Omaha and Clermont Land Leases |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||
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| Operating Leases of Lessee Disclosure [Table Text Block] |
Note 9 Omaha and Clermont Land Leases
The Omaha facility land lease initially was to expire in 2023 with options to renew up to 60 years. However, the Company exercised two five-year lease renewal options and therefore the land lease currently expires in 2033, subject to future renewal options by the Company. Under the terms of the Omaha land lease, annual rents increase 12.5% every fifth anniversary of the lease. The initial Omaha land lease increase will occur in April 2017. During both of the three months ended March 31, 2017 and March 31, 2016, the Company expensed $18,154 related to the Omaha land lease. On March 1, 2017, the Company acquired an interest, as ground lessee, in the ground lease that covers and affects certain real property located in Clermont, Florida, along with the seller’s right, title and interest arising under the ground lease in and to the medical building located upon the land. The ground lease expense is a pass-through to the tenant so no expense related to this ground lease is recorded on the Company’s Statements of Operations. The Clermont ground Lease commenced in 2012 and has an initial term of seventy-five years.
The aggregate minimum cash payments to be made by the Company on the Omaha land lease and the Clermont land lease in effect as of March 31, 2017, are as follows for the subsequent years ended December 31; as listed below.
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