Opinion ID: 1558724
Heading Depth: 2
Heading Rank: 1

Heading: The Sales Act

Text: The defendants argue that the Sales Act does not apply to the proposed lease to the University or to the University's proposed sublease to a developer and, therefore, that the defendants are not required to comply with the competitive-bid provision of the Sales Act. We agree. The Sales Act applies to all real property and interests therein owned by the State of Alabama and the departments ... and agencies of the state with the exception of those sales, transfers, and reversions set out in Section 9-15-82.  (Emphasis added.) Section 9-15-82, Ala.Code 1975, provides, in pertinent part, that the Sales Act shall not apply to the transfers of real property between departments, boards, bureaus, commissions, institutions, corporations, or agencies of the state. Thus, a lease from the Department to the University would not be subject to any requirement of the Sales Act. Also exempt from the requirements of the Sales Act are [g]round leases and leases of facilities by institutions of higher education ... for institution-related purposes which are designed to enhance the operation of the institution and are declared to be in the best interest of the institution by the board of trustees. § 9-15-82. It is undisputed that the University's proposed involvement in the development of a resort at the park would be for educational purposes, including the enhancement of its hotel-and-restaurant-management program. Further, it is undisputed that the University's board of trustees, by a duly approved resolution, authorized the University's president to proceed with the transactions contemplated in the memorandum of understanding. Because the Sales Act is not applicable to the proposed transactions, the trial court erred in holding that the defendants are required to comply with the competitive-bid requirements in the Sales Act. Therefore, as to the holding that the plan proposed by the memorandum of understanding violated the Sales Act, the trial court's judgment is reversed.