[§166E-11]  Lease negotiation.  (a)  The department may negotiate and enter into leases with any person who:

     (1)  Holds a revocable permit for agricultural purposes;

     (2)  Has formerly held an agricultural lease or a holdover lease of public land that expired within the last ten years and has continued to occupy the land; or

     (3)  Is determined by the department to have a beneficial impact on agriculture.

     (b)  Lands eligible for lease negotiations under this section are limited to lands that are:

     (1)  Zoned and used for agricultural purposes;

     (2)  Set aside for agricultural uses only, by the governor through an executive order to the department; and

     (3)  Not needed by any state or county agency for any other public purpose.

     (c)  In negotiating and executing a lease as authorized, the board shall:

     (1)  Require the appraisal of the parcel using standards of national appraiser organizations to determine the rental, including percentage rent;

     (2)  Require the payment of a premium, computed at twenty-five per cent of the annual lease rent, with the premium to be added to the annual lease rent for each year of the lease equal to the number of years the lessee has occupied the land, except that the premium period shall not exceed four years; and

     (3)  Recover from the lessee the costs of expenditures required by the department to convert the parcel into leasehold.

     The department shall notify in writing those eligible for lease negotiations under this section and shall inform the applicants of the terms, conditions, and restrictions provided by this section.  Any eligible person may apply for a lease by submitting a written application to the department within thirty days from the date of receipt of notification; provided that the department may require documentary proof from any applicant to determine that the applicant meets eligibility and qualification requirements for a lease. [L 2006, c 157, pt of §1]