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A. The fair market rental shall be determined by an appraisal or equivalent procedure performed by the Director, or his or her designee, using the following data: improvement cost, replacement cost, earning capacity, sales and lease data of comparable sites, or similar methodology approved by the Director and deemed to be in the best interest of the Osage Nation.

B. Alternatively, the fair market rental shall be determined by an appraisal performed by a licensed appraiser using the Uniform Standards of Professional Appraisal Practice or another commonly accepted method of appraisal.

C. An appraisal log, in a form approved by the Director, describing the method of appraisal and value of the restricted or trust land shall be attached to every lease application.

D. No lease shall be approved for less than the present fair market rental as set forth in the appraisal, except if:

1. The lease is in the development period;

2. The Osage Nation intends to provide an incentive in the form of concessions, improvement credits, and rental abatements to attract a business to locate on Osage Nation lands;

3. The Director determines that accepting less than fair market rental is in the best interest of the Osage Nation; or

4. The lease is for a religious, educational, recreational, cultural, or other public purpose.

E. A lease may be structured at a flat rental rate, a flat rental rate plus a percentage of gross receipts, or based on a percentage of gross receipts or other market indicator.

F. All leases must provide for periodic rental rate reviews occurring not less than once every five years; provided, that, leases for five years or less are not subject to this provision.

G. Leases shall be structured to allow for rental rate adjustments. Leases shall specify how adjustments shall be made, when adjustments will go into effect, and how disputes shall be resolved.

H. Economic conditions, exclusive of improvement or development required by the contract or the contribution value of such improvements, may be considered during periodic reviews and adjustment of the rental rate.

I. Unless otherwise provided in the lease, rental payments may not be made or accepted more than one year in advance of the due date.

J. The Director shall keep written records of the basis used in determining the fair market rental, as well as the basis for adjustments. These records shall be included in the Osage Nation lease records file. ONCA 17-01, eff. Dec. 9, 2016.