Common use of USE CONTRACTS Clause in Contracts

USE CONTRACTS. Each and every Use Contract that the Grant Recipient enters into must comply with the following requirements: A. The purpose for which the Use Contract was entered into must be a governmental purpose. B. It must contain a provision setting forth the statutory authority under which the Grant Recipient is entering into the Use Contract, and must comply with the substantive and procedural provisions of such statute. C. It must contain a provision stating that the Use Contract is being entered into in order to carry out the purpose for which the Grant was allocated, and must recite the purpose. D. It must be for a term, including any renewals that are solely at the option of the Usee, that is, if applicable, substantially less than the useful life of the structures and improvements that make up the Facility, but may allow for renewals beyond the original term upon a determination by the Grant Recipient that the use continues to carry out the specific purpose for which the Grant was allocated. A term that is equal to or shorter than 50% of the useful life of the structures and improvements that make up the Facility will meet the requirement that it be for a time period that is substantially shorter than the useful life of such structures and improvements. E. It must allow for termination by the Grant Recipient in the event of a default thereunder by the Usee, or in the event that the specific purpose for which the Grant was allocated is terminated or changed. F. It must require the Usee to pay all costs of operation and maintenance of the Real Property and, if applicable, the Facility, unless the Grant Recipient is authorized by law to pay such costs and agrees to pay such costs. G. If the amount of the Grant exceeds $200,000.00, then it must contain a provision requiring the Usee to list any vacant or new positions it may have with state workforce centers as required by Minn. Stat. § 116L.66, Subd. 1, as it may be amended, modified or replaced from time to time, for the term of the Use Contract.

USE CONTRACTS. Each and every Use Contract that the Grant Recipient enters into must comply with the following requirements: A. The purpose for which the Use Contract was will be entered into must be a governmental purpose. B. It must contain a provision setting forth the statutory authority under which the Grant Recipient is entering into the Use Contract, and must comply with the substantive and procedural provisions of such statute. C. It must contain a provision stating that the Use Contract is being entered into in order to carry out the purpose for which the Grant was allocated, and must recite the purpose. D. It must be for a term, including any renewals that are solely at the option of the Usee, that is, if applicable, substantially less than the useful life of the structures and improvements that make up the Facility, if any, but may allow for renewals beyond the original term upon a determination by the Grant Recipient that the use continues to carry out the specific purpose for which the Grant was allocated. A term that is equal to or shorter than 50% of the useful life of the structures and improvements that make up the Facility Facility, if any, will meet the requirement that it be for a time period that is substantially shorter than the useful life of such structures and improvements. If there is no Facility, then the term must not exceed 50% of the useful life of the Real Property. E. It must allow for termination by the Grant Recipient in the event of a default thereunder by the Usee, or in the event that the specific purpose for which the Grant was allocated is terminated or changed. F. It must require the Usee to pay all costs of operation and maintenance of the Real Property and, if applicable, the Facility, unless the Grant Recipient is authorized by law to pay such costs and agrees to pay such costs. G. If the amount of the Grant exceeds $200,000.00, then it must contain a provision requiring the Usee to list any vacant or new positions it may have with state workforce centers as required by Minn. Stat. § 116L.66, Subd. 1, as it may be amended, modified or replaced from time to time, for the term of the Use Contract.

USE CONTRACTS. The Public Entity may only enter into a Use Contract if it has the statutory authority to do so. Each and every Use Contract that the Grant Recipient Public Entity enters into must comply with the following requirements: A. The purpose for which the Use Contract was will be entered into must be a governmental purposeto operate the State Program in the Real Property and, if applicable, Facility. B. It must contain a provision setting forth the statutory authority under which the Grant Recipient Public Entity is entering into the Use Contract, and must comply with the substantive and procedural provisions of such statute. C. It must contain a provision stating that the Use Contract is being entered into in order for the Counterparty to carry out operate the purpose for which the Grant was allocated, State Program and must recite the purposedescribe such program. D. It must be for a term, including any renewals that are solely at the option of the UseeCounterparty, that is, if applicable, substantially less than the useful life Useful Life of the structures and improvements Real Property and, if applicable, Facility for the portion of the Real Property and, if applicable, Facility that make up is the Facilitysubject of the Use Contract, but may allow for renewals beyond the original term upon a determination by the Grant Recipient Public Entity that the use continues to carry out the specific purpose for which the Grant was allocatedState Program. A term that is equal to or shorter than 50% of the useful life Useful Life of the structures and improvements Real Property and, if applicable, Facility for the portion of the Real Property and, if applicable, Facility that make up is the Facility subject of the Use Contract will meet the requirement that it be for a time period that is substantially shorter less than the useful life Useful Life of such structures and improvementsthe Real Property and, if applicable, Facility for the portion of the Real Property and, if applicable, Facility that is the subject of the Use Contract. E. It must contain a provision that will provide for oversight by the Public Entity. Such oversight may be accomplished by way of a provision that will require the Counterparty to provide to the Public Entity: (i) an initial program evaluation report for the current fiscal year, (ii) program budgets for each succeeding fiscal year showing that forecast program revenues and additional revenues available for the operation of the State Program on any Real Property and, if applicable, in any Facility will equal or exceed expenses for such operation for succeeding fiscal year, and (iii) a mechanism under which the Public Entity will annually determine that the Counterparty is using any Real Property and, if applicable, Facility to operate the State Program. F. It must allow for termination by the Grant Recipient Public Entity in the event of a default thereunder by the UseeCounterparty, or in the event that the specific purpose for which the Grant was allocated State Program is terminated or changedchanged in a manner that precludes the operation of such program in the portion of the Real Property and, if applicable, Facility that is the subject of the Use Contract. F. G. It must terminate upon the termination of the statutory authority under which the Public Entity entered into the Use Contract or is operating the State Program. H. It must require the Usee Counterparty to pay all costs of operation and maintenance of the any Real Property and, if applicable, any Facility that is the Facilitysubject of the Use Contract, unless the Grant Recipient Public Entity is authorized by law to pay such costs and agrees to pay such costs. G. I. If any monies are to be paid to the Public Entity under the Use Contract, then it must contain a provision requiring that each and every party thereto shall, upon direction by the Commissioner of MMB, take such actions and furnish such documents to the Commissioner of MMB as the commissioner determines to be necessary to ensure that the interest to be paid on the G.O. Bonds is exempt from federal income taxation. J. It must be approved, in writing, by the Commissioner of MMB, and any Use Contract that is not approved, in writing, by the Commissioner of MMB shall be null and void and of no force or effect. K. It must contain a provision that prohibits the Counterparty from creating or allowing, without the prior written consent of the State Entity and the Commissioner of MMB, any voluntary lien or encumbrance or involuntary lien or encumbrance that can be satisfied by the payment of monies and which is not being actively contested against the Real Property or, if applicable, Facility, the Public Entity’s ownership interest in the Real Property or, if applicable, Facility, or the Counterparty’s interest in the Use Contract, whether such lien or encumbrance is superior or subordinate to the Declaration. Provided, however, the State Entity and the Commissioner of MMB will consent, in writing, to any such lien or encumbrance that secures the repayment of a loan the repayment of which will not impair or burden the funds needed to operate the portion of the Real Property and, if applicable, Facility that is the subject of the Use Contract in the manner specified in Section 3.08 and for which the entire amount is used (i) to acquire additional real estate that is needed to so operate the Real Property and, if applicable, Facility in accordance with the requirements imposed under Section 3.08 and will be included in and as part of the Public Entity’s ownership interest in the Real Property and, if applicable, Facility, and/or (ii) to pay for capital improvements that are needed to so operate the Real Property and, if applicable, Facility in accordance with the requirements imposed under Section 3.08. L. If the cumulative amount of the Program Grant and any other grant funded with the proceeds of state general obligation bonds issued under the authority granted in Article XI, § 5(a) of the Minnesota Constitution exceeds $200,000.00, then it must contain a provision requiring the Usee Counterparty to list any vacant or new positions it may have with state workforce centers centers, as required by Minn. Stat. § 116L.66, Subd. 1, as it may be amended, modified or replaced from time to time, for the term of the Use Contract.§