Title 41. Public Lands

Chapter 10. Leases of Public Lands

Part I. Leases for General Purposes

41:1215         Opening of bids; execution of leases; exceptions; public benefit corporations; negotiated lease to nonprofit organizations

A. (1) At the date and hour mentioned in the advertisement for the consideration of bids, the bids shall be publicly opened by the lessor at its office. The lessor shall accept only the highest bid submitted to it by a person or persons who meet all the conditions of this Part except in the case where the lessor is a public benefit corporation as authorized and defined in Subsection B of this Section. The lessor shall have the right to reject all bids. 

(2) Successful bidders shall pay for their leases by a certified check. In all other respects, the lessor may execute any lease granted under such terms and conditions as it deems proper or as otherwise provided in this Part. 

(3) All leases signed by the lessor shall be executed in triplicate and shall be disposed of as follows: one copy shall be furnished to the lessee; one copy shall be recorded in the conveyance records of the parish or parishes in which the land lies; and one copy shall be retained in the records of the lessor. 

B. For the purposes of this Part a “public benefit corporation” is defined to be a nonprofit corporation formed pursuant to the general nonprofit corporation law of the state of Louisiana, except those formed pursuant to specific constitutional or statutory authority, by a political subdivision of the state of Louisiana through its chief executive officer for the purposes of owning, leasing, developing, and operating properties owned by such political subdivision or by such public benefit corporation, including but not limited to planning, renovating, constructing, leasing, subleasing, managing, and promoting such properties, which activity is declared to constitute a public purpose, and which shall meet each of the following requirements: 

(1) The corporation must not be organized for profit except to the extent of retiring indebtedness. 

(2) The corporate income must not inure to any private person except for salaries and other operating expenses. 

(3) The political subdivisions must have a beneficial interest in the corporation. 

(4) Nonprofit corporations which meet the requirements of a public benefit corporation as set forth herein and which own, lease, sublease, or control immovable property shall not be required to advertise for and receive bids as provided for in this Part, provided that any lease or sublease entered into by and between such nonprofit corporation and a third party be approved by the governing body of such political subdivision on behalf of which the corporation exercises its powers. Such leases or subleases shall be negotiated and let by the public benefit corporation in accordance with fair and reasonable criteria established and applied by the public benefit corporation relating to a balance of factors including but not limited to rent, highest return of revenue and benefits to the political subdivision, financial stability, architectural design, development and management of operational plan, uniqueness of operation, and stimulating other industrial or commercial activity within the political subdivision or the state. 

(5) In the event that any person or other entity be unsuccessful in the bid for the lease or sublease of immovable property owned, leased or controlled by a public benefit corporation such person or other entity may, not later than thirty days following the occurrence of such event, appeal to the district court in which the political subdivision is located for such relief as may be provided by law. If no appeal is taken within said thirty day period, any such claim shall be prescribed. 

(6) The corporation must be approved by the political subdivision creating it and any specific obligations issued or made by the corporation must also be approved by said political subdivision. 

(7) All leases or subleases executed by a public benefit corporation under the provisions of this Part shall be for a period not exceeding thirty years and shall provide for a rental payable in cash monthly, quarterly, or annually, at the discretion of the lessor. 

(8) Notwithstanding the provisions of Paragraph (7) of this Subsection and R.S. 41:1217, any lease or sublease executed by a public benefit corporation under the provisions of this Part, in the city of New Orleans, shall be for a period not exceeding ninety-nine years and shall provide for a monthly rental payable in cash. 

C. Notwithstanding any other provision of law to the contrary, in the event that a state property designated as nonessential in accordance with R.S. 41:140 has been offered unsuccessfully for lease or sale through public bid due either to lack of receipt of bids or to rejection of all bids received, the commissioner of administration is authorized to negotiate the lease of such property to any nonprofit organization qualified as a tax exempt organization under Section 501(c)(3) of the Internal Revenue Code of 1954¹ and organized for a public purpose. Such negotiated lease shall provide that the lessee assumes responsibility for proper maintenance and upkeep of the property for the term of the lease and provide that the state shall be held harmless for any liability arising, in tort or otherwise, from the lease of the property or any use thereof. A notice stating the amount of the lease, the property to be leased and the date, time, and place of the execution of the proposed lease shall be published in the official state journal at least twice within a fifteen-day period before such execution date with the last publication at least seven days prior to the proposed execution date. Publication of the notice shall be the responsibility of the proposed nonprofit lessor. 

D. (1) In the event that any person or other entity challenges, seeks to nullify, or seeks to enjoin a lease or sublease of immovable property owned, leased or controlled by a public benefit corporation, including but not limited to any person or entity that was unsuccessful in being selected for the lease or sublease, such person or other entity may appeal to or file suit in the district court in which the political subdivision is located for such relief as may be provided by law, only by following the procedure set forth in this Section. 

(2) In the case of an appeal or suit by a person or entity that was unsuccessful in being selected for the lease or sublease, such appeal or suit must be filed not later than thirty days following the occurrence of such event. In the case of a suit or appeal by any other person or entity, such appeal or suit must be filed not later than thirty days following the selection of the lessee or sublessee. If no appeal is taken or suit is filed within the thirty-day period, any such claim shall be prescribed. 

(3)(a) Any person or entity that files a suit or appeal pursuant to Paragraphs (1) and (2) of this Subsection for a temporary restraining order or preliminary injunction of a lease or sublease of immovable property owned or controlled by a public benefit corporation shall be required to furnish security, if necessary, as required by Code of Civil Procedure Article 3601 et seq. 

(b) Any person or entity that files a suit or appeal pursuant to Paragraphs (1) and (2) of this Subsection to challenge, nullify, or enjoin a lease or sublease of immovable property owned, leased, or controlled by a public benefit corporation shall receive a trial on the merits in the district court within sixty days of the filing of the suit and shall be given preference over all other matters on the court’s calendar. The district court shall render a final judgment not more than twenty days after the conclusion of the trial. 

(c) An appeal may be taken within ten days of the rendition of the final judgment of the district court and shall be returnable to the appropriate appellate court not more than thirty days from the rendition of the final judgment. The appeal shall be heard with the greatest possible expedition and no later than thirty days from the return day of the appeal. The appellate court shall render its ruling on the merits within sixty days of the return day of the appeal. 

E. All leases or subleases executed by a public benefit corporation under the provisions of this Part shall be for a period not exceeding thirty years and shall provide for a rental payable in cash in a lump sum or installments, at the discretion of the lessor. 

F. Notwithstanding the provisions of Subsection E of this Section and R.S. 41:1217, any lease or sublease executed by a public benefit corporation under the provisions of this Part, in the city of New Orleans, shall be for a period not exceeding ninety-nine years and shall provide for a rental payable in cash in a lump sum or installments, at the discretion of the lessor. 

Amended by Acts 1967, No. 33, § 2; Acts 1976, No. 693, § 1; Acts 1984, No. 807, § 1; Acts 1989, 2nd Ex.Sess., No. 3, § 1, eff. July 14, 1989; Acts 1990, No. 737, § 1, eff. July 24, 1990; Acts 1991, No. 289, § 13; Acts 1991, No. 899, § 1; Acts 2011, 1st Ex.Sess., No. 37, § 1; Acts 2014, No. 236, § 1; Acts 2016, No. 516, § 1, eff. June 16, 2016.

Footnotes

¹ 26 U.S.C.A. § 501(c)(3).