Texas § SD.1078.111 - LEASE OF DISTRICT PROPERTY

§ SD.1078.111. LEASE OF DISTRICT PROPERTY

LEASE OF DISTRICT PROPERTY. (a) The board may lease all or part of the district's property, including facilities or equipment, to any person on terms the board considers to be in the district's best interest. The lease period may not exceed 40 years. (b) When leasing the property the board may delegate as it considers appropriate the board's power to manage or operate the leased property to furnish hospital care. (c) For each leased property the board shall provide that the lessee charge rates for services rendered or goods provided at the leased premises that, together with other sources of the lessee's revenue, produce an amount sufficient to enable the lessee to pay the expenses of operating and maintaining the leased premises required of the lessee under the lease. The lease must also require the lessee to pay lease rentals to the district that will be sufficient when taken with any other sources of the district's estimated revenue that are pledged for the same purposes to: (1) pay the interest on any revenue or special obligation bonds that are payable wholly or partly from the lease rentals; (2) create and maintain a sinking fund to pay the principal of, interest on, and premium, if any, on the bonds as they become due; (3) create and maintain a bond reserve fund and other fund as provided for in the bond resolution or trust indenture authorizing the issuance of the bonds; and (4) pay all other charges, fees, costs, and expenses that the lessee is required to pay under the resolution or indenture. (d) The lease, management agreement, bond resolution, or trust indenture may prescribe systems, methods, routines, procedures, and policies for the operation of the buildings and other facilities owned by the district. If all or part of the district's buildings or other facilities are leased, the district may delegate to the lessee the duty to establish the systems, methods, routines, procedures, and policies for the operation of the leased premises. Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619 ), Sec. 1.01, eff. April 1, 2011.