- 14 -
agreements, petitioner agreed to, and did, share with all the
owner participants 20 percent in the aggregate of the annual
interest savings attributable to the refinancing of the 1984 tax-
exempt bonds after petitioner recouped, through a reduction in
its minimum annual basic rent obligation, its payment of the
costs associated with modifying the 1985 sale and leaseback and
effecting the concomitant refinancing of the 1984 tax-exempt
bonds.9
The 1992 amendments to the 1985 sale and leaseback agree-
ments and the concomitant refinancing of the 1984 tax-exempt
bonds, which was achieved through the redemption of those bonds
and the issuance of new tax-exempt bonds, were interrelated and
interdependent transactions or steps in an integrated plan to
9Pursuant to all the modified 1985 sale and leaseback agree-
ments, petitioner’s minimum annual basic rent was reduced by an
amount equal to (1) 100 percent of the annual interest savings
attributable to refinancing the 1984 tax-exempt bonds until
petitioner recouped its payment of the costs (plus 8.34 percent
interest) associated with modifying the 1985 sale and leaseback
agreements and effecting the concomitant refinancing of the 1984
tax-exempt bonds and (2) 80 percent of such amount thereafter.
In effect, petitioner recouped in 1995 and 1996, through a
reduction in its minimum annual basic rent obligation equal to
100 percent of the annual interest savings attributable to
refinancing the 1984 tax-exempt bonds, its payment of any reason-
able costs incurred by the owner participants and Mercer County
in effecting such refinancing. Thereafter, pursuant to all the
modified 1985 sale and leaseback agreements, petitioner agreed
to, and did, pay to all the owner participants as part of its
minimum annual basic rent, inter alia, 20 percent in the aggre-
gate of such annual interest savings. In addition, the minimum
annual basic rent was decreased by a portion of the so-called
“tax gross-up” payments (discussed below) plus 8.34 percent
interest.
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011