The passage of this bill requires the Division of Facilities Construction and Management to enter into a long term ground lease between Utah Valley State College and the State Developmental Center. Although the lease should reflect fair market value, there is no specific provision for the date of enactment, length, or the amount of the lease. As a result, specific fiscal impact cannot be identified at this time. However, as an example, if the land is valued at $50,000 per acre, with a 5 percent rate of interest, a 20 year lease would result in annual payments of $401,200. If the lease were to run 50 years the annual cost would be $273,900. It should also be noted that the proceeds of this lease will be deposited into the Trust Fund for People with Disabilities to be used for programs as identified in UCA 63A-5-201.

Office of the Legislative Fiscal Analyst