authority; provided, however, the term "Operating Expenses" shall not include Sales Tax, ad valorem property taxes, any nature of taxes, depreciation on structures on the Property or equipment therein, mortgage interest, executive salaries, and real estate brokers' commissions. Notwithstanding anything else herein, in the event of a total loss or casualty of the Leased Premises, the difference between the amount of insurance paid out or received by LESSOR and the replacement cost of the Leased Premises shall not be an Operating Expense. The annual statement of Operating Expenses shall be accounted for and reported in accordance with standard accounting principles employed by owners of similar retail rental properties to the Leased Premises (the "Annual Statement"). For each calendar year (or part thereof if the Rent Commencement Date does not fall on January 1) during the Term, LESSOR shall estimate the amount of the Operating Expenses for such calendar year. LESSOR shall send to LESSEE a written statement of the amount of LESSEE's Proportionate Share of Operating Expenses and LESSEE shall pay to LESSOR, monthly, LESSEE's Proportionate Share of such Operating Expenses plus any applicable sales or use taxes payable by LESSEE hereunder. Within one hundred twenty (120) days after the end of each calendar year or within a reasonable time thereafter, LESSOR shall send a copy of the Annual Statement to LESSEE. Pursuant to the Annual Statement, LESSEE shall pay to LESSOR Additional Rent as owed or LESSOR shall adjust LESSEE's Rent payments if LESSOR owes LESSEE a credit, such payment or adjustment to be made within thirty (30) days after the Annual Statement is received by LESSEE. After the Expiration Date, LESSOR shall send LESSEE the final Annual Statement for the Term, and LESSEE shall pay to LESSOR Additional Rent as owed (which obligation shall survive expiration or earlier termination of this Lease) or if LESSOR owes LESSEE a credit, then LESSOR shall pay LESSEE a refund. If this Lease expires or terminates on a day other than December 31, then Additional Rent shall be prorated on a 365 -day calendar year (or 366 if a leap year). Notwithstanding any of the foregoing to the contrary, for the first Lease Year, LESSEE's Proportionate Share of Operating Expenses shall not exceed the lesser of: (i) actual expenses per square foot, or (ii) $15.00 per square foot. For the second Lease Year, and each Lease Year thereafter, LEASE AGREEMENT - CREMA DOWNTOWN CORP. Page 8 of 36