Patterson PK Land Partnership, LTD.
Lessee Request for HB3031 Lease Option
For one year after PPKLP's closing with the BRA lessees
may request to renew their lease per one of the options allowed by HB3031. Those
lease options are:
(C) Offer a new 99-year lease at a rental rate
of 6% of the land only assessed value without any exemptions (as determined by the
appraisal district) for the year 2008, with annual Consumer Price Index increases
or decreases, such option to be available for a period of at least one year from
Closing. The 99-year lease will include an option to purchase the applicable
Leased Tract at the land only assessed value without any exemptions (as determined
by the appraisal district) at the time of purchase (but not less than the 2008 land
only assessed value without any exemptions).
(D) Offer a new 20-year lease with a rental rate
as determined by the current Authority lease rate methodology or other lease rate
structure as set forth in the Ground Lease as applicable (and including increases
and adjustments to such rates) with annual Consumer Price Index increases or decreases,
to Leaseholders who are over the age of 65 and who receive an ad valorem tax exemption
under Section 11.13, Tax Code, for a structure on the Leaseholder's individual Leased
Tract, such option to be available for a period of at least one year from the date
of Closing. The Leaseholder must have received the ad valorem tax exemption
for a structure on the Leaseholder's individual Leased Tract by January 1, 2009.
The 20-year lease will include an option to purchase the applicable Leased Tract
at the land only assessed value without any exemptions (as determined by the appraisal
district) at the time of purchase (but not less than the 2008 land only assessed
value without any exemptions).
(E) Ratify the existing Ground Lease of any Leaseholder
who does not timely exercise one of the foregoing options, such ratification to
include:
(i) adoption of the current Authority lease rate
methodology or other lease rate structure as set forth in the Ground Lease, as applicable
(and including increases and adjustments to such rates) for a period of 8 years
from Closing;
(ii) an option permitting the Leaseholder to purchase
such Leaseholder's individual Leased Tract for the land only assessed value without
any exemptions (as determined by the appraisal district) at the time of purchase,
or for the year 2008, whichever is greater, for a period of 8 years from Closing;
and
(iii) an agreement to extend Ground Leases as
necessary to allow for this full 8-year purchase option period. Nothing in this
subsection shall preclude PPKLP from offering additional purchase or lease options
to the Leaseholders, provided any additional options are made available to all Leaseholders
on an equal basis.
We request the following lease option. Please send us this lease for our signature:
99-year residential lease [(C) above] [Under Construction]
99-year commercial lease [(C)above] [Under Construction]
20-year "Over 65" residential lease [(D) above] [Under Construction]
Extend Lessee's current lease for a period of 8 years [(E) above] [Under Construction]
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