Walsh

Lucille Walsh appeals the court’s clarification of the term “fair market value,” the basis for rental adjustment on land leased to Humphries Investments, Inc. (Humphries).

I

Walsh, as lessor, with Humphries and Gilbert Ranney, as lessees, were parties to a 52-year groimd lease executed in 1960. The lease contemplated the construction and operation of a mobilehome park. The property was correspondingly improved and continues in operation as a 150-unit park.

Rent, for the first 25 years, was set at “seven percent of the current market value” or $15,000 per year. Thereafter, appraisers would be appointed to “determine the market value,” with rent for the remaining 27 years to “be a sum equal to seven percent of such appraised value or $15,000.00, whichever is the greater.”

During the first 25 years, certain city ordinances and state codes were enacted which seriously hindered the ability of mobilehome park owners to convert the parks to any other use. Conditional use permits, deemed “change of use” applications, were required; the owner needed to file a “Conversion Impact Report,” containing a detailed analysis of the present park, the availability of relocation space…