3. Agreement
The agreement grants Greenleaf the option to lease the site for development and operation of a truck and trailer parking lot.3 The term of the lease is 20 years beginning on the date Greenleaf exercises the option pursuant to the agreement. Greenleaf can renew the lease for three additional ten-year terms.
Under the lease, Greenleaf will pay a base rent of $25,000 in years one and two, $27,500 in years three through seven and $30,250 in years eight through ten.4 The base rent will be adjusted at the end of the tenth year and upon each renewal option based on the then current fair market rental value of the property. In no event will the adjusted base rent be less than the base rent for the period immediately prior to the adjustment. In addition, the rent may not increase more than 10% in a five-year period.
The agreement also provides that Greenleaf:
· Must not interfere with the operation of SCE's facilities that cross the site.
· May not use or store hazardous substances, explosives or flammable materials at the site.
· Must maintain a minimum clearance of 18 feet between any equipment used by Greenleaf at or adjacent to the site and all overhead electrical conductors.
· Must maintain a 50-foot minimum radius clearance around tower legs, and a ten-foot minimum radius clearance around steel poles, wood poles and anchors.
· Must provide and maintain access roads on the site at least 16 feet wide and capable of supporting a load of 40 gross tons on a three-axle vehicle.
· Is responsible for all personal property taxes and other general or special assessments or fees levied against the site or improvements thereon.
· Is responsible for obtaining all necessary permits and approvals for construction and any zone changes or use permits required for improvements to and operation of the truck and trailer parking lot.
· Must maintain general liability insurance, comprehensive auto liability insurance and workers' compensation insurance.
· Agrees to indemnify SCE against all liability for damages or injury to persons on the site except to the extent caused by SCE's negligent or willful misconduct.
SCE retains the right and authority to enter the site at any and all reasonable times to inspect the site, and to impose temporary restrictions on Greenleaf's right to enter, occupy and use the sight to allow SCE to perform any necessary work on the electrical facilities located at the site.
3 The agreement provides that it is subject to the Commission's approval, and that it shall automatically terminate if approval is not granted.
4 SCE established the rental value of the site based on use of the site as a truck and trailer parking lot. The valuation was based on the rents paid for comparable facilities in and around the site.
