Term Sheet For Commercial Lease
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5TERM SHEET
COMMERCIAL LEASE
Parties:
Landlord:
State Land Department (SLD)
Tenant:
Successful Bidder at Public Auction
Parcels:
Lease:
Property Area
ROWs:
Roadways to be identified and payment therefor to be
negotiated
Transactions: Lease Structure:
Commercial Ground Lease
Primary Term:
Renewal Options: Up to 99 years with advance
notice from Tenant to SLD.
Rent = (1) Base Rent + (2) Bonus Rent.
Standard lease form.
Improvement
Installed During Primary Term:
Amortization:
All improvements amortized over a
-year period.
Installed During Renewal Term:
Any improvements amortized over the remaining
length of then-existing renewal term.
Cancellation Resulting from Default:
Unamortized value of improvements as of
cancellation date will be based on the lesser of (a)
two years or (b) the then remaining initial term (or
applicable renewal term).
ROW Structure:
SLD to discuss if there are any further ROWs that
would qualify under A.R.S. § 37-335(N).
Partial Assignments
Initial Partial Assignments:
SLD will allow initial partial assignments of 10 or
(Assignment
Leases):
more Net Acres.
SLD will allow up to 3 initial partial assignments of
7 to 10 Net Acres (each, a “Mini Parcel”).
None of these initial partial assignments will have
the 25% increase in Base Rent discussed below.
Subsequent Partial Assignments:
Partial Assignment from a Mini Parcel:
Both the premises partially assigned and the remainder
premises will have a 25% increase in Base Rent for the
remainder of the term.
Partial Assignment from Any Other Initial Partial
Assignment:
If subsequent partial assignments are less than 10 Net
Acres, they will also have a 25% increase in Base Rent
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