                                 CODE OF VIRGINIA

TEMPORARY TRANSFER OF USE OF PROPERTY BETWEEN STATE DEPARTMENTS, AGENCIES, AND
INSTITUTIONS; LEASE TO PRIVATE ENTITIES (§ 2.2-1155)

A. Whenever any department, agency, or institution of state government possesses
or has under its control property for which there is an anticipated future use,
but for which there is no immediate use, the department, agency, or institution
of the Commonwealth may effect, subject to the written recommendation of the
Department to the Governor and the written approval by the Governor, an
agreement in writing with any other department, agency, or institution of state
government for the use of the property by the other department, agency, or
institution during a period not to exceed 15 years. The agreement may be
extended beyond the 15-year period on an annual basis in accordance with the
procedures prescribed in this subsection. In the event no other department,
agency, or institution of state government has use for the property, the
department, agency, or institution may lease the property to private
individuals, firms, corporations or other entities in accordance with the
procedures and subject to the term limitations prescribed in this subsection.

B. The provisions of subsection A notwithstanding, public institutions of higher
education in the Commonwealth, subject to the approval of the General Assembly,
may enter into written agreements with university-related foundations, private
individuals, firms, corporations, or other entities to lease property in the
possession or control of the institution. Any such agreement and proposed
development or use of property shall (i) be for a purpose consistent with the
educational and general mission, auxiliary enterprises, and sponsored program
activities of the institution, or such other purpose as the General Assembly may
authorize, and (ii) comply with guidelines adopted by the Department. The term
of any agreement shall be based upon, among other things, the useful life of the
improvements to the property and shall not exceed 50 years; however, any
agreement may be extended upon the written recommendation of the Governor and
the approval of the General Assembly. Agreements with private individuals,
firms, corporations, or other entities shall also be subject to guidelines
adopted by the Secretary of Finance. In the event that any public institution of
higher education in the Commonwealth enters into any written agreement with a
university-related foundation, private individual, firm, corporation, or other
entity to lease property in the possession or control of the institution
pursuant to this subsection, neither the real property that is the subject of
the lease nor any improvements or personal property located on the real property
that is the subject of the lease shall be subject to taxation by any local
government authority pursuant to &#xA7; 58.1-3203 or &#xA7; 58.1-3502 or any
other applicable law during the term of the lease, regardless of the ownership
of the property, improvements or personal property, provided the real property,
improvements or personal property shall be used for a purpose consistent with
the educational and general mission, auxiliary enterprises, and sponsored
program activities of the institution.
			For the purposes of this section, &#8220;university-related foundation&#8221;
means any foundation affiliated with an institution of higher education.

HISTORY: 1971, Ex. Sess., c. 239, § 2.1-106.6:1; 1977, c. 672, § 2.1-511;
1981, c. 112; 1984, c. 641; 1988, c. 57; 1990, cc. 53, 688; 1992, c. 331; 2001,
c. 844.