Senate Bill 2728

AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNING, ACTING ON BEHALF OF THE UNIVERSITY OF MISSISSIPPI TO ENTER INTO A LONG-TERM LEASE OF ALL OR ANY PORTION OF REAL PROPERTY UNDER ITS CONTROL AND POSSESSION FOR THE PURPOSE OF DEVELOPING ACADEMIC BUILDINGS, HOUSING, DINING HALLS, PARKING FACILITIES, AND/OR OTHER SPACES, INCLUDING RETAIL DEVELOPMENTS, FOR THE BENEFIT OF THE UNIVERSITY; TO PROVIDE THAT ANY SUCH PROPERTY SHALL BE LEASED FOR A PERIOD NOT TO EXCEED 65 YEARS; TO SET CERTAIN OTHER LEASE TERMS AND TO REQUIRE ANY LEASE TO BE SUBJECT TO THE APPROVAL OF I.H.L.; TO AUTHORIZE THE UNIVERSITY OF MISSISSIPPI TO NEGOTIATE ALL ASPECTS OF ANY LEASE WITH THE APPROVAL OF I.H.L.; TO PROVIDE THAT ALL PROCEEDS DERIVED FROM ANY SUCH LEASE SHALL BE DEPOSITED INTO A SPECIAL FUND ONLY FOR THE USE OF THE UNIVERSITY; TO REQUIRE ANY PROPERTY LEASED UNDER THIS ACT TO REVERT BACK TO THE UNIVERSITY AT THE END OF THE LEASE; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) The Board of Trustees of State Institutions of Higher Learning, acting on behalf of the University of Mississippi, is authorized to enter into a long-term lease of all or any portion of real property under its control and possession for the purpose of developing academic buildings, housing, dining halls, parking facilities, and/or other spaces (including retail developments) for the benefit of the university. The property shall be leased for a period not to exceed sixty-five (65) years.

(2) The lease and any amendments to the lease of all or any portion of the real property authorized for lease under subsection (1) of this section shall be subject to the approval of the Board of Trustees of State Institutions of Higher Learning. The approved lease and any amendments to the lease shall not be cancelled by successor boards based on the binding successor doctrine.

SECTION 2. (1) The Board of Trustees of State Institutions of Higher Learning, acting on behalf of the University of Mississippi, is authorized to enter into a long-term sublease of all or any portion of the real property described in Section 1 of this act which is under its control and possession for a period not to exceed a term of sixty-five (65) years.

(2) The sublease and any amendments to the sublease of all or any portion of the real property described in Section 1 of this act shall be subject to the approval of the Board of Trustees of State Institutions of Higher Learning. The approved sublease and any amendments to the sublease shall not be cancelled by successor boards based on the binding successor doctrine.

SECTION 3. If all or any portion of the property described in Section 1 of this act is leased, the University of Mississippi, 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 reasonably necessary to effectuate the intent and purposes of this section and to ensure a fair and equitable return to the state.

SECTION 4. (1) All proceeds derived or received from the agreements and leases 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.

(2) At the end of the lease term provided in this act, the property leased under the authority provided herein shall revert to the University of Mississippi.

(3) The State of Mississippi shall retain all mineral rights to the real property leased under Section 1 of this act.

(4) The Department of Finance and Administration is authorized to correct any discrepancies in the property described in Section 1 of this act.

SECTION 5. This act shall take effect and be in force from and after its passage and shall only be applicable to any leases signed by the University of Mississippi before December 31, 2026.