Elements of a development lease

The elements of a development leases are given in the following:

1. Introductory materials:

Ø      Definitions (gross receipts, refunds, tax receipts)

Ø      Land description

2. Financial covenants:

Ø      Term of lease

Ø      Rental

Ø      Annual accounting

Ø      Rental bond

Ø      Performance bond

Ø      Bonding companies

Ø      Non-responsibilities notices

Ø       Holding over

3. Improvement clauses:

Ø      Improvements

Ø      Plants and design

Ø      Construction, maintenance, repair and alterations

Ø      Completion of development

4. Other rights:

Ø      Sublease, assignments and transfers

Ø      Agreements for utility lines and streets

Ø      Encumbrance

Ø      Liens, taxes, assessments and utility charges

Ø      Lessor’s paying claims

5. Insurance:

Ø      Public liability

Ø      Fire and damage insurance

Ø      Unlawful use

6. Miscellaneous:

Ø      Eminent domain

Ø      Arbitration

Ø      Default

Ø      Attorney’s fees

Ø      No partnership clause

Ø      Term or trust

Ø      Obligation of lessee

Ø      Status of subleases

Ø      Payments and notices.