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.
