42-17109. Alternative and additional method
of leasing municipal facilities
A. This section provides an alternative and additional method for leasing municipal
facilities. This section does not apply to leases entered into before or after March 31,
1965, nor to leases executed and existing on March 31, 1965, if the leases would have
been valid regardless of the enactment of this section.
B. Nothing contained in this article shall be construed to limit the right of a
city or town, as lessee, to enter into leases of real or personal property to be used for
municipal auditorium and convention center purposes running for a term of not more than
fifty years. A city or town may enter into such leases if title to the property leased
is to vest in the lessee at the expiration of the term of the lease if the lessee has
performed all of its obligations under the lease. No such lease need be included in the
budget for the fiscal year in which it is executed, but provision shall be made in each
annual budget thereafter during the term of the lease for the levy of taxes or the
provision of other revenues fully sufficient to pay any rental falling due during that
fiscal year. No such lease may be entered into without submitting the question to the
qualified electors of the municipality and approval of the lease by a majority of those
voting on the issue at an election to be ordered, conducted and canvassed in the manner
provided in title 9, chapter 7, article 3.
C. Monies for any rental payments due under any lease pursuant to subsection B
shall be derived from revenues other than those collected to pay the general obligation
bonds of the city or town and shall be used for municipal auditorium and convention
center purposes. A tax shall not be imposed on real property to support the operation or
maintenance of a municipal auditorium or convention center financed under this
section. A tax shall not be imposed, or the proceeds of a tax shall not be used, for the
payment of rentals under any lease entered into under this section.
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