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H.B. 277

             1     

UTAH STATE FAIRPARK LEASE

             2     
1999 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Bill Wright

             5      AN ACT RELATING TO STATE AFFAIRS; CLARIFYING THE LEASE; PROVIDING FOR
             6      EXTENSION OF TERM OF LEASE; AND MAKING TECHNICAL CHANGES.
             7      This act affects sections of Utah Code Annotated 1953 as follows:
             8      AMENDS:
             9          63A-5-306, as last amended by Chapter 214, Laws of Utah 1997
             10      Be it enacted by the Legislature of the state of Utah:
             11          Section 1. Section 63A-5-306 is amended to read:
             12           63A-5-306. Leasing of State Fair Park -- Lease -- Terms.
             13          (1) As used in this section:
             14          (a) "Corporation" means the Utah State Fair Corporation created in Section 9-4-1103 .
             15          (b) "Division" means the Division of Facilities Construction and Management.
             16          (c) "State fair park" means the property and buildings owned by the state located at 155
             17      North 1000 West, Salt Lake City, Utah.
             18          (2) The division shall:
             19          (a) [beginning July 1, 1997,] lease the state fair park to the corporation for a period [of 20
             20      years] beginning July 1, 1997, and ending June 30, 2017, at which time the lease may be renewed:
             21          (i) at the discretion of the division; and
             22          (ii) for any time-period negotiated with the corporation[.]; and
             23          (b) ensure that the lease:
             24          (i) defines which party is responsible for repairs and maintenance to the grounds and
             25      buildings;
             26          (ii) defines any restrictions on the use of the property or buildings, including the
             27      construction of any new buildings or facilities at the state fair park;


             28          (iii) requires that for each year under the lease the corporation holds a state fair meeting
             29      the requirements of Subsection 9-4-1103 (5)(a)(vi); and
             30          (iv) provides for the renegotiation or termination of the lease if the corporation:
             31          (A) no longer operates as an independent public nonprofit corporation as provided in Title
             32      9, Chapter 4, Part 11, Utah State Fair Corporation Act[.]; or
             33          (B) engages in any activity inconsistent with Title 9, Chapter 4, Part 11, Utah State Fair
             34      Corporation Act.
             35          (3) (a) Notwithstanding Subsection (2), the division may review and adjust the amount of
             36      any payments made by the corporation under the lease every three years beginning July 1, 2000.
             37          (b) Notwithstanding Subsection (2)(a), the division may lease the state fair park to the
             38      corporation for a period beginning July 1, 1997, and ending no later than June 30, 2037, if:
             39          (i) the corporation demonstrates to the satisfaction of the division that the extension of the
             40      lease period will result in significant capital improvements at the state fair park by a private entity;
             41      and
             42          (ii) the division notifies the speaker of the House of Representatives and the president of
             43      the Senate of its intention to extend the lease period in accordance with this Subsection (3)(b) at
             44      least 30 calendar days before the date the division executes any agreement to extend the lease
             45      period.
             46          (4) The state shall assume the responsibilities of the corporation under any contract that
             47      is in effect on the day a lease between the division and the corporation terminates if:
             48          (a) the contract is for the lease or construction of a building or facility at the state park; and
             49          (b) the lease between the division and the corporation is terminated in accordance with [the
             50      renegotiation provided for under] Subsection (2)(b)(iv).
             51          (5) (a) Payments made by the corporation under a lease with the division shall be deposited
             52      into the Capital Project Fund.
             53          (b) If in accordance with Subsection (3), the payments made by the corporation under a
             54      lease with the division are increased from the amount paid on July 1, 1997, the lease payments
             55      made by the division shall be dedicated to capital improvements at the state fair park unless, as part
             56      of the capital budget, the Legislature directs that the monies be used for other capitol
             57      improvements.





Legislative Review Note
    as of 2-1-99 9:00 AM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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