SENATE, No. 727

SECTION 1. (a) Notwithstanding the provisions of section 40F of chapter 7 of the General Laws or any other special or general law to the contrary, the commissioner of the division of capital asset management, hereinafter the “commissioner”, may negotiate and enter into a lease of up to 20 years, including such options for the commonwealth to extend the term as the commissioner may determine, after consulting with the president of Bristol Community College, hereinafter the “college”, for land, buildings and improvements in the Commercial Area Revitalization Central Business district, so-called, in the city of New Bedford.

            The lease shall be for the use of property by the college for a campus facility in downtown New Bedford.  The developer selected pursuant to the provisions of this subsection shall be the landlord under the lease and shall be obliged to construct the improvements required under this section.  Funding for the lease shall be subject to appropriation by the general court.

The commissioner is hereby authorized to select the developer of the property. The commissioner shall establish competitive and public processes for the selection of the developer including the following: the issuance of requests for proposals containing the date, time and place for the submission of proposals, the developer selection criteria, and the required content for the proposals; public advertisement for the issuance of requests for proposals; and the use of selection criteria which shall include the experience, qualifications, capability and financial viability of the developer, designer or construction contractor, the cost to the commonwealth, and the financial and other benefits to the commonwealth and the local community.  The commissioner shall also select the designer and construction contractor.

            The acquisition, lease, construction, renovation, design, development, and management of the property as authorized by this section, and contract relating thereto, shall be exempt from the provisions of said chapter 7, section 39M of chapter 30 of the General Laws, sections 44A to 44J, inclusive, of chapter 149 of the General Laws, and any other general or special law or regulation governing, acquisition, leasing, construction, renovation, design, development, and management of real or personal property by or for the commonwealth or municipality.  Notwithstanding the foregoing, all contractors or subcontractors engaged in the construction or renovation of improvements at the property shall pay the wages determined under the provisions of sections 26 to 27H, inclusive, of said chapter 149.

(b) The lease authorized in this section shall include final plans and specifications at 100 percent design stage, ready for construction, and containing such improvements to the property as are necessary for the college for its downtown New Bedford campus facility as determined by the commissioner in consultation with the president of the college.  The plans and specifications shall be prepared by the designer selected pursuant to the provisions of subsection (a).  The lease shall require the developer to construct the improvements shown in the plans and specifications and the lease shall not be executed until the completion and incorporation of such plans and specifications.

(c) The lease authorized by this section shall contain an option for the commonwealth to purchase the property which shall be exercisable during the lease term, or at the end of the lease term, or any extension thereof.  The commonwealth, if it exercises its option to purchase, may purchase the property, subject to appropriation, for not more than the fair market value of the property at the time of exercise of the option, taking into account any rental and other payments made by the commonwealth under the terms of the lease.  The commissioner is hereby authorized, notwithstanding said chapter seven, to exercise said option and to acquire the property on behalf of the commonwealth.

(d) The developer who is the landlord under the lease authorized by this section shall pay for the surveys, plans, and specifications and other costs and expenses associated with the improvements to the property required under the lease and all costs and expenses associated with the leasing process as required by the commissioner.  The developer shall also be responsible for the payment of all real estate taxes on the property during the lease term.  The developer shall be responsible for, and indemnify the commonwealth from and against, all costs and liabilities associated with, the environmental condition of the property.

(e) The lease authorized by this section shall be in the form approved by the attorney general.  The negotiated lease price for any parcel or site pursuant to this section shall be for not more than fair market value determined by independent appraisal, for the uses described in subsection (a).  The inspector general shall review and approve the appraisal and the review shall include an examination of the methodology utilized for the appraisal.  In order to protect the public interest, the inspector general shall review and approve the reasonableness and appropriateness of the process and criteria established by the commissioner for the selection of any developer, designer and construction contractor pursuant to the provisions of subsection (a).  The inspector general shall prepare a report of his review and file the report with the commissioner, the house and senate committees on ways and means and the joint committee on state administration.  The commissioner, in consultation with the president of the college, shall have authority to approve or disapprove the developer’s initial operating budget and any changes thereafter. 

(f) The commissioner shall, 30 days before the execution of any lease agreement authorized by this section, or any subsequent amendment thereof, submit the agreement or amendment and a report thereon to the inspector general for his review and approval. The inspector general shall issue his review and comment within 15 days of receipt of any agreement or amendment.  The commissioner shall submit the agreement and any subsequent amendments thereof, the reports, and the comments of the inspector general, if any, to the house and senate committees on ways and means and the joint committee on state administration at least 15 days prior to execution.

(g) The president of the college shall submit 60 days after the lease is submitted to DCAM for approval, but in no event after the inspector general receives the lease agreement pursuant to the provisions of subsection (f), a financial plan and an operating plan for any property used, owned, leased or maintained by the college in the city of New Bedford after the effective date of this act.  The plans shall include, but not be limited to:

(1) A financial and operating plan for the continued use or discontinued use by the college of any property in the city of New Bedford in use on the effective date of this act, including current and estimated future fiscal year costs of such usage and any savings resulting from the discontinued use of the property;

(2) A financial plan for any new property lease pursuant to this section, including the estimated future fiscal year lease payments, utility costs, maintenance and operating costs and capital replacement reserves;

(3) Revenue sources proposed to fund any net increase in lease, maintenance and operating costs resulting from the newly leased property in excess of the amounts paid by the college as identified in clause (1);

(4) An operating plan for any new property leased pursuant to this section detailing the proposed usage and hours of operation of the property, the programs, services and administrative operations proposed to be located at the new property, any proposed subleases of the new property to parties other than the college and revenues resulting from the subleases and the full-time or contracted personnel proposed to maintain and operate the new property.

The future fiscal year cost projections required by clauses (1) and (2) shall be for the term of any lease authorized in this section.