How long city property can be leased or rented

The term of any contract to lease or rent property of the city shall not exceed five years; provided that the council, by resolution, may authorize the leasing or renting of property for a longer period when deemed necessary in the public interest and: (1) When the lessee or tenant is required by the terms of the proposed contract to expend the sum of $25,000 or more for capital assets, or to provide for the renovation or maintenance of any capital asset, or the lessee’s or tenant’s expenditure is equal to or in excess of the sum of $25,000, as determined by the council. The term “capital asset” as used herein shall include not only the construction of improvements, but the installation of furniture and fixtures, the cost of which would be depreciable over the period of the concession or lease in excess of five years; (2) When the property is devoted to the training and education of handicapped or blind persons and by the terms of the proposed contract, the lessee or tenant is required to construct on such property any improvement, the estimated cost of which, including cost of labor and materials, is equal to, or in excess of, the sum of $10,000, as determined by the council; (3) When the real property is leased or rented for the use of the State or federal government or any agency thereof or the board of water supply; (4) When the city enters into a development contract with a person for the development of the property and the construction of housing units of all kinds and types as permitted in the area where the property is situated, or any other type of structural development which may be beneficial to the city; or (5) When the real property is leased to a housing or human services provider in accordance with § 38-3.4 and the city agency proposing the lease certifies that the longer term is necessary to secure noncity financing or to enable the transfer of the real property to a different housing or human services provider. )