INDICATES THAT EACH REMAINING YEAR COMPENSATION WOULD BE ADJUSTED FOR INFLATION TO ALLOW FOR ECONOMIC CONDITIONS, VALUE OF REAL ESTATE AND VALUE OR THE DOLLAR OVER THE LIFE OF THE LONG TERM GROUND LEASE "TO ENSURE CONTINUING MARKET RATE OF RETURN TO THE TRUST."
CONSIDERATION OF THE LEGISLATURE'S APPROVAL OF THE COMMISSIONS' PROPOSED EXPENDITURE TO IMPROVE SCHOOL LANDS AT OKLAHOMA CITY COMMUNITY COLLEGE.
AS YOU WELL KNOW, THE OFFICE OF ATTORNEY GENERAL DOES NOT FUNCTION AS A TRIAL TRIBUNAL OR FACT FINDER. THIS BEING THE CASE, EVEN IF THERE WERE A COMPLETE, NEGOTIATED CONTRACT BEFORE US, WE WOULD NOT BE IN A POSITION TO DETERMINE, WHETHER THE PROPOSED CONTRACT WAS IN THE BEST INTEREST OF THE TRUST AND WHETHER IT PROVIDED THE MAXIMUM INCOME AVAILABLE. SUCH CONSIDERATIONS LEGITIMATELY MUST BE LEFT TO COURTS OF COMPETENT JURISDICTION. EVEN A COURT OF COMPETENT JURISDICTION COULD NOT, AT THIS TIME, MAKE SUCH AN ANALYSIS, AS NO COMPLETE, NEGOTIATED CONTRACT IS YET AVAILABLE.
WE CAN FIND, HOWEVER, AS A MATTER OF LAW, THAT THE ENABLING ACT'S GRANT OF LANDS AND FUNDS TO THE STATE FOR VARIOUS SCHOOL LAND PURPOSES, ONCE ACCEPTED BY THE STATE, CONSTITUTED AN IRREVOCABLE TRUST COMPACT BETWEEN THE UNITED STATES AND OKLAHOMA, AND THAT, IN ACCEPTING THE TRUST, OKLAHOMA ACCEPTED THE CONDITIONS IMPOSED UPON THE TRUST. AS NOTED ABOVE, WHILE THE PROCEEDS FROM THE SALE OF MOST SCHOOL LAND MAY NOT BE USED TO DEFRAY THE COST OF SELLING THE LAND, PROCEEDS FROM LEASING TRUST PROPERTIES GRANTED FOR THE BENEFIT OF COMMON SCHOOLS MAY BE USED TO PAY THE EXPENSES OF LEASING THE LAND. ACCORDINGLY, SUCH FUNDS MAY BE USED TO DEVELOP AND IMPROVE SUCH LANDS FOR LEASING. BEFORE HOWEVER, ANY FUNDS CAN BE EXPENDED TO IMPROVE OR DEVELOP NON-AGRICULTURAL SCHOOL LAND, THE COMMISSIONERS MUST OBTAIN THE APPROVAL OF THE LEGISLATURE. IN THE CASE AT HAND, THE LEGISLATURE, BY ENACTING SECTION 11 OF SENATE BILL 37 OF THE FIRST REGULAR SESSION THE 42ND LEGISLATURE, HAS GIVEN ITS APPROVAL OF THE COMMISSIONERS' PLAN TO EXPEND UP TO $2.5 MILLION DOLLARS TO DEVELOP THE SCHOOL LANDS UPON WHICH THE OKLAHOMA CITY COMMUNITY COLLEGE IS LOCATED. THE LEGISLATURE'S APPROVAL SPECIFIES THAT THE RETURN TO THE COMMISSION SHALL BE PURSUANT TO AN AGREEMENT ENTERED INTO BY THE COMMISSIONERS AND THE BOARD OF REGENTS. THE MEMORANDUM OF UNDERSTANDING PROVIDES BUT A MERE SHELL OR OUTLINE OF AN AGREEMENT AND ONLY SPECIFY MINIMUM RETURNS FOR THE FIRST SEVEN YEARS. THE MEMORANDUM DOES NOT EVEN SPECIFY A LEASE TERM. UNDER SUCH CIRCUMSTANCES, IT IS IMPOSSIBLE TO DETERMINE THE RATE OF RETURN WHICH THE COMMISSIONERS WILL RECEIVE, LET ALONE MEASURE IT AGAINST THE COMMISSIONERS' DUTY, AS TRUSTEES, TO OBTAIN THE MAXIMUM BENEFIT POSSIBLE FOR THE TRUST BENEFICIARIES. AT THE PRESENT TIME, AN ANALYSIS, OTHER THAN THAT PROVIDED ABOVE, IS SIMPLY NOT POSSIBLE.
** FOOTNOTE:
1 ONE SHOULD NOT BE MISLEAD BY THIS RECITAL. PRESENTLY, THERE IS A CONFLICT BETWEEN THE AMENDED PROVISIONS OF ARTICLE IX, SECTION 7 OF THE OKLAHOMA CONSTITUTION WHICH AUTHORIZED 55 YEAR COMMERCIAL LEASES AND VARIOUS