a) Container yard and Intermodal yard Rent
Container Yard and Intermodal Yard rent is based on the acreage available for use (defined in the Terminal 18 Lease as Beneficially Usable acreage) using the formula in Sections 4.2 (b) and (c) of the Terminal 18 Lease. The formula applies a calculated Basic Land and Improvement Rent rate per acre to the acreage under beneficial use. The Basic Land and Improvement Rent rate is tied to the per-acre lease rate paid by the operator of Terminal 5 .
b) Intermodal Yard Facilities Rent
The calculation of IY Facilities rent varies depending on the stage of project construction. Three mutually exclusive calculations apply, as discussed below.
(1) Existing Intermodal Yard Amortization Rent
Until the Expansion IY Facilities are beneficially usable, only the amortized monthly rent on the Existing IY Facilities ($30,061) is applicable. Such rent is based on the amortization schedule in Exhibit B-1 of the Terminal 18 Lease, and is projected to be in effect through February 24, 2002, assuming Project Completion of February 24, 2002.
(2) Intermodal Yard Facilities Rent Prior to Total Facilities Completion
If IY Expansion Facilities become beneficially usable before the date of Total Facilities Completion (TFC), rent will be based on interest only, at a rate of 9.25 percent, on 50 percent of the sum of the unamortized balance of the Existing IY Facilities, plus the actual cost of the Expansion Facilities. Because beneficial use and TFC are assumed to occur at the same time, it is assumed that this rent calculation will not be used.
(3) IY Facilities Rent After Total Facilities Completion
Following TFC. IY Facilities rent is based on 50 percent of the sum of the unamortized balance of the Existing IY Facilities amortized rent at TFC, estimated to be $2,016,059, plus the actual cost of the Expansion IY Facilities identified in Exhibit C, estimated to be $7,580,000, amortized at an annual rate of 9.25 percent over 30 years from the date of TFC. Such rent is projected to be in effect from February 25, 2002 through the end of the Terminal 18 Lease.
2. Existing Special improvements Rent
In accordance with Section 4.4 of the Terminal 18 Lease, the rent for Existing Special Improvements is set forth in Exhibit B-1 of the Terminal 18 Lease. Rent for other special improvements is calculated as the amounts required to amortize the Lessee's share of the cost of each special improvement over 30 years at an interest rate of 9.25 percent per year. The Lessee 's share of the costs of Special Improvements is based on the Lessee's percentage of the actual cost of such improvements as specified in Exhibit C of the Terminal 18 Lease. Such amount may not exceed the amount specified as the Lessee's Maximum Share in Exhibit G of the Terminal 18 Lease.
3. Special Improvements Rent for Future Improvements
Special Improvements Rent for Future Improvements (Section 4.5 of Terminal 18 Lease) is calculated on a cost-sharing basis similar to that discussed in Section 4.4.3 above. For the purposes of this analysis, no such rent has been projected.
D. Projected Net Revenues and Debt Service Coverage
Exhibit 8 presents the calculation of projected revenues available for Debt Service and Debt Service Coverage. As indicated in the Exhibit, Port revenues are forecast to be sufficient to meet all obligations under the Bond Resolution. Debt service coverage ranges from 1.33 in 2004 to 2.19 in 2029.
