I own commercial property and all the improvements done to my property by a tenant becomes my property.
I guess it’s to be determined if the city has zoned this as commercial. If not, I presume the point becomes moot. I won’t pretend to be a lawyer.
Again, the BSA was providing a community with services that they otherwise weren’t able to provide their youth and have not been able to since. I don’t see anything “free” about this.
SZ
Check your lease. Depending on the improvements made, there is usually compensation to be negotiated based on the specific types of improvements in the form of lease rate reductions. Alternatively, YOU, the property owner are responsible for all maintenance, utility, infrastructure, etc. up keep. You should post on here what you spend on the building per year.
Now, what kind of a break would you give your tenant if they promised to fix leaks in the roof, maintain the parking lot, mow the grass, change filters, wash buildings, pay utilities, replace old door hardware, replace light bulbs, etc. I would bet you could give them an incredible break as the free and clear owner of a building that you didn't have to spend a dime on. What were you saying about improvements to your property?
Is this a ground lease? If not, then it is not comparable. The Boy Scouts would be within their rights to demolish the building when they left; your tenants are not.
And commercial vs public-non-profit is apples v oranges.
The City is getting a great deal with the $1 ground lease of the building, benefits to the community way beyond the minor subsidy on this ground lease.
You're leaving out the part where the tenants negotiate their lease and the amount of rent they will pay in consideration of the improvements. The Scouts did this when they negotiated the lease in perpetuity, which the City is now breaking to please the homosexual City Solicitor. So if your marvelous property were rented to, say, IBM, and you broke your contract, your a$$ would be hauled into court and you would pay big time. But the Scouts, being non-profit, are over a barrel, and will need to cut programs for the poor and disadvantaged youngsters in order to meet your standards of commercial perfection. Congratulations. Hope it all continues to work out for you. Hope you never have any property that remains vacant and gets vandalized because your terms are so unreasonable that no one will rent from you. Tenancy is a relationship. The owner should never have all the power. That is tyranny.