2006 Utah Code - 17A-3-908 — Lease of project site to building authority -- Purchase.

     17A-3-908.   Lease of project site to building authority -- Purchase.
     (1) Any public body desiring to have a project for the use of the public body constructed by a building authority upon a site owned by the public body may lease the site to the building authority for a nominal rental for an initial period of time not longer than the period specified in Section 17A-3-905. The lease for the site shall provide that in the event the capital actually invested by building authority in improvements constructed upon the site has not been fully repaid by the lessee at the expiration of the term of the lease on the site, the building authority shall have an option to renew the lease on the site on the same terms and conditions for a renewal term which, when added to the initial term, is not longer than the period specified in Subsection 17A-3-905 (6).
     (2) A public body may grant an option to the building authority to purchase a site which is leased to it by the public body within six months after the termination of the lessee's obligation to make rental payments under the lease contract pursuant to Section 17A-3-910 with respect to any project located on the site, if the lessee defaults in the terms of the leasing contract for the project and does not exercise its option to purchase under the terms of the leasing contract for the project.

Renumbered and Amended by Chapter 186, 1990 General Session