GOVERNMENT PROPERTY ON LEASED LAND
1. If DOE and the Contractor should agree on the construction with funds provided by DOE and on property owned by the Contractor of any permanent building or buildings for use in performing work under this contract, the Contractor will grant to the Government a ninety-nine (99) year lease or leases on the property on which the building or buildings will be situated together with a reasonable surrounding area, such lease or leases to be covered by separate agreement between the Contractor and Government, and to be subject to the approval of the Executive Council of the State of Iowa. The Government and its agents and representatives, and such others as DOE may approve shall have the right of free ingress and egress to and from all parts of leased property for the duration of the lease thereto.
2. During the term of this contract, as it may be extended, or any other period during which any Government-owned building is being used by the Government or by others under arrangement with the Government, the Contractor, subject to the approval of DOE, shall make available all necessary utilities for the proper operations of said Government-owned building and shall maintain, or arrange to maintain, said utilities (including extensions from Contractor-owned utility distribution facilities that are connected to the Government-owned building), the Government-owned building and the equipment and facilities therein and appurtenances thereof, and the leased property in good repair, as directed by DOE. For purposes of this appendix, all extensions, which are financed by Government funds under this contract and whether or not situated on property leased from the Contractor, from Contractor-owned or other utility distribution facilities that are connected to any Government-owned building shall be considered part of the Government-owned building.
3. Upon expiration of the term of this contract, as same may have been extended, or upon prior termination, the Government may continue to use any Government-owned building for the performance of work by Government employees or by others; provided, however, that said building will not be put to a use by the Government or by others authorized by the Government which creates or constitutes a nuisance or prejudices the operation of state educational facilities adjacent thereto.
4. Upon receipt of written notice by DOE that any Government-owned building is no longer required by the Government, the Contractor shall maintain same in a standby status, as directed by DOE until such time as said Government-owned building is purchased by the Contractor, leased or sold to a third party, or removed by the Government, or until such time as the Contractor is notified in writing by DOE that such maintenance in a standby status is no longer required. The Contractor shall be reimbursed for all direct costs incurred under this section, subject to the availability of appropriations for the purpose. Said maintenance by the Contractor in standby status shall be subject to availability of appropriations to the Contractor.
5. Upon receipt of written notice from DOE that any Government-owned building is no longer required by the Government, the Contractor shall have, for a period of not less than one hundred and eighty calendar days from the date of receipt thereof, the exclusive option to purchase all the right, title, and interest in and to said building for such reasonable amount as may be mutually agreed upon by the parties hereto. In the event the Contractor elects to exercise said option, it agrees to serve written notice of this intent upon DOE within the 180-day period, or such other time as may be mutually agreed upon, and the parties shall proceed to conclude negotiations with reasonable promptness. In the event the Contractor fails to exercise its option as provided for herein, the Government may otherwise dispose of the building by sale, lease, removal, or otherwise; provided, however, that the sale or lease of the building by the Government to a third party will be subject to approval of the Contractor insofar as the intended use of the building by the prospective purchaser or lessee is concerned.
6. The Government-owned buildings on Contractor-owned property are presently covered by Land Lease Agreements Nos. DE-RL02-76CH00144 (Maintenance Buildings), DE-RL02-76CH00145 (Metals Development Building), DE-RL02-76CH00146 (Harley Wilhelm Hall) and DE-RL02-76CH00148 (Spedding Hall and Technical and Administrative Services Facility).
7. The water line easement to the maintenance buildings is covered by Easement No. DE-RL02-76CH00149.