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S.B. 234

This document includes Senate Committee Amendments incorporated into the bill on Fri, Feb 20, 2004 at 3:18 PM by smaeser. -->              1     




Sponsor: James M. Evans


             6      LONG TITLE
             7      General Description:
             8          This bill provides for leases of the state fair park.
             9      Highlighted Provisions:
             10          This bill:
             11          .    allows the Division of Facilities Construction and Management to lease the state
             12      fair park to the Utah State Fair Corporation for up to 50 years and provides for
             13      subleases of up to 50 years.
             14      Monies Appropriated in this Bill:
             15          None
             16      Other Special Clauses:
             17          None
             18      Utah Code Sections Affected:
             19      AMENDS:
             20          63A-5-306, as last amended by Chapter 297, Laws of Utah 1999

             22      Be it enacted by the Legislature of the state of Utah:
             23          Section 1. Section 63A-5-306 is amended to read:
             24           63A-5-306. Leasing of state fair park -- Lease -- Terms -- Demolition of facilities
             25      -- Limits on debt or obligations.
             26          (1) As used in this section:
             27          (a) "Corporation" means the Utah State Fair Corporation created in Section 9-4-1103 .

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         (b) "Division" means the Division of Facilities Construction and Management.
             29          (c) "State fair park" means the property and buildings owned by the state located at 155
             30      North 1000 West, Salt Lake City, Utah.
             31          (2) The division shall:
             32          (a) lease the state fair park to the corporation for a period beginning July 1, 1997, and
             33      ending June 30, 2017, at which time the lease may be renewed:
             34          (i) at the discretion of the division; and
             35          (ii) for any time period negotiated with the corporation;
             36          (b) ensure that the lease:
             37          (i) defines which party is responsible for repairs and maintenance to the grounds and
             38      buildings;
             39          (ii) defines any restrictions on the use of the property or buildings, including the
             40      construction of any new buildings or facilities at the state fair park;
             41          (iii) requires that for each year under the lease the corporation holds a state fair meeting
             42      the requirements of Subsection 9-4-1103 (5)(a)(vi); and
             43          (iv) provides for the renegotiation or termination of the lease if the corporation:
             44          (A) no longer operates as an independent public nonprofit corporation as provided in
             45      Title 9, Chapter 4, Part 11, Utah State Fair Corporation Act; or
             46          (B) engages in any activity inconsistent with Title 9, Chapter 4, Part 11, Utah State Fair
             47      Corporation Act; and
             48          (c) if the lease described in Subsection (2)(a) is amended or renewed after the effective
             49      date of this act and except as provided in Subsection (3), requires the corporation under the
             50      lease to:
             51          (i) obtain the approval of the State Building Board before demolishing a facility at the
             52      state fair park; and
             53          (ii) include the approval requirement described in Subsection (2)(c)(i) in any sublease
             54      entered into, renewed, or amended after the effective date of this act.
             55          (3) (a) The approval required under Subsection (2)(c) does not apply to a facility
             56      demolished in accordance with a contract entered into but not amended before the effective
             57      date of this act.
             58          (b) Notwithstanding Subsection (3)(a), before a facility described in Subsection (3)(a)

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Senate Committee Amendments 2-20-2004 sm/jlw
     is demolished, the corporation shall notify the division concerning any demolishing of the
             60      facility.
             61          (4) The State Building Board shall notify the state historic preservation office of any
             62      State Building Board meeting at which consideration will be given to a proposal to demolish
             63      facilities at the state fair park.
             64          (5) (a) Notwithstanding Subsection (2), the division may review and adjust the amount
             65      of any payments made by the corporation under the lease every three years beginning July 1,
             66      2000.
             67          (b) (i) [Notwithstanding] Beginning July 1, 2004, and notwithstanding Subsection
             68      (2)(a), the division may lease the state fair park to the corporation for a period [beginning July
             69      1, 1997, and ending no later than June 30, 2039] of up to 50 years, if the corporation
             70      demonstrates to the satisfaction of the division that the extension of the lease period will result
             71      in significant capital improvements at the state fair park by a private S OR PUBLIC s entity.
             72          (ii) The corporation may enter into a sublease of up to 50 years, subject to satisfying
             73      the requirements of Subsections (2)(c)(i) and (5)(b)(i).
             74          (6) The state shall assume the responsibilities of the corporation under any contract that
             75      is in effect on the day a lease between the division and the corporation terminates if:
             76          (a) the contract is for the lease or construction of a building or facility at the state park;
             77      and
             78          (b) the lease between the division and the corporation is terminated in accordance with
             79      Subsection (2)(b)(iv).
             80          (7) (a) Payments made by the corporation under a lease with the division shall be
             81      deposited into the Capital Project Fund.
             82          (b) If, in accordance with Subsection (3), the payments made by the corporation under
             83      a lease with the division are increased from the amount paid on July 1, 1997, the lease
             84      payments made by the division shall be dedicated to capital improvements at the state fair park
             85      unless, as part of the capital budget, the Legislature directs that the monies be used for other
             86      capital improvements.
             87          (8) (a) A debt or obligation contracted by the corporation is a debt or obligation of the
             88      corporation.
             89          (b) The state is not liable for and assumes no legal or moral responsibility for any debt

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     or obligation described in Subsection (8)(a), unless the Legislature through statute or an
             91      appropriation act specifically:
             92          (i) authorizes the corporation to contract for that debt or obligation; and
             93          (ii) accepts liability for or assumes responsibility for the debt or obligation.

Legislative Review Note
    as of 2-11-04 4:25 PM

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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