[§163D-16]  Use of public lands; acquisition of state lands.  (a)  Notwithstanding chapter 171 to the contrary, the governor may transfer lands located within a project area to the corporation for its use.

     (b)  If state lands under the control and management of other public agencies are required by the corporation for its purposes, the agency having the control and management of those required lands, upon request by the corporation and with the approval of the governor, may lease the lands to the corporation upon such terms and conditions as may be agreed to by the parties.

     (c)  Notwithstanding subsection (b) to the contrary, no public lands shall be leased to the corporation if the lease would impair any covenant between the State or any county, or any department or board thereof, and the holders of bonds issued by the State or the county, department, or board. [L 1994, c 264, pt of §1]