47-year land lease

The company's current annual rent is $10,000. The new lease begins Nov. 7, 2007 and runs through Nov. 7, 2054, ISC president Lesa France Kennedy says in a prepared statement. The lease has 2% annual escalators that will bring the 12-month rent to $1 million in 2054. ISC had planned to extend its old lease from 2008 through 2032 at an increased rent of $20,000 per year.

The landowner, however, negotiated a higher rent, largely due to the fast-growing commercial and retail real estate development surrounding the track at 1801 West International Speedway Blvd., sources in a position to know tell GlobeSt.com. Daytona Beach is 55 miles northeast of Downtown Orlando.

Kennedy says generally accepted accounting principles in the US require annual lease expense to be recognized on a straight-line basis over the revised term of the lease. "As a result, ISC expects to record approximately $500,000 in additional DIS lease-related expenses for fiscal 2006, including sales taxes," the ISC chief says. For fiscal 2007 through 205, ISC anticipates DIS lease-related expense, including sales taxes to total about $800,000 a year.