§302A-1151.1 Pilot program for lease of public school land. (a) There shall be established within the school facilities authority a pilot program for the lease of public school land, including facilities. The school facilities authority, in consultation with any other appropriate agency, shall serve as the facilitator of the pilot program.

(b) Notwithstanding sections 171-13 and 302A-1151, or any other law to the contrary, the school facilities authority may lease public school land on terms it deems appropriate, including a leaseback of all or a portion of the improvements constructed; provided that:

(1) The school facilities authority may identify and select up to five public school land sites as candidates for participation in the pilot program; provided that:

(A) During the identification and selection process, the school facilities authority shall be subject to chapter 92, shall hold at least one public meeting in each affected community, and shall foster school and community participation; and

(B) If the site is on land owned by the county, the school facilities authority shall consult with the county;

(2) The school facilities authority may lease public school land for no more than three public school land sites identified and selected by the school facilities authority pursuant to paragraph (1) under leases for a term of not more than ninety-nine years per lease, to lessees who shall be required to modify, construct, or utilize facilities to benefit public educational purposes, in accordance with specific request for proposal or request for information guidelines;

(3) Each lease shall stipulate that the lessee may retain any revenue generated from the facilities; provided that:

(A) The lessee shall be obligated to maintain and operate the facilities to benefit public educational purposes for the length of the lease;

(B) The lessee shall be obligated to pay to the county all applicable property tax on the value of any improvements;

(C) A leasehold premium may be charged to the lessee for the right to use the public school land based on a competitive process that complies with applicable sections of chapter 103D;

(D) Upon the expiration of the lease, the facilities shall revert to the school facilities authority; and

(E) All revenues and proceeds derived by the State under this section shall be deposited in the school facilities subaccount pursuant to section 302A-1151.2; and

(4) Notwithstanding any law to the contrary, the school facilities authority may enter into leaseback agreements that allow the school facilities authority to lease or sublease the property to a third party. The school facilities authority may lease back the property from the third-party lessee or sublessee for a contractual period of time, after which the school facilities authority shall own any improvements.

(1) Comply with county plans, ordinances, and zoning and development codes; and

(2) Acquire all required government approvals and permits.

(d) Nothing in this section shall preclude the school facilities authority from working with and receiving assistance from any other department or agency in carrying out the purposes of this section.

(e) Any lease entered into by the school facilities authority pursuant to subsection (b) shall be fully executed no later than ten years from July 1, 2013.

(f) For purposes of this section, public educational purposes shall include but are not limited to:

(1) A new revenue source from the redevelopment of one or more underutilized school facilities authority facilities;

(2) New construction of school facilities authority facilities or renovation of existing, underutilized school facilities authority facilities into a twenty-first century school; or

(3) A combination of paragraphs (1) and (2). [L 2013, c 155, pt of §2; am L 2015, c 115, §1; am L 2017, c 206, §4; am L 2019, c 272, §2; am L 2021, c 217, §13; am L 2023, c 165, §2]

Note

Public school land pilot program; reports to legislature until completion of projects. L 2013, c 155, §4.