Common use of Operating Cost Increases Clause in Contracts

Operating Cost Increases. Tenant shall pay to Landlord, as additional rent, ▇▇▇▇▇▇’s Proportionate Share of the amount by which Operating Costs incurred by Landlord during any calendar year following the Base Year for Operating Costs shall exceed the Operating Costs incurred by Landlord during such Base Year. Operating Costs shall be deemed to mean all costs and expenses of any kind or nature incurred by Landlord in any calendar year in operating, policing, protecting, lighting, heating, air conditioning, insuring, repairing and maintaining the Building, other structures and improvements and the land constituting or supporting the Development, all in accordance with accepted principles of sound management, and shall include (without limitation) all costs and expenses of ownership, operation, replacement, replacement and maintenance (excluding depreciation, all amounts paid on loans of Landlord and expenses capitalized by Landlord for federal income tax purposes), including by way of illustration and not limitation: personal property taxes and any tax in addition to or in lieu thereof, whether assessed against Landlord or Tenant or collected by Landlord, Tenant or both; utilities; supplies; materials; tools; insurance (including, but not limited to, commercial general liability, casualty, business interruption, rent loss insurance, flood insurance and earthquake insurance); licenses, permits and inspection fees; cost of services of independent contractors (including property management fees); any tax, assessment, cost or fee incurred by Landlord in connection with the Development from any neighborhood improvement district or similar program or initiative; cost of compensation (including employment taxes and fringe benefits) of all persons who perform regular and recurring duties connected with day-to-day operation, maintenance and repair of the Development, its equipment and the component interior and exterior common areas, ceilings, floors, walks, stairs, stairwells, elevators, loading docks, trash compactor, malls and landscaped areas including janitorial, gardening, security, parking, operating engineer, painting, plumbing, electrical, carpentry, heating, ventilation, air conditioning, window washing, signage and advertising; and rental expense or a reasonable allowance for depreciation of personal property used in such maintenance, operation and repair of the Development. The term “Operating Costs” shall not include the following: costs to benefit, or relating to, a specific tenant, such as legal and other related expenses associated with the negotiation or enforcement of leases, and any penalties or damages from such lawsuits; costs associated with the financing or refinancing of debt such as points, broker’s fees and attorney’s fees; and costs incurred to generate rental income and lease space in the Development, such as tenant allowances, advertising costs, architectural fees, space planning costs and promotional material, Real Estate Taxes, the salaries and benefits of employees above the grade of property manager or superintendent, and any fee or expenditure that is paid to an affiliate of Landlord to the extent that such fee or expenditure exceeds the amount that would be reasonably expected to be paid to an unaffiliated third party on a competitive basis. The foregoing provision is for definitional purposes only and shall not be construed to impose any obligation upon Landlord to incur such expenses. No item of Operating Cost shall be included more than once in any given time period and no item of expense charged to Tenant as an Operating Cost shall be charged to Tenant as Real Estate Taxes or any other type of chargeable expense or cost. The property management fees incurred by Landlord shall only be chargeable to Tenant to the extent such property management fees do not exceed the property management fees incurred by other buildings of similar size and quality and located within the geographic area in which the Development is located.