17:3361  Authority of boards to execute leases


A. Each board may grant leases of any portion or portions of the grounds or campus of any college or university or of other immovable property under its supervision and management, for a term not to exceed ninety-nine years for each lease, to any of the following:


(1) An organized national or local college or university fraternity or sorority.


(2)(a) A religious, quasi-religious, or benevolent organization or other nonprofit corporation or association.  However, any lease to a nonprofit corporation or association pursuant to this Section resulting in the construction of improvements on or after January 1, 2007, on college or university property shall be subject to design and construction oversight by the office of facility planning and control within the division of administration.


(b) As used in this Paragraph, the phrase "design and construction oversight" means (i) the right to review and approve plans and specifications prior to the commencement of construction and to require such changes as may be necessary to comply with applicable building codes, space standards, where appropriate, and standards ensuring quality of construction, and (ii) the right to conduct periodic inspections during construction to ensure that work is being performed in compliance with the approved plans and specifications.


(c) Each higher education management board shall adopt, subject to approval by the division of administration, office of facility planning and control, and in consultation with the Board of Regents, proposed space standards and quality standards and exceptions thereto on or before January 1, 2007.  Changes to the adopted standards shall be subject to the same approval process.  The approval of the office of facility planning and control is in addition to the policies and procedures of the Board of Regents and in no way abrogates any authority granted by law to the Board of Regents.


(3) A military organization under the supervision of the state of Louisiana or of the United States of America.


(4) A public body.


(5) A private entity, provided such private entity shall be obligated under the terms of the lease agreement to construct improvements on the leased premises which will further the educational, scientific, research, or public service functions of the board and provided further that the private entity has been selected pursuant to a competitive bid or competitive proposal process.


(6) A business to be located in an area designated by the college or university as a business incubator or research park, subject to the following conditions:


(a) The initial term of the lease shall not exceed thirty years, with an option to renew the lease twice.  Each such renewal period shall not exceed ten years.


(b) "Research park" shall mean a Louisiana research park as defined in R.S. 51:1923(11).


B. Each board may permit the lessees to erect, construct, and maintain thereon fraternity or sorority houses or homes, student centers, facilities for religious worship and instruction, armories, storehouses, and other structures.  Contracts entered into by a private lessee for the performance of work on the leased premises or the erection, construction, or maintenance of improvements on the leased premises shall not constitute public works contracts.


C. The land leased to any fraternity, sorority, religious or quasi-religious organization shall not exceed one acre.


D. The architectural plans for each house or other structure shall be approved by the board prior to construction on the leased grounds.


E. The provisions of R.S. 39:1643 and Part I of Chapter 10 of Title 41 of the Louisiana Revised Statutes of 1950 shall not be applicable to agreements authorized by this Part.


Added by Acts 1975, No. 313, § 2, eff. July 17, 1975.  Amended by Acts 1985, No. 416, § 1;  Acts 1999, No. 167, § 1;  Acts 2006, No. 758, § 1, eff. June 30, 2006;  Acts 2012, No. 657, § 1.