arena lease and management agreement city of glendale, arizona ...

SUBSTANTIAL FINAL DRAFT 11/27/12 12:35
payable on the commencing on the Closing Date and thereafter each installment due and payable on or
before each quarterly (on a three calendar month basis) anniversary of the Closing Date during the Term:
6.6.1 For the five years following the Closing Date, $500,000 per year; andprovided
however, the Base Rent for the first Fiscal Year shall be $500,000 multipled by a factor equal to the
number of days from the Closing Date until the end of June divided by 365, which for the purposes of
clarity shall be calculated as follows:
$500,000 X ( Number of Days from Closing Date to June 30, 2013 )
365
6.6.2 Beginning of the sixth anniversary of the Closing Date and continuing until the
day before the thirteenth anniversary of the Closing Date, $650,000 per year; and
6.6.3 Beginning of the thirteenth anniversary of the Closing Date and continuing until
the day before the twenty second anniversary of the Closing Date, $800,000 per year.
6.7 Taxes on Arena Manager’s Interest. . The parties acknowledge and agree that the Arena
Manager’s leasehold interest in the Arena under this Agreement is exempt, under A.R.S. §42-6208(4),
from the government property lease excise tax imposed under A.R.S. §42-6201 through §42-6210, but if
such leasehold interest ceases to be exempt, the Arena Manager shall pay (or cause to be paid) prior to
delinquency any government property lease excise taxes and similar taxes or fees that may be lawfully
imposed on the leasehold interest of the Arena Manager under this Agreement (including any
personallypersonal property taxes and any other taxes imposed with respect to such leasehold interest).
Any payment of such tax shall constitute an Operating Expense hereunder.
6.8 Quiet Enjoyment.. So long as the Arena Manager performs all of its obligations under
this Agreement, the City shall do nothing (other than the acts permitted or required by this Agreement)
that will prevent the Arena Manager or its licensees or subtenants from peaceably and quietly enjoying,
using, and occupying the Arena Facility during the Term in the manner described in this Agreement, and
shall defend the Arena Manager’s quiet enjoyment, use and occupancy of the Arena Facility in the
manner described in this Agreement (subject only to the Permitted Exceptions) against the claims of all
Persons claiming by, under or through the City.
6.9 City Access..
6.9.1 The City, through appropriate designees, as landlord reserves the right to enter
the portions of the Arena Facility, upon reasonable advance notice to the Arena Manager and, with
respect to the Exclusive Team Spaces, the Team Owner during the Arena Manager’s regular business
hours or other hours when the Arena Manager is open for business (other than during Events); provided
however, that in exercising the City’s rights under this Section the City shall not unreasonably interfere
with the operations of the Arena Facility.
6.9.2 Notwithstanding any provision of this Agreement, the City does not in any
manner limit its governmental rights, authority, responsibilities, or powers.
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