PRP.10.3.140 Fair Market Lease Value and Payments

(a) The Fair Market Lease Value shall be determined using one of the following appraisal methods:

(1) The Fair Market Lease Value shall be determined by an appraisal or equivalent procedure performed by the Tribe using the following data: improvement cost, replacement cost, earning capacity, sales, and lease data of comparable sites or by similar methodology as approved by the Tribe and deemed to be in the Best Interests of the Tribe.

(2) Alternatively, the Fair Market Lease Value shall be determined by an appraisal performed by a licensed appraiser using the Uniform Standards of Professional Appraisal Practice or commonly accepted method of appraisal.

(b) No lease may be approved for less than the present Fair Market Lease Value as set forth in the appraisal, unless the Tribe determined such action is in the Best Interests of the Tribe.

(c) An appraisal log reporting the methods of appraisal and value shall be attached to every lease unless Fair Market Lease Value payments are waived by the Tribe.

(d) A lease may be structured at a flat lease rate.

(e) A lease may be structured at a flat lease rate plus a percentage of gross receipts, if the lessee is a business located in a shopping center or mall, or the lessee generates over $1,000,000.00 annually in gross receipts.

(f) A lease may be structured based on a percentage of gross receipts or based on a market indicator.

(g) The lease may provide for periodic review and such review may consider the economic conditions, exclusive of improvement or development required by the contract or the contribution value of such improvements.

(h) Leases may be structured to allow for lease rate adjustments. The lease shall specify how adjustments shall be made, who shall make such adjustments, when adjustments shall go into effect, and how disputes shall be resolved.

(i) Leases may be amended to allow for lease rate adjustments.

(j) The Tribe shall keep written records of the basis used in determining the fair market lease value, as well as the basis for adjustments. These records shall be presented to the lessee for its review and acceptance or non-acceptance and included in any lease file.

(k) All lease payments shall be made directly to the Tribe. The Tribe shall maintain documentation of the lease payments that are sufficient to enable the Secretary to discharge the trust responsibility of the United States.