Contracts & Agreements_33-1967 - Laserfiche WebLink

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increases in sales tax and real property taxes in the affected area (as set forth in Paragraph 7, Page 2), are not sufficient to meet the annual payment of lease rental to Authority, it will pay to City one-half (2) of such de- ficit, but not to exceed $2,500 per year. Such payments by Security, and any payments by City to meet such de- ficit, shall be repaid to Security and City at any time the revenues above exceed the annual lease rental, on a proportionate basis, based upon the amount each has ex- pended in payment of a deficit. (i.e., If each has paid $1,000 in a given year, the next surplus, or surpluses, will be shared equally until, each has been repaid. If Security has paid $2,500 in a given year, and City has paid $5,000, Security will receive 1/3 and City will re- ceive 2/3 of the next surplus, or surpluses, until each has been repaid.) Seventh: In the event Authority does not have suffi- cient funds from the sale of bonds for the acquisition and construction of the Eureka Lot, Security will Lease to Authority such amount of land which it may own within the Eureka Lot perimeter, with the value of said land to be figured at the average cost per square foot of said land, as will be required to overcome such deficit. A lease, with an option to purchase at the end of the lease, will be entered into with a yearly rental of an amount suffi- cient to amortize the value of the Land, with interest thereon at the rate of six percent (6%) per annum on the un- paid balance, and providing that in the final year of said lease Authority shall have the option of purchasing the property for a purchase price which will be the equivalent of the lease rental for the final year. Said lease shall S LfRR Es HGLLYER be for a period not to exceed twenty-five (25) years. ATTORNEYS AT LAW SAN BERNARDINO, -5- CALIFORNIA