H-905                _______________________________________________

                                                    HOUSE BILL NO. 519

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Grimm, Holland, H. Sommers, Appelwick, Locke, Jacobsen and Niemi

Read first time 1/30/87 and referred to Committee on Ways & Means.

AN ACT Relating to the University of Washington; and amending RCW 28B.20.392.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 28B.20.392, chapter 223, Laws of 1969 ex. sess. and RCW 28B.20.392 are each amended to read as follows:

          In addition to the powers conferred under the deeds of conveyance and under existing law the board is authorized, and shall have the power ((subject to RCW 28B.20.380,‑-)):

          (1) To acquire by purchase, to sublease or to otherwise acquire, from the lessees of the university tract the unexpired portion of the leasehold interest in said tract prior to the date of its stipulated expiration and to pay, or make provision for payment, to the holder of the leasehold such amount as may be agreed upon between the board and the holder of such leasehold interest, and

          (2) Upon and after either such acquisition or the expiration of the leasehold((‑-)):

          (a) To operate and manage or lease, in whole or in part, the university tract, such operation and management or leasing to be accomplished, at the discretion of the board, either((‑-)):

          (i) Directly by the board, or

          (ii) Through an agent or agents appointed for that purpose, or

          (iii) Through the medium of a corporation or corporations created for that purpose; and

          (b) Either directly or by contract, at fixed price or upon cost-plus-a-fixed-fee basis((,‑-)):

          (i) To construct new buildings on, or

          (ii) To raze, reconstruct, alter, remodel or add to existing buildings on, or

          (iii) To otherwise improve,

the university tract, and to lease or to acquire, by purchase or gift, land and rights necessary or convenient for the maximum utilization and development of the said tract; and

          (3) If the unexpired portion of the leasehold interest in the university tract is not acquired prior to the date of its stipulated expiration, in the meantime((‑-)):

          (a) To enter into agreements to lease the university tract, in whole or in part, for any period beginning on or after November 1, 1954, either with or without concurrent action by the holder of the unexpired portion of the leasehold interest in said tract; and

          (b) To exercise any of the powers enumerated in subdivision (2)(b) of this section, upon agreement with the holder of the unexpired portion of the leasehold interest in the university tract for its improvement prior to the expiration of such leasehold term; and

          (4) To borrow money required for the accomplishment of any object or purpose specified in subdivisions (1), (2) or (3) of this section or for university capital purposes and to issue ((warrants or)) revenue bonds therefor in the same manner and subject to the same terms as local governments may issue revenue bonds pursuant to chapter 39.46 RCW, and to provide for ((amortization thereof and to pay said warrants or)) the payment of the revenue bonds((, at or prior to maturity,)) out of the income derived from operating, managing and leasing the university tract, in the manner set forth in chapter 39.46 RCW; and

          (5) (a) To receive all rental and other income from the university tract, and

          (b) To designate depositaries thereof, and

          (c) To hold and invest and to pay or discharge out of the same (i) all expenses of operation, management, maintenance, repair and upkeep of said tract and (ii) any ((obligations incurred)) revenue bonds issued in conformity with the powers granted under the provisions of subdivision (4) of this section; and

          (d) To apply the net proceeds therefrom to the use of the University of Washington:  PROVIDED, That until the acquisition or expiration of the leasehold interest in the said tract the rental therefrom shall be applied as provided in RCW 43.79.090.