6097 (EXHIBIT A - E) (2) - Laserfiche WebLink

Home Browse Search

Destruction of the Leased Property The Lease requires the Leased Property to be insured as described in "SUMMARY OF CERTAIN PROVISIONS OF THE LEASE -- Insurance" in Appendix,4 hereto. If the Leased Property is damaged or destroyed, the City is nevertheless required to continue to pay Base Rentals under the Lease, subject to the exercise of its option to extend the term of the Lease for each next succeeding Renewal Term and to the application of Net Proceeds from insurance and certain other sources to repair, restore, modify, improve or replace the affected portion of the Leased Property. If the Net Proceeds from insurance and such other sources are sufficient to repair, restore, modify, improve or replace the affected portion of the Leased Property, such proceeds are to be so applied. If the Net Proceeds are insufficient for such purpose, (1) the City is obligated to commence and thereafter complete the work and pay any cost in excess of such Net Proceeds, but only from Supplemental Rent, in order for the affected portion of the Leased Property to be repaired, restored and replaced, (2) if the failure to repair or restore does not materially detract from the value of the Leased Property, such Net Proceeds may be deposited into the Certificate Payment Fund or (3) the City may apply Net Proceeds to the payment of the Option Price applicable on the next available Optional Payment Date and, if such Net Proceeds are insufficient to pay such Option Price, the City is required under the Lease to pay such amounts as are necessary to equal the full Option Price. There can be no assurance either as to the adequacy of or timely payment under property damage insurance in effect at that time or that the City will elect to extend the term of the Lease for the next Renewal Term succeeding such damage or destruction. See "SUMMARY OF CERTAIN PROVISIONS OF THE LEASE- Damage, Destruction and Condemnation" in AppendixA hereto. Effect on Tax-Exemption of Termination of the Lease Special Tax Counsel is not rendering an opinion with respect to the tax-exempt status of the Interest Component of the Base Rentals distributable to Certificate owners subsequent to the termination of the Lease for any reason (including an Event of Default under the Lease or an Event of Nonappropriation). If the Lease is terminated while Certificates are outstanding, there is no assurance that payments made to Certificate owners after such termination with respect to interest will be excluded from gross income of the owners thereof for federal or Missouri income tax purposes. Other Factors The City intends to satisfy its obligation to pay Base Rentals under the Lease primarily from the revenues to be generated from the Project. Purchasers of the Certificates should be aware, however, that such revenues are not pledged to the payment of the Certificates. Additionally, one or more of the following factors or events could adversely affect the City's operations and financial performance to an extent that cannot be determined at this time: Changes in Management. The City has contracted with the firm of for the management of the parking facility. Changes in the management of the facility could affect the revenues of the Project. Future Economic Conditions. Adverse economic conditions or changes in demographics in the City, including increased unemployment and inability to control expenses in periods of inflation, could adversely impact the City's financial performance. Insurance Claims. Increases in the cost of general liability insurance coverage and the amounts paid in settlement of liability claims not covered by insurance could adversely impact the City's financial performance. -13-