Agreement - University of Iceland, Islensk Erfdagreining ehf. and the City of Reykjavik
AGREEMENT
The University of Iceland, Islensk Erfdagreining ehf., and the City of Reykjavik
hereby enter into the following Agreement, with the aim of promoting
co-operation and encouraging the development of vigorous scientific and
professional activities in the field of health science in the University
District for the benefit of all the parties hereto:
1. The City of Reykjavik undertakes, in co-operation with the University of
Iceland, to amend the land use plan of the University District so as to
permit the construction of a building which will house the operations of
Islensk Erfdagreining ehf., on the site marked with the letter H on the
design plan of the District. Permission shall be granted for a building of
approximately of 10,000 square metres.
2. Provisions of the land use plan regarding the maximum size of buildings
permitted in the University District shall not change, notwithstanding the
permission granted for the construction of a larger building on site H than
the maximum currently allowed by the plan.
3. Amendment of the land use plan shall be completed as soon as possible, and
shall be fully completed within three months from the date of signature of
this Agreement.
4. The City of Reykjavik will allocate the site in question to Islensk
erfdagrreining ehf. as soon as the land use plan has been amended. For the
site and accompanying construction rights, Islensk erfdagreining ehf. shall
pay to the City of Reykjavik the amount of ISK 104,180,000, based on a
building of 10,000 square metres in size. The payment shall be divided into
two equal halves, one half to be used in the interests of the University of
Iceland. The land use plan shall include provisions stipulating that the
only activities permitted in the building shall be high-technology,
research and university-level teaching. The site lease agreement shall
provide for rights of first refusal of the University regarding the
purchase of any facilities on the site. Should the University be offered
first refusal rights at a price which the institution regards as
unacceptable, the University may then purchase the aforesaid facilities at
assessed value, i.e. the real estate itself, not including interior
fixtures and other chattels. Price and terms of payment will be decided by
two court-appointed appraisers and based on the replacement value of the
buildings with due consideration to their condition.
5. All parties to this Agreement agree that the site forms a part of the
University District. By the allocation of the site to Islensk erfdagreining
ehf. the University of Iceland will develop closer ties to the Icelandic
industries, especially to the growing sector involved in the creation of
knowledge and high technology. Should Islensk erfdagrreining ehf. cease its
operations on the site, the purchasing rights of the University shall enter
into effect, as described in item 4 above.
6. Islensk erfdagreining ehf. undertakes to construct the building on the site
within two years after the amendments to the land use plan have been made
and the formal allotment of the site has taken place.
7. Islensk erfdagreining ehf. shall arrange a closed competition for the
design of the building, i.e. purchase at least three proposals from as many
independent architect firms, and select the one it considers of the
greatest merit after giving the University an opportunity to express its
opinions of the proposals. Specifications of the project assigned to the
architects shall include a requirement that it must be possible to connect
the building by an enclosed walkway to other buildings that the University
may subsequently
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construct to the west of the site. The University shall be consulted on
this part of the project description.
8. The University of Iceland shall be granted limited use of a lecture hall,
conference room, and teaching and student facilities in the building of
Islensk erfdagreining ehf. to the extent permitted by the operations of the
company. A separate agreement shall be made between the University and
Islensk erfdagreining ehf. regarding the former party's use of the building
owned by the Company.
9. Islensk erfdagreining ehf. shall have the right to assign construction
rights or buildings on the site to a third party, with the terms,
obligations and undertakings described in this Agreement. For example,
Islensk erfdagreining ehf. may arrange for a leasing firm to construct,
own, or operate a building on the site, provided that this in no way
diminishes or curtails the rights or interests of the University of
Iceland. Islensk erfdagreining ehf. may purchase construction rights or
buildings on the site from a third party without giving rise to a right of
first refusal by the University as described in item 4 above.
10. This Agreement is made in three identical copies and signed in the presence
of witnesses. Each party shall retain one copy of the Agreement.
REYKJAVIK, 15 FEBRUARY 2000
ON BEHALF OF THE UNIVERSITY OF
ICELAND
Pall Skulason [sign.]
ON BEHALF OF ISLENSK
ERFDAGREINING EHF.
Kari Stefansson [sign.]
ON BEHALF OF THE CITY OF REYKJAVIK
Ingibjorg Solrun Gisladottir [sign.]
Witnessed by: Kristin A. Arnadottir [sign.]