Annual Ground Rent Clause Samples
The Annual Ground Rent clause establishes the obligation for a tenant or leaseholder to pay a fixed yearly fee to the property owner for the use of the land. Typically, this payment is separate from any rent paid for buildings or improvements on the property and is due on specified dates each year. This clause ensures a predictable income stream for the landowner and clarifies the tenant’s ongoing financial responsibilities, thereby preventing disputes over payment terms and maintaining clear financial expectations between the parties.
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Annual Ground Rent a. An annual rent for the land identified on the Premises as Expansion Premises shall be assessed for each Contract Year (“Annual Ground Rent”).
b. The Contractor shall pay one-twelfth (1/12) of the Annual Ground Rent monthly in advance without demand or invoice on the first Day of each calendar month beginning on the Date of Substantial Completion of any Capital Investments and Fixed Improvements to include, but not be limited to hangars, office space, ramp space, shops/storage buildings, roadways, parking lots, aircraft parking apron or other common use areas; provided however, no Annual Ground Rent shall be assessed for the entry and exit taxi lanes. For any period less than one (1) calendar month during the Contract Term, the Annual Ground Rental shall be prorated. The Annual Ground Rent shall be deemed delinquent if payment is not received by the tenth (10th) Day of the month. The Annual Ground Rent is subject to periodic adjustments as provided herein until the expiration of this Contract. For reference purposes, the current appraisal for the Expansion Premises is attached hereto as Exhibit 2-I.
Annual Ground Rent