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on February 1 of the basic rent specified in that schedule for
each such period.
Pursuant to the rent payment schedule in the lease agree-
ment, the total amount of basic rental payments specified in that
schedule (1) remained constant at $27,185,083.85 for each of the
11-annual lease periods immediately following the 11.5-month
period of zero rent, (2) increased to $33,226,213.70 for each of
the succeeding 12-annual lease periods, and (3) returned to
$27,185,083.85 for the final annual lease period. The total rent
to be paid during each of the 24-annual lease periods following
the 11.5-month period of zero rent was not greater than 10
percent above or 10 percent below the average annual amount of
the aggregate basic rent that was to be paid over those 24 years
of the lease term.
On June 17, 1988, BCE, as lessee under the lease agreement,
began immediate economic use of Republic Plaza. Except for a
relatively small amount of space used by BCE for its operations
as sublessor of Republic Plaza, at no time during any relevant
period did BCE occupy the space it leased in that building under
the lease agreement. BCE, as lessee, was required to pay the
basic rent in the amounts and on the dates specified in the lease
agreement and the rent payment schedule. BCE, and not Partner-
ship, assumed the risk of subleasing the approximately 29 percent
of Republic Plaza that was vacant at the time Partnership and BCE
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Last modified: May 25, 2011