Check whether the property or improvements were funded by bonds. If so, check with bond counsel to be sure the project will not affect the tax exempt status of district bonds because the property is being used to produce income. Coordinate district and other uses, so the district has the ability to use the project for its own purposes. Obtain the district's right of access to the premises and the developer's financial records during the life of the project, and define a breach of the agreement to include denial of such access or violation of law. Find a partner you can trust, then build safeguards into the agreement to protect both parties.
Good agreements make good projects.
As with any project, particularly a project that is designed to generate revenue, potential tax issues may exist that are beyond the scope of this article. Prior to entering into a joint use agreement with a private entity, a community college district should check with its attorney and accounting firm concerning potential tax issues. Ms. Cleveland is a partner in the firm and current head of the firm's business and property department. Her practice emphasizes contract, construction, finance, and property work for community college districts and public school districts. Ms. Reynolds is a senior associate in the firm, practicing in the areas of business and property, special education and appellate law.