Opinion ID: 349243
Heading Depth: 3
Heading Rank: 1

Heading: Rejectable offers upon condemnation or seizure by eminent domain.

Text: 30 In addition to assuming the risks and burdens incident to the ownership of property, Sunray also controls certain important benefits which traditionally are reserved to the owner in the event leased premises are condemned or seized by eminent domain. During the primary term, if all or any part of the leased premises becomes in the sole and absolute judgment of lessee undesirable for the lessee's business or for any use then existing, because of a taking by condemnation or eminent domain, the lessee has the right to make a rejectable offer to purchase the property. The Trust has thirty days after receipt of the written offer to accept or reject it and failure to act within the prescribed period constitutes an acceptance. Significantly, the lessee not only has the unilateral right to determine whether the taking is sufficient to make the premises undesirable for its further use, but the repurchase price fixed for the offer is equal to the sum of all present values 4 of the quarterly payments to become due after the proposed date of repurchase, plus a pre-determined premium. 5 If Sunray's offer to repurchase during the primary term is rejected by the Trust, then the condemnation award is payable both to Sunray and the Trust as their interests may appear at the time of the taking. During the extended term of the leases, Sunray also has the absolute right to share in any condemnation award as their interest may appear. Significantly, if a portion of the premises is taken by condemnation or eminent domain but the lessee elects to occupy the balance, there is no abatement of rent and the entire award for the taking belongs to the lessee. The lessee is also irrevocably empowered to negotiate the terms and price for any taking and to sell and convey the properties without the prior approval or joinder of the Trust. We view the retention of such broad powers by the lessee in the event of condemnation or government seizure of the land, especially the power to negotiate the price for the land, and the absence of rent abatement in the event of a partial taking and continued occupancy of the balance as inconsistent with the traditional role of a lessee. 31