Common use of CPI Increases Clause in Contracts

CPI Increases. Commencing on January 1, 2020, and on each January 1 thereafter (each such date being referred to as an “Adjustment Date”), the Domestic Cargo Fee shall be adjusted yearly, and such adjusted Domestic Cargo Fee shall be the new Domestic Cargo Fee payable to the County for that year, and shall be payable monthly. The annual adjustment shall be determined as follows: (a) On each Adjustment Date, the Domestic Cargo Fee shall be adjusted to an amount equal to the Domestic Cargo Fee paid during the immediately preceding calendar year, multiplied by the CPI Multiplier (as hereinafter defined). (b) For purposes hereof, the “CPI Multiplier” is a fraction, the numerator of which shall be the CPI Index Number (as hereinafter defined) indicated for the month that is three (3) months prior to the Adjustment Date and the denominator of which shall be the CPI Index Number indicated for the month that is fifteen (15) months prior to the Adjustment Date. (c) The “CPI Index Number” is the index number of retail commodity prices designated “Consumer Price Index For All Urban Consumers - United States City Average - All Items” (1982-1984=100) (“Consumer Price Index”) issued by the Bureau of Labor Statistics, United States Department of Labor. Should the Bureau of Labor Statistics cease publishing the Consumer Price Index, then such other index as may be published by the United States Department of Labor that most nearly approximates the discontinued Consumer Price Index shall be used in making the adjustments described above. Should the United States Department of Labor discontinue publication of an index approximating the Consumer Price Index contemplated, then such index as may be published by another United States governmental agency which most nearly approximates the Consumer Price Index shall govern and be substituted as the index to be used.

CPI Increases. Commencing on January 1, 2020, On the first day of the initial extension period as described above and on the first day of each January 1 thereafter (each such date being referred to as an “Adjustment Date”)subsequent extension period, the Domestic Cargo Fee rent described in Paragraph 3 of this Commercial Lease Contract shall be adjusted yearly, and such adjusted Domestic Cargo Fee shall be changed. Such adjustment and change in the new Domestic Cargo Fee payable to the County for that year, and shall be payable monthly. The annual adjustment rent amount shall be determined as follows: (a) On each Adjustment Date, in accordance with adjustments in the Domestic Cargo Fee shall be adjusted to an amount equal to the Domestic Cargo Fee paid during the immediately preceding calendar year, multiplied by the CPI Multiplier (as hereinafter defined). (b) For purposes hereof, the “CPI Multiplier” is a fraction, the numerator of which shall be the CPI Index Number (as hereinafter defined) indicated for the month that is three (3) months prior to the Adjustment Date and the denominator of which shall be the CPI Index Number indicated for the month that is fifteen (15) months prior to the Adjustment Date. (c) The “CPI Index Number” is the index number of retail commodity prices designated “Consumer Price Index For All Urban Consumers - ("CPI") as provided for herein. The CPI is herein defined as the "United States City Average - All Items” (1982-1984=100) (“Consumer Price Index”) issued by the Department of Labor, Bureau of Labor Statistics, United States Department of Labor. Should the Bureau of Labor Statistics cease publishing the Consumer Price Index, then United States, for all urban consumers, All Items (1982-84 = 100)." At the beginning of each extension period as provided above, the rent shall be adjusted by the "percentage change" in the CPI on the initial day of each extension period as compared to the CPI prevailing sixty (60) months prior to such date. All such adjustments shall be made retroactive to such five-year anniversary date. All such adjustments shall be made to the nearest one-eighth of a percentage point (0.125%). Landlord shall notify Tenant in writing of the amount of the newly adjusted rent and same shall be due on the first day of the applicable extension period and each month thereafter until adjusted again. However, in no event shall the rent due and payable hereunder be less than the rent provided for during the initial term of this Commercial Lease Contract, regardless of the value of the dollar as reflected by said CPI figure. In the event the amount of CPI increase is not known until after the first month of the period for which the adjustment is to be made, due to delays in publication of the CPI, or any other reason, then, upon notification of the increase by Landlord, the Tenant shall pay the full amount of the increase which is due for any prior month during the adjustment period within thirty (30) days following receipt of Landlord's written notice of the amount due. In the event the CPI is discontinued, ceases to incorporate significant items now incorporated therein, or if a substantial change is made in such CPI, the parties hereto shall use in its place any similar index as may be published established and compiled by an agency of the United States Department of Labor that most nearly approximates Government, and, if no such index is available, the discontinued Consumer Price Index parties shall attempt to agree on an alternative formula and, if agreement cannot be reached, the matter shall be submitted to arbitration under the rules of the American Arbitration Association then in effect. The rent, as escalated, shall constitute the "rent" as such term is used in making throughout the adjustments described above. Should the United States Department of Labor discontinue publication of an index approximating the Consumer Price Index contemplated, then such index as may be published by another United States governmental agency which most nearly approximates the Consumer Price Index shall govern and be substituted as the index to be usedCommercial Lease Contract.