Certificate of Contract Obligation evidencing its obligation to make semiannual payments to Bateson of $595,812.52 for the improvements built pursuant to the Contract to Finance, Construct and Sell.  On the same date, Bateson, with the approval of the United States, assigned title to the improvements, its rights in the Ground Lease, and the amounts to be paid under the Purchase Contract to the First National Bank of St. Paul, Minnesota.


8
In 1975, Metro appraised the improvements at $9,707,000.  The United States paid and continues to pay the real estate taxes assessed against the improvements.  That assessment and those taxes are not at issue here.


9
Metro also appraised the Bateson leasehold in 1975 at $548,000.  Metro's appraiser theorized that a 45-year lease of land at a rentalpayments.


24
Id.


25
Each party had an expert testify at the trial.  The United States' expert, Walter Keuhnle, found the leasehold had no value because the United States has the rights of fee ownership as well as the rights of use, possession, and reversion, subject only to its obligation to make payments under the Purchase Contract.  Bateson, on the other hand, has no rights in the leasehold unless the United States defaults on those payments.  Thus, Keuhnle concluded that


26
the leasehold interest of Bateson in the site is nominal and without sound, intrinsic or immediate market value because the United States has retained all the rights of use of the property during the lease term leaving the lessee, Bateson, with only a naked title for the purpose of securing