ARTICLE 12.
REIMBURSABLE EXPENSES.
Section 12.1 Definition of Reimbursable Expenses. For purposes of calculating Net
Operating Expenses, "Reimbursable Expenses" means, for each year during the term of the
Stadium Lease, subject to the exclusions set forth in Section 12.2 below, all costs of operating,
maintaining and repairing the Stadium and all costs attributable to NFL Events and Non-NFL
Events of operating parking lots and structures under the control of the
Stadium Authority and
for Public Safety Costs, all in accordance with the approved Stadium Operation and Maintenance
Plan, Annual Stadium Operating Budget and Public Safety Plan, including, without limitation,
the following:
- Day-to-day expenses of operating and maintaining the Stadium, including,
without limitation, costs of cleaning, sweeping, repairs, painting, removing garbage and
landscaping;
- Charges for heat, water, sewer, gas, electricity and other utilities used or
consumed in the Stadium;
- Expenses of operating the Stadium for NFL Events and Non-NFL Events,
including, without limitation, security and field preparation;
- Expenses of operating parking under the control of the Stadium Authority
for NFL Events and Non-NFL Events;
- Amounts the Stadium Authority pays the City for Public Safety Costs,
including a charge for capital expenditures, subject to and in accordance with the Public Safety
Agreement;
- The charge to the Stadium Capital Expenditure Reserve described in
Section 14.1(a) below, in the amount of $1.5 million in the second year of operation of the
Stadium, and escalating 3% per year each year thereafter, plus any additional amount agreed by
49ers Stadium Company
, and any Second Team Capital Reserve Deposit pursuant to Section
14.1(c) below;
- Insurance expenses for liability, casualty and other insurance;
- Possessory interest taxes assessed on account of the possessory interest
held by 49ers Stadium Company, the Team or any Second Team, which will be paid by the
Stadium Authority (but which, by virtue of being included in Reimbursable Expenses, will be
subject to reimbursement by 49ers Stadium Company);
- The portion of the Ground Rent payable to the City under the ground lease
of the Stadium site consisting of the Fixed Ground Rent and the Performance-Based Rent. The
SA Excess Revenue Payment is not a Stadium Operating Expense; and
- Amounts paid to the Stadium management company pursuant to its
management agreement.
Section 12.2 Excluded Expenses. The following costs and expenses will not be
included in Reimbursable Expenses:
- Capital expenditures; provided, however, that charges for capital
expenditures will be included in Reimbursable Expenses as provided in subsections 12.1(e) and
(f) above;
- Debt service on financing secured by NFL Ticket Surcharges and/or
Naming Rights Revenues;
- Stadium Authority Discretionary Expenses, including costs and expenses
attributable to Civic Events; and
- Distributions of Excess Revenues pursuant to Article 15 below.