Authorization to Enter into Long-term Leases

For the purpose of facilitating the financing, design, construction and rehabilitation and maintenance of an education facility encompassed by this Act, the government of Guam or an education agency, as the case may be, is authorized to lease, if required, to the contractor sufficient government of Guam real property on which to rehabilitate an education facility; provided, such property is in the inventory of the education COL2232015 CHAPTER 58E THE FINANCE, DESIGN, RENOVATION, REHABILITATION, CONSTRUCTION OR MAINTENANCE OF PUBLIC SCHOOLS agency or the government of Guam. The property may be the site of an existing education facility under the control of an education agency, which existing facility may be rehabilitated under the provisions of this Act. The education agency is also authorized to lease back from the contractor the property for a period mutually agreed upon between the education agency and the contractor as may be reasonably necessary to amortize over the lease-back period the costs associated with the design, renovation, rehabilitation, construction or maintenance of the education facility. In no event shall the end of such lease-back period be later than the date thirty

(30)years from the scheduled date of completion of the education facility. The lease-back may be structured as an annually renewable lease with a provision for automatic renewals to the extent that pledged revenue under § 58E108 is available. The lease-back shall not be construed as a debt under any applicable debt limitation under the Guam Organic Act or Guam law.