177.088. Facilities and equipment may be obtained by agreements with not-for-profit corporation, procedure.

MISSOURI STATUTES AND CODES

177.088. Facilities and equipment may be obtained by agreements with not-for-profit corporation, procedure.

Facilities and equipment may be obtained by agreements withnot-for-profit corporation, procedure.

177.088. 1. As used in this section, the following terms shall mean:

(1) "Board", the board of education, board of trustees, board ofregents, or board of governors of an educational institution;

(2) "Educational institution", any school district, including allcommunity college districts, and any state college or university organizedunder chapter 174, RSMo.

2. The board of any educational institution may enter into agreementsas authorized in this section with a not-for-profit corporation formedunder the general not-for-profit corporation law of Missouri, chapter 355,RSMo, in order to provide for the acquisition, construction, improvement,extension, repair, remodeling, renovation and financing of sites,buildings, facilities, furnishings and equipment for the use of theeducational institution for educational purposes.

3. The board may on such terms as it shall approve:

(1) Lease from the corporation sites, buildings, facilities,furnishings and equipment which the corporation has acquired orconstructed; or

(2) Notwithstanding the provisions of this chapter or any otherprovision of law to the contrary, sell or lease at fair market value, whichmay be determined by appraisal, to the corporation any existing sites ownedby the educational institution, together with any existing buildings andfacilities thereon, in order for the corporation to acquire, construct,improve, extend, repair, remodel, renovate, furnish and equip buildings andfacilities thereon, and then lease back or purchase such sites, buildingsand facilities from the corporation; provided that upon selling or leasingthe sites, buildings or facilities, the corporation agrees to enter into alease for not more than one year but with not more than twenty-fivesuccessive options by the educational institution to renew the lease underthe same conditions; and provided further that the corporation agrees toconvey or sell the sites, buildings or facilities, including anyimprovements, extensions, renovations, furnishings or equipment, back tothe educational institution with clear title at the end of the period ofsuccessive one-year options or at any time bonds, notes or otherobligations issued by the corporation to pay for the improvements,extensions, renovations, furnishings or equipment have been paid anddischarged.

4. Any consideration, promissory note or deed of trust which aneducational institution receives for selling or leasing property to anot-for-profit corporation pursuant to this section shall be placed in aseparate fund or in escrow, and neither the principal or any interestthereon shall be commingled with any other funds of the educationalinstitutions. At such time as the title or deed for property acquired,constructed, improved, extended, repaired, remodeled or renovated underthis section is conveyed to the educational institution, the considerationshall be returned to the corporation.

5. The board may make rental payments to the corporation under suchleases out of its general funds or out of any other available funds,provided that in no event shall the educational institution become indebtedin an amount exceeding in any year the income and revenue of theeducational institution for such year plus any unencumbered balances fromprevious years.

6. Any bonds, notes and other obligations issued by a corporation topay for the acquisition, construction, improvements, extensions, repairs,remodeling or renovations of sites, buildings and facilities, pursuant tothis section, may be secured by a mortgage, pledge or deed of trust of thesites, buildings and facilities and a pledge of the revenues received fromthe rental thereof to the educational institution. Such bonds, notes andother obligations issued by a corporation shall not be a debt of theeducational institution and the educational institution shall not be liablethereon, and in no event shall such bonds, notes or other obligations bepayable out of any funds or properties other than those acquired for thepurposes of this section, and such bonds, notes and obligations shall notconstitute an indebtedness of the educational institution within themeaning of any constitutional or statutory debt limitation or restriction.

7. The interest on such bonds, notes and other obligations of thecorporation and the income therefrom shall be exempt from taxation by thestate and its political subdivisions, except for death and gift taxes ontransfers. Sites, buildings, facilities, furnishings and equipment ownedby a corporation in connection with any project pursuant to this sectionshall be exempt from taxation.

8. The board may make all other contracts or agreements with thecorporation necessary or convenient in connection with any project pursuantto this section. The corporation shall comply with sections 290.210 to290.340, RSMo.

9. Notice that the board is considering a project pursuant to thissection shall be given by publication in a newspaper published within thecounty in which all or a part of the educational institution is locatedwhich has general circulation within the area of the educationalinstitution, once a week for two consecutive weeks, the last publication tobe at least seven days prior to the date of the meeting of the board atwhich such project will be considered and acted upon.

10. Provisions of other law to the contrary notwithstanding, theboard may refinance any lease purchase agreement that satisfies at leastone of the conditions specified in subsection 6 of section 165.011, RSMo,for the purpose of payment on any lease with the corporation under thissection for sites, buildings, facilities, furnishings or equipment whichthe corporation has acquired or constructed, but such refinance shall notextend the date of maturity of any obligation, and the refinancingobligation shall not exceed the amount necessary to pay or provide for thepayment of the principal of the outstanding obligations to be refinanced,together with the interest accrued thereon to the date of maturity orredemption of such obligations and any premium which may be due under theterms of such obligations and any amounts necessary for the payments ofcosts and expenses related to issuing such refunding obligations and tofund a capital projects reserve fund for the obligations.

11. Provisions of other law to the contrary notwithstanding, paymentsmade from any source by a school district, after the latter of July 1,1994, or July 12, 1994, that result in the transfer of the title of realproperty to the school district, other than those payments made from thecapital projects fund, shall be deducted as an adjustment to the fundspayable to the district pursuant to section 163.031, RSMo, beginning in theyear following the transfer of title to the district, as determined by thedepartment of elementary and secondary education. No district with modularbuildings leased in fiscal year 2004, with the lease payments made from theincidental fund and that initiates the transfer of title to the districtafter fiscal year 2007, shall have any adjustment to the funds payable tothe district under section 163.031, RSMo, as a result of the transfer oftitle.

12. Notwithstanding provisions of this section to the contrary, theboard of education of any school district may enter into agreements withthe county in which the school district is located, or with a city, town,or village wholly or partially located within the boundaries of the schooldistrict, in order to provide for the acquisition, construction,improvement, extension, repair, remodeling, renovation, and financing ofsites, buildings, facilities, furnishings, and equipment for the use of theschool district for educational purposes. Such an agreement may providefor the present or future acquisition of an ownership interest in suchfacilities by the school district, by lease, lease-purchase agreement,option to purchase agreement, or similar provisions, and may provide for ajoint venture between the school district and other entity or entities thatare parties to such an agreement providing for the sharing of the costs ofacquisition, construction, repair, maintenance, and operation of suchfacilities. The school district may wholly own such facilities, or mayacquire a partial ownership interest along with the county, city, town, orvillage with which the agreement was executed.