EMPOWERED:
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5. TO INSTITUTE PROJECTS TO DEVELOP AND IMPROVE THOSE STATE SCHOOL LANDS WHICH ARE CATEGORIZED FOR NONAGRICULTURAL USE. PROVIDING HOWEVER, NO FUNDS UNDER THE CONTROL OR JURISDICTION OF THE COMMISSION SHALL BE SPENT ON SUCH PROJECTS UNLESS APPROVED BY THE LEGISLATURE."
THE PROVISION OF SENATE BILL 37, WHICH YOU INQUIRE ABOUT WAS ENACTED BY THE LEGISLATURE IN RESPONSE TO THE COMMISSIONERS REQUEST FOR LEGISLATIVE APPROVAL OF THEIR PLAN TO DEVELOP AND IMPROVE NON-AGRICULTURAL SCHOOL LAND. BY ENACTING SECTION 11, THE LEGISLATURE EXPRESSED ITS APPROVAL OF THE COMMISSIONERS' PLAN TO FURTHER DEVELOP AND IMPROVE THE SCHOOL TRUST LANDS UPON WHICH OKLAHOMA CITY COMMUNITY COLLEGE IS LOCATED. IN APPROVING THE EXPENDITURE OF UP TO $2.5 MILLION FOR SUCH IMPROVEMENTS, THE LEGISLATURE SPECIFICALLY PROVIDED THAT THE RETURN RECEIVED ON SUCH IMPROVEMENTS WOULD BE PURSUANT TO AN AGREEMENT ENTERED INTO BY THE COMMISSIONERS AND THE BOARD OF REGENTS OF OKLAHOMA CITY COMMUNITY COLLEGE.
MEMORANDUM UNDERSTANDING BETWEEN THE COMMISSIONERS OF THE LAND OFFICE AND THE BOARD OF REGENTS OF OKLAHOMA CITY COMMUNITY COLLEGE
THE PARTIES HAVE NOT YET ENTERED INTO AN AGREEMENT, BUT HA E ENTERED INTO A MEMORANDUM OF UNDERSTANDING, IN WHICH THEY EXPRESSED THEIR INTENT TO ENTER INTO A LONG TERM GROUND LEASE AND CONSTRUCT CERTAIN IMPROVEMENTS ON SCHOOL LANDS. THE MEMORANDUM OF UNDERSTANDING BETWEEN THE COMMISSIONERS AND THE BOARD OF REGENTS RECITES THAT OKLAHOMA CITY COMMUNITY COLLEGE PRESENTLY OCCUPIES FACILITIES IT CONSTRUCTED ON SCHOOL LANDS PURSUANT TO A NONEXCLUSIVE EASEMENT GRANTED FOR EDUCATIONAL PURPOSES BY THE COMMISSIONERS OF THE LAND OFFICE FOR AN ANNUAL CONSIDERATION OF $5,000, AND FURTHER RECITES THAT THE COLLEGE DESIRES TO CONSTRUCT A YEAR-AROUND, MULTI-PURPOSE, AQUATIC CENTER SUITABLE FOR REGIONAL AND INTERNATIONAL COMPETITION.
THE MEMORANDUM MAKES REFERENCE TO NEWLY AMENDED ARTICLE IX, SECTION 7 THE OKLAHOMA CONSTITUTION, RECITING THAT AS AMENDED, THAT CONSTITUTIONAL SECTION AUTHORIZES THE COMMISSIONERS TO ENTER INTO LONG TERM GROUND LEASES FOR COMMERCIAL PURPOSES FOR PERIODS NOT TO EXCEED 55-YEARS.
THE MEMORANDUM OF UNDERSTANDING ALSO RECITES THAT THE COMMISSIONERS OF THE LAND OFFICE ARE WILLING TO MAKE AVAILABLE UP TO 2.5 MILLION DOLLARS FOR THE AQUATIC CENTER LEASE IMPROVEMENTS AND THAT THE COLLEGE HAS THE AUTHORITY TO ENTER INTO A LONG TERM GROUND LEASE OF TRUST LAND, WITH COMPENSATION TO BE BASE ON THE CURRENT MARKET VALUE, WHICH IS TO BE ADJUSTED ANNUALLY FOR INFLATION.
AFTER THESE RECITALS, THE COMMISSIONERS AND REGENTS AGREE TO DEVELOP AND RATIFY LEGAL DOCUMENTS DESIGNED TO REFLECT AND CARRY OUT THEIR INTENTIONS. THE DOCUMENT FURTHER INDICATES THAT THE COMMISSIONERS WOULD CONTINUE TO RETAIN ALL MINERAL INTERESTS IN THE SCHOOL LANDS INVOLVED. THEN, AT PARAGRAPH 3 THE MEMORANDUM PROVIDES A TENTATIVE SCHEDULE OF GROUND LEASE COMPENSATION, WHICH THE MEMORANDUM SPECIFICALLY INDICATES "IS A MINIMUM AND SUBJECT TO NEGOTIATION BASED UPON CURRENT MARKET VALUE." THE TENTATIVE SCHEDULE OF PAYMENTS INDICATES THAT FOR THE FIRST FIVE YEARS, THE MINIMUM COMPENSATION WOULD BE FOR $250,000.00. IN YEAR SIX THE MINIMUM, WOULD INCREASE TO $308,000.00. IN YEAR SEVEN THE MINIMUM WOULD FURTHER INCREASE TO $320,320.00 PLUS INFLATION ADJUSTMENTS. THEREAFTER, THE SCHEDULE