51²è¹Ýapp

Non-traditional financing involving a private, non-profit 501(c)3 corporation La R.S. 17:3361 A(1-4) provides authority to execute long-term leases with organized national or local college or university fraternity, sorority, religious, quasi-religious, benevolent or other non-profit associations or corporations, military organizations, or public bodies. La R.S. 17:3361 B permits these organizations to construct facilities on the leased premises and exempts such construction from the public bidding law generally regulating State construction projects. However, the 51²è¹Ýapp believes it is in the best interests of the System and its member universities to award such leases and construction contracts through a competitive process. If such process is not appropriate in a particular project, La R.S. 17:3365 authorizes financing and mortgaging agreements on such projects. La R.S. 17:3366 authorizes additional means of financing such projects.

Projects with non-profit organizations that require Bond financing and/or contracts between the non-profit and for-profit entity to construct and/or maintain facilities will by incorporation in the UL System policy be subject to the procedures required by law for the for-profit corporations, Section B, unless otherwise specified by the Board through written policy or waiver.

Non-traditional financing involving private, for-profit corporations This alternative, for example, may involve the leasing of University property to a for-profit corporation to develop capital improvements which are owned, operated and maintained by the corporation.

La R.S. 17:3361 authorizes management boards of higher education to lease property under their control to either a non-profit or a for-profit corporation. If property is leased to a for-profit corporation the requirement is that capital improvements be constructed. (The financing is usually done on a taxable basis through a lender loaning money to the for-profit corporation).