3.40.350 - Lease of surplus real property—Authority to lease—Manner of awarding lease.

(a)

Mason County may lease any county real property and tax title property and the appurtenances thereto for a year or term of years under the limitations and restrictions and in the manner provided herein. Fair market rental value shall be the basis for all such leases, with the same to be awarded upon the best available terms and conditions.

(b)

The board, after finding it to be in the best interest of the county that real property should be leased, shall authorize the leasing of real property. Property proposed for lease should be reviewed by public works, risk management, planning and parks.

(Ord. 84-04 Exh. A (part), 2004)

3.40.360 - Lease of county real property appraisal—Private negotiation.

(a)

Where the lease value of an individual parcel or parcels within a classification have been established by appraisal by a member of the American Institute of Real Estate Appraisers or a member of an association having equivalent ethical and professional standards, in accordance with the profession then property may be leased by private negotiation at the values so established and subject to the further terms required by this chapter; provided, that where the lease value is less than ten thousand dollars then a current assessor's appraisal or other evidence of value may be utilized as a basis privately negotiated terms.

(b)

Where general law contains less stringent requirements for leasing than by bidding such provision may be followed with respect to property to which such law applies. Where private negotiation is not authorized by this section, then the lease, modification, extension or renewal shall be awarded by the board following competitive bidding or auction.

(Ord. 84-04 Exh. A (part), 2004)

3.40.370 - Lease of county real property—Competitive bidding considered—Reservation of right to reject all bids.

When a lease of county real property is to be awarded through competitive bidding, the lease shall be awarded to the highest responsible bidder; provided, that wherein there is reason to believe that the highest acceptable bid is not the best rental obtainable, all bids may be rejected and the county may call for new bids or enter into direct negotiations to achieve the best possible rental. Each bid with the name of the bidder shall be recorded by the property manager, and each record with the name and address of the successful bidder and the amount of the successful bid, shall, after awarding of the lease, be open to public inspection at the property management section. In determining highest responsible bidder, in addition to rental, the following elements shall be given consideration:

(1)

The character, integrity, and reputation of the bidder;

(2)

The previous and existing compliance by the bidder with the terms of other leases of Mason County real property and the laws relating thereto;

(3)

Such other information as may be relevant to the decision to award the lease.

(Ord. 84-04 Exh. A (part), 2004)

3.40.380 - Application to lease—Procedures to be followed by prospective lessees.

All applications to lease Mason County real property or proposed leases shall be submitted to the board of county commissioners in the manner prescribed by the section. The county may require that a bid bond, in the form of a cashier's or certified check, accompany each application or bid. In case the lands applied for are leased to another, the deposit shall be returned to the applicant, but if the party making application fails or refuses to comply with the terms of this application and to execute the lease, the deposit shall be forfeited to the county, and be deposited in to the appropriate fund.

(Ord. 84-04 Exh. A (part), 2004)

3.40.390 - Lease provisions—Limitations as to term, improvements or alternative rent assignment.

(a)

Mason County may lease real property for a term of years and upon such terms and conditions as may be deemed in the best interests of the public and the county; provided, that no lease shall not be for longer than twenty years; provided, further, that when the board determines it to be in the best public interest, real property necessary to the support or expansion of an adjacent facility may be leased to the lessee of the adjacent facility, but not to exceed thirty-five years, or to the owner of an adjacent facility for a term not to exceed thirty-five years; provided, further, that when the board determines it to be in the best public interest, where the property to be leased is improved or is to be improved, and the value of the improvement is or will be at least equal to the value of the property to be leased, and will thereafter be county property, the county may lease such property for a term not to exceed thirty-five years; provided, further that where the property to be leased is to be used for major airport, industrial or commercial purposes, requiring extensive improvements, the county may lease such property for a term equal to the estimated useful life of the improvements, but not to exceed fifty years.

(b)

The lessee shall not improve or alter the leased property in any manner without the prior written consent of the county but shall, before making any improvements or alterations, submit plans and designs therefor to the county for approval. Unless otherwise stipulated, all improvements or alterations erected or made on the leased property shall, on expiration or sooner termination of the lease, belong to the county without compensation to lessee; provided, however, that the county shall have the option, to be exercised on expiration or sooner termination of the lease, to require the lessee to remove any or all such improvements or alterations. If the lessee fails substantially to make the improvements or alterations required by the lease, the lease may be terminated and all rental paid shall be forfeited to the county.

(c)

The rent of all leases of county real property shall be based upon fair market rental value and no lease shall be assigned or subleased without approval by the county in writing.

(Ord. 84-04 Exh. A (part), 2004)

3.40.400 - Rental readjustment requirement—Long-term leases.

(a)

Any lease of county owned property for a term of longer than five years shall contain a provision requiring the lessee to permit the rental to be adjusted and fixed by Mason County every five years; provided, that any lease may provide for more frequent readjustments. When the lease permits the county to adjust the rent, Mason County will give lessee written notice of the adjusted rent, in accordance with the terms of the lease. The rent as adjusted shall take effect no sooner than as provided by the lease and then thirty days after date of said notice unless lessee, within thirty days following receipt of notice from Mason County gives written notice of rejection of the adjusted rent. If lessee and the county cannot agree upon the rental adjustment, the rent for the period will be adjusted by arbitration. Lessee and the county will select one disinterested arbitrator each, and the two selected arbitrators will select a third. If the two arbitrators have not selected a third arbitrator within thirty days after the selection of the last selected of the two, either lessee or county may apply to the presiding judge of the Superior Court in Mason County for the appointment of a third arbitrator. Each arbitrator will be a member of the American Institute of Real Estate Appraisers, or of the association having equivalent ethical and professional standards.

(b)

If a licensing requirement for real estate appraisers is imposed by any legislation, each arbitrator will also be so licensed. The three arbitrators will determine a fair rent for the premises based upon the fair market rental value of the property, as previously defined. The decision of a majority of the arbitrators will bind both lessee and county. At the conclusion of the arbitration, the arbitrators will submit written reports to the lessee and county. The cost of the arbitration will be divided equally between lessee and the county.

(Ord. 84-04 Exh. A (part), 2004)