- 3 -
the lessee to seek permission before making any structural
changes. The lease also permitted the lessee to sublet the
property. During 1963 and 1964, the lessee improved the property
by constructing a hotel on the property.
Decedent and Marie Louise Kealy and the lessee amended the
ground lease on March 29, 1963, October 28, 1963, June 2, 1964,
and November 4, 1964. The ground lease included procedures for
resolving any disputes arising between the landlords and the
tenant, providing in pertinent part:
14. The Lessors and the Lessee shall each appoint
a disinterested real estate appraiser not related to
any of them by consanguinity or affinity and who shall
have knowledge of the value of commercial real estate
in Washington, D.C. Written notice of such
appointments by each party shall be given to the other
on or before the twentieth (20th) day following the
[designated] adjustments dates of the particular year,
and the two appraisers so appointed shall on or before
the tenth (10th) day thereafter appoint a third
appraiser of like qualifications and non-interest who
shall act as their chairman.
* * * * * * *
18. In the event that for any reason, whether
through failure to appoint appraisers, or failure of
the appraisers to act, no report of the fair market
value is made within the time or times, respectively, *
* * either party may apply to the American Arbitration
Association or its successor for the appointment of an
appraiser or appraisers to the end that the fair market
value as contemplated by this Lease shall be
determined.
19. In the event of a refusal or failure by the
American Arbitration Association or its successor to
appoint an appraiser or appraisers either party may
apply to the president or senior office of the
Washington Real Estate Board or its successor for the
appointment of an appraiser. No appraisal shall be
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011