Senate Bill S706

                                 BILL NUMBER:  S706

 TITLE OF BILL :  An act to amend the parks, recreation and historic
preservation law, in relation to establishing a resident curator
program for the rehabilitation of state park buildings

 PURPOSE OF THE BILL :

To authorize the Office of Parks, Recreation and Historic Preservation
(OPRHP) to lease vacant and at risk structures in state parks and
state historic sites to private persons to encourage investment of
private resources to rehabilitate and maintain such structures,
thereby addressing the deterioration of residential buildings for
which the agency has no public use and lacks state funding or staff
resources to maintain.

 SUMMARY OF PROVISIONS :

The bill establishes a Resident Curator Program, amending section 3.09
Of the parks, recreation and historic preservation law by adding a new
subdivision 2-i.

 EXISTING LAW :

Various subdivisions of section 3.09 of the parks, recreation and
historic preservation law authorize OPRHP to enter into contracts with
              

private, not-for-profit, and governmental entities to improve and
operate state park and historic site facilities under terms and
conditions which protect park resources, provide public accessibility
and provide for the overall public interest.

Subdivision 2 of Section 3.09 of the parks, recreation and historic
preservation law authorizes OPRHP to operate state park facilities
directly or by contract, lease or license.

Subdivision 2-a of section 3.09 of the parks, recreation and historic
preservation law authorizes concession license agreements for
twenty-year terms provided that any agreement for a term in excess of
ten years must be approved by the Director of the Budget and must
provide for a total capital investment of no less than $1 million over
the contract term.

 LEGISLATIVE HISTORY :

2013/2014: S.918-Passed Senate. Died in Assembly. Referred to
Infrastructure & Capital Investment. Reported & Committed to Finance.
2011/2012: S.2749
2009/2010: Senate amended and recommitted to Finance. Assembly amended
and recommitted to ways and means.

 STATEMENT IN SUPPORT :

The state park system and the infrastructure that supports the system
are aging and deteriorating. OPRHP has jurisdiction over more than
5,000 structures within the 325,000 acres of land under the agency's
management, and the agency has identified a backlog of pressing
capital rehabilitation needs exceeding $650 million. Given the state's
current fiscal challenges, the agency's capital budget will not be
sufficient in the coming years to address the full backlog of facility
rehabilitation needs.

OPRHP has an inventory of historic residential buildings situated
within park and historic site boundaries that are not currently in use
because either: a) they have deteriorated to the point that
significant capital investments would be required before they could be
used; and/or b) they do not serve a park purpose. Due to their
location within state parks or historic sites, these buildings are not
appropriate for disposition through the usual methods available to
state agencies, such as jurisdictional transfer, realty exchange, or
state surplus sale. This legislation creates an innovative mechanism
for attracting private investments to rehabilitate and utilize
residential structures that do not have a ready public park or
historic site use, allowing OPRHP to focus its limited capital funds
on higher priority needs.

The Resident Curator Program established by this bill will authorize
OPRHP to enter into leases, through the state's normal competitive
bidding process, with private individuals or not-for-profit
organizations who will rehabilitate vacant residential buildings at
their own expense using private funds. In exchange, individuals and
not-for-profits will receive a long-term lease (up to 40 years or a
life estate), subject to all otherwise applicable state laws,
regulations or requirements applicable to the agency's leasing of real
property, to reside in the building that they rehabilitated.
Ownership of rehabilitated residential structures will remain with
OPRHP and the agency will receive the benefit of rehabilitated
structures at the end of the lease term. The state will obtain a no or
low cost way to bring back into use these publicly owned assets.

Other states have instituted a Resident Curator Program which has met
with success in rehabilitating similar buildings. For example, the
Maryland Department of Natural Resources has administered more than
fifty curatorships, representing an estimated $8 million investment by
curators, which stands as a model for other states with properties
similarly situated.

 BUDGET IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.