(1)  A local entity desiring to have a local building authority construct a project for the use of the local entity upon a site that the local entity owns may lease the site to the local building authority for a nominal rental.

Terms Used In Utah Code 17D-2-404

  • 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
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • 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
(2)  Each lease under Subsection (1) shall grant the local building authority an option to renew the lease on the same terms and conditions if, by the time of the expiration of the lease, the local building authority has not been fully repaid the project costs it actually invested in the project.

(3)  A lease under this section, including any renewal of the lease under Subsection (2), may not exceed the period specified in Subsection 17D-2-402(2).

(4) 

(a)  As used in this Subsection (4):

(i)  “Project lease agreement” means a lease agreement between a local building authority and its creating local entity under which the local building authority leases to the creating local entity a project constructed on a site owned by the creating local entity.

(ii)  “Site lease” means a creating local entity’s lease of a site to a local building authority.

(b)  A local entity that has entered into a site lease with a local building authority may grant the local building authority an option to purchase the site within six months after the termination of the creating local entity’s lease payment obligation under the project lease agreement, to be exercised if the creating local entity under the project lease agreement:

(i)  defaults under the terms of the project lease agreement; and

(ii)  does not exercise its option to purchase the project under the terms of the project lease agreement.

Enacted by Chapter 360, 2008 General Session

  Previous section
Next section  
 Part 4 Contents