Right to Improve Leased Schools. Any lease of a school building shall authorize the District to improve, alter, remodel or modernize the Leased Premises (collectively, “Leasehold Improvements”). Capital costs incurred in connection with any such Leasehold Improvements authorized by the District shall be borne by the District and assessed to the Member Towns (i) for Leased Premises owned as of the date of this Agreement by the towns of Egremont and New Marlborough (the “Town-Owned Building(s)” or “TOB”) in accordance with the methodology set forth in Section VI(B)(3) (for TOB Improvements financed by debt) or Section VI(C) (for TOB Improvements not financed by debt) and (ii) for all other Leased Premises, in accordance with the methodology set forth in Section VI(B)(4). The District may (but shall not be required to) condition any decision to incur any capital costs that would require the District to incur debt on a Member Town’s agreement to convey title to the Premises, or any part thereof, to the District. Should a Member Town decline to so convey title, such Member Town may elect to incur such capital cost itself. Should such Member Town decline to either convey title to the Premises or itself fund the Leasehold Improvements, the District shall have the option to terminate the lease subject to the District’s complying with the provisions respecting a Proposed School Closing set forth in subparagraph (F) below.
