Posted in Politics

Severe buy-out clause in Port lease

   December 1, 2008

City staff is presenting on Dec. 8 to the city council’s Enterprise Committee a lease amendment for Pate Cold Storage that will extend the lease through 2022 and take away the city’s right to cancel the agreement without a huge payment to the lessee.

The cost to terminate would be $4,150,000 before Dec. 31, 2013, $3,090,700 if between January 1, 2014 and December 31, 2018 and $2,100,400 if between January 1, 2019 and December 31, 2022.

The current lease only has $1 million buy-out clause. However, we don’t have to renew it at all when it expires on March 31, 2009 and there would be no penalty.

Share:

Rules for Comments

Your comments are welcomed, but there are some rules to follow:

(1) Be Nice. No comments that slander another, no racism, no sexism, no personal attacks.

(2) No Harrassing Comments.

(3) No Libel. That’s saying something is not true about someone. Don’t do it.

(4) Keep it clean. Nothing vulgar, obscene, or sexually related. No profanity or obvious substitutions.

(5) I reserve the right to remove any comments that violate our rules or are inappropriate. I am not responsible for what is posted. Comments may not appear right away until they are approved by a moderator.

(6) Limit your comments to the subject in this story only, and limit comments to 1,500 characters or less. Do not post copyrighted material. Comments will not be added to stories that are over five days old.

(7) No posts may advertise a commercial business, political candidate, or political group. Links in a comment aren’t allowed.

8) Commenting too many times may result in your comments not being allowed. Readers will begin to ignore your views.

9) Email me if you believe a comment violates any of these rules, and it will be deleted.