Agreement between municipal corporation and publisher for development of real property for business of warehousing, and distribution of books, magazines, and other publications. This agreement, made _________, _________, by and between _________ Publishing Corporation, a _________ corporation authorized to do business in the State of _________, with an office and place of business at _________, _________, referred to as "corporation," and the Town of _________, a municipal corporation located within the County of _________, State of _________, referred to as "town," Witness: Whereas, the corporation conducts the business of warehousing and distribution facilities for books, magazines and other publications, and will be conducting a portion of its business from premises located in the Town, and Whereas, _________ County Industrial Development Agency, called "agency," was created under the General Municipal Law of the State of _________, which authorized the establishment of the agency as a body corporate and politic, and to be perpetual in duration for the purposes specified in Title _________ of Article _________ of the General Municipal Law, and Whereas, by agreement, the corporation has agreed to sell and the agency has agreed to purchase from it, as of _________ _________, real property located within the town, and to construct a building and to equip the building with machinery, equipment and other chattels, and to lease the property to the corporation and grant to the corporation an option to purchase the property to be used by the corporation for the conduct of a portion of its business, and Whereas, the sale and lease are an incident of the issuance by the agency of industrial development revenue bonds in the principal amount of $_____ which _________ Trust Company of _________ will purchase from the agency, which bonds shall be secured by a mortgage indenture as a first lien on the real and personal property, and Whereas, the agency will enter into a lease agreement for a _________-year term, dated as of _________, _________, for which the corporation will lease the real property and machinery and equipment from the agency for the purpose of its business, and Whereas, the agency is exempt from the payment of certain taxes and assessments imposed on the real property which is the subject of the above transaction, and as a further incident of the issuance of the bonds, the corporation has agreed that, notwithstanding such exemption, the corporation will nevertheless make payments to the town, while occupying the leased premises, in lieu of taxes, ad valorum levies and special assessments. Now, therefore, in consideration of the covenants contained, it is mutually agreed as follows: 1. The corporation agrees to pay to the town, while the corporation shall be the lessee under the lease agreement here referred to between the agency and the corporation, the yearly sum of $_____. The payment shall be made by _________ of each year, commencing the first _________ following completion of the building, and continuing for a period of 20 years, or until the corporation becomes the title owner by exercising its option, (whichever date is earlier). 2. Should the corporation at any time exercise its option to purchase the facility, as defined in the lease agreement, from the agency, as provided in the lease agreement, immediately on the exercise of the option, the premises shall be subject to taxation as any other parcel of real property located within the boundary of the town as above set forth, and this agreement shall terminate immediately.
3. In the event that the option is exercised at such a time in reference to taxable status date, so as to make it impossible to place the real property referred to on the tax rolls for any of the municipalities for that particular year, then and in that event, the obligation referred to, for the payment of the $_____, shall continue until the property has been placed on the tax rolls. 4. It is understood and agreed by and between the parties that this agreement is contingent on the corporation being able to construct and put into operation a building on the premises referred to, and that all services, including but not limited to water and necessary roads, shall be made available to the corporation at no cost to the corporation, it being understood that the corporation shall be liable, however, for an annual charge for water consumed, if any, as well as the cost of placing any roadway on grade in accordance with standards and requirements of the Town of _________ and/or the County of _________. This agreement is contingent on the installation of the services referred to, by the town, and on the commencement of the work no later than _________, _________, and on the completion no later than _________, _________. 5. This agreement is conditioned on the approval of the Office of the State Comptroller of the State of _________, and the approval of the creation of a water district to serve the corporation. In Witness, the parties have caused this instrument to be duly executed the date set forth above.