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.