Property Exchanges Sample Clauses

Property Exchanges. (a) In connection with any property exchange (wherein the Bound Recology Companies propose to transfer a Subject Property in return for other real property), the Bound Recology Companies must demonstrate whether use of the new property benefits San Francisco ratepayers in a similar manner and with a substantially equivalent and proportionate intensity or capacity as the original Subject Property and provide the City with appropriate evidence of this use and capacity. Upon City’s approval of the demonstration of the use and capacity of the new property (such approval not to be unreasonably denied or delayed), the sum of annual property (intercompany or otherwise) rental expenses paid by ratepayers for the original Subject Property will be transferred from the original Subject Property to the new property (and the Bound Recology Companies will revise the supplemental schedules of Subject Properties as described below to include the new property, which will then become a new Subject Property subject to the provisions of the Agreement), without any notional credit to the Balancing Account at that time except as set forth below. Any decrease in proportional benefit or use to San Francisco ratepayers under a Subject Property exchange will trigger a proportional notional credit to the Balancing Account based on the percentage decrease in the benefit or use of the new property, and the remainder value (i.e., the extent to which the new property replaces the existing Subject Property) will be used to calculate the intercompany rental expenses paid by ratepayers for the new property acquired.