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

Lease Summary Points

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By Sarah Eisenmenger - email

Executive Summary

Operation of Amusement Park – Kentucky Exposition Center

February 23, 2012

  •  Bluegrass Boardwalk, Inc. and the Kentucky State Fair Board have negotiated a lease as a first step toward operation of the 57.26 acre property, beginning in 2013.
  •  Bluegrass Boardwalk, Inc. consists of members of the Koch family.  The Koch family has owned and operated Holiday World in Santa Claus, IN since it opened in the early 1940's.
  •  Bluegrass Boardwalk, Inc. will apply the same business model to the Kentucky amusement park as it has Holiday World in Santa Claus, IN. 
  •  The summary lease terms are as follows;
    • 50-year term with two 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 and thereafter – base rent of $1 million
    • Lease years 2013 – 2016 five percent of gross revenues over $25 million
    • Starting in Lease year 2017 until $5 million is reached, five percent of the gross receipts $20 million - $25 million.  After $25 million is reached, five percent of gross receipts over $25 million for remainder of the lease term.
    • Parking to be equitable fee sharing arrangement determined after first year of operation
    • Kentucky State Fair Board to receive ten percent of sale of leasehold interest should tenant sell.  Landlord has right to approve sale.

(Source: Kentucky State Fair Board)