LAND AND IMPROVEMENT LEASE.PDF

City of Tempe — Regular City Council Meeting (2026-06-11)

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4909-6318-9426 
WHEN RECORDERD, RETURN TO: 
 
 
 
LAND AND IMPROVEMENTS LEASE 
C2022- 
THIS LAND AND IMPROVEMENTS LEASE (“Lease”) is made and entered into as of 
the _____ day of _______________, 2026 (the “Effective Date”), by and between the CITY OF 
TEMPE, a municipal corporation (“Landlord” or “City”), and SOUTH PIER LOT 6 OWNER, 
LLC, a Delaware limited liability company (“Tenant”). 
RECITALS 
A. 
Landlord has title of record to the real property as described in Exhibit A hereto 
(the “Land”), together with all rights and privileges appurtenant thereto and all 
improvements and future additions thereto or alterations thereof (collectively, the 
“Premises”). 
B. 
The Premises are located in a single central business district within the municipal 
boundaries of City and in a redevelopment area established pursuant to Title 36, 
Chapter 12, Article 3 of Arizona Revised Statutes (A.R.S.  §§36-1471 et seq.).  
Tenant’s construction of the Premises resulted in an increase in property value of at 
least one hundred percent. 
C. 
The Premises will be subject to the Government Property Lease Excise Tax as 
provided for under A.R.S.  §42-6203(B) (the “Tax”), subject, however, to 
abatement of such Tax for the eight (8) year period following issuance of the 
certificates of completion for the improvements located on the Premises pursuant 
to the provisions of A.R.S. §42-6209 and as authorized by City Council of City 
pursuant to that certain Ordinance No. 02022.06, dated February 10, 2022 (the 
“Ordinance”) and  Development and Disposition Agreement [South Pier at Tempe 
Town Lake] C2022-36 between City and South Pier Tempe Holdings LLC, an 
Arizona limited liability company (“Master Developer”) dated March 17, 2022, 
and recorded March 23, 2022, as Document No. 20220259754 and re-recorded 
January 13, 2023,  as Document No. 20230022259, in the official records of 
Maricopa County, Arizona (together, the “DDA”).   
D. 
The Master Developer assigned to Tenant and Tenant assumed the rights and 
obligations under the DDA, with the consent and agreement of the City, as such 
rights and obligations pertain to the Premises, pursuant to that certain Assignment 
and Assumption of Development and Disposition Agreement (Lot 6) dated May 17,

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2023 and recorded May 18, 2023, as Document No. 20230258656, in the official 
records of Maricopa County, Arizona (the “Assignment Agreement”). 
AGREEMENT 
For and in consideration of the rental and of the covenants and agreements hereinafter set 
forth to be kept and performed by Tenant, Landlord hereby leases to Tenant and Tenant hereby 
leases from Landlord the Premises for the term, at the rental and subject to and upon all of the 
terms, covenants and agreements hereinafter set forth. 
1. 
Quiet Enjoyment.  Landlord covenants and agrees with Tenant that conditioned 
upon Tenant’s paying the Total Rent herein provided and performing and fulfilling all the 
covenants, agreements, conditions and provisions herein to be kept, observed or performed by 
Tenant, Tenant may at all times during the term hereof peaceably, quietly and exclusively have, 
hold and enjoy the Premises. 
2. 
Term.  The term of this Lease shall commence on the Effective Date (the 
“Commencement Date”) and shall be for approximately eight (8) years, ending at midnight on 
the eighth (8th) anniversary of the issuance of the “Certificates of Completion” (as defined in the 
DDA) for the improvements located on the Premises as of the Effective Date, subject to earlier 
termination at Tenant’s option, as provided herein.  Landlord and Tenant acknowledge and agree 
that the Certificates of Completion for the improvements located on the Premises as of the 
Effective Date were issued on _______________, 2026 and __________, 2026, and the term of 
this Lease shall end at midnight on ____________, 2034, subject to earlier termination at Tenant’s 
option, as provided herein.  
3. 
Rental; Annual In-Lieu Payment. 
3.1 
Tenant covenants to pay to Landlord as rental for the Premises the sum of 
$10.00 per year on the Commencement Date and every anniversary thereof.  Tenant has the right 
to prepay the $80.00 total rent for the entire term of this Lease.  The consideration for this Lease 
includes, without limitation: Tenant’s payment of the entire cost of construction of the 
improvements located on the Land and being part of the Premises, Tenant’s performance of all of 
the covenants and obligations under this Lease and Tenant’s contribution toward fulfillment of 
Landlord’s policy and desire to promote development within a redevelopment area, to encourage 
the creation of jobs within the City of Tempe, and to enhance tax revenues resulting from the 
operation of businesses on the Premises, including transaction privilege taxes.  Landlord 
acknowledges that Tenant, at its option and without prejudice to its right to terminate this Lease 
as provided herein, prepaid the total rent for the entire Lease term on or before the Effective Date; 
but upon any early termination of this Lease, Landlord shall not be obligated to refund any portion 
of the prepaid rent. 
3.2 
In addition to the rent payable by Tenant pursuant to Section 3.1 above, on 
the Commencement Date, to assist the Tempe Union High School Foundation and the Tempe 
Impact Education Foundation (together, the “Foundations”) with their important educational 
missions, the Tenant shall make a one-time voluntary contribution to the Foundations in the 
amount of $50,000 ($25,000 to each Foundation).

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3.3 
During the term of this Lease, Tenant additionally agrees to pay to City  as 
its share of the “Pedestrian Bridge” cash payment due pursuant to Section 6.6 of the DDA and 
Section 6 of the Assignment Agreement, annual installment cash payments, each in the amount of 
$___________  for seven years, commencing on the Commencement Date and thereafter for the 
following six years, payable on the anniversary of the  Commencement Date, for a total payment 
obligation of $_____________.1   
3.4 
During the term of this Lease, Tenant additionally agrees to pay annual in-
lieu cash payments to City that City shall allocate 80% to the Tempe Housing Affiliate and 20% 
to the Tempe Transit Fund as required by Section 6.5 of the DDA, each in the amount of  
$______________, payable in eight (8) annual installments commencing on the Commencement 
Date and thereafter for the following 7 years, payable on the anniversary of the Commencement 
Date, for a total payment obligation of $____________.2 
4. 
Leasehold Mortgage of Premises. 
4.1 
Subject to the applicable provisions of this Lease, Tenant is hereby given 
the absolute right without the Landlord’s consent to create a security interest in Tenant’s leasehold 
interest under this Lease (and in any subleases and the rents, income and profits therefrom) by 
mortgage, deed of trust or collateral assignment or otherwise.  Any such security interest shall be 
referred to herein as a “Leasehold Mortgage,” and the holder of a Leasehold Mortgage shall be 
referred to herein as a “Leasehold Mortgagee.” 
4.2 
No liability for the performance of Tenant’s covenants and agreements 
hereunder shall attach to or be imposed upon any Leasehold Mortgagee, unless such Leasehold 
Mortgagee forecloses its interest and becomes the Tenant hereunder, following which the liability 
shall attach only during the term of ownership of the leasehold estate by said Leasehold Mortgagee. 
5. 
Taxes; Lease Obligations. 
5.1 
Payment.  Tenant shall pay and discharge all general and special real estate 
and/or personal property taxes and assessments levied or assessed against or with respect to the 
Premises during the term hereof and all charges, assessments or other fees payable with respect to 
or arising out of this Lease and all recorded deed restrictions affecting or relating to the Premises; 
provided, however, Tenant shall be entitled to receive all statutorily-authorized property tax and 
excise tax abatements, including, without limitation, abatement of the Tax during the eight-year 
period after the Certificates of Completion for the improvements located on the Premises are issued  
as authorized by Landlord pursuant to the Ordinance, DDA, and the provisions of A.R.S. §42-
6209.  Any sales, use, excise or transaction privilege tax consequence incurred by Landlord 
 
1 The annual payment obligation allocated to Lot 6 of $297,483.63 and total payment obligation 
allocated to Lot 6 of $2,379,869 will be allocated 2/3 to the Lease for Lot 1 of the Replat of Lot 6 
and 1/3 to the Lease for Lot 2 of the Replat of Lot 6.   
2 The annual payment obligation allocated to Lot 6 of $297,483.63 and total payment obligation 
allocated to Lot 6 of $2,379,869 will be allocated 2/3 to the Lease for Lot 1 of the Replat of Lot 6 
and 1/3 to the Lease for Lot 2 of the Replat of Lot 6.

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because of this Lease or in relation to the Premises or improvements included therein may be 
passed on to the Tenant either directly if applicable or as “additional rent” except for any 
statutorily-authorized property tax and excise tax abated during the term of this Lease.  
Notwithstanding anything herein, the Tenant shall be responsible for all Town Lake assessments 
and payments. 
5.2 
Protest.  Tenant may, at its own cost and expense protest and contest, by 
legal proceedings or otherwise, the validity or amount of any such tax or assessment herein agreed 
to be paid by Tenant and shall first pay said tax or assessment under protest if legally required as 
a condition to such protest and contest, and the Tenant shall not in the event of and during the bona 
fide prosecution of such protest or proceedings be considered as in default with respect to the 
payment of such taxes or assessments in accordance with the terms of this Lease. 
5.3 
Procedure.  Landlord agrees that any proceedings contesting the amount or 
validity of taxes or assessments levied against the Premises or against the rentals payable 
hereunder may be filed or instituted in the name of Landlord or Tenant, as the case may require or 
permit, and the Landlord does hereby appoint the Tenant as its agent and attorney-in-fact, during 
the term of this Lease, to execute and deliver in the name of the Landlord any document, instrument 
or pleading as may be reasonably necessary or required in order to carry on any contest, protest or 
proceeding contemplated in this Section.  Tenant shall hold the Landlord harmless from any 
liability, damage or expense incurred or suffered in connection with such proceedings. 
5.4 
Allocation.  All payments contemplated by this Section 5 shall be prorated 
for partial years at the Commencement Date and at the end of the Lease term. 
5.5 
Government Property Lease Excise Tax.  As required under A.RS. §42-
6206, Tenant is hereby notified of its potential tax liability under the Government Property Lease 
Excise Tax provisions of A.R.S.  §42-6201, et seq.  Subject to Tenant’s rights to abate the Tax as 
provided in this Lease, failure of Tenant to pay the Tax after notice and an opportunity to cure is 
an Event of Default that could result in the termination of Tenant’s interest in this Lease and of its 
right to occupy the Premises. 
5.6 
Abatement of the Tax.  Landlord hereby confirms that pursuant to the 
Ordinance and the DDA, Landlord authorized the abatement of the Tax pursuant to the provisions 
of A.R.S. §42-6209 and Tenant is authorized to abate the Tax during the eight-year period after 
receiving the “Certificates of Completion” (as described in the DDA) for the improvements located 
on the Premises.   Landlord hereby waives the requirement for Tenant to apply to Landlord for 
abatement of the Tax pursuant to A.R.S. §42-6209(B).  Tenant shall notify the Maricopa County 
Treasurer of the execution of this Lease and the abatement of the Tax as authorized by the DDA 
and this Lease as required by A.R.S. §42-6209(B). 
6. 
Use.  Subject to the applicable provisions of this Lease and A.R.S. §42-6201(2), 
the Premises may be used and occupied by Tenant for any lawful purpose, including without 
limitation the sale of alcoholic beverages, subject to Tenant obtaining all required permits, 
licenses, and approvals from the Arizona Department of Liquor Licenses and Control.

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7. 
Landlord Non-Responsibility.  Landlord shall have no responsibility, obligation or 
liability under this Lease whatsoever with respect to any of the following: 
7.1 
Utilities, including gas, heat, water, light, power, telephone, sewage, and 
any other utilities supplied to the Premises; 
7.2 
Disruption in the supply of services or utilities to the Premises; 
7.3 
Maintenance, repair or restoration of the Premises; 
7.4 
Any other cost, expense, duty, obligation, service or function related to the 
Premises. 
8. 
Entry by Landlord.  Landlord and Landlord’s agents shall have the right at 
reasonable times and upon reasonable notice to enter upon the Premises for inspection, except that 
Landlord shall have no right to enter portions of any building on the Premises without consent of 
the occupant or as provided by law. 
9. 
Alterations.  Subject to the applicable provisions of this Lease, Tenant shall have 
the right to construct additional improvements and to make subsequent alterations, additions or 
other changes to any improvements or fixtures existing from time to time, and the Premises shall 
constitute all such improvements as they exist from time to time.  In connection with any action 
which Tenant may take with respect to Tenant’s rights pursuant hereto, Landlord shall not be 
responsible for and Tenant shall pay all costs, expenses and liabilities arising out of or in any way 
connected with such improvements, alterations, additions or other changes made by Tenant, 
including without limitation, materialmens’ and mechanics’ liens.  Tenant covenants and agrees 
that Landlord shall not be called upon or be obligated to make any improvements, alterations or 
repairs whatsoever in or about the Premises, and Landlord shall not be liable or accountable for 
any damages to the Premises or any property located thereon.  Tenant shall have the right at any 
time to demolish or substantially demolish improvements located upon the Premises.  In making 
improvements and alterations, Tenant shall not be deemed Landlord’s agent and shall hold 
Landlord harmless from any expense or damage Landlord may incur or suffer.  During the term of 
this Lease, title to all improvements shall at all times be vested in Landlord. 
10. 
Easements, Dedications, New GPLET Lease and Other Matters.  At the request of 
Tenant, and provided that no Event of Default shall have then occurred and be continuing, 
Landlord shall dedicate or initiate a request for dedication to public use of the improvements 
owned by Landlord within any roads, alleys or easements and convey any portion so dedicated to 
the appropriate governmental authority, execute (or participate in a request for initiation by the 
appropriate commission or department of) petitions seeking annexation or change in zoning for all 
or a portion of the Premises, consent to the making and recording, or either, of any map, plat, 
condominium documents, or declaration of covenants, conditions and restrictions of or relating to 
the Premises or any part thereof, join in granting any easements on the Premises, and execute and 
deliver (in recordable form where appropriate) all other instruments and perform all other acts 
reasonably necessary or appropriate to the development, construction, demolition, redevelopment 
or reconstruction of the Premises.  If Tenant replats the Premises as two discrete lots (each, a 
“Lot”) during term of this Lease, with each Lot encompassing one of the two buildings currently

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existing on the Premises, Landlord agrees to amend this Lease to release one of the new Lots from 
this Lease (and address other appropriate amendments to this Lease) and to enter into a new lease 
for the released Lot (the “New GPLET Lease”) on the same terms as this Lease except that (i) the 
total financial obligations under this Lease shall be allocated between this Lease and the New 
GPLET Lease pursuant to the terms of the amendment to this Lease and the terms of the New 
GPLET Lease in a manner reasonably specified by Tenant, (ii) the Tenant under this Lease shall 
be solely responsible for its obligations under this Lease and DDA and the tenant under the New 
GPLET Lease shall be solely responsible for its obligations under the New GPLET Lease and 
DDA and such parties shall (a) have no joint and/or several liability for obligations of the other 
party arising from and after the effective dates of the New GPLET Lease and amendment to this 
Lease as described in this Section 10, and (b) the rights and remedies of Landlord for a breach or 
default under this Lease or the New Lease or the DDA (as it relates to the obligations of the 
respective tenants under this Lease and the New Lease) may only be exercised against the 
applicable tenant under the Lease and New Lease, including, without limitation, any election by 
the Landlord to terminate the Lease or New Lease, as applicable, or the Development Agreement 
as it pertains to the premises covered by the Lease or New Lease, as applicable, and (iii) the term 
of the New GPLET Lease shall be equal to the then remaining term of this Lease. 
11. 
Insurance.  During the term of this Lease, the Tenant shall, at Tenant’s expense, 
maintain general public liability insurance against claims for personal injury, death or property 
damage occurring in, upon or about the Premises.  The limitation of liability of such insurance 
shall not be less than $5,000,000 (which may include umbrella coverage for any amount above 
$1,000,000) combined single limit per occurrence for bodily injury and property damage, 
including coverages for contractual liability (including defense expense coverage for additional 
insureds), personal injury, broad form property damage, products and completed operations.  The 
minimum policy limits shall be increased whenever deemed appropriate by Landlord’s Risk 
Management to adequately reflect current market conditions, but shall not be increased more than 
once during each twelve (12) month period following the Commencement Date and only following 
at least sixty (60) days advance notice to Tenant.  All of Tenant’s policies of liability insurance 
shall name Landlord and all Leasehold Mortgagees as additional insureds, and, at the written 
request of Landlord, certificates with respect to all policies of insurance or copies thereof required 
to be carried by Tenant under this Section 11 shall be delivered to Landlord.  Each policy shall 
contain an endorsement prohibiting cancellation or non-renewal without at least thirty (3) days 
prior notice to Landlord (ten (10) days for nonpayment) if such endorsement is available on 
commercially reasonable terms.  Tenant may self-insure the coverages required by this Section 
with the prior approval of Landlord, which will not be unreasonably withheld, and may maintain 
such reasonable deductibles and retention amounts as Tenant may determine. 
12. 
Liability; Indemnity.  Tenant covenants and agrees that Landlord is to be free from 
liability and claim for damages by reason of any injury to any person or persons, including Tenant, 
or property of any kind whatsoever and to whomsoever while in, upon or in any way connected 
with the Premises during the term of this Lease or any extension hereof, or any occupancy 
hereunder, Tenant hereby covenanting and agreeing to indemnify and save harmless Landlord 
from all liability, loss, costs and obligations on account of or arising out of any such injuries or 
losses, however occurring, unless caused by the sole and gross negligence or willful misconduct 
of Landlord, its agents, employees, or invitees.  Landlord agrees that Tenant shall have the right 
to contest the validity of any and all such claims and defend, settle and compromise any and all

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such claims of any kind or character and by whomsoever claimed, in the name of Landlord, as 
Tenant may deem necessary, provided that the expenses thereof shall be paid by Tenant.  The 
provisions of this Section shall survive the expiration or other termination of this Lease. 
13. 
Fire and Other Casualty.  In the event that all or any improvements or fixtures 
within the Premises shall be totally or partially destroyed or damaged by fire or other insurable 
casualty, then, at Tenant’s election, either: (i) this Lease shall continue in full force and effect, and, 
subject to the applicable provisions of this Lease, Tenant, at Tenant’s sole cost and expense, may, 
but shall not be obligated to, rebuild or repair the same; or (ii) this Lease shall terminate with 
respect to all of the Premises or to such portions of the Premises as Tenant may elect.  Landlord 
and Tenant agree that the provisions of A.RS. § 33-343 shall not apply to this Lease.  In the event 
that, subject to the applicable provisions of this Lease, Tenant elects to repair or rebuild the 
improvements, any such repair or rebuilding shall be performed at the sole cost and expense of 
Tenant.  If there are insurance proceeds resulting from such damage or destruction, Tenant shall 
be entitled to such proceeds, whether or not Tenant rebuilds or repairs the improvements or 
fixtures, subject to the applicable provisions of this Lease and of any Leasehold Mortgage.  The 
provisions of this Section shall survive the expiration or other termination of this Lease.   
14. 
Condemnation. 
14.1 
Entire or Partial Condemnation.  If the whole or any part of the Premises 
shall be taken or condemned by any competent authority for any public use or purposes during the 
term of the Lease, this Lease shall terminate with respect to the part of the Premises so taken and 
any other portion of the Premises as may be specified by Tenant, and, subject to the applicable 
provisions of this Lease, Tenant reserves unto itself the right to claim and prosecute its claim in 
all appropriate courts and agencies for any award or damages based upon loss, damage or injury 
to its leasehold interest (as well as relocation and moving costs) and/or the Premises.  In 
consideration of Tenant’s payment for all of the cost of construction of the improvements 
constituting the Premises, Landlord hereby assigns to Tenant all claims, awards and entitlements 
relating to the Premises arising from the exercise of the power of condemnation or eminent domain. 
14.2 
Continuation of Lease.  In the event of a taking of less than all of the 
Premises, this Lease shall continue in effect with respect to the portion of the Premises not so taken 
or specified by Tenant to be removed from this Lease. 
14.3 
Temporary Taking.  If the temporary use of the whole or any part of the 
Premises or the appurtenances thereto shall be taken, the term of this Lease shall not be reduced 
or affected in any way.  The entire award of such taking (whether paid by way of damages, rent, 
or otherwise) shall be payable to Tenant, subject to the applicable provisions of this Lease and of 
any Leasehold Mortgage. 
14.4 
Notice of Condemnation.  In the event any action is filed to condemn the 
Premises or Tenant’s leasehold estate or any part thereof by any public or quasi-public authority 
under the power of eminent domain or in the event that an action is filed to acquire the temporary 
use of the Premises or Tenant’s leasehold estate or any part thereto, or in the event that action is 
threatened or any public or quasi-public authority communicates to Landlord or Tenant its desire 
to acquire the temporary use thereof, by a voluntary conveyance or transfer in lieu of

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condemnation, either Landlord or Tenant shall give prompt notice thereof to the other and to any 
Leasehold Mortgagee.  Landlord, Tenant and each Leasehold Mortgagee shall each have the right, 
at its own cost and expense, to represent its respective interest in each proceeding, negotiation or 
settlement with respect to any taking or threatened taking. No agreement, settlement, conveyance 
or transfer to or with the condemning authority affecting Tenant’s leasehold interest or the 
Premises shall be made without the consent of Tenant and each Leasehold Mortgagee.  The 
provisions of Section 14 shall survive the expiration or other termination of this Lease.   
15. 
Termination Option. 
15.1 
Grant of Option.  In the event changes in applicable law nullify, remove, or 
vitiate the economic benefit to Tenant provided by this Lease or if any person or entity succeeds 
to Tenant’s interest hereunder by foreclosure sale, trustee’s sale, or deed in lieu of foreclosure 
(collectively, “Foreclosure”), or if Tenant, in its sole and absolute discretion, so elects, Tenant or 
Tenant’s successor by Foreclosure shall have the option, exercisable by written notice to Landlord, 
to terminate this Lease as to the entire Premises or as to such portions of the Premises as Tenant 
may specify effective sixty (60) days after the date of the notice. Upon default under the Leasehold 
Mortgage (after giving effect to all applicable notice and cure rights), Tenant or Leasehold 
Mortgagee shall have the option, exercisable by written notice to Landlord, to terminate this Lease 
effective sixty (60) days after the date of the notice.  Simultaneously with, and effective as of such 
termination, title to the Premises or such portions thereof as are terminated (including all 
improvements constituting a part thereof) shall automatically vest in Tenant and Landlord shall 
comply with the obligations under Section 31. 
15.2 
Leasehold Mortgagees and Termination.  If there are any Leasehold 
Mortgagees as defined in Section 4.1, Tenant may not terminate, modify or waive its Option under 
this Section without the written approval of the Leasehold Mortgagees, and Landlord will not 
recognize or consent thereto without such approval. 
15.3 
Condominium Release Provisions.  From time to time during the term of 
this Lease upon written request by Tenant, Landlord shall allow the Premises or portion thereof to 
be divided into legally defined condominium units (“Units”) and, thereafter, subjected to a 
horizontal property regime to allow condominium sales.  Tenant shall have the right to have Units 
released from this Lease and the fee simple interest in the Units reconveyed to the Tenant for the 
purposes of facilitating the sale of the Units as condominiums.  Landlord and Tenant agree to 
cooperate in all respects to ensure that the remaining unreleased portions of the Premises shall 
remain subject to this Lease and the Tax, as well as entitlement to abatement of the Tax during the 
term of this Lease. 
16. 
Assignment; Subletting. 
16.1 
Transfer by Tenant.  At any time and from time-to-time Tenant shall have 
the right to assign this Lease and Tenant’s leasehold interest or to sublease all of or any part of the 
Premises to any person or persons for any use permitted under this Lease, without the consent of 
the Landlord.

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16.2 
Liability.  Each assignee, other than any residential subtenant, hereby 
assumes all of the obligations of Tenant under this Lease (but not for liabilities or obligations 
arising prior to such assignment becoming effective).  Each assignment shall automatically release 
the assignor from any personal liability in respect of any obligations or liabilities arising under this 
Lease from and after the date of assignment, and Landlord shall not seek recourse for any such 
liability against any assignor or its personal assets. Landlord agrees that performance by a 
subtenant or assignee of Tenant’s obligations under this Lease shall satisfy Tenant’s obligations 
hereunder and Landlord shall accept performance by any such subtenant. 
17. 
Default Remedies; Protection of Leasehold Mortgagee and Subtenants. 
17.1 
Default.  The failure by Tenant to observe and perform any material 
provision of this Lease to be observed or performed by Tenant, where such failure continues for 
one hundred eighty (180) days after written notice thereof by Landlord to Tenant shall constitute 
an “Event of Default”; provided, however, that if the nature of such default is such that the same 
cannot reasonably be cured within such one hundred eighty (180) day period, no Event of Default 
shall be deemed to have occurred if Tenant shall within such period commence such cure and 
thereafter diligently prosecute the same to completion. 
17.2 
Remedies.  Upon the occurrence of an Event of Default, Landlord may at 
any time thereafter, by written notice to Tenant terminate this Lease, in which case Tenant shall 
immediately surrender possession of the Premises to Landlord.  This Section constitutes the 
provision required under A.RS. §42-6206(2) that failure by the prime lessee to pay the Tax after 
notice and an opportunity to cure is an event of default that could result in divesting the prime 
lessee of any interest or right or occupancy of the government property improvement. 
17.3 
Leasehold Mortgagee Default Protections.  If any Leasehold Mortgagee 
shall give written notice to Landlord of its Leasehold Mortgage, together with the name and 
address of the Leasehold Mortgagee, then, notwithstanding anything to the contrary in this Lease, 
until the time, if any, that the Leasehold Mortgage shall be satisfied and released of record or the 
Leasehold Mortgagee shall give to Landlord written notice that said Leasehold Mortgage has been 
satisfied, Landlord shall provide written notice of any default under this Lease to Leasehold 
Mortgagee and Leasehold Mortgagee shall have the rights described in Section 20 of this Lease. 
18. 
Consent of Leasehold Mortgagee.  No act or agreement between or on the part of 
Landlord or Tenant to cancel, terminate, surrender, amend, or modify this Lease or Tenant’s right 
to possession shall be binding upon or effective as against the Leasehold Mortgagee without its 
prior written consent. 
19. 
Notice to Leasehold Mortgagee.  If Landlord shall give any notice, demand, 
election or other communication required hereunder (hereafter collectively “Notices”) to Tenant 
hereunder, Landlord shall concurrently give a copy of each such Notice to the Leasehold 
Mortgagee at the address designated by the Leasehold Mortgagee.  Such copies of Notices shall 
be sent by registered or certified mail, return receipt requested, and shall be deemed given seventy-
two (72) hours after the time such copy is deposited in a United States Post Office with postage 
charges prepaid, addressed to the Leasehold Mortgagee.  No Notice given by Landlord to Tenant 
shall be binding upon or affect Tenant or the Leasehold Mortgagee unless a copy of the Notice

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shall be given to the Leasehold Mortgagee pursuant to this Section.  In the case of an assignment 
of the Leasehold Mortgage or change in address of the Leasehold Mortgagee, the assignee or 
Leasehold Mortgagee, by written notice to Landlord, may change the address to which such copies 
of Notices are to be sent. 
20. 
Leasehold Mortgagee Cure Rights.  The Leasehold Mortgagee shall have the right 
for a period of sixty (60) days after the expiration of any grace period afforded Tenant to perform 
any term, covenant, or condition and to remedy any Event of Default by Tenant hereunder or such 
longer period as the Leasehold Mortgagee may reasonably require to affect a cure, and Landlord 
shall accept such performance with the same force and effect as if furnished by Tenant, and the 
Leasehold Mortgagee shall thereby and hereby be subrogated to the rights of Landlord.  The 
Leasehold Mortgagee shall have the right to enter upon the Premises to give such performance. 
21. 
Prosecution of Foreclosure or Other Proceedings.  In case of an Event of Default 
by Tenant in the performance or observance of any nonmonetary term, covenant or condition to 
be performed by it hereunder, if such default cannot practicably by cured by the Leasehold 
Mortgagee without taking possession of the Premises, in such Leasehold Mortgagee’s reasonable 
opinion, or if such default is not susceptible of being cured by the Leasehold Mortgagee, then 
Landlord shall not serve a Notice of lease termination pursuant to Section 17.2, if and so long as: 
(i) 
the Leasehold Mortgagee shall proceed diligently to obtain possession of 
the Premises as mortgagee (including possession by a receiver), and, upon obtaining such 
possession, shall proceed diligently to cure Events of Default as are reasonably susceptible 
of cure (subject to any order by a court of competent jurisdiction staying or otherwise 
precluding such Leasehold Mortgagee from obtaining such possession); or 
(ii) 
the Leasehold Mortgagee shall institute foreclosure proceedings and 
diligently prosecute the same to completion (unless in the meantime it shall acquire 
Tenant’s estate hereunder, either in its own name or through a nominee, by assignment in 
lieu of foreclosure and subject to any order by a court of competent jurisdiction staying or 
otherwise precluding such Leasehold Mortgagee from obtaining such possession). 
22. 
Effect of Cure Upon Event of Default.  The Leasehold Mortgagee shall not be 
required to obtain possession or to continue in possession as mortgagee of the Premises pursuant 
to Section 21(i) above, or to continue to prosecute foreclosure proceedings pursuant to Section 
21(ii) above, if and when such Event of Default shall be cured.  If a Leasehold Mortgagee, its 
nominee, or a purchaser at a foreclosure sale shall acquire title to Tenant’s leasehold estate 
hereunder, an Event of Default that is not reasonably susceptible to cure by the person succeeding 
to the leasehold interest shall no longer be deemed an Event of Default hereunder. 
23. 
Extension of Foreclosure or Other Proceedings.  If any Leasehold Mortgagee is 
prohibited from commencing or prosecuting foreclosure or other appropriate proceedings in the 
nature thereof by any process or injunction issued by any court or by reason of any action by any 
court having jurisdiction of any bankruptcy or insolvency proceeding involving Tenant, the times 
specified in Sections 21(i) and (ii) above, for commencing or prosecuting foreclosure or other 
proceedings shall be extended for the period of the prohibition.

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4909-6318-9426 
24. 
Additional Consent of Leasehold Mortgagee.  No option of Tenant hereunder may 
be exercised, and no consent of Tenant allowed or required hereunder shall be effective without 
the prior written consent of any Leasehold Mortgagee. 
24.1 
Protection of Subtenant.  Landlord covenants that notwithstanding any 
default under or termination of this Lease or of Tenant’s possessory rights, Landlord: (i) so long 
as a subtenant within the Premises complies with the terms and conditions of its sublease, shall not 
disturb the peaceful possession of the subtenant under its sublease, and in the event of a default by 
a subtenant, Landlord may only disturb the possession or other rights of the subtenant as provided 
in the tenant’s sublease, (ii) shall recognize the continued existence of the sublease, (iii) shall 
accept the subtenant’s attornment, as subtenant under the sublease, to Landlord, as landlord under 
the sublease, and (iv) shall be bound by the provisions of the sublease, including all options, and 
shall execute documents as may be reasonably required by such subtenants to evidence these 
agreements.  Notwithstanding anything to the contrary in this Lease, no act or agreement between 
or on the part of Landlord or Tenant to cancel, terminate, surrender or modify this Lease or 
Tenant’s right to possession shall be binding upon or effective as against any subtenant without its 
prior written consent to the extent the same affects the rights of the subtenant pursuant to its 
sublease.  
25. 
New Lease. 
25.1 
Right to Lease.  Landlord agrees that, in the event of termination of this 
Lease for any reason (including but not limited to any default by Tenant), Landlord, if requested 
by any Leasehold Mortgagee, will enter into a new lease of the Premises with the most senior 
Leasehold Mortgagee requesting a new lease, which new lease shall commence as of the date of 
termination of this Lease and shall run for the remainder of the original term of this Lease, at the 
rent and upon the terms, covenants and conditions herein contained, provided: 
a. 
Such Leasehold Mortgagee shall make written request upon 
Landlord for the new lease within sixty (60) days after the date 
such Leasehold Mortgagee receives written Notice from 
Landlord that the Lease has been terminated; 
b. 
Such Leasehold Mortgagee shall pay to Landlord at the time of 
the execution and delivery of the new lease any and all sums 
which would, at that time, be due and unpaid pursuant to this 
Lease but for its termination, and in addition thereto all 
reasonable expenses, including reasonable attorneys’ fees, which 
Landlord shall have incurred by reason of such termination; and 
c. 
Such Leasehold Mortgagee shall perform and observe all 
covenants in this Lease to be performed and observed by Tenant, 
and shall further remedy any other conditions which Tenant under 
the Lease was obligated to perform under its terms, to the extent

12 
4909-6318-9426 
the same are reasonably susceptible of being cured by the 
Leasehold Mortgagee. 
25.2 
The tenant under the new lease shall have the same right of occupancy to 
the buildings and improvements on the Premises as Tenant had under the Lease immediately prior 
to its termination. 
25.3 
Notwithstanding anything to the contrary expressed or implied in this 
Lease, any new lease made pursuant to this Section 25 shall have the same priority as this Lease 
with respect to any mortgage, deed of trust, or other lien, charge, or encumbrance on the fee of the 
Premises, and any sublease under this Lease shall be a sublease under the new lease and shall not 
be deemed to have been terminated by the termination of this Lease. 
26. 
No Obligation.  Nothing herein contained shall require any Leasehold Mortgagee 
to enter into a new lease pursuant to Section 25 or to cure any default of Tenant referred to above. 
27. 
Possession.  If any Leasehold Mortgagee shall demand a new lease as provided in 
Section 25, Landlord agrees, at the request of, on behalf of and at the expense of the Leasehold 
Mortgagee, upon a guaranty from it reasonably satisfactory to Landlord, to institute and pursue 
diligently to conclusion the appropriate legal remedy or remedies to oust or remove the existing 
Tenant from the Premises, but not any subtenants actually occupying the Premises or any part 
thereof. 
28. 
Grace Period.  Unless and until Landlord has received notice from each Leasehold 
Mortgagee that the Leasehold Mortgagee elects not to demand a new lease as provided in Section 
25, or until the period therefore has expired, Landlord shall not cancel or agree to the termination 
or surrender of any existing subleases nor enter into any new leases or subleases with respect to 
the Premises without the prior written consent of each Leasehold Mortgagee. 
29. 
Effect of Transfer.  Neither the foreclosure of any Leasehold Mortgage (whether 
by judicial proceedings or by virtue of any power of sale contained in the Leasehold Mortgage), 
nor any conveyance of the leasehold estate created by this Lease by Tenant to any Leasehold 
Mortgagee or its designee by an assignment or by a deed in lieu of foreclosure or other similar 
instrument shall require the consent of Landlord under, or constitute a default under, this Lease, 
and upon such foreclosure, sale or conveyance, Landlord shall recognize the purchaser or other 
transferee in connection therewith as the Tenant under this Lease. 
30. 
No Merger.  In no event shall the leasehold interest, estate or rights of Tenant 
hereunder, or of any Leasehold Mortgagee, merge with any interest, estate or rights of Landlord 
in or to the Premises.  Such leasehold interest, estate and rights of Tenant hereunder, and of any 
Leasehold Mortgagee, shall be deemed to be separate and distinct from Landlord’s interest, estate 
and rights in or to the Premises, notwithstanding that any such interests, estates or rights shall at 
any time be held by or vested in the same person, corporation or other entity. 
31. 
Surrender, Reconveyance.

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4909-6318-9426 
31.1 
Reconveyance Upon Termination or Expiration.  On the last day of the term 
of this Lease or upon any termination of this Lease, whether under Article 15 above or otherwise, 
title to the Premises or such portions thereof as are terminated (including all improvements 
constituting a part thereof) shall automatically vest in Tenant at no cost or expense to Tenant other 
than as set forth in Section 33 below. 
31.2 
Reconveyance Documents.  Without limiting the foregoing, Landlord upon 
request shall execute and deliver: (i) a special warranty deed reconveying all of Landlord’s right 
title and interest in the Premises to Tenant; (ii) a memorandum in recordable form reflecting the 
termination of this Lease; (iii) an assignment of Landlord’s right, title and interest in and to all 
licenses, permits, guaranties and warranties relating to the ownership or operation of the Premises 
to which Landlord is a party and which are assignable by Landlord, and (iv) such other reasonable 
and customary documents as may be required by Tenant or its title insurer including, without 
limitation, FIRPTA and mechanic’s lien affidavits, to confirm the termination of this Lease and 
the revesting of title to the Premises in all respects in Tenant. 
32. 
Title and Warranties.  Notwithstanding anything to the contrary in this Section, 
Landlord shall convey the Premises subject only to: (i) matters affecting title as of the date of this 
Lease, and (ii) matters created by or with the written consent of Tenant.  The Premises shall be 
conveyed “AS IS” without representation or warranty whatsoever.  Notwithstanding the 
prohibition on the creation of any liens by or through Landlord set forth in this Section, upon any 
reconveyance, Landlord shall satisfy all liens and monetary encumbrances on the Premises created 
by Landlord.   
33. 
Expenses.  All costs of title insurance, escrow fees, recording fees and other 
expenses of the reconveyance, except Landlord’s own attorneys’ fees and any commissions 
payable to any broker retained by Landlord, shall be paid by Tenant. 
34. 
Trade Fixtures, Machinery and Equipment.  Landlord agrees that all trade fixtures, 
machinery, equipment, furniture or other personal property of whatever kind and nature kept or 
installed on the Premises by Tenant or Tenant’s subtenants may be removed by Tenant or Tenant’s 
subtenants, or their agents and employees, in their discretion, at any time and from time to time 
during the entire term or upon the expiration of this Lease.  Tenant agrees that in the event of 
damage to the Premises due to such removal it will repair or restore the same.  Upon request of 
Tenant or Tenant’s assignees or any subtenant, Landlord shall execute and deliver any consent or 
waiver forms submitted by any vendors, Landlords, chattel mortgagees or holders or owners of 
any trade fixtures, machinery, equipment, furniture or other personal property of any kind and 
description kept or installed on the Premises by any subtenant setting forth the fact that Landlord 
waives, in favor of such vendor, Landlord, chattel mortgagee or any holder or owner, any lien, 
claim, interest or other right therein superior to that of such vendor, Landlord, chattel mortgagee, 
owner or holder.  Landlord shall further acknowledge that property covered by such consent or 
waiver forms is personal property and is not to become a part of the realty no matter how affixed 
thereto and that such property may be removed from the Premises by the vendor, Landlord, chattel 
mortgagee, owner or holder at any time upon default by the Tenant or the subtenant in the terms 
of such chattel mortgage or other similar documents, free and clear of any claim or lien of 
Landlord.

14 
4909-6318-9426 
35. 
Estoppel Certificate.  Landlord shall at any time and from time to time upon not 
less than ten (10) days’ prior written notice from Tenant or any Leasehold Mortgagee execute, 
acknowledge and deliver to Tenant or the Leasehold Mortgagee a statement in writing (i) certifying 
that this Lease is unmodified and in full force and effect (or if modified, stating the nature of such 
modification and certifying that this Lease, as so modified, is in full force and effect) and the dates 
to which the rental and other charges are paid in advance, if any; (ii) acknowledging that there are 
not, to Landlord’s knowledge, any uncured defaults on the part of Tenant hereunder, or specifying 
such defaults if they are claimed; and (iii) certifying such other matters relating to this Lease as 
Tenant or the Leasehold Mortgagee may reasonably request.  Any such statement may be relied 
upon by any prospective purchaser or encumbrancer of all or any portion of the leasehold estate in 
the Premises.   
Landlord’s failure to deliver a statement within the time prescribed shall be conclusive 
upon Landlord (i) that this Lease is in full force and effect, without modification except as may be 
represented by Tenant; (ii) that there are no uncured defaults in Tenant’s performance; and (iii) the 
accuracy of such other matters relating to this Lease as Tenant as may have been set forth in the 
request. 
36. 
General Provisions. 
36.1 
Attorneys’ Fees.  In the event of any suit instituted by either party against 
the other in any way connected with this Lease or for the recovery of possession of the Premises, 
the parties respectively agree that the successful party to any such action shall recover from the 
other party a reasonable sum for its attorneys’ fees and costs in connection with said suit, such 
attorneys’ fees and costs to be fixed by the court. 
36.2 
Transfer or Encumbrance of Landlord’s Interest.  Landlord may not transfer 
or convey its interest in this Lease or in the Premises during the term of this Lease without the 
prior written consent of Tenant, which consent may be given or withheld in Tenant’s sole and 
absolute discretion.  In the event of permitted sale or conveyance by Landlord of Landlord’s 
interest in the Premises, other than a transfer for security purposes only, Landlord shall be relieved, 
from and after the date specified in such notice of transfer, of all obligations and liabilities accruing 
thereafter on the part of the Landlord, provided that any funds in the hands of Landlord at the time 
of transfer in which Tenant has an interest, shall be delivered to the successor of Landlord.  This 
Lease shall not be affected by any such sale and Tenant agrees to attorn to the purchaser or assignee 
provided all of Landlord’s obligations hereunder are assumed in writing by the transferee.  
Landlord shall not grant or create mortgages, deeds of trust or other encumbrances of any kind 
against the Premises or rights of Landlord hereunder, and, without limiting the generality of the 
foregoing, Landlord shall have no right or power to grant or create mortgages, deeds of trust or 
other encumbrances superior to this Lease without the consent of Tenant in its sole and absolute 
discretion.  Any mortgage, deed of trust or other encumbrance granted or created by Landlord shall 
be subject to this Lease, all subleases and all their respective provisions including, without 
limitations, the options under this Lease and any subleases with respect to the purchase of the 
Premises. 
36.3 
Captions; Attachments; Defined Terms.

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4909-6318-9426 
a. 
The captions of the sections of the Lease are for convenience only and shall 
not be deemed to be relevant in resolving any question of interpretation or 
construction of any section of this Lease. 
b. 
Exhibits attached hereto, and addendums and schedules initialed by the 
parties, are deemed by attachment to constitute part of this Lease and are 
incorporated herein. 
c. 
The words “Landlord” and “Tenant”, as used herein, shall include the plural 
as well as the singular.  The obligations contained in this Lease to be 
performed by Tenant and Landlord shall be binding on Tenant’s and 
Landlord’s successors and assigns only during their respective periods of 
ownership. 
36.4 
Entire Agreement.  This Lease along with any addenda, exhibits and 
attachments hereto constitutes the entire agreement between Landlord and Tenant relative to the 
Premises and this Lease and the addenda, exhibits and attachments may be altered, amended or 
revoked only by an instrument in writing signed by the party to be bound thereby.  Landlord and 
Tenant agree hereby that all prior or contemporaneous oral agreements between and among 
themselves and their agents or representatives relative to the leasing of the Premises are merged in 
or revoked by this Lease, except as set forth in any addenda hereto. 
36.5 
Severability.  If any term or provision of this Lease shall, to any extent, be 
determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of 
this Lease shall not be affected thereby, and each term and provision of this Lease shall be valid 
and be enforceable to the fullest extent permitted by law. 
36.6 
Binding Effect; Choice of Law.  The parties hereto agree that all the 
provisions hereof are to be construed as both covenants and conditions as though the words 
importing such covenants and conditions were used in each separate paragraph hereof.  All of the 
provisions hereof shall bind and inure to the benefit of the parties hereto and their respective heirs, 
legal representatives, successors and assigns.  This Lease shall be governed by the laws of the State 
of Arizona. 
36.7 
Memorandum of Land and Improvements Lease.  The parties shall, 
concurrently with the execution of this Lease, complete, execute, acknowledge and record (at 
Tenant’s expense) a Memorandum of Land and Improvements Lease, a form of which is attached 
hereto as Exhibit B. 
36.8 
Notices.  All notices, requests, demands and other communications 
hereunder shall be in writing and shall be deemed to have been duly given if (i) personally 
delivered, (ii) delivered by means of a professional messenger service or reputable air express 
courier service utilizing receipts, or (iii)  or if mailed by United States certified or registered mail, 
return receipt requested, postage prepaid, as follows:

16 
4909-6318-9426 
If to Landlord: 
City of Tempe 
City Manager’s Office  
31 East 5th Street  
Tempe, Arizona 85281 
With a copy to: 
City of Tempe 
City Attorney’s Office  
31 East 5th Street  
Tempe, Arizona 85281 
If to Tenant: 
South Pier Lot 6 Owner, LLC  
c/o Silverstein Properties LLC 
7 World Trade Center 
250 Greenwich Street 
New York, New York 10007  
Attn: Jamison Divoll, Vice President  
Attn:  Nicholas Pazich,  Executive Vice President and General Counsel 
 
With a copy to: 
Snell & Wilmer 
One East Washington Street, Suite 2700   
Phoenix, AZ 85004-2556 
Attn:  Michael Maerowitz and Joyce Wright 
or at such other places or to such other persons as any party shall from time to time notify the other 
in writing as provided herein.  The date of service of any communication hereunder shall be the 
date of receipt by personal delivery, date of receipt from a messenger or courier service,   or 
seventy-two (72) hours after the postmark on the certified or registered mail, as the case may be. 
36.9 
Waiver.  No covenant, term or condition or the breach thereof shall be 
deemed waived, except by written consent of the party against whom the waiver is claimed, and 
any waiver or the breach of any covenant, term or condition shall not be deemed to be a waiver of 
any preceding or succeeding breach of the same or any other covenant, term or condition. 
36.10 Negation of Partnership.  Landlord shall not become or be deemed a partner 
or a joint venturer with Tenant by reason of the provisions of this Lease. 
36.11 Hold Over.  If Tenant shall continue to occupy the Leased Premises after 
the expiration of the term hereof without the consent of Landlord, such tenancy shall be from 
month to month on the same terms and conditions as are set forth herein.

17 
4909-6318-9426 
36.12 Leasehold Mortgagee Further Assurances.  Landlord and Tenant shall 
cooperate in including in this Lease by suitable amendment from time to time any provision which 
may be reasonably requested by any proposed Leasehold Mortgagee for the purpose of 
implementing the mortgagee-protection provisions contained in this Lease, of allowing that 
Leasehold Mortgagee reasonable means to protect or preserve the lien of its Leasehold Mortgage 
upon the occurrence of a default under the terms of this Lease and of confirming the elimination 
of the ability of Tenant to modify, terminate or waive this Lease or any of its provisions without 
the prior written approval of the Leasehold Mortgagee.  Landlord and Tenant each agree to execute 
and deliver (and to acknowledge, if necessary, for recording purposes) any agreement necessary 
to effect any such amendment; provided, however, that any such amendment shall not in any way 
affect the term or rent under this Lease nor otherwise in any material respect adversely affect any 
rights of Landlord under this Lease. 
37. 
Nonrecourse.  Landlord’s sole recourse for collection or enforcement of any 
judgment as against Tenant shall be solely against the leasehold interest under this Lease and the 
improvements on the Premises and may not be enforced against or collected out of any other assets 
of Tenant nor of its beneficiaries, joint venturers, owners, partners, shareholders, members or other 
related parties. 
[Remainder of page intentionally left blank.]

18 
4909-6318-9426 
IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the Effective 
Date first written above. 
ATTEST: 
By: 
 
City Clerk 
LANDLORD: 
CITY OF TEMPE, a municipal corporation 
By: 
 
Name: 
 
Title: 
 
APPROVED AS TO FORM: 
 
 
City Attorney

19 
4909-6318-9426 
TENANT: 
SOUTH PIER LOT 6 OWNER, LLC,   
a Delaware limited liability company 
By: 
 
Name: 
 
Title: __________________________
 
 
STATE OF __________ 
) 
 
) SS. 
COUNTY OF__________ 
) 
The foregoing instrument was acknowledged before me this _____ day of 
_______________ 2026, by ____________________, the ____________________ of SOUTH 
PIER LOT 6 OWNER, LLC, a Delaware limited liability company, and that in such capacity, being 
authorized so to do, executed the foregoing instrument for the purposes therein contained on behalf 
of that entity. 
IN WITNESS WHEREOF, I hereunto set my hand and official seal. 
 
 
Notary Public 
My Commission Expires:

20 
4909-6318-9426 
Exhibit A 
 
Legal Description of Land 
 
Lot ___ of the Replat of Lot 6 of PIER 202-2nd AMENDED according to the plat of record in the 
office of the County Recorder of Maricopa County, Arizona, recorded December 4, 2024, in Book 
1833 of Maps, page 12

4909-6318-9426 
Exhibit B 
Memorandum of Land and Improvement Lease 
 
WHEN RECORDED, RETURN TO: 
Exempt from affidavit of value and 
transfer fee requirements, pursuant to 
A.R.S. § 11-1134 (A)(2) 
 
 
 
MEMORANDUM OF LAND AND IMPROVEMENTS LEASE 
THIS MEMORANDUM OF LAND AND IMPROVEMENTS LEASE (“Memorandum”) 
is made and entered into as of the _____ day of __________, 2026, by and between the CITY OF 
TEMPE, an Arizona municipal corporation (“City”), and SOUTH PIER LOT 6 OWNER, LLC, a 
Delaware limited liability company (“Tenant”), for the purpose of providing record notice of the 
terms pertinent to that certain Land and Improvements Lease (City Contract No. _________) dated 
________________, 2026 (the “Lease”) between City, as landlord, and Tenant, as tenant.  In 
addition, this Memorandum is being recorded to provide notice pursuant to Arizona Revised 
Statutes (“A.R.S.”) § 42-6202(C) that the Lease is a government property improvement lease and 
certain terms thereof, as follows: 
1. 
Premises.  The real property that is the subject of the Lease is legally described on 
Exhibit “A” attached hereto and by this reference incorporated herein (the “Land”).  Pursuant to 
the Lease, City leases to Tenant and Tenant leases from City the Land and all improvements now 
or hereafter located on the Land (together, the “Premises”) pursuant to the terms of the Lease. 
The Premises are located in a single central business district within the municipal boundaries of 
City and in a redevelopment area established pursuant to A.R.S.  §§36-1471 et seq.  Tenant’s 
construction of the Premises resulted in an increase in the property value of at least one hundred 
percent. 
2. 
Disposition and Development Agreement. The Premises is subject to that certain 
Development and Disposition Agreement [South Pier at Tempe Town Lake] C2022-36 between 
City and South Pier Tempe Holdings LLC, an Arizona limited liability company (“Master 
Developer”) dated March 17, 2022, and recorded March 23, 2022, as Document No. 
20220259754 and re-recorded January 13, 2023,  as Document No. 20230022259, in the official 
records of Maricopa County, Arizona (the “DDA”).  The Master Developer assigned to Tenant 
and Tenant assumed the rights and obligations under the DDA, with the consent and agreement 
of the City, as such rights and obligations pertain to the Premises, pursuant to that certain 
Assignment and Assumption of Development and Disposition Agreement (Lot 6) dated May 17, 
2023 and recorded May 18, 2023, as Document No. 20230258656, in the official records of 
Maricopa County, Arizona.

22 
4909-6318-9426 
3. 
Government Property Lease Excise Tax.  In accordance with A.R.S. § 42-6206:  
(1) notice is hereby given to Tenant of its government lease excise tax (“GPLET”) liability 
pursuant to A.R.S. § 42-6201 et seq.; and (2) subject to Tenant’s right to abate the GPLET as 
provided in the Lease, failure by Tenant, after notice and an opportunity to cure, to pay the tax 
imposed by A.R.S. § 42-6201 et seq. is an event of default that could result in divesting Tenant of 
any interest in or right of occupancy of the government property improvements that are the subject 
of the Lease. 
The applicable rate of GPLET for the Lease, as a result of the effective dates of the DDA 
and Lease, is defined in A.R.S. § 42-6203(B).  The City Council of City approved abatement of 
the tax pursuant to its Ordinance No. 02022.06, dated February 10, 2022, for the first eight (8) 
years after Tenant’s receipt of the certificates of completion for the improvements constructed on 
the Premises pursuant to the DDA .   As of the date of this Memorandum, the abatement period for 
this Lease ends on ____________, 2034. 
4. 
Term.  The Lease is for a term of eight (8) years.  Lease term dates are as follows: 
Effective date of Lease: _____________, 2026 
Beginning of term date: _____________, 2026 
Ending of term date: ____________, 2034 
5. 
Certificate of Completion.  The project has been completed on the Land, and tenant 
has received the certificates of completion for the improvements on ______________, 2026 and 
____________, 2026.  
6. 
Statutorily Pertinent Project Attributes.  The parties acknowledge that the final 
constructed improvements subject to the Lease have the following attributes: 
Tower 1:   a 21-story high-rise building that includes 248 residential units within 320,359 
gross sq. ft., 16,362 sq. feet of retail space, amenities, and 293 below ground parking 
spaces; and 
 Tower 2:   a 21-story high-rise building that includes 242 residential units within 299,622 
gross sq. ft., 8,662 sq. ft. of retail space, amenities, 282 below ground parking spaces, and 
26 ground level parking spaces.  
7. 
Option to Terminate and Acquire Title.  Tenant has an option to terminate the Lease 
as provided in Article 15 of the Lease.  Following any termination or expiration of the Lease, 
whether pursuant to Article 15 or otherwise, title to the Premises (including all improvements 
constituting a part thereof) shall automatically vest in Tenant.    
8. 
Notices.  The addresses for notices to the current parties to the Lease are: 
City/Landlord: 
City of Tempe 
City Manager’s Office  
31 East 5th Street  
Tempe, Arizona 85281

23 
4909-6318-9426

24 
4909-6318-9426 
 
With a copy to: 
 
City of Tempe 
City Attorney’s Office  
31 East 5th Street  
Tempe, Arizona 85281 
 
Tenant: 
 
 
 
 
South Pier Lot 6 Owner, LLC  
c/o Silverstein Properties LLC 
7 World Trade Center 
250 Greenwich Street 
New York, New York 10007 
Attn: Jamison Divoll, Vice President and Nicholas L. Pazich  
  
 
 
With a copy to:  
Snell & Wilmer L.L.P. 
 
 
 
One East Washington Street, Suite 2700 
 
 
 
Phoenix, Arizona 85004 
 
 
 
Attention: Michael Maerowitz and Joyce K. Wright 
 
9. 
Miscellaneous. This Memorandum is not a complete summary of the Lease.  The 
provisions of this Memorandum shall not be used in interpreting the Lease.  In the event of any 
conflict between the terms and provisions of this Memorandum and the Lease, the terms and 
provisions of the Lease shall govern and control. 
IN WITNESS WHEREOF, this Memorandum has been executed as of the day and year 
first set forth above. 
[Remainder of Page Intentionally Left Blank; Signature Pages Follow]

25 
4909-6318-9426 
LANDLORD: 
ATTEST: 
By: 
 
____________, City Clerk 
CITY OF TEMPE, a municipal corporation 
By: 
 
Name: 
 
Title: 
 
APPROVED AS TO FORM: 
 
 
Eric Anderson,  City Attorney 
 
STATE of __________ 
) 
 
) ss. 
County of__________ 
) 
The foregoing instrument was acknowledged before me this _____ day of 
_______________ 2026, by ___________________________of CITY OF TEMPE, an Arizona 
municipal corporation, on behalf of the corporation. 
 
 
Notary Public 
My Commission Expires:

26 
4909-6318-9426 
TENANT:   
 
SOUTH PIER LOT 6 OWNER, LLC,  
a Delaware limited liability company 
By: 
Name: 
Title:  _________________________
 
 
STATE OF __________ 
) 
 
) SS. 
COUNTY OF__________ 
) 
The foregoing instrument was acknowledged before me this _____ day of 
_______________ 2026, by ____________________, the ____________________ of SOUTH 
PIER LOT 6 OWNER, LLC, Delaware limited liability company, and that in such capacity, being 
authorized so to do, executed the foregoing instrument for the purposes therein contained on behalf 
of that entity. 
IN WITNESS WHEREOF, I hereunto set my hand and official seal. 
 
 
Notary Public 
My Commission Expires:

27 
4909-6318-9426 
Exhibit A 
 
Legal Description of Land 
 
Lot ___ of the Replat of Lot 6 of PIER 202-2nd AMENDED according to the plat of record in the 
office of the County Recorder of Maricopa County, Arizona, recorded December 4, 2024, in Book 
1833 of Maps, page 12