The National Park Service (NPS) recently entered into a 60 year lease for marina operations at Great Kills Marina in New York pursuant to a Request for Proposals. The lessee has the right, for any reason, to terminate the lease in its fifth year and at various points afterward. The leased facilities include 250 boat slips, a boat storage yard and a parking area all owned by NPS. The lease requires a base rent of $150,000 in addition to a percentage of gross revenues which varies over the course of the lease. It also requires that certain improvements be constructed, the cost of which can then be offset against rent owed (except that the rent can never be less than the base rent). The lessee also must maintain a Maintenance Reserve Account for needs of the premises that are non-recurring within a seven-year time frame.
The National Park Service recently entered into a 50 year lease for operation of three golf courses in the Washington, DC area. The agency had