A lease agreement between a local building authority and its creating local entity may:
Terms Used In Utah Code 17D-2-403
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Creating local entity: means the local entity that creates or created the local building authority. See Utah Code 17D-2-102
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Local entity: means a county, city, town, school district, special district, or special service district. See Utah Code 17D-2-102
Project: means an improvement, facility, property, or appurtenance to property that a local entity is permitted under law to own or acquire, whether located inside or outside the local entity's boundary, including:
(a)
a public building or other structure of any kind; and
(b)
a joint or partial interest in the improvement, facility, property, or appurtenance to property. See Utah Code 17D-2-102
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(a)
provide that the creating local entity, as part of the lease payments for the leased property:
(i)
pay all taxes and assessments levied against or on account of the leased property or rentals from it;
(ii)
maintain insurance on the leased property for the benefit of the local building authority and the holders of the local building authority’s bonds; and
(iii)
assume all responsibility for any repair, replacement, alteration, or improvement to the leased property during the term of the lease agreement; and
(b)
authorize the local entity to sublease all or specified portions of a project to:
(i)
the state;
(ii)
another local entity; or
(iii)
a private party, including a nonprofit corporation, if the local building authority or local entity:
(A)
intends to own the project throughout the useful life of the project; and
(B)
determines that the local building authority or local entity’s ownership of the project furthers a legitimate public purpose.
(2)
A local entity that subleases some or all of a project under Subsection (1)(b) continues to be responsible for lease payments due under the lease agreement with the local building authority.
