sb 0107

CHAPTER 254

SB 107-FN – FINAL VERSION

AN ACT relative to the leasing of state-owned real estate on public waters.

SPONSORS: Sen. Sgambati, Dist 4; Sen. Reynolds, Dist 2; Sen. Fuller Clark, Dist 24; Sen. Denley, Dist 3; Rep. Benn, Graf 9; Rep. Campbell, Hills 24; Rep. Renzullo, Hills 27

This bill establishes a process for the leasing of state-owned real estate on public waters, and adds new provisions for the leasing of lands managed by the bureau of rail and transit in the department of transportation.

This bill is a request of the commission to study issues relative to the practice of leasing state-owned real estate on the shores of public waters established by 2007, 254.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to the leasing of state-owned real estate on public waters.

Be it Enacted by the Senate and House of Representatives in General Court convened:

254:1 New Section; Leasing of State-Owned Real Estate on Public Waters. Amend RSA 4 by inserting after section 39-c the following new section:

4:39-d Leasing of State-Owned Real Estate on Public Waters. Beginning January 1, 2010 the following shall apply to new leases:

I. Portions of real estate owned by the state that are on the shores of public waters, as defined by RSA 271:20, and managed by a state agency, except for the lands managed by the bureau of rail and transit in the department of transportation according to RSA 228:57-a, may be leased for private, noncommercial use by owners of adjacent residentially developed properties that are either fully constructed or for which owners can demonstrate incurring substantial liabilities in a reasonable good faith reliance on the absence of controlling law or regulation, known as vested rights, prior to January 1, 2011. The following shall constitute sufficient evidence of vested rights:

(a) The activities are specifically identified in a building permit application that has been approved by the appropriate municipal board or official with authority over building permits prior to January 1, 2011; or

(b) At a minimum, a concrete foundation, or its equivalent, for the primary structure was installed prior to January 1, 2011.

II. Any property owner meeting the requirements of this section may request in writing to be allowed to lease such property from the state. However, when the adjacent property is owned by more than one individual, such as a condominium association, the association, only as a single entity, may request the lease. In no case shall more than one access point to the leased property be allowed.

III. In addition to paragraph I, portions of real estate owned by the state and managed by a state agency that are on the shores of public waters as defined by RSA 271:20, may be leased by persons who can demonstrate the intent to provide a public use or benefit by utilizing the state land, provided the proposed lease is reviewed in accordance with all relevant procedures related to the disposal of state-owned property and provided the lease is compliant with all statutory requirements for the use of the land.

V. Leases may be renewed after the initial lease period has expired, provided that the use of the leased property remains noncommercial and private, payments have been made by the lessee according to the lease, all statutory conditions are met, and the lessee is compliant with all state and federal permit requirements. Such lease renewals shall not be for more than 5 years at a time, unless extended by authorization of the long range capital planning and utilization committee and the governor and council. This paragraph shall apply to all lease renewals regardless of their date of origin.

VI. Leases and renewals under this section shall be subject to all other requirements related to the disposal or lease of state-owned property, including but not limited to RSA 4:39-c and RSA 4:40. Nothing in this section shall be interpreted as limiting the ability of the state to impose reasonable conditions and restrictions or to determine a reasonable price with respect to any leased property.

254:2 Leasing of State-Owned Railroad Properties on Public Waters. Amend RSA 228:57-a to read as follows:

I. Notwithstanding RSA 228:57, portions of real estate owned by the state and managed by the bureau of rail and transit in the department of transportation that are on the shores of public waters, as defined by RSA 271:20, may be leased for private, noncommercial use by owners of adjacent residentially developed properties that are either fully constructed or for which owners can demonstrate incurring substantial liabilities in a reasonable good faith reliance on the absence of controlling law or regulation, known as vested rights, prior to January 1, 2011, and that are separated from the shore only by the railroad land, as long as such use does not interfere with railroad operations. The following shall constitute sufficient evidence of vested rights:

(b) At a minimum, a concrete foundation, or its equivalent, for the primary structure was installed prior to January 1, 2011.

I-a. Any property owner meeting the requirements of this section may request in writing to be allowed to lease such property from the state. However, when the adjacent property is owned by more than one individual, such as a condominium association, the association, only as a single entity, may request the lease. In no case shall more than one access point to the leased property be allowed.

II. The provisions of RSA 4:40, requiring first offering the land for lease to political subdivisions, shall not apply to this section. However, leases shall continue to be approved by the long range capital planning and utilization committee, with advice from the council on resources and development, before final approval by the governor and council.

II-a. A lease agreement under this section for the sole purpose of installing a dock or mooring shall only be made subject to the acquisition by the lessee of a dock permit from the department of environmental services or a mooring permit from the department of safety, respectively. Such a lease agreement shall state that if the dock or mooring permit is denied or revoked, the lease shall be terminated.

IV. For new leases or renewals of existing leases on and after January 1, 2010, the cost of the lease shall be [~~$25~~]$30 per running foot per year, paid annually; provided, however, that the cost per running foot for such leases shall be adjusted by the department every 5 years according to the Consumer Price Index as determined by the Bureau of Labor Statistics.

V. Leases may be renewed after the initial lease period has expired, provided that the use of the leased property has and will remain noncommercial and private, payments have been made by the lessee according to the lease, and the activity of the railroad remains at approximately the same level or lower. The cost for the lease shall be reviewed. Such lease renewals shall not be for more than 5 years at a time.

VI. The annual income from such leases shall be deposited into the special railroad fund established by RSA 228:68, and shall be appropriated to be expended as set forth in RSA 228:69.