Senate Bill 2233

(COMMITTEE SUBSTITUTE)

AN ACT TO AUTHORIZE THE UNIVERSITY OF MISSISSIPPI MEDICAL CENTER, WITH THE APPROVAL OF THE BOARD OF TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNING, TO LEASE A CERTAIN PORTION OF ITS PROPERTY THAT IS LOCATED IN THE CITY OF JACKSON, MISSISSIPPI, FOR A TERM OF NO MORE THAN 40 YEARS TO THE AMERICAN CANCER SOCIETY; TO AUTHORIZE MISSISSIPPI STATE UNIVERSITY TO ENTER INTO A LONG-TERM AGREEMENT TO LEASE AND SUBLEASE A PORTION OF ITS PROPERTY FOR THE PURPOSES OF DEVELOPING FACILITIES FOR HOUSING AND/OR RETAIL; TO PROVIDE THAT THE LEASE AND SUBLEASE SHALL BE SUBJECT TO THE APPROVAL OF THE BOARD OF TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNING; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) The University of Mississippi Medical Center, with the approval of the Board of Trustees of State Institutions of Higher Learning, is authorized to enter into an agreement to lease a part of its real property for a term of no more than forty (40) years to the American Cancer Society for temporary housing of cancer patients and their families and for associated administrative office space. The property is located in the City of Jackson, Hinds County, Mississippi, and will be more particularly described in the agreement as determined by the University of Mississippi Medical Center.

(2) The lease may include an option to renew for no more than one (1) successive term of twenty (20) years. No provision in the lease or any amendment to the lease shall be construed to authorize the sale or transfer of title to the property that will be leased.

(3) The lease, any amendment to the lease, any lease renewal and the description of the property to be leased shall be subject to the approval of the Board of Trustees of State Institutions of Higher Learning. The approved lease, any amendments to the lease and any lease renewal shall not be cancelled by successor boards based on the binding successor doctrine.

(4) All proceeds derived or received from the lease entered into under this section shall be deposited into a special fund and expended only for the use and benefit of the University of Mississippi Medical Center.

SECTION 2. (1) (a) Mississippi State University of Agriculture and Applied Sciences ("MSU")is authorized to enter into a long-term lease of all or any portion of certain property not to exceed a term of forty (40) years for the purposes of developing housing and/or retail to benefit MSU. The property is more particularly described as follows:

Commencing at a 1" by 1" steel tube labeled MSU property line station 28A located at the northwest corner of Lot 36 Block 28 run North 85 degrees 22 minutes 00 seconds East for 8.86 feet to a concrete right-of-way marker located on the southern right-of-way of Mississippi Highway 182; thence North 82 degrees 56 minutes 00 seconds East along said Highway 182 right-of-way for 452.38 feet to a found 1/2" rebar; thence North 87 degrees 15 minutes 05 seconds East along said Highway 182 right-of-way for 247.36 feet to a 12 inch Hackberry tree; thence continue along said right-of-way which curves to the right with a radius of 428.19 feet for an arc length of 652.15 feet (chord bearing and distance: South 50 degrees 42 minutes 20 seconds East for 590.94 feet) to a concrete right-of-way marker; thence North 82 degrees 54 minutes 20 seconds East along the western right-of-way of Mississippi Highway 12 for 13.08 feet to a 1/2" rebar; thence South 07 degrees 05 minutes 55 seconds East along said Highway 12 right-of-way for 275.06 feet to a 1/2" rebar; thence South 06 degrees 01 minutes 15 seconds West along said Highway 12 right-of-way for 208.22 to a concrete right-of-way marker, thence deflect to the left and run along said Highway 12 right-of-way which curves to the right with a radius of 2,704.63 feet for an arc length of 246.52 feet (chord bearing and distance: South 04 degrees 32 minutes 00 seconds East for 246.44 feet) to a 1/2" rebar; thence deflect to the right and run along the western right-of-way of Mississippi Highway 12 which curves to the right with a radius of 2,704.63 feet for an arc length of 502.39 feet (chord bearing and distance: South 03 degrees 23 minutes 55 seconds West for 501.66 feet); thence North 60 degrees 57 minutes 05 seconds West along the northern right-of-way of College View Street for 466.89 feet to a concrete right-of-way marker; thence South 31 degrees 28 minutes 40 seconds West for 40.87 feet to a 1/2" rebar; thence North 57 degrees 57 minutes 45 seconds West along the northern side of College View Street for 40.04 to a 1/2" rebar; thence North 57 degrees 57 minutes 45 seconds West along the northern side of College View Street for 129.83 to a 1/2" rebar; thence continue along the northern side of College View Street which curves to the left with a radius of 2,898.21 feet for an arc length of 592.66 feet (chord bearing and distance North 63 degrees 49 minutes 15 seconds West for 591.63 feet) to a 1/2" rebar; thence North 69 degrees 43 minutes 35 seconds West along the Northern side of College View Street for 76.55 feet to a 1/2" rebar; thence North 00 degrees 02 minutes 50 seconds West for 961.38 feet to the Point of Beginning.

This parcel is situated partially in the Southwest Quarter of the Southeast Quarter, Section 35, Township 19 North, Range 14 East and partially in the Northwest Quarter of the Northeast Quarter, Section 2, Township 18 North, Range 14 East all in the City of Starkville, Oktibbeha County, Mississippi and contains 34.293 acres. Said legal description prepared from a survey plat by King Engineering, Inc., for MSU Physical Plant dated August 28, 2007 and MDOT right-of-way maps.

(b) Mississippi State University of Agriculture and Applied Sciences is authorized to enter into a long-term sublease of all or any portion of the property described in subsection (1) of this section not to exceed a term of forty (40) years.

(2) Any lease or sublease authorized in this section may include an option to renew for no more than one (1) successive term of twenty (20) years. No provision in a lease, sublease or any amendment to a lease or sublease shall be construed to authorize the sale or transfer of title to the property.

(3) The lease, sublease, any amendments to the lease or sublease and any renewal leases and subleases shall be subject to the approval of the Board of Trustees of State Institutions of Higher Learning. The approved lease, sublease, any amendments to the lease or sublease and any renewal lease and sublease shall not be cancelled by successor boards based on the binding successor doctrine.

(4) (a) Before entering into or awarding any lease or sublease contract under subsection (1) of this section, the Board of Trustees of State Institutions of Higher Learning shall require MSU to select and submit three (3) proposals to the board. Thereupon, the board shall approve one (1) project manager, who shall be paid by MSU from any funds available to the University. The Manager, under the direction of MSU, shall prepare complete plans and specifications for the facility or facilities desired to be constructed or renovated on the leased property.

(b) Upon completion of the plans and specifications and the approval thereof by the board, and before entering into any lease contract, the board shall cause to be published once a week for at least three (3) consecutive weeks and not less than twenty-one (21) days in at least one (1) newspaper having a general circulation in the county in which MSU is located, in one (1) newspaper with a general statewide circulation and on the board's website, a notice inviting bids or proposals for the leasing, construction or renovation, including the furnishing, maintaining and equipping, if applicable, and leasing back, if applicable, of the land and constructed or renovated facility, including any applicable furnishings or equipment, of the facility to be constructed or renovated in accordance with the plans and specifications. The notice shall distinctly state the thing to be done, and invite sealed proposals, to be filed with the board, to do the thing to be done. The notice shall contain the following specific provisions, together with such others as the board in its discretion deems appropriate, to wit: bids shall be accompanied by a bid security evidenced by a certified or cashier's check or bid-bond payable to the board in a sum of not less than five percent (5%) of the gross construction cost of the facility to be constructed as estimated by the board and the bids shall contain proof satisfactory to the board of interim and permanent financing. The board shall state in the notice when the lease shall commence. The bid shall contain the proposed contractor's certificate of responsibility number and bidder's license. In all cases, before the notice shall be published, the plans and specifications shall be filed with the board and also in the office of the president of MSU, there to remain. The board shall award the lease contract to the lowest and best bidder, who will comply with the terms imposed by the contract documents.

(c) At the time of the awarding of the lease contract the successful bidder shall enter into bond with sufficient sureties, to be approved by the board, in such penalty as may be fixed by the board, but in no case to be less than the estimated gross construction or renovation cost of the facility to be constructed or renovated as estimated by the board, conditioned for the prompt, proper and efficient performance of the contract. The bond shall be made by an authorized corporate surety bonding company. The bid security herein provided for shall be forfeited if the successful bidder fails to enter into the lease contract and commence construction or renovation within the time limitation set forth in the notice. At such time, and simultaneously with the signing of the contract, the successful bidder shall deposit a sum of money, in cash or certified or cashier's check, not less than the bid security previously deposited as bid security to reimburse MSU for all sums expended by it for any expenditures of the board and MSU connected with the bidded lease contract, of which such other anticipated expenditures notice is to be given to bidder in the notice. The bid security posted by an unsuccessful bidder shall be refunded to him.

(5) If all or any portion of the property described in subsection (1) of this section is leased, MSU, with the approval of the Board of Trustees of State Institutions of Higher Learning, is authorized to negotiate all aspects of any lease or sublease and any terms and ancillary agreements pertaining to any lease or sublease as may be reasonable necessary to effectuate the intent and purposes of this section and to ensure a fair and equitable return to the state.

(6) All proceeds derived or received from the lease or sublease entered into under this section shall be deposited into a special fund and expended only for the use and benefit of MSU.

SECTION 3. This act shall take effect and be in force from and after its passage.