§ 15-1-705 — Leasing; prior determinations; record; agreement required; provisions thereof

(a) Before leasing any project the governing body shall
determine the:
(i) Project furthers the public purpose of providing
health care facilities in the state or meets the following
public purposes:
(A) Creating new or additional employment
opportunities;
(B) Expanding the tax base and increasing sales,
property or other tax revenues to the municipality or county;
(C) Maintaining and promoting a stable, balanced
and diversified economy among agriculture, natural resource
development, business, commerce and trade;
(D) Promoting or developing use of agricultural,
manufactured, commercial or natural resource products within or
without the state.
(ii) Amount necessary to pay the principal and
interest on the bonds proposed to finance the project;
(iii) Amount necessary to be paid into any reserve
funds which the governing body establishes in connection with
the retirement of the proposed bonds and the maintenance of the
project;
(iv) Estimated cost of maintaining the project in
good repair and keeping it properly insured, unless the terms
under which the project is to be leased provide that the lessee
shall maintain and carry all proper insurance on the project;
(v) Manner in which the amount necessary to pay any
charges negotiated as hereinafter set forth, in lieu of taxes
shall be determined.
(b) No bonds shall be issued pursuant to the provisions of
this article to acquire, construct or improve a project unless
the governing body makes the determinations and findings
required by paragraph (a)(i) of this section. However, in the
case of bonds issued to acquire, construct or improve a
pollution control facility or to acquire an undivided interest
as a tenant in common in pollution control facilities and any
land, building, other improvement and real or personal property
necessary and appurtenant thereto, the governing body shall not
be required to make the determinations and findings required by
paragraph (a)(i) of this section but shall be authorized to
issue bonds upon determining the project will assist in
reducing, preventing, abating or eliminating pollution in the
municipality or county and will facilitate and promote the
protection of the natural environment of the municipality or
county. The determinations and findings of the governing body
shall be set forth in the record of proceedings at which the
proposed bonds are authorized. Before issuing the bonds the
municipality or county shall lease the project under an
agreement conditioned upon completion of the project and
providing for payment of such rentals as, upon the basis of the
determinations and findings are sufficient to pay the:
(i) Principal and interest on the bonds;
(ii) Any charges negotiated as hereinafter set forth,
in lieu of taxes, to build up and maintain any necessary
reserves; and
(iii) The costs of maintaining the project in good
repair and keeping it properly insured, unless the lease
obligates the lessees to pay for the maintenance and insurance
of the project.
(c) Subject to the limitations of this article, the lease
or its extensions or modifications may contain other terms and
conditions mutually acceptable to the parties, and
notwithstanding any other provisions of law relating to the sale
of property owned by municipalities and counties, the lease may
contain an option for the lessees to purchase the project.