A. Annual minimum rentals shall be computed at the prevailing interest rate used in the conventional mortgage market in Kodiak, based on the appraised fair market value for the land and/or improvement rights being leased. This minimum shall be the lowest acceptable bid in the event of an auction, lease by sealed bid, or negotiated lease.

B. No land shall be leased for less than the approved, appraised, annual rental except as provided in KIBC 18.20.020. [Ord. 78-7-O §2, 1978].