§ 1852. Ground Lease.

(a) In the situation involving a ground lease, a ground lease between the participating county and CDCR will be entered into after the county has entered into the project delivery and construction agreement and only after the county has certified the site pursuant to Welfare and Institutions Code Section 1975(b)(1) and the Board has determined the site is adequate for purposes of financing in accordance with Welfare and Institutions Code Section 1971(a). These certifications will be based upon thorough research of both recorded and unrecorded interests in the property, and may include, as appropriate, certification regarding any use, generation, storage, release, discharge, or disposal of hazardous or toxic materials on, under, in or about the site.

(b) The ground lease must be adequate to support lease-revenue financing and be in a form agreed to by the Office of the Attorney General, the Board and Authority.

(c) Attached to the ground lease will be a metes and bounds legal description of the site and a simple diagram of the site, both with surveyor stamps or equivalent.

(d) The ground lease will be recorded.

(e) The site should not be encumbered by any liens or debt.

(f) The recommended term is for 50 years, in no event less than 35 years after construction completion.

(g) The lease term must be extended beyond the term to cover abatement periods due to abatement events.

(h) The ground lease shall not be terminated as long as the lease-revenue bonds are outstanding, even in the event of default.

(i) Damages for default shall be limited to specific performance or money damages.

(j) After all lease-revenue bonds are paid off, the ground lease will terminate and title to the county juvenile facility or local youthful offender rehabilitative facility will vest in county.

HISTORY

1. New section filed 2-2-2009 as an emergency; operative 2-2-2009 (Register 2009, No. 6). A Certificate of Compliance must be transmitted to OAL by 7-13-2009 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 2-2-2009 order transmitted to OAL 7-8-2009 and filed 8-18-2009 (Register 2009, No. 34).

Note

Note: Authority cited: Section 6030, Penal Code; and Section 1975, Welfare and Institutions Code. Reference: Sections 1971, 1974 and 1975, Welfare and Institutions Code.