House of Representatives

SB 1051

governmental mall office buildings

Sponsor: Senator Smith

W/D	Committee on Retirement & Government Operations
DP	Committee on Public Institutions & Rural Affairs
DPA	Committee on Appropriations
dpa	Caucus and COW
x	As Passed the House

SB1051 authorizes the director of the Arizona Department of Administration (ADOA) to enter into a lease-to-own transaction with a private entity for the construction and ownership of three office buildings to be located on the Capitol Mall area.

History

Laws 2000, Chapter 164, Section 1, authorized the director of ADOA to enter into a lease-to-own transaction for the ownership by this state of two office buildings located on the capitol mall [the Arizona Department of Administration and the Arizona Department of Environmental Quality].

Provisions

· Increases the number from two to three buildings which the director of ADOA would be authorized to enter into a lease-to-own transaction [adds a building for the Arizona Department of Health Services].

· Stipulates conditions of the lease-to-own transaction:

1. The lease to the private entity of state property necessary for the construction of the office facilities and related infrastructure for the term of the lease-to-own transaction.

2. The construction to the state's specifications of the office facilities and related infrastructure.

3. The lease of the completed office facilities and related infrastructure by the state for an extended term of years.

4. The transfer of ownership of the office facilities and related infrastructure from the private entity to the state on the payment of a nominal sum at the expiration of the lease.

5. The option for the state's purchase of the office facilities and related infrastructure before the expiration of the lease.

6. The private entity's possession of and authority to lease to other tenants the office facilities and related infrastructure for the remaining term of the lease if sufficient funds are not appropriated for the continued occupancy by the state.

· Exempts the state property and any improvements constructed on the premises from taxation.

· Requires the Joint Committee on Capital Review to evaluate the lease-to-own transaction.

· Stipulates that any lease-to-own transaction executed after July 1, 2001 may allow for the financing of costs related to the acquisition and installation of modular furniture through the lease-to-own transaction, but no other furniture or relocation costs may be financed as part of the transaction.

SB 1051 passed the Public Institutions & Rural Affairs Committee unamended.

SB 1051 was amended in the Appropriations Committee as follows:

· Adds language stating that any lease-to-own transaction executed after July 1, 2001 may allow for the financing of costs related to the acquisition and installation of modular furniture through the lease-to-own transaction, but no other furniture or relocation costs may be financed as part of the transaction.

The Appropriations Committee amendment to SB 1051 was adopted in the Committee of the Whole and the bill was further amended as follows:

· Allows the director of ADOA to acquire land needed for the lease-to-own transaction by exchanging land with Arizona Power Authority.

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· 45th Legislature

· First Regular Session 2 May 2, 2001

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