Senate Bill 2519

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 LEASES AND SUBLEASES OF PROPERTY LOCATED THEREON FOR THE PURPOSE OF ENTERING INTO PUBLIC PROPERTY LOCATED THEREON FOR THE PURPOSE OF ENTERING INTO PUBLIC- PRIVATE PARTNERSHIPS TO DEVELOP STUDENT HOUSING AND OTHER FACILITIES TO BENEFIT THE UNIVERSITY; TO PROVIDE THAT THE TERM OF SUCH LEASES SHALL NOT EXCEED 45 YEARS AND TWO ADDITIONAL OPTIONS FOR A RENEWAL PERIOD NOT TO EXCEED FIVE YEARS; TO PROVIDE THAT LEASES OR SUBLEASES ENTERED INTO BY THE BOARD SHALL BE PROTECTED FROM ACTIONS OF SUCCESSOR BOARDS BASED ON THE BINDING SUCCESSOR DOCTRINE; 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 certain real property under its control and possession. The property described in this section shall be leased for a period not to exceed a term of forty-five (45) years with two (2) additional options for renewal periods not to exceed ten (10) years and one (1) additional option for a renewal period not to exceed five (5) years, for the purposes of developing buildings, housing, parking garage facilities, dining halls and/or other retail developments, and/or other spaces for the benefit of the university. The property to be leased shall be more particularly described upon completion of surveys, but are currently described as follows:

(a) "Kincannon" is located on the northern portion of the core campus;

(b) "West Row" is located on the western portion of the core campus;

(d) "South Campus Recreation Center" is located south of the core campus, across Highway 6; and

(e) "Duff Center South" is located on the core campus.

(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 forty-five (45) years with two (2) additional options for renewal periods not to exceed ten (10) years and one (1) additional option for a renewal period not to exceed five (5) 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 Sections 1 and 2 of this act 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 and all improvements to such property 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.