Ohio Administrative Code › Title 1501 - Department of Natural Resources - Administration and Director › Chapter 1501-6 - Lease of Lake Erie Submerged Lands › Section 1501-6-06 - Rental

Current through all regulations passed and filed through July 1, 2024
The rent rates herein determined shall be applied equally
				throughout the entire lake Erie shoreline, including Sandusky bay, Maumee bay
				and the islands. Rates will be determined by the director using the description
				of the development, improvement or activity provided by the applicant according
				to the following schedule:
(A)
			 Existing fill - any artificially filled area or filled portion of any area of
			 the territory existing on March 15, 1989, shall be charged $ 0.01 per square
			 foot per year for the term of the lease or renewals. This rental rate shall
			 apply only to the use of the filled area as it existed on March 15, 1989. If
			 the lessee or its assigns change the use of the filled area, the rent may be
			 modified to reflect the rent rate in effect for the new use at the time of the
			 change of use.
The rental rate for any artificially filled area of the
				territory existing on March 15, 1989, which qualifies as a governmental
				non-income producing facility as determined by the director, shall be $ 1.00
				per year.
(B) Private
			 floating dock - $50 per year.
(C)
			 Private structure - $50 plus $ 0.02 per square foot of leased area per year.
(D) Private erosion control
			 structure - $50 plus $ 0.01 per square foot of leased area for the first year,
			 and $ 0.01 per square foot of leased area per year thereafter.
This rental rate shall be applied to all qualifying leases, or
				qualifying portion of the leased area for leases executed on or after the
				effective date of this rule. For existing leases executed after the April 30,
				1992 effective date of the original rules, this lease rate will apply upon the
				rent renewal date for the lease, unless the lease is modified prior to such
				date. This rate shall not apply to leases executed prior to April 30, 1992
				unless the lease is modified on or after the effective date of this rule.
(E) Semi-private and small
			 commercial facility occupying no more than four acres - $ 0.03 per square foot
			 of leased area per year.
(F) Large
			 facility and an industrial facility - $ 0.04 per square foot of the leased area
			 per year.
(G) Utility - $500 per
			 year.
(H) Governmental income
			 producing facility shall pay the rent for the category of the facility.
(I) Governmental non-income
			 producing facility shall pay $ 1.00 per year. Where practicable, a lease for
			 all such governmental uses or purposes shall be covered in one instrument for
			 each political subdivision.
(J)
			 "Escalator clause" - the rental rates as provided for in paragraphs (B) to (H)
			 of this rule, shall be recalculated every five years beginning on the fifth
			 anniversary of the effective date of this rule and any increase shall be at the
			 same rate of increase as the "National Consumers Price Index" (C.P.I.). The
			 annual base rate for calculation purposes shall be the rate established by the
			 U.S. department of labor for the city of Cleveland, Ohio, urban, all categories
			 (C.P.I.U.) for February, 1992. That annual base rate is 136.2. The new rate
			 shall be most recent C.P.I.U. annual rate established to the nearest month
			 prior to the date of recalculation by the U.S department of labor. Once the new
			 annual rate has been determined and the amount of increase has been calculated,
			 then the new annual rate shall become the base annual rate for calculation
			 purposes for the next five year period of time. This change in rates shall
			 continue until such time as the C.P.I.U. is no longer used or the director
			 determines that another method may be more accurate. The rental rate percentage
			 increase shall be the lesser of the following:
(1) The base annual rate shall be subtracted
			 from the new annual rate, the base rate shall be divided into the difference
			 between the base rate and the new rate and the answer will be the percentage of
			 increase or decrease over that five year period of time:
example: new rate (nr) 140.2
- base rate (br) 136.2
________________ _____
difference (df) 4.0
df 4.0
________________ = .0293 or 2.93 % increase
br 136.2
current rent: $10, 000.00 X .0293 increase=$ 293.00
new rent: $10, 293.00
(2) At no time shall the increases of the
			 rental rate exceed 20 percent in any given five year period of time, nor shall
			 the aggregate increase of the rental rate exceed 150 percent over the term of
			 the lease. Also at no time shall the rental rate charged in any lease written
			 by the state of Ohio pursuant to sections
			 1506.10 and
			 1506.11 of the Revised Code or
			 by these rules be lowered.
Should the United States department of labor discontinue the
				use of C.P.I. the director shall select as nearly compatible a statistical
				formula on the purchasing power of the consumer dollar as is then available and
				published in some responsible governmental publication.
This escalator method shall not affect the rent charged under
				paragraph (A) of this rule existing fill or paragraph (H) of this rule
				governmental non-income producing facility.