HomeMy Public PortalAbout2023.03.15 Rent Increase J Johnson
March 15, 2023
Jerome Johnson
504 North Road 52
Pasco, WA 99301-3047
RE: Lease Rent at 1555 McCall Ave, McCall, ID
Dear Mr. Johnson,
An appraisal was done in 2022 to evaluate the value of the land at 1555 McCall Ave, McCall,
ID. The land was appraised at $175,000. Per your ground lease agreement, under Section Three –
Rent it states that the lessee shall pay an annual rent equal to five percent (5%) of the fair market
value of the Real Property. Based on the appraisal your annual rent will be $8750 starting
January 1, 2024. You may pay this rent in twelve (12) equal installments of $726.17, or you may
pay it as one lump sum in March of each year.
Please note that the lease states that the Lessor and Lessee shall determine and adjust the Annual
Rent according to the "fair market value" of the Real Property upon the following events: the
transfer of this Lease, or every five (5) years after the date of a transfer of this Lease. The "fair
market value" of the Real Property shall mean the cash price which a purchaser would pay for
the Real Property, such valuation to be made on the assumption that the Real Property is not
subject to any agreements, including, without limitation, leases, and management and service
agreements then in effect. An appraisal has not been done since 2010.
If you would like a copy of the appraisal, you may request it by emailing me at
bwagner@mccall.id.us and I will send it to you. Please feel free to call me directly with any
questions you may have.
Sincerely,
BessieJo Wagner, CMC | City Clerk |ADA Coordinator
216 E Park Street | McCall | ID 83638
Direct: 208.634.4874 | Fax: 208.634.3038