A. Lease Utilization. Leased lands shall be utilized for purposes within the scope of the land use classification, the terms of the lease, and in conformity with ordinances of the borough, including any applicable zoning ordinance. Utilization or development for other than the allowed uses shall constitute a violation of the lease and subject the lease to cancellation at any time. The terms of this chapter are made a part of all leases and any violation thereof shall be grounds for cancellation of the affected lease.

B. Adjustment of Rental. The annual rental payable pursuant to any lease issued under the provisions of this chapter shall be subject to adjustment by the assembly on the fifth anniversary of the date of the lease and each anniversary date thereafter which is divisible by the number five. All adjusted rates shall be computed at 10 percent on the fair market value of the land and improvements owned by the borough and leased thereunder. Such value shall be determined by an appraisal made by the assessor or land manager or a certified appraiser hired by the borough and reviewed by the assembly, whose decision is final. The new rental amount shall be effective at the beginning of the five-year interval to which it applies.

C. Subleasing. Any lessee may sublease lands or any part thereof leased to the lessee hereunder; provided, that the proposed lessee first obtains the approval, in writing, of the assembly to such sublease. A sublease shall be in writing and be subject to the terms and conditions of the original lease and such further terms and conditions as the assembly may deem appropriate. A copy of the sublease shall be filed with the clerk.

D. Assignments. Any lessee may assign the lease issued to the lessee; provided, that the proposed assignment shall be first approved, in writing, by the assembly. The assignee shall be subject to all of the terms and conditions of the lease and the assignor shall not be relieved of the assignor’s obligations as lessee thereunder.

E. Modification. No lease may be modified orally or in any manner other than by agreement in writing signed by all parties in interest or their successors in interest pursuant to resolution of the assembly.

F. Cancellation and Forfeiture.

G. Notice or Demand. Any notice or demand, which under the terms of a lease or under any statute must be given or made by the parties thereto, shall be in writing and be given or made by registered or certified mail, addressed to the other party at the address of record. However, either party may designate in writing such new or other address to which such notice or demand shall thereafter be so given, made, or mailed. A notice given hereunder shall be deemed delivered when deposited in the U.S. mail enclosed in a registered or certified mail prepaid envelope addressed as herein provided.

H. Rights of Mortgagee or Lienholder. In the event of cancellation or forfeiture of a lease for cause, the holder of a properly recorded mortgage, conditional assignment, or collateral assignment shall be given a duplicate copy of any notice of default in the same manner as notice is given the lessee; provided, that such mortgagee has given the clerk notice of such mortgage and the mortgagee’s address.

I. Entry and Re-Entry. In the event the lease is terminated, or in the event that the demised lands, or any part thereof, are abandoned by the lessee during the term, the borough or its agents, servants, or representatives may, immediately or any time thereafter, re-enter and resume possession of said lands or such part thereof, and remove all persons and property therefrom either by summary proceedings or by a suitable action or proceeding at law without being liable for any damages therefor. No re-entry by the borough shall be deemed an acceptance of a surrender of the lease.

J. Re-Lease. In the event that a lease is terminated, the assembly may offer said lands for lease or other appropriate disposal pursuant to the provisions of this chapter.

K. Forfeiture of Rental. In the event that the lease should be terminated because of any breach by the lessee, as herein provided, the annual rental payment last made by the lessee shall be forfeited and retained by the borough.

L. Written Waiver. The receipt of rent by the borough with knowledge of any breach of the lease by the lessee or of any default on the part of the lessee in observance or performance of any of the conditions or covenants of the lease shall not be deemed to be a waiver of any provision of the lease. No failure on the part of the borough to enforce any covenant or provision therein contained, nor any waiver of any right thereunder by the borough unless in writing, shall discharge or invalidate such covenants or provisions or affect the right of the borough to enforce the same in the event of any subsequent breach or default. The receipt by the borough of any other sum of money after the termination, or after the giving by the borough of any term demised, or after the giving by the lessor of any notice thereunder to effect such termination, shall not reinstate, continue, or extend the resultant term therein demised, unless so agreed to in writing and signed by the mayor.

M. Expiration of Lease. Unless the lease is renewed or sooner terminated as provided herein, the lessee shall peaceably and quietly leave, surrender, and yield up unto the borough all of the leased land on the last day of the term of the lease.

N. Renewal of Lease.

O. Removal or Reversion of Improvements upon Termination of Lease. Improvements owned by a lessee may within 60 calendar days after the termination of the lease be removed by the lessee; provided, that the assembly may extend the time for removing such improvements in cases where hardship is proven. All periods of time granted a lessee to remove improvements are subject to said lessee’s paying to the borough pro rata lease rentals for said periods. If any improvements and/or chattels are not removed within the time allowed, such improvements and/or chattels shall revert to, and absolute title shall vest in, the borough.

P. Compliance with Code and Regulations. Failure to comply with all laws, regulations, and rules and laws described below shall constitute a violation of the lease.

Q. Inspection. The lessee shall allow an authorized representative of the borough to enter the leased land at any reasonable time for the purposes of inspecting the land and improvements thereon.

R. Use of Material. All oil, gas and other minerals and all deposits of stone, earth or gravel valuable for extraction or utilization are reserved by the borough and shall not be removed from the land. The lessee shall not sell or remove for use elsewhere any timber, stone, gravel, peat moss, topsoil, or any other material valuable for building or commercial purposes; provided, however, that material required for the development of the leasehold may be used, if its use is first approved by the assembly in writing.

S. Rights-of-Way. The borough expressly reserves the right to grant easements or rights-of-way across leased land if it is determined in the best interest of the borough to do so. If the borough grants an easement or right-of-way across any of the leased land, the lessee shall be entitled to damages for all lessee-owned improvements destroyed or damaged. Damages shall be limited to improvements only and loss shall be determined by fair market value. Annual rentals may be adjusted to compensate the lessee for the loss of use.

T. Warranty. The borough does not warrant by its classification or leasing of land that the land is suited for the use authorized under the classification or lease and no guaranty is given or implied that it will be profitable to employ the land to said use.

U. Terms of Lease. All leases shall contain such limitations, reservations, requirements, or special conditions as the assembly has determined appropriate, including requirements for improvements of a specified value to be constructed or located on the land within one year from the date of the lease.