Texas Local Government Code 272.005 – Lease of Property to Governmental Entity
(a) To promote a public purpose of the political subdivision, a political subdivision may:
(1) lease property owned by the political subdivision to another political subdivision or an agency of the state or federal government; or
(2) make an agreement to provide office space in property owned by the political subdivision to the other political subdivision or agency.
(b) In acting under Subsection (a), the political subdivision:
(1) shall determine the terms of the lease or agreement so as to promote and maintain the public purpose;
(2) may provide for the lease of the property or provision of the office space at less than fair market value; and
(3) is not required to comply with any competitive purchasing procedure or any notice and publication requirement imposed by this chapter or other law.
Terms Used In Texas Local Government Code 272.005
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Property: means real and personal property. See Texas Government Code 311.005