(1) Disputes between a state agency or local government and another state agency or local government, including disputes relating to the title to real estate, may, if the parties agree, be submitted to the award of an arbitrator of the American Arbitration Association. The agreement may not be rescinded after the notice of intent to arbitrate has been mailed to the association.

(2) Costs of arbitration shall be assessed to the parties as provided by the commercial arbitration rules of the association. [1981 c.857 2,12]