MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Finance

By: Senator(s) Gollott, Woodfield

Senate Bill 2950

(COMMITTEE SUBSTITUTE)

AN ACT TO AMEND SECTIONS 59-1-17, 59-7-405 AND 59-9-21, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT CERTAIN PORT AUTHORITIES OR COMMISSIONS THAT OPERATE PUBLIC FACILITIES ON PUBLIC TRUST TIDELANDS SHALL HAVE MANAGEMENT AND CONTROL OF THE SITE; TO PROVIDE THAT CERTAIN REVENUES GENERATED ON SUCH SITES MAY BE RECEIVED BY SUCH PORT AUTHORITIES OR COMMISSIONS; TO PROVIDE THAT LEASES AND AGREEMENTS EXECUTED FOR GAMING PURPOSES ON THE TIDELANDS BY SUCH PORT AUTHORITIES OR COMMISSIONS PRIOR TO THE EFFECTIVE DATE OF THIS ACT SHALL REMAIN IN FULL FORCE AND EFFECT AND MAY BE RENEWED BY THE PORT AUTHORITY OR COMMISSION; TO PROVIDE THAT ANY AGREEMENTS EXECUTED FOR MANAGEMENT AND CONTROL OF THE TIDELANDS BETWEEN PORT AUTHORITIES AND COMMISSIONS AND THE SECRETARY OF STATE SHALL REMAIN IN FULL FORCE AND EFFECT AND MAY BE RENEWED BY THE SECRETARY OF STATE WITH THE APPROVAL OF THE GOVERNOR; TO PROVIDE THAT ALL LEASES FOR GAMING PURPOSES ON TIDELANDS AFTER THE EFFECTIVE DATE OF THIS ACT SHALL BE LEASED BY THE SECRETARY OF STATE WITH THE APPROVAL OF THE GOVERNOR; TO AUTHORIZE THE SECRETARY OF STATE, WITH THE APPROVAL OF THE GOVERNOR, TO ENTER INTO INTERLOCAL AGREEMENTS WITH ANY POLITICAL SUBDIVISION OF THE STATE FOR THE DEVELOPMENT, MAINTENANCE AND OPERATION BY A POLITICAL SUBDIVISION OF ANY NON-GAMING PROJECT WHICH DOES NOT EXCEED TEN ACRES ON PUBLIC TRUST TIDELANDS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 59-1-17, Mississippi Code of 1972, is amended as follows:

59-1-17. (1) The several port commissions in the State of Mississippi are each hereby vested with full jurisdiction and control of any and all lands lying within, or adjacent to, any river, bay or natural lake which are now, or heretofore were, below the mean high tide mark, and which lands lie within or adjacent to any port or harbor within the jurisdiction of such port commission, and as to which lands the claims of private persons or private corporations have been, or hereinafter are, acquired by such port commission, or by the city for its benefit, by purchase, lease, conveyance or eminent domain proceedings. Any such port commission is hereby authorized to reclaim any and all such lands, by filling, dredging or other methods and to utilize, lease or dispose of same for the development and operation of the port to the same extent it is now, or may hereinafter be, authorized to utilize its other facilities. Public lands shall be governed in the manner and on the terms provided by law for the specific classes thereof. Any municipal port authority or commission listed in subsection (2) of this section and any municipal port authority or commission which constructed improvements, prior to July 1, 1989, on public lands which are public trust tidelands and which has continuously operated a public facility on those public lands since that date, shall have management and control of the site within the boundaries of the site as described in subsection (2) of this section or as it existed on July 1, 1989, as the case may be, subject to the constitutional prohibition against donations of public property, and any such municipal port authority or commission shall receive the revenues generated from the public facility, including revenues generated by any gaming vessels which were located on such public property prior to the effective date of this act. Likewise, if any such municipal port authority or commission has obtained a legislative grant of title to specifically described tidelands, the municipal port authority or commission shall receive the revenues generated from those tidelands. All leases and agreements executed for gaming purposes on the tidelands by such municipal port authorities or commissions prior to the effective date of this act shall remain in full force and effect and may be renewed by the port authority or commission. Any agreements executed for management and control of the tidelands between municipal port authorities or commissions and the Secretary of State shall likewise remain in full force and effect and may be renewed by the Secretary of State with the approval of the Governor. All leases executed for gaming purposes on the tidelands after the effective date of this act shall be executed in accordance with Section 29-1-107 and any funds derived from lease rentals shall be deposited in accordance with Section 29-15-9. Further, the Secretary of State, as trustee of the public trust tidelands, with the approval of the Governor, shall have the authority to execute intergovernmental agreements with any political subdivision of the state for the development, management, maintenance and operation by a political subdivision of any non-gaming project which does not exceed ten (10) acres located on public trust tidelands. The duration of the intergovernmental agreement shall be concurrent with the term of the lease of the public trust tidelands which are the subject of the agreement. The intergovernmental agreements may provide for dedication of revenue generated on the lands for debt service associated with the design, construction or repair of the project, operation and maintenance expenses of the facility or facilities, and other operating expenses of the political subdivision.

(2) The municipal port authorities or commissions and their facilities on public lands which are public trust tidelands are:

(a) Long Beach Port Commission, Long Beach Harbor, 15.11 acres, in Section 13, Township 8 South, Range 12 West;

(b) D'Iberville Port Commission, Boat Launch and Pier Facility, 1.8 acres, in Section 22, Township 7 South, Range 9 West;

(c) Ocean Springs Harbor Commission, Ocean Springs Harbor, 10 acres, in Section 30, Township 7 South, Range 8 West; and

(d) Pascagoula Port Commission described in subsection (3) of this section.

(3) It is hereby declared that the leasing or use for commercial purposes, port purposes and for industrial development related thereto of the following described submerged lands and tidelands belonging to the State of Mississippi in an area lying between the East Pascagoula River and the West Pascagoula River, Jackson County, Mississippi, will serve a higher public interest in accordance with the purposes of this section and with the public policy of this state as set forth in Section 49-27-3, said property being more particularly described as follows:

All that part of the Lowry Island Resurvey, which is bounded on the South by the L & N (now CSX) Railroad Track; on the East by the East Pascagoula River; on the West by the West Pascagoula River; and on the North by the North corporate limits of the City of Pascagoula and the South corporate limits of the City of Moss Point, LESS AND EXCEPT, however, that part of said property now owned by any private corporations.

(4) The city port commission of the city in which such state lands are located and the governing authority thereof, jointly, are hereby authorized to apply for and secure a lease in accordance with Section 29-1-107, except for a period of time not to exceed forty (40) years, of such state lands as may be necessary for the development for commercial purposes, port purposes and related industrial facilities in the aforesaid areas described in subsection (3) of this section.

Application for a lease shall be made with the Secretary of State.

Utilization of any and all submerged land and/or tideland shall be in such a manner so as not to obstruct normal navigation of any normal and natural channel. Title to the property shall remain vested in the State of Mississippi.

All oil, gas and other minerals in, on or under said lands leased are hereby specifically reserved unto the State of Mississippi.

The city port commission and city governing authority, jointly, are hereby authorized to sublease such lands for commercial purposes, port purposes and for industrial development related thereto.

All subleases executed by the city port commission and city governing authority shall be on such terms and conditions, and with such safeguards, as will best promote and protect the public interest. Such subleases shall be submitted to the Secretary of State for approval. Each sublease shall provide that if such property is not utilized within five (5) years, or if commercial, port or industrial usage ceases and such termination continues for a period of two (2) years, the sublease shall terminate and all rights thereunder shall revert to the city and port commission. If such nonutilization for a period of five (5) years or cessation of use for a period of two (2) years shall be caused, suspended, delayed or interrupted by act of God, fire, war, rebellion, scarcity of water, insurrection, riot, strike, scarcity of labor, differences with employees, failure of a carrier to transport or furnish facilities for transportation; or as a result of some order, rule or regulation of any federal, state, municipality or other governmental agency; or as the result of failure of the sublessee to obtain any required permit or certificate; or as the result of any cause whatsoever beyond the control of sublessee, the time of such delay or interruption shall not be counted against the sublessee in determining such period of five (5) years or two (2) years. All subleases shall be for a fair and adequate consideration and the compensation and revenues therefrom shall be retained by the state or shared with the municipality in a fashion approved by the Secretary of State for port purposes and industrial development.

(5) This section is to be considered as supplementary and cumulative and nothing in this section shall be construed as repealing or amending any options, leases, deeds, contracts, agreements or legal instruments heretofore entered into by the governing authorities of the municipality in which the port of entry is located, or the port commission.

SECTION 2. Section 59-7-405, Mississippi Code of 1972, is amended as follows:

59-7-405. (1) The governing authorities of any municipality in which there is situated and located, in whole or in part, a port or harbor through which commerce flows, and having not less than eight (8) industries engaged in the seafood industry, which maintains a channel and/or harbor to a depth of not less than eight (8) feet, are hereby given the authority to engage in, either directly or through the commission hereinafter provided and designated, and such other agencies as hereafter may be provided by law, works of internal improvement, or promoting, developing, constructing, maintaining and operating harbors or seaports within the state and its jurisdiction, and either directly or through the commission hereinafter provided for, with the power and authority to acquire, purchase, install, rent, lease, mortgage and/or otherwise encumber, to construct, own, hold, maintain, equip, use, control and operate at seaports or harbors, wharves, piers, docks, warehouses, cold storage facilities, water and rail terminals, airplane landing fields and strips, and other structures and facilities, needful for the convenient use of the same in the aid of commerce and navigation, and including the dredging of channels and approaches to the facilities, and being authorized to fill in and reclaim bottomlands where incidental and necessary to the foregoing development.

(2) Said municipal authorities or commission, in connection with the exercise of the foregoing works of improvement and development, shall have the power and authority as an adjunct to any such work of improvement or development to erect or construct such bridges, causeways or structures as may be required for access to and from the harbors or facilities provided as aforesaid by the municipal authorities or the commission, and including any necessary bridge or causeway or combination of the same, connecting with any island or islands lying within three (3) leagues of the main shoreline of the Mississippi Sound or the Gulf of Mexico, and whether the same be within or without the limits of the municipality concerned.

(3) The municipal authorities or commission herein provided for shall have the right and authority to procure, by gift, grant, purchase, or by the exercise of eminent domain, and for the public purposes and uses herein provided for, such land or interest therein as may be required for the purposes of this article, and regardless of whether the land be within or without the limits of the municipality involved. Public lands shall be governed in the manner and on the terms provided by law for the specific classes thereof. Any municipal port authority or commission listed in subsection (4) of this section or any municipal port authority or commission which constructed improvements prior to July 1, 1989, on public lands which are public trust tidelands and which has continuously operated a public facility on those public lands since that date, shall have management and control of the site within the boundaries of the site as described in subsection (4) of this section or as it existed on July 1, 1989, as the case may be, subject to the constitutional prohibition against donations of public property, and any such municipal port authority or commission shall receive the revenues generated from the public facility, including revenues generated by any gaming vessels which were located on such public property prior to the effective date of this act. Likewise, if any such municipal port authority or commission has obtained a legislative grant of title to specifically described tidelands, the municipal port authority or commission shall receive the revenues generated from those tidelands. All leases and agreements executed for gaming purposes on the tidelands by municipal port authorities or commissions prior to the effective date of this act shall remain in full force and effect and may be renewed by the port authority or commission. Any agreements executed for management and control of the tidelands between municipal port authorities or commissions and the Secretary of State shall likewise remain in full force and effect and may be renewed by the Secretary of State with the approval of the Governor. All leases executed for gaming purposes on the tidelands after the effective date of this act shall be executed in accordance with Section 29-1-107 and any funds derived from lease rentals shall be deposited in accordance with Section 29-15-9. Further, the Secretary of State, as trustee of the public trust tidelands, with the approval of the Governor, shall have the authority to execute intergovernmental agreements with any political subdivision of the state for the development, management, maintenance and operation by a political subdivision of any non-gaming project which does not exceed ten (10) acres located on public trust tidelands. The duration of the intergovernmental agreement shall be concurrent with the term of the lease of the public trust tidelands which are the subject of the agreement. The intergovernmental agreements may provide for dedication of revenue generated on the lands for debt service associated with the design, construction or repair of the project, operation and maintenance expenses of the facility or facilities, and other operating expenses of the political subdivision.

(4) The municipal port authority and commission and the facilities of such authority or commission on public lands which are public trust tidelands is the Biloxi Port Commission, Biloxi Small Craft Harbor, 10.54 acres, in Section 28, Township 7 South, Range 9 West, Point Cadet Marina, 5.66 acres, in Section 34, Township 7 South, Range 9 West, and Lighthouse Pier Project, 12.27 acres, in Section 33, Township 7 South, Range 9 West.

(5) The municipal authorities or commission herein provided for, in the exercise of the powers granted hereunder, shall have the right to provide any of the aforesaid facilities alone or in collaboration and in conjunction with any other public bodies, entities or commissions, as may now or hereafter be established by law.

(6) The municipal authorities or commission herein provided for shall have specifically the authority to provide, among other harbor facilities, small craft and pleasure craft harbors and facilities needed therefor, including park and recreational facilities other than gaming facilities as an adjunct thereto, and in order to develop and promote tourist and recreational trade in the port.

(7) The municipal authorities or commission herein provided for shall have the further power and authority in carrying out the provisions of this article, to employ engineers, attorneys, and such employees as may be necessary in carrying out the provisions of this article, from time to time, and for the purpose of operating the facilities herein provided for, and shall be authorized to prescribe reasonable compensation in connection with such employment.

SECTION 3. Section 59-9-21, Mississippi Code of 1972, is amended as follows:

59-9-21. (1) In addition to the powers and authority elsewhere conferred by this chapter, the board of supervisors of any county in which there has been created a county port authority or county development commission, acting through its county port authority or county development commission, shall have the power and authority to rebuild and restore to its previous width and height any sloping beach or sand beach heretofore pumped in or dredged to protect a public highway extending along the beach or shore of any body of tidewater which is exposed to or in danger of damage by water driven against the shore by storms or hurricanes, as heretofore authorized by Section 1 of Chapter 319 enacted at the 1924 Regular Session of the Mississippi Legislature; and to let by competitive bids a contract therefor in the manner and by the procedure set out in Section 59-9-27. In addition to bonds heretofore issued pursuant to Chapter 462, Laws of 1971, the board of supervisors may issue and sell full faith and credit bonds of said county in the manner and by the procedure set out in this chapter in an amount not exceeding Four Million Dollars ($4,000,000.00), subject to the limitations and conditions of this chapter, and may apply thereon any funds now or hereafter made available to the use or pledge of the said development commission, and to dredge, fill in and reclaim submerged lands and tidelands belonging to the State of Mississippi.

(2) It is hereby declared that the leasing for the development of port and related industrial facilities of the following described submerged lands and tidelands belonging to the State of Mississippi in an area immediately adjacent to the present port and industrial complex known as the Bayou Casotte Area in Jackson County, Mississippi, will serve a higher public interest in accordance with the purposes of this section and with the public policy of this state as set forth in Section 49-27-3, said property being more particularly described as follows:

Commencing at the Northeast corner of the Southeast Quarter of Section 20, Township 8 South, Range 5 West and at grid coordinates N242,489.57 feet, E606,331.52 feet; runs thence North 89 degrees 10' 22" East along the Mid-Section Line of Section 21, Township 8 South, Range 5 West, 661.48 feet to a point at grid coordinates N242,499.12 feet, E606,992.93 feet; runs thence South 0 degrees 27' 25" East 1,621.39 feet to a two inch iron pipe with cap, set in concrete at grid coordinates N240,877.78 feet, E607,005.86 feet, said point being the Southeast corner of the property conveyed to Corchem, Inc., by H.K. Porter Company, Inc., by instrument dated December 31, 1971, recorded in Deed Book 419, page 182, Land Deed records of Jackson County, Mississippi, and being the point of beginning; runs thence South 0 degrees 27' 25" East, 1,018.61 feet to a point on the South line of said Section 21, said point being North 89 degrees 18' 22" East, 650.33 feet, of the Southwest corner of said Section 21; runs thence South 0 degrees 27' 25" East, 2,306.58 feet, to a two inch iron pipe with cap, set in concrete at grid coordinates N237,552.70 feet, E607,032.37 feet; thence continues South 0 degrees 27' 25" East 173 feet, more or less, to the mean water line of the Mississippi Sound, at scaled grid coordinates N237,379 feet, N607,033 feet; runs thence South 0 degrees 27' 25" East 1,379 feet, more or less, to the intersection of the N236,000 grid line, at grid coordinates N236,000.00 feet, E607,044.75 feet; runs thence North 90 degrees 00' 00" West, with the N236,000 grid line, 3,305 feet, more or less, to the mean water line of the Mississippi Sound on the East side of a Spoil Island, at scaled grid coordinates N236,000 feet, E603,740 feet; runs thence across said Spoil Island, North 90 degrees 00' 00" West, 195 feet, more or less, to the mean water line of the Mississippi Sound on the West side of said Spoil Island at scaled grid coordinates N236,000 feet, E603,545 feet; runs thence North 90 degrees 00' 00" West, with the N236,000 grid line 2,140 feet, more or less, to the East Harbor Line of Bayou Casotte at grid coordinates N236,000.00 feet, E601,404.38 feet; runs thence with the East Harbor Line of Bayou Casotte North 0 degrees 03' 00" West, 4,056.52 feet to a point at grid coordinates N240,056.52 feet, E601,400.84 feet; thence continues with the East Harbor Line of Bayou Casotte North 6 degrees 34' 54" East, 746.48 feet to a point that is South 89 degrees 10' 22" West of the point of beginning and at grid coordinates N240,798.08 feet, E601,486.40 feet; runs thence North 89 degrees 10' 22" East, 780 feet, more or less, to the mean water line of the Mississippi Sound at scaled grid coordinates N240,809 feet, E602,266 feet; runs thence North 89 degrees 10' 22" East, 60 feet, more or less, to a two inch iron pipe with cap, set in concrete at grid coordinates N240,810.22 feet, E602,326.35 feet; thence continues North 89 degrees 10' 22" East, along the South boundary of Corchem, Inc., property 4,680.00 feet to the point of beginning and contains 623.7 acres, more or less. The real property herein described is situated in the South one half of Section 20, Southwest Quarter of the Southwest Quarter of Section 21, West one half of the Northwest Quarter of Fractional Section 28, and Fractional Section 29, all being located in Township 8 South, Range 5 West, Jackson County, Mississippi.

LESS AND EXCEPT any portion of the following described property which is not owned or otherwise held in trust by the State of Mississippi:

Commencing at the Northeast corner of the Southeast Quarter of Section 20, Township 8 South, Range 5 West and at grid coordinates N242,489.57 feet, E606,331.52 feet; runs thence North 89 degrees 10' 22" East along the Mid-Section line of Section 21, Township 8 South, Range 5 West, 661.48 feet to a point at grid coordinates N242,499.12 feet, E606,992.93 feet; runs thence South 0 degrees 27' 25" East, 1621.39 feet to a two inch iron pipe with cap, set in concrete, at grid coordinates N240,877.78 feet, E607,005.86 feet, said point being the Southeast corner of the property conveyed to Corchem, Inc., by H.K. Porter Company, Inc., by deed dated December 31, 1971, recorded in Deed Book 419, page 182, Land Deed Records of Jackson County, Mississippi, and the point of beginning; runs thence South 0 degrees 27' 25" East, 1,018.61 feet to a point on the South line of said Section 21, said point being 650.33 feet East of the Southwest corner of said Section 21; runs thence South 0 degrees 27' 25" East 2,306.58 feet to a two inch iron pipe with cap, set in concrete at grid coordinates N237,552.70 feet, E607,032.37 feet; thence continues South 0 degrees 27' 25" East, 173 feet, more or less, to the mean water line of the Mississippi Sound as existed in 1961; runs thence Northwesterly along the said meandering mean water line to a point on the West line of Fractional Section 28, Township 8 South, Range 5 West; thence continues along the meandering mean water line of the Mississippi Sound in a Northwesterly direction to a point on the North line of Fractional Section 29, Township 8 South, Range 5 West; thence continues along said meandering water line of the Mississippi Sound in a Northwesterly direction to a point that is South 89 degrees 10' 22" West of the point of beginning; runs thence North 89 degrees 10' 22" East, 60 feet, more or less, to a two inch iron pipe with cap, set in concrete, at grid coordinates N240,810.22 feet, E602,326.35 feet; thence continues North 89 degrees 10' 22" East along the South boundary of Corchem, Inc., property, 4,680.00 feet to the point of beginning. The parcel of land herein described is situated in the South one-half of Section 20, the Southwest Quarter of the Southwest Quarter of Section 21, the West one-half of the Northwest Quarter of Fractional Section 28, and Fractional Section 29, all being in Township 8, Range 5 West, Jackson County, Mississippi, and contains 205.4 acres, more or less. Bearings and grid coordinates used in this description refer to the Transverse Mercator Projection for the State of Mississippi East Zone.

(3) It is hereby declared that the leasing or use for commercial fishing purposes, port purposes and for industrial development related thereto of the following described submerged lands and tidelands belonging to the State of Mississippi in an area lying between the East Pascagoula River and Middle River, Jackson County, Mississippi, will serve a higher public interest in accordance with the purposes of this section and with the public policy of this state as set forth in Section 49-27-3, said property being more particularly described as follows:

All that part of the Lowry Island Resurvey, which is bounded on the North by the L & N Railroad Track; on the East by the East Pascagoula River; on the West by Middle River; and on the South by the Mississippi Sound; and also the dredged-up Spoil Island, known as Singing River Island, lying South of the above described land and South of the launching channel South of the lands leased to Litton Ship Systems, Inc., and lying West of the federally maintained dredged channel going from Horn Island Pass to East Pascagoula River; LESS AND EXCEPT, however, that part of said property now owned by Jackson County, Mississippi, and the State of Mississippi and leased to Litton Ship Systems, Inc.

(4) Notwithstanding any provisions of law to the contrary, the county port authority of the county in which such state lands are located is hereby authorized to apply for and secure a lease for a period of not to exceed ninety-nine (99) years of such state lands as may be necessary for the development of commercial fishing, port and related industrial facilities in the aforesaid areas described in subsections (2) and (3) hereof except for the provisions of subsections (5) and (6) of this section.

Application for a lease shall be made with the Secretary of State.

Utilization of any and all submerged land and/or tideland shall be in such a manner so as not to obstruct normal navigation of any normal and natural channel. Title to the property shall remain vested in the State of Mississippi.

All oil, gas and other minerals in, on or under said lands leased are hereby specifically reserved unto the State of Mississippi.

The county port authority is hereby authorized to sublease such lands for commercial fishing, port purposes and for industrial development related thereto.

All subleases executed by the county port authority shall be on such terms and conditions, and with such safeguards, as will best promote and protect the public interest. Such subleases shall be submitted to the Secretary of State for approval. Provided, however, that each sublease shall provide that if such property is not utilized within five (5) years, or if commercial fishing, industrial or port usage ceases and such termination continues for a period of two (2) years, the sublease shall terminate and all rights thereunder shall revert to the county. However, if such nonutilization for a period of five (5) years or cessation of use for a period of two (2) years shall be caused, suspended, delayed or interrupted by act of God, fire, war, rebellion, scarcity of water, insurrection, riot, strike, scarcity of labor, differences with employees, failure of a carrier to transport or furnish facilities for transportation; or as a result of some order, rule or regulation of any federal, state, municipality or other governmental agency; or as the result of failure of the sublessee to obtain any required permit or certificate; or as the result of any cause whatsoever beyond the control of sublessee, the time of such delay or interruption shall not be counted against sublessee in determining such periods of five (5) years or two (2) years. All subleases shall be for a fair and adequate consideration and the compensation and revenues therefrom may be retained by the state or shared with the county in a fashion approved by the Secretary of State for port purposes and industrial development. Such compensation and revenues may be pledged by the county to payment of any bonds required to be issued to finance such commercial fishing, port and industrial development, including a United States Navy home port. However, in the event bonds are issued as provided herein, upon the discharge and payment of the principal and interest of such bonds, any additional revenue generated shall be retained by the state or shared with the county for port purposes and industrial development in a fashion approved by the Secretary of State.

(5) (a) Notwithstanding any provisions of law to the contrary, upon selection of Jackson County as a site for a home port for a Surface Action Group and upon review of the contract authorized in Section 1 of Chapter 812, Laws of 1985, as amended, the Secretary of State is hereby authorized to lease for a period not to exceed ninety-nine (99) years or sell if required by the United States Navy or the United States Department of Defense such state lands as may be necessary for the development by the United States Navy or the United States Department of Defense for a home port and related facilities for a naval squadron in the aforesaid area described in subsection (3) hereof. It is hereby declared that the leasing or sale to the United States Navy or the United States Department of Defense of any of the aforesaid area described in subsection (3) hereof will provide a major stimulus to employment in Jackson County and the state and will serve a higher public interest in accordance with the purposes of this section and with the public policy as set forth in Section 49-27-3, and such lease or sale may be made for nominal consideration.

(i) If the subject property is to be sold to the United States Navy or to the United States Department of Defense, the instrument of conveyance, which shall be by quitclaim deed, shall include the following:

1. A reservation of all oil, gas and other minerals in, on and under the subject property subject to a provision that no exploration, exploitation or development of any minerals shall be undertaken without prior written consent of the United States Navy; which consent shall not be unreasonably withheld;

2. A reverter which shall be created, declared, imposed and resolved in said quitclaim deed according to the terms of which said title to the subject property shall automatically revert to the state. The reversion shall automatically occur if a. construction of the home port facilities has not commenced within two (2) years of the conveyance of the subject property or b. thereafter, if the subject property is no longer required by the Navy for a home port or related facilities and the Secretary of the Navy shall so determine and promptly notify the State of Mississippi of said determination. In the event of said determination, the subject property as improved shall automatically revert to the State of Mississippi, and the state may pay to the United States of America the fair market value of the Navy's improvements within five (5) years from the date of reversion, less the fair market value of the state and/or county-financed facilities; however, the county financed facilities shall revert to Jackson County unless the state finances the same or unless otherwise agreed upon by Jackson County and the state. If the State of Mississippi elects not to pay to the United States of America the fair market value of the Navy's improvements within said period of five (5) years, then said property and all facilities financed by the State of Mississippi and financed by Jackson County shall automatically revert to the United States of America.

(ii) If the subject property is to be leased to the United States Navy or to the United States Department of Defense, the lease agreement shall contain a termination clause which shall declare that the lease shall be rescinded if either of the conditions described in subsection (5)(a)(i)2 of this section occur. If the condition described in subsection (5)(a)(i)2b. of this section occurs, the United States Navy and the United States Department of Defense shall be allowed two (2) years from the date of termination or utilization of the area leased in which to remove any improvements or facilities thereon, excluding any county financed facilities, which shall revert to Jackson County unless otherwise agreed upon by Jackson County and the state. All references to payment for county financed facilities upon reversion shall also apply to the state if it finances the same.

(b) Provided, however, if revenue bonds are to be issued by the State Bond Commission under Section 1 of Chapter 500, Laws of 1985, then the lands referred to in paragraph (a) of this subsection shall not be sold to the United States Navy or to the United States Department of Defense but may only be leased and such lease may contain an option to purchase when such bonds are retired. In this case an additional clause shall be included in the lease agreement to provide that upon termination of the lease agreement prior to the retirement of all revenue bonds issued under Section 1 of Chapter 306, Laws of 1987, such payments by the United States Navy or the United States Department of Defense as are necessary to retire such revenue bonds shall become due and payable on the date of the termination of the lease.

(6) Public lands shall be governed in the manner and on the terms provided by law for the specific classes thereof. Any county port authority or commission listed in subsection (7) of this section or any county port authority or commission which constructed improvements prior to July 1, 1989, on public lands which are public trust tidelands and which has continuously operated a public facility on those public lands since that date, shall have management and control of the site within the boundaries of the site as described in subsection (7) of this section or as it existed on July 1, 1989, as the case may be, subject to the constitutional prohibition against donations of public property, and any such county port authority or commission shall receive the revenues generated from the public facility. Likewise, if any such county port authority or commission has obtained a legislative grant of title to specifically described tidelands, the county port authority or commission shall receive the revenues generated from those tidelands. All leases and agreements executed for gaming purposes on the tidelands by such county port authorities or commissions prior to the effective date of this act shall remain in full force and effect and may be renewed by the port authority or commission. Any agreements executed for management and control of the tidelands between county port authorities or commissions and the Secretary of State shall likewise remain in full force and effect and may be renewed by the Secretary of State with the approval of the Governor. All leases executed for gaming purposes on the tidelands after the effective date of this act shall be executed in accordance with Section 29-1-107 and any funds derived from lease rentals shall be deposited in accordance with Section 29-15-9. Further, the Secretary of State, as trustee of the public trust tidelands, with the approval of the Governor, shall have the authority to execute intergovernmental agreements with any political subdivision of the state for the development, management, maintenance and operation by a political subdivision of any non-gaming project which does not exceed ten (10) acres located on public trust tidelands. The duration of the intergovernmental agreement shall be concurrent with the term of the lease of the public trust tidelands which are the subject of the agreement. The intergovernmental agreements may provide for dedication of revenue generated on the lands for debt service associated with the design, construction or repair of the project, operation and maintenance expenses of the facility or facilities, and other operating expenses of the political subdivision.

(7) The county port authorities and commissions and their facilities on public lands which are public trust tidelands are:

(a) Hancock County Port and Harbor Commission, Port Bienville, .86 acre, in Section 34, Township 9 South, Range 16 West and Section 3, Township 10 South, Range 16 West, and Bay of St. Louis Management Area, as provided by agreement between the Secretary of State and the Hancock County Port and Harbor Commission, 10.25 acres, in Section 1, Township 8 South, Range 14 West; and

(b) Jackson County Port Authority described in subsections (2) and (3) of this section.

(8) This section is to be considered as supplementary and cumulative and nothing in this section shall be construed as repealing existing laws, or as repealing or amending any options, leases, deeds, contracts, agreements or legal instruments heretofore entered into by the board of supervisors of such county, the county port authority, the governing authorities of the municipality in which the port of entry is located, or the port commission. The grant of powers to the board of supervisors of such county, the county port authority, the governing authorities of the municipality in which the port of entry is located, and the port commission, where granted herein by reference to existing statutes, shall incorporate such statutes herein seriatim, and the subsequent amendment or repeal of such statutes shall not limit or rescind the powers and authority hereby conferred unless expressly so provided in such amending or repealing statute.

SECTION 4. This act shall take effect and be in force from and after its passage.