City Provides Historical Background and Releases Additional Facts on Lease Negotiations with IC Bus of Oklahoma and Navistar

5/6/2020

City Provides Historical Background and Releases Additional Facts on Lease Negotiations with IC Bus of Oklahoma and Navistar

In an effort to ensure the accurate reporting of all facts associated with ongoing negotiations between the City of Tulsa and IC bus of Oklahoma and their parent company Navistar International Corporation, the City of Tulsa is releasing key documents related to its lease with IC Bus of Oklahoma and independent analyses documenting IC Bus and Navistar’s failure to perform maintenance, repairs, and improvements as required by their lease agreement. All documents can be found at: https://www.cityoftulsa.org/government/documents/

• Item 1 - Independent Engineering Assessment issued on September 30, 2019 by Cyntergy: A 250-page independent analysis conducted by a third-party firm to assess the status of maintenance conditions at the plant as it relates to building systems and components IC Bus of Oklahoma is required to maintain, repair, and improve in exchange for a $1.00 lease rate.
• Item 2 - Overview Memo Regarding Findings of Cyntergy’s Independent Engineering Assessment: A 3-page memo providing a summary of the most critical maintenance issues present at the plant relating to the responsibilities established in the Lease Agreement with IC Bus of Oklahoma.
• Item 3 - Gresham Responses to Cyntergy Report and Analysis: An Excel overview from an engineering firm engaged by IC Bus of Oklahoma and Navistar to respond to the independent engineering assessment performed by Cyntergy. The report confirms numerous major maintenance issues and repair needs and makes recommendations for actions. Items of disagreement have been the topic of ongoing, productive negotiations between the City of Tulsa and IC Bus of Oklahoma and Navistar.
• Item 4 - Lease Agreement between the City of Tulsa and IC Bus of Oklahoma: The full initial lease agreement (and subsequent amendment) establishing a lease rate of $1.00, in exchange for IC Bus of Oklahoma’s assumption of comprehensive maintenance, repair, and improvement responsibilities.
• Item 5 - Key Lease Provisions between City of Tulsa and IC Bus of Oklahoma: An overview of relevant lease provisions that clearly establish IC Bus of Oklahoma’s assumption of comprehensive maintenance, repair, and improvement responsibilities in exchange for a $1.00 lease rate. 
• Item 6 - Notice of Default, Rejection of Option to Renew, and Termination of Existing Lease Agreement: Copies of letters sent by the City of Tulsa to IC Bus of Oklahoma and Navistar outlining the evidence of clear Events of Default as identified by the City’s independent engineering assessment; the City’s rejection of IC Bus of Oklahoma’s exercising of its option to renew the lease due to the presence of multiple Events of Default; and the City’s notice of termination of the existing lease and intent to negotiate a new lease.
• Item 7 - Agreement to Negotiate New Lease between the City of Tulsa and IC Bus of Oklahoma: The agreement entered into by the City of Tulsa and Navistar expressing both parties desire, intent, and commitment to negotiating a new or amended and restated lease agreement.
• Item 8 - Letter Confirming City’s Commitment to Vision Tulsa Investments at the Plant: Letter sent on February 22, 2019 confirming the City’s intent to move forward with its commitment to invest in electric infrastructure at the plant.

As has been previously stated, the City of Tulsa has not issued a Notice of Eviction to IC Bus of Oklahoma and has not intended to issue such a Notice. The City of Tulsa remains committed to conducting negotiations with IC Bus of Oklahoma and Navistar International Corporation in an honest and transparent manner, and with the full intent of doing so in good faith.