Land Lease Summary
Leased Premises: The parcel of land located within the
Alaska Railroad Terminal Reserve situated n the Anchorage Recording
District, Third Judicial District, State of Alaska and further
described as follows:
Lots A, B, C, & D and Parcels A, B, & C located on the
north side of Warehouse Avenue (now Ship Creek Avenue), and lots
43A, 43, 44, & 45 and parcels B-1, C-1, D-1, & E-1 located
on the south side of Warehouse Avenue (now Ship Creek Avenue) all
of which are situated within the ARRC Anchorage Terminal Reserve,
as shown on the attached print. The above Lots and Parcels contain
157,195 square feet or 3.61 acres, more or less.
Lease Commencement Date: March 6, 1992.
Lease Term and Options to Extend: The lease term is 35
years and there are two 35 year term options to extend.
Basic Rent and Escalations (as taken from the lease):
1. Lease years 1 - 5 inclusive, annual Basic Rent will be Sixty
Two Thousand, Eight Hundred Seventy Eight Dollars ($62,878.00).
2. Lease years 6 - 10 inclusive, Basic Rents will be at "fair market value" as
determined by appraisal under paragraph 2.02e. However, this annual rent is
not to exceed $78,589.00, 125% of the annual rent as determined for lease years
1 - 5 inclusive, or at a minimum drop below the rent determined in lease years
1 - 5 inclusive.
3. Lease years 11 - 15 inclusive, Basic Rents will be at "fair market
value" as determined by appraisal under paragraph 2.02. However, this
annual rent is not to exceed 135% of the rent as determined for lease years
6 - 10 inclusive, or at a minimum drop below the rent determined in lease years
6 - 10 inclusive.
4. Lease years 16 - 20 inclusive, Basic Rents will be at "fair market
value" as determined by appraisal under paragraph 2.02. However, this
annual rent is not to exceed 135% of the rent as determined for lease years
11 - 15 inclusive, or at a minimum drop below the rent determined in lease
years 11 - 15 inclusive.
5. Lease years 21 - 25 inclusive, Basic Rents will be at "fair market
value" as determined by appraisal under paragraph 2.02. However, this
annual rent is not to exceed 135% of the rent as determined for lease years
16 - 20 inclusive, or at a minimum drop below the rent determined in lease
years 16 - 20 inclusive.
6. Lease years 26 - 30 inclusive, Basic Rents will be at "fair market
value" as determined by appraisal under paragraph 2.02. However, this
annual rent is not to exceed 135% of the rent as determined for lease years
21 - 25 inclusive, or at a minimum drop below the rent determined in lease
years 21 - 25 inclusive.
7. Lease years 31 - 35 inclusive, Basic Rents will be at "fair market
value" as determined by appraisal under paragraph 2.02. However, this
annual rent is not to exceed 135% of the rent as determined for lease years
26 - 30 inclusive, or at a minimum drop below the rent determined in lease
years 26 - 30 inclusive.
Extended Term: The Basic Rents during both of the extended
terms shall be as follows:
1. Lease years 36 - 70 inclusive, Basic Rents shall be at "fair
market value" as determined by appraisal in accordance with
paragraph 2.02 of this Lease. Such fair market value shall be determined
for lease year 36 without regard to any minimum or maximum limitations.
Basic Rents shall be adjusted at five-year intervals thereafter,
and shall not, on an annual basis, exceed 135% of the annual rent
during the prior five-year period's rent, nor drop below the annual
rent determined for that period.
2. Lease years 71 - 105 inclusive, Basic Rents shall be at "fair market
value" as determined by appraisal in accordance with paragraph 2.02 of
this Lease. Such fair market value shall be determined for lease year 36 without
regard to any minimum or maximum limitations. Basic Rents shall be adjusted
at five-year intervals thereafter, and shall not, on an annual basis, exceed
135% of the annual rent during the prior five-year period's rent, nor drop
below the annual rent determined for that period.
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