§ 72-1405 — Municipality; state; agreement; contents

(1) Any agreement entered into between the state and a municipality pursuant to the provisions of sections 72-1401 to 72-1408 shall contain provisions specifying the following:
(a) The dates of commencement and termination of the agreement; Provided, that the duration of any such agreement from such commencement date, together with all extensions or renewals thereof, shall not exceed fifty years;
(b) The particular building or facility or portions thereof to which such agreement pertains;
(c) Whether the building or facility shall be used exclusively by the state or in part by the state and in part by other public bodies;
(d) The respective obligations of the parties to the agreement with respect to the construction, acquisition, furnishing and equipping and operation and maintenance of the building or facility;
(e) The allocation between the parties to the agreement of the costs of operation and maintenance and of utilities of such building or facility. In the event that the state is the sole user of such building or facility or is the occupier of the largest amount of space in such building or the primary user of the facility, such agreement may provide that all costs of operation and maintenance of the building or facility shall be at the expense of the state, in which event, if the state is not the sole user and occupier of the building or facility, the agreement shall provide for reimbursement to the state for proportionate costs of operation and maintenance supplied by the state to the other users and occupiers of the building or facility;
(f) The apportionment of all other costs to the parties thereto and the payments to be made by the state to the municipality for the use by the state of such building or facility or portion thereof. The computation of such costs and payments may reflect and include such items as would customarily be included by private parties entering into similar agreements for similar types of buildings and facilities, such as, but not limited to, indebtedness incurred with respect to such building or facility and reserves therefor, insurance, assessments and taxes or payments in lieu of taxes;
(g) Increasing the amount of costs allocated to the parties thereunder and the amount of the payments to be made by the state to the municipality thereunder in the event the items entered into in determining the costs to the parties thereunder and the payments by the state to the municipality thereunder shall be increased during the duration of such agreement and for credits or reimbursements by the parties thereto in the event of decreases in any such items, it being the intent of sections 72-1401 to 72-1408 that neither the state nor the municipality shall derive credit, profit or surplus by reason of the supplying by such municipality to the state of buildings or facilities or portions thereof, but that the cost to the state for the supplying by the municipality of such building or facility or portion thereof shall be at cost to the municipality;
(h) Permitting the occupancy or use of such building or facility or portion thereof by any officer, board, department, bureau or agency of the state so long as the use or occupancy thereof is consistent with the type and nature of such building or facility, it being the intention of sections 72-1401 to 72-1408 that the state may vary the use or occupancy of the building or facility or portion thereof from one officer, board, bureau, agency or department of the state to another in accordance with the interests of the state; and
(i) If the state is the sole user and occupier of the building or facility, or is the occupier of the largest amount of space in the building or facility or the primary user of the facility, granting the state an option to purchase such building or facility so long as the state shall continue to be such occupier or user. Such purchase price shall be established by the parties in the agreement and may be based on depreciated value or such other standard as the parties thereto may agree, and may include provision for any payment of damages which may be occasioned by the municipality upon the exercise by the state of such purchase option; Provided, that it shall be specified in such agreement that such purchase price shall be recomputed at the time of any exercise of the purchase option so that no gain or loss results to the municipality by reason of the exercise of such option by the state.
(2) Any such agreement may contain provisions as to the following:
(a) Type of insurance to be carried and whether such insurance shall be carried by the state or municipality, and the rights and obligations of the parties in the event of damage or destruction in whole or in part of such building or facility;
(b) Provision for indemnification to the municipality by the state for any liability incurred by the municipality by reason of the actions of the state, and for indemnification to the state by the municipality for any liability incurred by the state by reason of the actions of the municipality;
(c) In the event that the municipality is the occupier of the larger amount of space in the building or the primary user of the facility, granting to the municipality the right to terminate the agreement prior to the date of termination stated therein, upon such notice as is specified in such agreement, in the event the municipality determines that the space occupied by the state, or the full use of the facility thereof by the municipality, are required by the municipality in order to carry out its purposes;
(d) The rights and obligations of the parties thereto in the event of condemnation in whole or in part of such building or facility; and
(e) Any other matters deemed necessary or proper by the parties thereto.
Any agreement entered into pursuant to this section may be in the form of a lease agreement or agreement to lease and, subject to the provisions of section 72-1406 , may contain provisions similar to those customarily found in a lease between private parties or customarily found in a lease between parties for buildings or facilities similar to the type of building or facility to which the agreement between the state and municipality shall pertain.

Legislative History

Source: Laws 1967, c. 464, § 5, p. 1438.