Term Sheet For Commercial Lease Page 2

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for the remainder of the term. If the remainder premises
from which any of these subsequent partial assignments
are made becomes less than 10 Net Acres as a result of
any such subsequent partial assignments, the remainder
premises will also be subject to a 25% increase in Base
Rent.
Application
Infrastructure
To Be Determined (e.g.: road, water, sewer,
Process:
Construction
drainage/404, etc.)
Requirements:
Application Due
As authorized by SLD by letter
Diligence
Reimbursements:
 Bidding at the public auction of the lease will be
Minimum Bid/
Auction Land
based on SLD’s appraised value of the leased land,
Value:
as established by an outside fee appraiser chosen by
SLD.
 The successful bid amount at public auction will set
the “Auction Land Value” on which the base rent
percentage in the draft lease instrument will be
applied.
Auction Costs and
At auction, the successful bidder will be responsible for
Fees:
fees, such as the sales and administrative fees, appraisal
fees, planning permit reimbursement, and title insurance
costs.
Security Deposit:
Upon the successful auction, the Tenant will pay an
initial security deposit of $
into a
segregated fund held by the State. This amount will be
increased to $
as certificates of
occupancy are obtained on the lease property by a rate
of $
per Net Acre of the leased
premises upon which the applicable certificates of
occupancy are obtained. If the balance subsequently
falls below $_________, the remaining undefaulting
Tenant is responsible for replenishing the security
deposit back to the target level. At the end of the lease
term, any remaining security deposit will be refunded to
the remaining tenants on a pro rata basis.
Lease Rent/
Auction Land
The Auction Land Value will be adjusted upwards
Other Terms:
Value Adjustments:
beginning in Lease Year 6 and every 5th Lease Year
thereafter by 5% of the then-current Auction Land
Value.
Base Rent
Base Rent will be paid as follows:
Payment:
Lease Year 1
10% of the Auction Land
Value
Lease Year 2 through
1% of the Auction Land
Lease Year 6
Value
2

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