(a) Rental rates. Effective May 12, 2018 ("Term Commencement Date"), ground and building rental rates for aeronautical real estate at Chicago O'Hare International Airport ("Airport") described in this section shall apply to leased premises on Airport for aeronautical purposes, including cargo facilities, hangar facilities and ground equipment maintenance facilities, and to leased premises outside the Airport secure area, and to rights of entry agreements relating to any such leased premises, as follows:
(1) Rental rates for premises used for on- Airport cargo facilities shall be:
(i) Ground rent for the period May 12, 2018 through December 31, 2023, shall be $2.25 per square foot per year for the total square footage of dedicated apron and land for the real property being used at the Airport inside the Airport secure area for cargo related operations; and
(ii) Facility rent for the period May 12, 2018 through December 31, 2023, shall be $10.00 per square foot per year for the square footage of the property being used at the Airport inside the Airport secure area for cargo facilities; and
(iii) For the five-year period beginning on January 1, 2024 and every five years thereafter, the rent set forth in subsection (a)(1)(i) and (a)(1)(ii) of this section shall be adjusted pursuant to the PPI Adjustment.
(2) Rental rates for on-Airport premises used for hangar and ground equipment maintenance facilities shall be:
(i) Fixed rent for the period May 12, 2018 through December 31, 2023, shall be $2.25 per square foot per year for the total square footage of dedicated apron and land for the real property being used at the Airport inside the Airport secure area for hangar and ground equipment maintenance facilities; provided, however, that the real property being used at the Airport for hangar and/or ground equipment maintenance facilities which shall be vacated in connection with the construction of Runway 9C-27C at the Airport shall not be subject to the fixed rent as set forth in this subsection (a)(2)(i); and
(ii) For the five-year period beginning on January 1, 2024 and every five years thereafter, the rent set forth in subsection (a)(2)(i) of this section shall be adjusted pursuant to the PPI Adjustment.
(3) Rental rates for premises outside of the Airport secure area:
(i) Fixed rent shall be $2.00 per square foot per year for the total square footage of real property being leased for a period of five years from the date on which such rental rate is applicable to such premises.
(ii) Beginning on the January 1st following the five year anniversary of the effective date of the rental rate as set forth in subsection (a)(3)(i) of this section, the rent set forth in subsection (a)(3)(i) of this section shall be adjusted pursuant to the PPI Adjustment.
(b) Definitions. As used in this section:
"PPI Adjustment" shall mean a fraction (rounded to two decimal places), the numerator of which shall be the "PPI" for May 2023 and every five years thereafter, and the denominator of which shall be the PPI for May 2018, with respect to the PPI Adjustment on any such fifth (5th) anniversary of the Term Commencement Date and every five years thereafter.
"PPI" shall mean "The Producer Price Index – All Commodities" as published by the Bureau of Labor Statistics of the United States Department of Labor or if the same is discontinued, a replacement index published by the Department of Labor or other applicable governmental authority, appropriately adjusted.
(Added Coun. J. 2-28-18, p. 68901, § 3)