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             1     

STATE FAIR PARK AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: James R. Gowans

             5     
Senate Sponsor: Dennis E. Stowell

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends Title 63A, Chapter 5, Part 3, Division of Facilities Construction and
             10      Management Leasing, regarding the leasing of the state fair park by the division to the
             11      Utah State Fair Corporation.
             12      Highlighted Provisions:
             13          This bill:
             14          .    provides that the division may lease the state fair park to the Utah State Fair
             15      Corporation for a period not to exceed 50 years beginning July 1, 2010, premised
             16      on significant capital improvements to the fair park during the lease term; and
             17          .    provides that the White Ball Field portion of the state fair park lease shall lapse
             18      back to the division on June 30, 2017.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill takes effect on July 1, 2010.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          63A-5-306, as last amended by Laws of Utah 2004, Chapter 170
             26     
             27      Be it enacted by the Legislature of the state of Utah:
             28          Section 1. Section 63A-5-306 is amended to read:
             29           63A-5-306. Leasing of state fair park -- Lease -- Terms -- Demolition of facilities


             30      -- Limits on debt or obligations.
             31          (1) As used in this section:
             32          (a) "Corporation" means the Utah State Fair Corporation created in Section 9-4-1103 .
             33          (b) "Division" means the Division of Facilities Construction and Management.
             34          (c) "State fair park" means the property and buildings owned by the state located at
             35      155 North 1000 West, Salt Lake City, Utah.
             36          (2) The division [shall]:
             37          (a) may lease the state fair park to the corporation for a period [beginning July 1,
             38      1997, and ending June 30, 2017, at which time the lease may be renewed] not to exceed 50
             39      years:
             40          [(i) at the discretion of the division; and]
             41          [(ii) for any time period negotiated with the corporation;]
             42          (i) subject to the corporation satisfying the requirements of Subsection (5)(b)(i); and
             43          (ii) except that on June 30, 2017, that portion of the state fair park known as the White
             44      Ball Field located on the south side of North Temple Street shall revert to the division and not
             45      be a part of any continuing lease agreement between the division and the corporation, unless
             46      otherwise agreed upon by the division and the corporation prior to June 30, 2017;
             47          (b) shall ensure that [the] any lease entered into under Subsection (2)(a):
             48          (i) defines which party is responsible for repairs and maintenance to the grounds and
             49      buildings;
             50          (ii) defines any restrictions on the use of the property or buildings, including the
             51      construction of any new buildings or facilities at the state fair park;
             52          (iii) requires that for each year under the lease the corporation holds a state fair
             53      meeting the requirements of Subsection 9-4-1103 (5)(a)(vi); and
             54          (iv) provides for the renegotiation or termination of the lease if the corporation:
             55          (A) no longer operates as an independent public nonprofit corporation as provided in
             56      Title 9, Chapter 4, Part 11, Utah State Fair Corporation Act; or
             57          (B) engages in any activity inconsistent with Title 9, Chapter 4, Part 11, Utah State


             58      Fair Corporation Act; [and]
             59          (c) may:
             60          (i) require that any lease entered into under Subsection (2)(a) grants the division the
             61      right to unilaterally terminate the lease at its discretion; and
             62          (ii) provide a process to determine compensation, if any, the division shall pay the
             63      corporation for termination of the lease under Subsection (2)(c)(i); and
             64          [(c)] (d) if the lease described in Subsection (2)(a) is amended or renewed after the
             65      effective date of this act and except as provided in Subsection (3), [requires] shall require the
             66      corporation under the lease to:
             67          (i) obtain the approval of the State Building Board before demolishing a facility at the
             68      state fair park; and
             69          (ii) include the approval requirement described in Subsection (2)[(c)](d)(i) in any
             70      sublease entered into, renewed, or amended after the effective date of this act.
             71          (3) (a) The approval required under Subsection (2)[(c)](d) does not apply to a facility
             72      demolished in accordance with a contract entered into but not amended before the effective
             73      date of this act.
             74          (b) Notwithstanding Subsection (3)(a), before a facility described in Subsection (3)(a)
             75      is demolished, the corporation shall notify the division concerning any demolishing of the
             76      facility.
             77          (4) The State Building Board shall notify the state historic preservation office of any
             78      State Building Board meeting at which consideration will be given to a proposal to demolish
             79      facilities at the state fair park.
             80          (5) (a) Notwithstanding Subsection (2), the division may review and adjust the amount
             81      of any payments made by the corporation under the lease every three years beginning July 1,
             82      2000.
             83          (b) (i) [Beginning July 1, 2004, and notwithstanding Subsection (2)(a), the] The
             84      division may lease the state fair park to the corporation for a period [of up to] not to exceed 50
             85      years, if the corporation demonstrates to the satisfaction of the division that the [extension of


             86      the] lease period will result in significant capital improvements at the state fair park by a
             87      private or public entity.
             88          (ii) The corporation may enter into a sublease of up to 50 years, subject to satisfying
             89      the requirements of Subsections (2)[(c)](d)(i) and (5)(b)(i).
             90          (6) The state shall assume the responsibilities of the corporation under any contract
             91      that is in effect on the day a lease between the division and the corporation terminates if:
             92          (a) the contract is for the lease or construction of a building or facility at the state
             93      park; and
             94          (b) the lease between the division and the corporation is terminated in accordance with
             95      Subsection (2)(b)(iv).
             96          (7) (a) Payments made by the corporation under a lease with the division shall be
             97      deposited into the Capital Project Fund.
             98          (b) If, in accordance with Subsection [(3)] (5), the payments made by the corporation
             99      under a lease with the division are increased from the amount paid on July 1, 1997, the lease
             100      payments made by the division shall be dedicated to capital improvements at the state fair
             101      park unless, as part of the capital budget, the Legislature directs that the monies be used for
             102      other capital improvements.
             103          (8) (a) A debt or obligation contracted by the corporation is a debt or obligation of the
             104      corporation.
             105          (b) The state is not liable for and assumes no legal or moral responsibility for any debt
             106      or obligation described in Subsection (8)(a), unless the Legislature through statute or an
             107      appropriation act specifically:
             108          (i) authorizes the corporation to contract for that debt or obligation; and
             109          (ii) accepts liability for or assumes responsibility for the debt or obligation.
             110          Section 2. Effective date.
             111          This bill takes effect on July 1, 2010.


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