S.B. 234 Enrolled

STATE FAIR PARK LEASING AGREEMENTS
2004 GENERAL SESSION
STATE OF UTAH
Sponsor: James M. Evans

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

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 63A-5-306 is amended to read:
63A-5-306. Leasing of state fair park -- Lease -- Terms -- Demolition of facilities
-- Limits on debt or obligations.
(1) As used in this section:
(a) "Corporation" means the Utah State Fair Corporation created in Section 9-4-1103 .
(b) "Division" means the Division of Facilities Construction and Management.
(c) "State fair park" means the property and buildings owned by the state located at 155

North 1000 West, Salt Lake City, Utah.
(2) The division shall:
(a) lease the state fair park to the corporation for a period beginning July 1, 1997, and
ending June 30, 2017, at which time the lease may be renewed:
(i) at the discretion of the division; and
(ii) for any time period negotiated with the corporation;
(b) ensure that the lease:
(i) defines which party is responsible for repairs and maintenance to the grounds and
buildings;
(ii) defines any restrictions on the use of the property or buildings, including the
construction of any new buildings or facilities at the state fair park;
(iii) requires that for each year under the lease the corporation holds a state fair meeting
the requirements of Subsection 9-4-1103 (5)(a)(vi); and
(iv) provides for the renegotiation or termination of the lease if the corporation:
(A) no longer operates as an independent public nonprofit corporation as provided in
Title 9, Chapter 4, Part 11, Utah State Fair Corporation Act; or
(B) engages in any activity inconsistent with Title 9, Chapter 4, Part 11, Utah State Fair
Corporation Act; and
(c) if the lease described in Subsection (2)(a) is amended or renewed after the effective
date of this act and except as provided in Subsection (3), requires the corporation under the lease
to:
(i) obtain the approval of the State Building Board before demolishing a facility at the
state fair park; and
(ii) include the approval requirement described in Subsection (2)(c)(i) in any sublease
entered into, renewed, or amended after the effective date of this act.
(3) (a) The approval required under Subsection (2)(c) does not apply to a facility
demolished in accordance with a contract entered into but not amended before the effective date
of this act.

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(b) Notwithstanding Subsection (3)(a), before a facility described in Subsection (3)(a) is
demolished, the corporation shall notify the division concerning any demolishing of the facility.
(4) The State Building Board shall notify the state historic preservation office of any State
Building Board meeting at which consideration will be given to a proposal to demolish facilities at
the state fair park.
(5) (a) Notwithstanding Subsection (2), the division may review and adjust the amount of
any payments made by the corporation under the lease every three years beginning July 1, 2000.
(b) (i) [Notwithstanding] Beginning July 1, 2004, and notwithstanding Subsection (2)(a),
the division may lease the state fair park to the corporation for a period [beginning July 1, 1997,
and ending no later than June 30, 2039] of up to 50 years, if the corporation demonstrates to the
satisfaction of the division that the extension of the lease period will result in significant capital
improvements at the state fair park by a private or public entity.
(ii) The corporation may enter into a sublease of up to 50 years, subject to satisfying the
requirements of Subsections (2)(c)(i) and (5)(b)(i).
(6) The state shall assume the responsibilities of the corporation under any contract that is
in effect on the day a lease between the division and the corporation terminates if:
(a) the contract is for the lease or construction of a building or facility at the state park;
and
(b) the lease between the division and the corporation is terminated in accordance with
Subsection (2)(b)(iv).
(7) (a) Payments made by the corporation under a lease with the division shall be
deposited into the Capital Project Fund.
(b) If, in accordance with Subsection (3), the payments made by the corporation under a
lease with the division are increased from the amount paid on July 1, 1997, the lease payments
made by the division shall be dedicated to capital improvements at the state fair park unless, as
part of the capital budget, the Legislature directs that the monies be used for other capital
improvements.
(8) (a) A debt or obligation contracted by the corporation is a debt or obligation of the

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corporation.
(b) The state is not liable for and assumes no legal or moral responsibility for any debt or
obligation described in Subsection (8)(a), unless the Legislature through statute or an
appropriation act specifically:
(i) authorizes the corporation to contract for that debt or obligation; and
(ii) accepts liability for or assumes responsibility for the debt or obligation.

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