Res 2017-167/approving a Lease-Purchase Agreement with the Trust for Public Land providing for the City to lease with an option to purchase approximately 102 acres of land west of the City off of Derby Court, which agreement provides for payment by the C

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(iii) YEAR TWO. On the 2nd anniversary of the Commencement Date: Four Hundred and Twenty Three Thousand Three Hundred Thirty Three and 00/100 Dollars ($423,333.00) (the "Final Base Rent Payment).* *Plus accrued interest as defined in Paragraph 2(c) below (b) Base Rent is payable in cash at Lessor's office by cashier's check, wire transfer or other good funds on the first day of each year of the Lease Term. Base Rent shall be paid to Lessor by a single check for the total amount due issued by the City of San Marcos, Texas. (c) Lessee agrees that it shall pay interest to Lessor at the prime rate, plus two (2) percent as determined by Bank of America and as such rate may be adjusted from time to time on the date of adjustment, as of the date Lessor purchases the fee simple title to the Property. Notwithstanding the foregoing, Lessor shall not be required to accept any installment of Base Rent which is more than 30 days past due. (d) Lessor and Lessee agree that should Lessee fail to pay any Base Rent installment for more than 30 days after becoming due, Lessor may declare the Lessee in default and terminate the Agreement and Lessee's occupancy pursuant to Texas State law. (e) Credit for Rent: All Base Rent payments by Lessee to Lessor under this Agreement shall be credited against the Purchase Price set forth in Paragraph 32 below at the closing of the purchase by Lessee. Interest Associated with Base Rent Payment shall not be credited against the Purchase Price. In no event shall the payments of Base Rent exceed the Purchase Price plus interest plus Additional Rent, as defined below, stated herein less other credits set forth herein. 3. RIGHTS OF LESSOR UPON CANCELLATION OR TERMINATION (a) The parties agree that in that event that (i) Lessee elects to not close the purchase of the Property and pay the entire Purchase Price set forth in Paragraph 32, or (ii) Lessee cancels the Agreement in accord with Paragraph 1(b), or the Agreement is terminated due to Lessee's default, Lessee shall have no rights in the Property whatsoever, and Lessor is free to retain or sell and convey Property as it elects. (b) Lessee hereby agrees that if it elects to cancel this Agreement prior to the 1st anniversary of the Commencement Date, or prior to exercising the option granted herein, it shall pay to Lessor three months Base Rent based on the Base Rent of Four Hundred Twenty Three Thousand Three Hundred Thirty Three and 00/100 Dollars ($423,333.00.00) for years 1 and 2, and may occupy the premises for three months to continue and wind up its uses. If Lessee elects at the end of the second year of the Lease Term to terminate the Lease as permitted without exercising its option to purchase, Lessee may, at its option: (i) Pay 25% of Base Rent for Year Two of the Term and vacate the Leased Premises within 90 days; or (ii) Vacate the Leased Premises at the close of Year Two of the Lease Term.