Commitments and Contingencies

Operating Ground Leases

Certain of our properties are subject to operating ground leases. Rental payments on these leases are adjusted periodically based on either the consumer price index or on a pre-determined schedule. Total rental property expense recorded for operating ground leases was $3.4 million, $3.4 million and $2.8 million for the years ended December 31, 2015, 2014 and 2013, respectively.

The following table sets forth our scheduled obligations for future minimum payments on operating ground leases at December 31, 2015:



Years Ending December 31,	Minimum Payments
2016	$	3,033
2017	3,067
2018	3,103
2019	3,140
2020	3,179
Thereafter	109,157
	$	124,679

Lease and Contractual Commitments

We have $340.0 million of lease and contractual commitments at December 31, 2015. Lease and contractual commitments represent commitments under signed leases and contracts for operating properties (excluding tenant-funded tenant improvements) and contracts for development/redevelopment projects, of which $55.9 million was recorded on our Consolidated Balance Sheet at December 31, 2015.

Contingent Consideration

In 2015, we acquired development land in Atlanta, GA for a purchase price and related transaction costs of $5.2 million, which includes contingent consideration estimated to be $0.9 million. The contingent consideration is payable in cash to a third party thirty days subsequent to stabilization, which is projected to be in the second quarter of 2019, if and to the extent the stabilized value of the building constructed on the development site exceeds the total development cost.

In 2014, we acquired development land in Nashville, TN for a purchase price and related transaction costs of $15.8 million, which includes contingent consideration estimated to be $3.3 million. The contingent consideration is payable in cash to a third party no later than the first quarter of 2020 if and to the extent the stabilized value of the building constructed on the development site exceeds the total development cost.

Closure of Division Office

In the third quarter of 2015, we announced our intent to list for sale the Plaza assets. The Plaza assets consist of 776,000 square feet of in-service retail space, 468,000 square feet of in-service office space and a 28,000 square foot retail redevelopment project. We intend to close our Kansas City division office upon such sale, which is scheduled to occur on March, 1, 2016. In the fourth quarter of 2015, we accrued $1.6 million of the total $2.6 million severance costs expected to be incurred in connection with the sale.


9.	Commitments and Contingencies - Continued

Environmental Matters

Substantially all of our in-service and development properties have been subjected to Phase I environmental assessments and, in certain instances, Phase II environmental assessments. Such assessments and/or updates have not revealed, nor are we aware of, any environmental liability that we believe would have a material adverse effect on our Consolidated Financial Statements.

Litigation, Claims and Assessments

We are from time to time a party to a variety of legal proceedings, claims and assessments arising in the ordinary course of our business. We regularly assess the liabilities and contingencies in connection with these matters based on the latest information available. For those matters where it is probable that we have incurred or will incur a loss and the loss or range of loss can be reasonably estimated, the estimated loss is accrued and charged to income in our Consolidated Financial Statements. In other instances, because of the uncertainties related to both the probable outcome and amount or range of loss, a reasonable estimate of liability, if any, cannot be made. Based on the current expected outcome of such matters, none of these proceedings, claims or assessments is expected to have a material effect on our business, financial condition, results of operations or cash flows.