Virginia Code 22.1-141.2: Authority to modernize public school lease agreements.
A. Prior to undertaking the design, construction, maintenance, and operation of a new public school building or facility or the improvement or renovation of an existing school building or facility, a local school board may evaluate whether entering into a lease with a private entity will assist the school board in meeting the standards set forth in § 22.1-141.1.
Terms Used In Virginia Code 22.1-141.2
- 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
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- School board: means the school board that governs a school division. See Virginia Code 22.1-1
B. In order to meet the design, construction, maintenance, and operation standards set forth in § 22.1-141.1, a school board may enter into a lease with a private entity that may include the following: (i) design of the building and facilities; (ii) construction of the building and facilities; (iii) financing of the project as defined in § 15.2-1815; (iv) operation of the heating, cooling, and renewable energy systems, including interconnect agreements with the regulated electric utility, maintenance of all such systems, responding to comfort complaints, and any other operational or maintenance-related issues during the lease term; and (v) such other terms as mutually agreed upon by the local school board and the private entity. Such lease may (a) be for the real property primarily used by the local school board and owned by the private entity, (b) be a capital or operating lease, (c) be exempt from real property taxation pursuant to subdivision (a)(1) of Article X, § 6 of the Constitution of Virginia, and (d) contain a covenant that the rent shall not be reduced from the rent stated in the lease. Such lease shall not exceed 35 years in duration. The Virginia Public Procurement Act (§ 2.2-4300 et seq.) or the Public-Private Education Facilities and Infrastructure Act (§ 56-575.1 et seq.) shall apply to any lease agreement solicited by a local school board pursuant to this section.