Development Rights Fee Clause Samples
The Development Rights Fee clause establishes the payment obligations related to securing the rights to develop a particular property or project. Typically, this clause outlines the amount, timing, and conditions under which the fee must be paid by the developer to the property owner or rights holder. For example, it may specify that the fee is due upon signing the agreement or upon achieving certain development milestones. The core function of this clause is to ensure that the party granting development rights is compensated appropriately, while providing clear terms to avoid disputes over payment and rights allocation.
Development Rights Fee relating to the Section On the Financial Closing Date, the Section Developer shall advance funds to the Phase Developer in the amount of the applicable installment of the Development Rights Fee (as defined in the Phase P3 Agreement) due under the Phase P3 Agreement and shall cause the Phase Developer to pay the applicable installment of the Development Rights Fee in accordance with the Phase P3 Agreement.
Development Rights Fee. Section 5.2 is hereby amended as follows:
(a) Section 5.2(a)(i) of the Original Redevelopment Agreement is amended so that the phrase “on the Ground Lease Closing Date” is deleted and the phrase: “Development Rights Fee Funding Date (as hereinafter defined)” is substituted therefor.
(b) Section 5.2 of the Original Redevelopment Agreement is hereby amended to add a new Section 5.2 (e) which will supercede the Parties’ understanding with respect to the timing for the payment of the Development Rights Fee as well as the conditions for execution and delivery of the Ground Lease. New Section 5.2(e) shall be inserted immediately following the end of Section 5.2(d) of the Original Redevelopment Agreement as follows: