S.B. 1385 Summary

• Authorizes the Department of Education to lease public school land for up to 55 years to developers who construct affordable workforce rental housing units, with leases limited to no more than 10 existing schools.

• Requires lessees to pay a leasehold premium determined through competitive bidding, maintain the housing units, pay property taxes on non-school improvements, and revert all improvements to the department upon lease expiration.

• Establishes the School Facilities Special Fund to receive all revenue and proceeds from public school land leases, with funds used exclusively for new construction and upgrade of twenty-first century school facilities.

• Creates a School Facilities Advisory Board composed of seven real estate, land use development, and education professionals to advise the department on identifying underused lands, developing redevelopment plans, and recommending revenue bonds.

• Requires the Department of Education to submit a report to the legislature by 2013 on measures to optimize public school lands and develop a comprehensive master plan for twenty-first century school development; repeals leasing authority on June 30, 2014.