- 7 - additional capital contributions to Partnership on the first day of each month during the period July 1, 1988, through June 1, 1989, in the amount of approximately $1,759,144. The amounts and due dates of rent payable under the lease agreement that were not required by TIAA in order to service the TIAA term loan were developed through the use of a computer program that took into consideration certain requirements of the lessor and the lessee. Those requirements included (1) creating a schedule for the payment of rent that took account of projected increases in rent in the Denver market for office space (Denver office market) and that not only provided a certain yield for the lessor and its partners3 but also minimized the cost to the lessee and (2) structuring the total amount of rent to be paid during each of the 24-annual lease periods that start on June 1 and end on May 31 (annual lease period) following the 11.5-month period of zero rent (including the amount of rent to be paid monthly to service the TIAA term loan) so that such total amount during each such period was always within 90 percent to 110 percent of the average annual amount of the aggregate rent that 3 PFI entered into the sale-leaseback transaction involving Re- public Plaza in order to make a profit. At the time PFI was de- termining the profit that it expected to realize from that trans- action, it anticipated that it would (1) pay Federal and State income taxes at the highest marginal rate throughout the lease term, (2) realize $205 million of pretax profit, and (3) pay in the aggregate approximately $75 million in income taxes over the lease term.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011