Lease Summary Points - wave3.com-Louisville News, Weather & Sports

Lease Summary Points

Executive Summary

Operation of Amusement Park – KentuckyExposition Center

February 23, 2012

  •  BluegrassBoardwalk, Inc. and the Kentucky State Fair Board have negotiated a lease as afirst step toward operation of the 57.26 acre property, beginning in 2013.
    •  BluegrassBoardwalk, Inc. consists of members of the Koch family.  The Koch family has owned and operatedHoliday World in Santa Claus, IN since it opened in the early 1940's.
      •  BluegrassBoardwalk, Inc. will apply the same business model to the Kentucky amusementpark as it has Holiday World in Santa Claus, IN. 
        •  The summary leaseterms are as follows;
          • 50-year term withtwo 25-year options to renew and a right of first refusal thereafter to lease.
          • 2013 – base rent$400,000
          • 2014 – base rent$500,000
          • 2015 – base rent$750,000
          • 2016 andthereafter – base rent of $1 million
          • Lease years 2013– 2016 five percent of gross revenues over $25 million
          • Starting in Leaseyear 2017 until $5 million is reached, five percent of the gross receipts $20 million- $25 million.  After $25 million isreached, five percent of gross receipts over $25 million for remainder of thelease term.
          • Parking to beequitable fee sharing arrangement determined after first year of operation
          • Kentucky StateFair Board to receive ten percent of sale of leasehold interest should tenantsell.  Landlord has right to approvesale.

        (Source: Kentucky State Fair Board)

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