§166-6  Disposition.  (a)  Anyprovision of this chapter to the contrary notwithstanding, the board may bynegotiation, drawing of lot, or public auction, directly dispose of publiclands and related facilities set aside and designated for use as agriculturalparks, and any other lands and facilities under the jurisdiction of thedepartment pursuant to section 166-3 and notwithstanding chapter 171.  Exceptas provided by subsection (c), dispositions may be by lease and shall besubject to the requirements set forth in rules adopted by the board inconformity with section 166-9, and subject also to the following limitations:

(1)  The property shall be disposed of foragricultural or aquacultural purposes only;

(2)  The lessee shall derive the major portion of thelessee's total annual income from the lessee's activities on the premises;provided that this restriction shall not apply if failure to meet therestriction results from mental or physical disability or the loss of a spouse,or if the premises are fully utilized in the production of crops or productsfor which the disposition was granted;

(3)  The lessee shall comply with all federal andstate laws regarding environmental quality control;

(4)  The board shall determine the specific uses forwhich the disposition is intended; parcel the land into minimum size economicunits sufficient for the intended uses; make, or require the lessee to makeimprovements as are required to achieve the intended uses; set the upset priceor lease rent based upon an appraised evaluation of the property valueadjustable as provided in rules adopted in accordance with chapter 91 to thespecified use of the lot; set the term of the lease, which shall be not lessthan fifteen years nor more than fifty-five years, including any extensiongranted for mortgage lending or guarantee purposes; and establish other termsand conditions as it may deem necessary, including but not limited torestrictions against alienation and provisions for withdrawal by the board;

(5)  No lease shall be made to any person who is inarrears in the payment of taxes, rents, or other obligations owing the State orany county; and

(6)  Any transferee, assignee, or sublessee of anagricultural park lease shall first qualify as an applicant under this chapter. For the purpose of this paragraph, any transfer, assignment, sale, or otherdisposition of any interest, excluding a security interest, of any legal entitywhich holds an agricultural park lease shall be treated as a transfer of theagricultural park lease and shall be subject to the approval of the board ofagriculture upon reasonable terms and conditions, not inconsistent with thischapter or rules of the board, which the board may deem necessary.  No transfershall be approved by the board if the disposition of the stock, or assets orother interest of the legal entity would result in the failure of the entity toqualify for an agricultural park lease.

(b)  The violation of any provision containedin this section shall be sufficient cause for the board, after due notice ofbreach or default as provided in rules adopted by the board in conformance withsection 166-9, to cancel the lease and take possession of the land.

(c)  The board of agriculture may issueeasements, permits, and rights of entry covering agricultural park lands foruses consistent with the purposes for which the lands were set aside or areotherwise subject to the authority of the department pursuant to section 166-3.[L 1986, c 222, pt of §1; am L 1988, c 22, §2; am L 1990, c 52, §3; am L 1993,c 102, §3; am L 1994, c 218, §1]