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County in conjunction with roadway improvement projects, then leasing them back to the former owners. He provided a brief background of typical leasebacks, and how they come about. He reported that leasebacks are considered on a case-by-case basis, and are becoming more common as the County purchases more right-of-way earlier in the road building process. He requested the Board consider the following policy as proposed, discussed, or amended: 1. 2. 3. 4. A leaseback may be offered by the County if no phase of the upcoming road project is within 12 months of advertisement for bidding. Eligible phases of road construction include utility relocation, drainage work, or any work related to road clearing and/or construction. Initial leaseback term shall be limited to one year. Renewals may be granted in 6 -month increments, subject to restrictions listed in #1 above. Rent during the initial term (one year) shall be one dollar per month. Beyond the initial one year term, rent shall be increased to fair market rate. Leasebacks and/or renewals shall not be automatic, but may be granted by the County. 5. Leasebacks and/or renewals may be authorized by the County Administrator or his designee, and reported to the Board under "Informational" BCC Agenda Items. 6. The leaseback policy described in items #1 through #5 above shall not apply to any of the following situations: (a) Commercial property, (b) Rental property, (c) Income-producing property, (d) Non -homestead property. Chairman Davis was concerned that the leaseback agreement did not include a mechanism for security, particularly when the renter was not maintaining the property, and they request to rent beyond the one year lease. He wanted a first and last security deposit, or some type of insurance, similar to a regular lease. Commissioner Solari proposed adding to Item 3, new language to read that "The tenant is responsible for all repairs", to provide some flexibility. 22 May 12, 2009