I am City Attorney for a Town that wants to lease a public building (owned
by the Town) to an unincorporated, informal "group" of senior citizens for
use as a "Senior Center".  The lease would be for one (1) year, renewable
each year.  Primary purpose is to serve daily (M-F) lunch, hold meetings and
similar functions typical of a "Senior Center".  The Town does not want to
charge any rent, nor make the seniors pay for utilities, insurance, etc.
The Town will maintain the building.  In other words, the Town wants to let
the seniors use the building totally free of charge.

Any issues with the Town allowing the seniors group to use the building free
of charge.

Thanks.

I think the Oklahoma Constitution prohibits "gifts," so I think you must get "fair market value."  Of course, you could enter into a contract so that it is the Town's program and you contract with the group to provide the services.  That way, the group may make a "gift" to the Town.  The group may need to incorporate a non-profit.  You should also get workers' comp and CGL coverage.

Good Luck!

From: Oama oama-bounces@lists.imla.org On Behalf Of Mark Pordos
Sent: Friday, December 06, 2019 2:00 PM
To: oama@lists.imla.org
Subject: [Oama] Use of Public Property

Notice: This email is from an external source. Do not open attachments or click on links from unknown senders or unexpected e-mail.

I am City Attorney for a Town that wants to lease a public building (owned by the Town) to an unincorporated, informal "group" of senior citizens for use as a "Senior Center".  The lease would be for one (1) year, renewable each year.  Primary purpose is to serve daily (M-F) lunch, hold meetings and similar functions typical of a "Senior Center".  The Town does not want to charge any rent, nor make the seniors pay for utilities, insurance, etc.  The Town will maintain the building.  In other words, the Town wants to let the seniors use the building totally free of charge.

Any issues with the Town allowing the seniors group to use the building free of charge.

Thanks.

This will require very careful draftsmanship of the lease.

OK Const. Art. 10, § 17 Aid to corporations, etc., by counties, cities, towns, etc.
"The Legislature shall not authorize any county or subdivision thereof, city, town, or incorporated district, to become a stockholder in any company, association, or corporation, or to obtain or appropriate money for, or levy any tax for, or to loan its credit to any corporation, association, or individual."

OK Const. Art. 10, § 15 Pledge or loan of credit--Donation--Exceptions
"A. Except as provided by this section, ..., nor shall the State become an owner or stockholder in, nor make donation by gift, subscription to stock, by tax, or otherwise, to any company, association, or corporation."

This prohibition against gifts applied to the political subdivisions of the state, such as municipalities. (there are exceptions as to government to government transactions such as between cities or from a city to a public school.)

If the lease of the building is considered a gift, you have a major legal problem.

However, if the group of seniors (or whomever signs the lease, are performing a service to the city), you can pay for that service via free rent. Therefore, the negotiated terms of the lease will need to be carefully drawn out.

MRV

From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Mark Pordos
Sent: Friday, December 06, 2019 2:00 PM
To: oama@lists.imla.org
Subject: [Oama] Use of Public Property

CAUTION: This email originated from outside of the organization. Do not click any links or open any attachments unless you recognize the sender and know the content is safe.

I am City Attorney for a Town that wants to lease a public building (owned by the Town) to an unincorporated, informal "group" of senior citizens for use as a "Senior Center".  The lease would be for one (1) year, renewable each year.  Primary purpose is to serve daily (M-F) lunch, hold meetings and similar functions typical of a "Senior Center".  The Town does not want to charge any rent, nor make the seniors pay for utilities, insurance, etc.  The Town will maintain the building.  In other words, the Town wants to let the seniors use the building totally free of charge.

Any issues with the Town allowing the seniors group to use the building free of charge.

Thanks.

I think there's authority for doing it, but you'd need to be careful to articulate the public purpose aspect in the lease (since you're using public dollars for upkeep). Check out AG 86-26, which also references state statute 11 O.S. 33-101 through 205. This is where your recitals in the beginning of the lease would be very important. You also might have to make sure it would not be limited to just a small group, but might be open to all senior. That's easier to make fit into the public purpose aspect.

Roy D. Tucker
City Attorney
City of Muskogee
229 W. Okmulgee
Muskogee, Oklahoma 74401
(918) 684-6276: Telephone
(918) 684-6277: Facsimile
rtucker@muskogeeonline.org

From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Mark Pordos
Sent: Friday, December 06, 2019 2:00 PM
To: oama@lists.imla.org
Subject: [Oama] Use of Public Property

I am City Attorney for a Town that wants to lease a public building (owned by the Town) to an unincorporated, informal "group" of senior citizens for use as a "Senior Center".  The lease would be for one (1) year, renewable each year.  Primary purpose is to serve daily (M-F) lunch, hold meetings and similar functions typical of a "Senior Center".  The Town does not want to charge any rent, nor make the seniors pay for utilities, insurance, etc.  The Town will maintain the building.  In other words, the Town wants to let the seniors use the building totally free of charge.

Any issues with the Town allowing the seniors group to use the building free of charge.

Thanks.

Hello, Mark.  Good to hear from you.

I agree with the comments from Mike and Mark.  Providing lunch to seniors is likely within the broad police power of a town, and having someone else provide that service under an agreement with the town would be legally supportable.  It would be best if there were a non-profit of some sort so that there is an entity for the town to contract with.  The town probably should avoid contracting with an "association" of senior citizens and perhaps put them personally at risk.  Mike is correct that the agreement should spell out the public benefit to the City.  But it is doable.

Jonathan E. Miller
City Attorney
City of Mustang
P.O. Box 850854
Yukon, Oklahoma  73085
Telephone: (405) 938-9108

This message is sent by a lawyer and may contain information that is privileged or confidential.  If you received this transmission in error, please notify the sender by reply e-mail and delete this message and any attachments.  This e-mail is intended for the addressee(s) only, and may not be distributed to any other person without written consent of the sender.

From: Oama oama-bounces@lists.imla.org On Behalf Of Michael R. Vanderburg
Sent: Friday, December 6, 2019 2:16 PM
To: 'Mark Pordos' pordos@att.net; oama@lists.imla.org
Subject: Re: [Oama] Use of Public Property

This will require very careful draftsmanship of the lease.

OK Const. Art. 10, § 17 Aid to corporations, etc., by counties, cities, towns, etc.
"The Legislature shall not authorize any county or subdivision thereof, city, town, or incorporated district, to become a stockholder in any company, association, or corporation, or to obtain or appropriate money for, or levy any tax for, or to loan its credit to any corporation, association, or individual."

OK Const. Art. 10, § 15 Pledge or loan of credit--Donation--Exceptions
"A. Except as provided by this section, ..., nor shall the State become an owner or stockholder in, nor make donation by gift, subscription to stock, by tax, or otherwise, to any company, association, or corporation."

This prohibition against gifts applied to the political subdivisions of the state, such as municipalities. (there are exceptions as to government to government transactions such as between cities or from a city to a public school.)

If the lease of the building is considered a gift, you have a major legal problem.

However, if the group of seniors (or whomever signs the lease, are performing a service to the city), you can pay for that service via free rent. Therefore, the negotiated terms of the lease will need to be carefully drawn out.

MRV

From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Mark Pordos
Sent: Friday, December 06, 2019 2:00 PM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] Use of Public Property

CAUTION: This email originated from outside of the organization. Do not click any links or open any attachments unless you recognize the sender and know the content is safe.

I am City Attorney for a Town that wants to lease a public building (owned by the Town) to an unincorporated, informal "group" of senior citizens for use as a "Senior Center".  The lease would be for one (1) year, renewable each year.  Primary purpose is to serve daily (M-F) lunch, hold meetings and similar functions typical of a "Senior Center".  The Town does not want to charge any rent, nor make the seniors pay for utilities, insurance, etc.  The Town will maintain the building.  In other words, the Town wants to let the seniors use the building totally free of charge.

Any issues with the Town allowing the seniors group to use the building free of charge.

Thanks.

No, operating a senior center is proper public service. In your case a group is willing to administer at no cost to the town

Robert C. Thompson
Cheek & Falcone, PLLC
6301 Waterford Blvd., Suite 320
Oklahoma City, Okla. 73118
direct telephone:405-286-9560
direct fax: 405-286-9680
Firm telephone: 405-286-9191
rthompson@cheekfalcone.com

From: Oama oama-bounces@lists.imla.org on behalf of Jon Miller jonmiller@jem-pc.com
Sent: Friday, December 6, 2019 1:24:30 PM
To: Michael R. Vanderburg vandemr@poncacityok.gov; 'Mark Pordos' pordos@att.net; oama@lists.imla.org oama@lists.imla.org
Subject: Re: [Oama] Use of Public Property

Hello, Mark.  Good to hear from you.

I agree with the comments from Mike and Mark.  Providing lunch to seniors is likely within the broad police power of a town, and having someone else provide that service under an agreement with the town would be legally supportable.  It would be best if there were a non-profit of some sort so that there is an entity for the town to contract with.  The town probably should avoid contracting with an “association” of senior citizens and perhaps put them personally at risk.  Mike is correct that the agreement should spell out the public benefit to the City.  But it is doable.

Jonathan E. Miller

City Attorney

City of Mustang

P.O. Box 850854

Yukon, Oklahoma  73085

Telephone: (405) 938-9108

This message is sent by a lawyer and may contain information that is privileged or confidential.  If you received this transmission in error, please notify the sender by reply e-mail and delete this message and any attachments.  This e-mail is intended for the addressee(s) only, and may not be distributed to any other person without written consent of the sender.

From: Oama oama-bounces@lists.imla.org On Behalf Of Michael R. Vanderburg
Sent: Friday, December 6, 2019 2:16 PM
To: 'Mark Pordos' pordos@att.net; oama@lists.imla.org
Subject: Re: [Oama] Use of Public Property

This will require very careful draftsmanship of the lease.

OK Const. Art. 10, § 17 Aid to corporations, etc., by counties, cities, towns, etc.

“The Legislature shall not authorize any county or subdivision thereof, city, town, or incorporated district, to become a stockholder in any company, association, or corporation, or to obtain or appropriate money for, or levy any tax for, or to loan its credit to any corporation, association, or individual.”

OK Const. Art. 10, § 15 Pledge or loan of credit--Donation--Exceptions

“A. Except as provided by this section, …, nor shall the State become an owner or stockholder in, nor make donation by gift, subscription to stock, by tax, or otherwise, to any company, association, or corporation.”

This prohibition against gifts applied to the political subdivisions of the state, such as municipalities. (there are exceptions as to government to government transactions such as between cities or from a city to a public school.)

If the lease of the building is considered a gift, you have a major legal problem.

However, if the group of seniors (or whomever signs the lease, are performing a service to the city), you can pay for that service via free rent. Therefore, the negotiated terms of the lease will need to be carefully drawn out.

MRV

From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Mark Pordos
Sent: Friday, December 06, 2019 2:00 PM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] Use of Public Property

CAUTION: This email originated from outside of the organization. Do not click any links or open any attachments unless you recognize the sender and know the content is safe.

I am City Attorney for a Town that wants to lease a public building (owned by the Town) to an unincorporated, informal “group” of senior citizens for use as a “Senior Center”.  The lease would be for one (1) year, renewable each year.  Primary purpose is to serve daily (M-F) lunch, hold meetings and similar functions typical of a “Senior Center”.  The Town does not want to charge any rent, nor make the seniors pay for utilities, insurance, etc.  The Town will maintain the building.  In other words, the Town wants to let the seniors use the building totally free of charge.

Any issues with the Town allowing the seniors group to use the building free of charge.

Thanks.

I agree.  Oklahoma City gives money and other things to all sorts of groups so long as we determine that we're serving a public purpose, which is the real test.  If it's a public purpose it's not an illegal gift.  Let me check on Monday and find out what we do in these circumstances.  I think we normally enter into a contract with the group and say we're giving you this and you're giving us that.  I know I have some great examples for you.  Amy Douglas, Oklahoma City

From: Oama oama-bounces@lists.imla.org On Behalf Of Robert Thompson
Sent: Friday, December 6, 2019 2:44 PM
To: Jon Miller jonmiller@jem-pc.com; Michael R. Vanderburg vandemr@poncacityok.gov; 'Mark Pordos' pordos@att.net; oama@lists.imla.org
Subject: Re: [Oama] Use of Public Property

No, operating a senior center is proper public service. In your case a group is willing to administer at no cost to the town

Robert C. Thompson
Cheek & Falcone, PLLC
6301 Waterford Blvd., Suite 320
Oklahoma City, Okla. 73118
direct telephone:405-286-9560
direct fax: 405-286-9680
Firm telephone: 405-286-9191
rthompson@cheekfalcone.commailto:rthompson@cheekfalcone.com

From: Oama <oama-bounces@lists.imla.orgmailto:oama-bounces@lists.imla.org> on behalf of Jon Miller <jonmiller@jem-pc.commailto:jonmiller@jem-pc.com>
Sent: Friday, December 6, 2019 1:24:30 PM
To: Michael R. Vanderburg <vandemr@poncacityok.govmailto:vandemr@poncacityok.gov>; 'Mark Pordos' <pordos@att.netmailto:pordos@att.net>; oama@lists.imla.orgmailto:oama@lists.imla.org <oama@lists.imla.orgmailto:oama@lists.imla.org>
Subject: Re: [Oama] Use of Public Property

Hello, Mark.  Good to hear from you.

I agree with the comments from Mike and Mark.  Providing lunch to seniors is likely within the broad police power of a town, and having someone else provide that service under an agreement with the town would be legally supportable.  It would be best if there were a non-profit of some sort so that there is an entity for the town to contract with.  The town probably should avoid contracting with an "association" of senior citizens and perhaps put them personally at risk.  Mike is correct that the agreement should spell out the public benefit to the City.  But it is doable.

Jonathan E. Miller

City Attorney

City of Mustang

P.O. Box 850854

Yukon, Oklahoma  73085

Telephone: (405) 938-9108

This message is sent by a lawyer and may contain information that is privileged or confidential.  If you received this transmission in error, please notify the sender by reply e-mail and delete this message and any attachments.  This e-mail is intended for the addressee(s) only, and may not be distributed to any other person without written consent of the sender.

From: Oama <oama-bounces@lists.imla.orgmailto:oama-bounces@lists.imla.org> On Behalf Of Michael R. Vanderburg
Sent: Friday, December 6, 2019 2:16 PM
To: 'Mark Pordos' <pordos@att.netmailto:pordos@att.net>; oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: Re: [Oama] Use of Public Property

This will require very careful draftsmanship of the lease.

OK Const. Art. 10, § 17 Aid to corporations, etc., by counties, cities, towns, etc.

"The Legislature shall not authorize any county or subdivision thereof, city, town, or incorporated district, to become a stockholder in any company, association, or corporation, or to obtain or appropriate money for, or levy any tax for, or to loan its credit to any corporation, association, or individual."

OK Const. Art. 10, § 15 Pledge or loan of credit--Donation--Exceptions

"A. Except as provided by this section, ..., nor shall the State become an owner or stockholder in, nor make donation by gift, subscription to stock, by tax, or otherwise, to any company, association, or corporation."

This prohibition against gifts applied to the political subdivisions of the state, such as municipalities. (there are exceptions as to government to government transactions such as between cities or from a city to a public school.)

If the lease of the building is considered a gift, you have a major legal problem.

However, if the group of seniors (or whomever signs the lease, are performing a service to the city), you can pay for that service via free rent. Therefore, the negotiated terms of the lease will need to be carefully drawn out.

MRV

From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Mark Pordos
Sent: Friday, December 06, 2019 2:00 PM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] Use of Public Property

CAUTION: This email originated from outside of the organization. Do not click any links or open any attachments unless you recognize the sender and know the content is safe.

I am City Attorney for a Town that wants to lease a public building (owned by the Town) to an unincorporated, informal "group" of senior citizens for use as a "Senior Center".  The lease would be for one (1) year, renewable each year.  Primary purpose is to serve daily (M-F) lunch, hold meetings and similar functions typical of a "Senior Center".  The Town does not want to charge any rent, nor make the seniors pay for utilities, insurance, etc.  The Town will maintain the building.  In other words, the Town wants to let the seniors use the building totally free of charge.

Any issues with the Town allowing the seniors group to use the building free of charge.

Thanks.

CONFIDENTIALITY NOTE: This e-mail message and any attachments are intended solely for the person to which it is addressed and may contain privileged and confidential information protected by law. If you have received this communication in error, please notify the sender immediately by telephone or e-mail, destroy this message and delete any copies held in your electronic files. Unauthorized use and/or re-disclosure may subject you to penalties under applicable state and federal laws.

Just include language that any public funds will be spent in a legal manner

Robert C. Thompson
Cheek & Falcone, PLLC
6301 Waterford Blvd., Suite 320
Oklahoma City, Okla. 73118
direct telephone:405-286-9560
direct fax: 405-286-9680
Firm telephone: 405-286-9191
rthompson@cheekfalcone.com

From: Douglas, Amy G Amy.Douglas@okc.gov
Sent: Saturday, December 7, 2019 1:07:52 PM
To: Robert Thompson rthompson@cheekfalcone.com; Jon Miller jonmiller@jem-pc.com; Michael R. Vanderburg vandemr@poncacityok.gov; 'Mark Pordos' pordos@att.net; oama@lists.imla.org oama@lists.imla.org
Subject: RE: [Oama] Use of Public Property

I agree.  Oklahoma City gives money and other things to all sorts of groups so long as we determine that we’re serving a public purpose, which is the real test.  If it’s a public purpose it’s not an illegal gift.  Let me check on Monday and find out what we do in these circumstances.  I think we normally enter into a contract with the group and say we’re giving you this and you’re giving us that.  I know I have some great examples for you.  Amy Douglas, Oklahoma City

From: Oama oama-bounces@lists.imla.org On Behalf Of Robert Thompson
Sent: Friday, December 6, 2019 2:44 PM
To: Jon Miller jonmiller@jem-pc.com; Michael R. Vanderburg vandemr@poncacityok.gov; 'Mark Pordos' pordos@att.net; oama@lists.imla.org
Subject: Re: [Oama] Use of Public Property

No, operating a senior center is proper public service. In your case a group is willing to administer at no cost to the town

Robert C. Thompson

Cheek & Falcone, PLLC

6301 Waterford Blvd., Suite 320

Oklahoma City, Okla. 73118

direct telephone:405-286-9560

direct fax: 405-286-9680

Firm telephone: 405-286-9191

rthompson@cheekfalcone.commailto:rthompson@cheekfalcone.com

From: Oama <oama-bounces@lists.imla.orgmailto:oama-bounces@lists.imla.org> on behalf of Jon Miller <jonmiller@jem-pc.commailto:jonmiller@jem-pc.com>
Sent: Friday, December 6, 2019 1:24:30 PM
To: Michael R. Vanderburg <vandemr@poncacityok.govmailto:vandemr@poncacityok.gov>; 'Mark Pordos' <pordos@att.netmailto:pordos@att.net>; oama@lists.imla.orgmailto:oama@lists.imla.org <oama@lists.imla.orgmailto:oama@lists.imla.org>
Subject: Re: [Oama] Use of Public Property

Hello, Mark.  Good to hear from you.

I agree with the comments from Mike and Mark.  Providing lunch to seniors is likely within the broad police power of a town, and having someone else provide that service under an agreement with the town would be legally supportable.  It would be best if there were a non-profit of some sort so that there is an entity for the town to contract with.  The town probably should avoid contracting with an “association” of senior citizens and perhaps put them personally at risk.  Mike is correct that the agreement should spell out the public benefit to the City.  But it is doable.

Jonathan E. Miller

City Attorney

City of Mustang

P.O. Box 850854

Yukon, Oklahoma  73085

Telephone: (405) 938-9108

This message is sent by a lawyer and may contain information that is privileged or confidential.  If you received this transmission in error, please notify the sender by reply e-mail and delete this message and any attachments.  This e-mail is intended for the addressee(s) only, and may not be distributed to any other person without written consent of the sender.

From: Oama <oama-bounces@lists.imla.orgmailto:oama-bounces@lists.imla.org> On Behalf Of Michael R. Vanderburg
Sent: Friday, December 6, 2019 2:16 PM
To: 'Mark Pordos' <pordos@att.netmailto:pordos@att.net>; oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: Re: [Oama] Use of Public Property

This will require very careful draftsmanship of the lease.

OK Const. Art. 10, § 17 Aid to corporations, etc., by counties, cities, towns, etc.

“The Legislature shall not authorize any county or subdivision thereof, city, town, or incorporated district, to become a stockholder in any company, association, or corporation, or to obtain or appropriate money for, or levy any tax for, or to loan its credit to any corporation, association, or individual.”

OK Const. Art. 10, § 15 Pledge or loan of credit--Donation--Exceptions

“A. Except as provided by this section, …, nor shall the State become an owner or stockholder in, nor make donation by gift, subscription to stock, by tax, or otherwise, to any company, association, or corporation.”

This prohibition against gifts applied to the political subdivisions of the state, such as municipalities. (there are exceptions as to government to government transactions such as between cities or from a city to a public school.)

If the lease of the building is considered a gift, you have a major legal problem.

However, if the group of seniors (or whomever signs the lease, are performing a service to the city), you can pay for that service via free rent. Therefore, the negotiated terms of the lease will need to be carefully drawn out.

MRV

From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Mark Pordos
Sent: Friday, December 06, 2019 2:00 PM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] Use of Public Property

CAUTION: This email originated from outside of the organization. Do not click any links or open any attachments unless you recognize the sender and know the content is safe.

I am City Attorney for a Town that wants to lease a public building (owned by the Town) to an unincorporated, informal “group” of senior citizens for use as a “Senior Center”.  The lease would be for one (1) year, renewable each year.  Primary purpose is to serve daily (M-F) lunch, hold meetings and similar functions typical of a “Senior Center”.  The Town does not want to charge any rent, nor make the seniors pay for utilities, insurance, etc.  The Town will maintain the building.  In other words, the Town wants to let the seniors use the building totally free of charge.

Any issues with the Town allowing the seniors group to use the building free of charge.

Thanks.

CONFIDENTIALITY NOTE: This e-mail message and any attachments are intended solely for the person to which it is addressed and may contain privileged and confidential information protected by law. If you have received this communication in error, please notify the sender immediately by telephone or e-mail, destroy this message and delete any copies held in your electronic files. Unauthorized use and/or re-disclosure may subject you to penalties under applicable state and federal laws.

Sorry I am coming late to this subject.  See Burkhardt v. City of Enid, 771 P.2d 608 (Okla 1989).  I think it's right on point.

Bottom line:  I agree with the others that the proposed use of the funds is for a public, and not private, purpose, and the mechanism is the lease.

Tammy Ewing
Assistant City Attorney
City of Broken Arrow
220 S. 1st St.
Broken Arrow, OK  74012
(918)259-8422, Ext. 5423

From: Oama oama-bounces@lists.imla.org On Behalf Of Robert Thompson
Sent: Saturday, December 7, 2019 3:08 PM
To: Douglas, Amy G Amy.Douglas@okc.gov; Jon Miller jonmiller@jem-pc.com; Michael R. Vanderburg vandemr@poncacityok.gov; 'Mark Pordos' pordos@att.net; oama@lists.imla.org
Subject: Re: [Oama] Use of Public Property

CAUTION! This email originated from outside of the City of Broken Arrow network. Do not click links or open attachments unless you recognize the sender and know the content is safe. code rgiad

Just include language that any public funds will be spent in a legal manner

Robert C. Thompson
Cheek & Falcone, PLLC
6301 Waterford Blvd., Suite 320
Oklahoma City, Okla. 73118
direct telephone:405-286-9560
direct fax: 405-286-9680
Firm telephone: 405-286-9191
rthompson@cheekfalcone.commailto:rthompson@cheekfalcone.com

From: Douglas, Amy G <Amy.Douglas@okc.govmailto:Amy.Douglas@okc.gov>
Sent: Saturday, December 7, 2019 1:07:52 PM
To: Robert Thompson <rthompson@cheekfalcone.commailto:rthompson@cheekfalcone.com>; Jon Miller <jonmiller@jem-pc.commailto:jonmiller@jem-pc.com>; Michael R. Vanderburg <vandemr@poncacityok.govmailto:vandemr@poncacityok.gov>; 'Mark Pordos' <pordos@att.netmailto:pordos@att.net>; oama@lists.imla.orgmailto:oama@lists.imla.org <oama@lists.imla.orgmailto:oama@lists.imla.org>
Subject: RE: [Oama] Use of Public Property

I agree.  Oklahoma City gives money and other things to all sorts of groups so long as we determine that we're serving a public purpose, which is the real test.  If it's a public purpose it's not an illegal gift.  Let me check on Monday and find out what we do in these circumstances.  I think we normally enter into a contract with the group and say we're giving you this and you're giving us that.  I know I have some great examples for you.  Amy Douglas, Oklahoma City

From: Oama <oama-bounces@lists.imla.orgmailto:oama-bounces@lists.imla.org> On Behalf Of Robert Thompson
Sent: Friday, December 6, 2019 2:44 PM
To: Jon Miller <jonmiller@jem-pc.commailto:jonmiller@jem-pc.com>; Michael R. Vanderburg <vandemr@poncacityok.govmailto:vandemr@poncacityok.gov>; 'Mark Pordos' <pordos@att.netmailto:pordos@att.net>; oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: Re: [Oama] Use of Public Property

No, operating a senior center is proper public service. In your case a group is willing to administer at no cost to the town

Robert C. Thompson

Cheek & Falcone, PLLC

6301 Waterford Blvd., Suite 320

Oklahoma City, Okla. 73118

direct telephone:405-286-9560

direct fax: 405-286-9680

Firm telephone: 405-286-9191

rthompson@cheekfalcone.commailto:rthompson@cheekfalcone.com

From: Oama <oama-bounces@lists.imla.orgmailto:oama-bounces@lists.imla.org> on behalf of Jon Miller <jonmiller@jem-pc.commailto:jonmiller@jem-pc.com>
Sent: Friday, December 6, 2019 1:24:30 PM
To: Michael R. Vanderburg <vandemr@poncacityok.govmailto:vandemr@poncacityok.gov>; 'Mark Pordos' <pordos@att.netmailto:pordos@att.net>; oama@lists.imla.orgmailto:oama@lists.imla.org <oama@lists.imla.orgmailto:oama@lists.imla.org>
Subject: Re: [Oama] Use of Public Property

Hello, Mark.  Good to hear from you.

I agree with the comments from Mike and Mark.  Providing lunch to seniors is likely within the broad police power of a town, and having someone else provide that service under an agreement with the town would be legally supportable.  It would be best if there were a non-profit of some sort so that there is an entity for the town to contract with.  The town probably should avoid contracting with an "association" of senior citizens and perhaps put them personally at risk.  Mike is correct that the agreement should spell out the public benefit to the City.  But it is doable.

Jonathan E. Miller

City Attorney

City of Mustang

P.O. Box 850854

Yukon, Oklahoma  73085

Telephone: (405) 938-9108

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From: Oama <oama-bounces@lists.imla.orgmailto:oama-bounces@lists.imla.org> On Behalf Of Michael R. Vanderburg
Sent: Friday, December 6, 2019 2:16 PM
To: 'Mark Pordos' <pordos@att.netmailto:pordos@att.net>; oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: Re: [Oama] Use of Public Property

This will require very careful draftsmanship of the lease.

OK Const. Art. 10, § 17 Aid to corporations, etc., by counties, cities, towns, etc.

"The Legislature shall not authorize any county or subdivision thereof, city, town, or incorporated district, to become a stockholder in any company, association, or corporation, or to obtain or appropriate money for, or levy any tax for, or to loan its credit to any corporation, association, or individual."

OK Const. Art. 10, § 15 Pledge or loan of credit--Donation--Exceptions

"A. Except as provided by this section, ..., nor shall the State become an owner or stockholder in, nor make donation by gift, subscription to stock, by tax, or otherwise, to any company, association, or corporation."

This prohibition against gifts applied to the political subdivisions of the state, such as municipalities. (there are exceptions as to government to government transactions such as between cities or from a city to a public school.)

If the lease of the building is considered a gift, you have a major legal problem.

However, if the group of seniors (or whomever signs the lease, are performing a service to the city), you can pay for that service via free rent. Therefore, the negotiated terms of the lease will need to be carefully drawn out.

MRV

From: Oama [mailto:oama-bounces@lists.imla.org] On Behalf Of Mark Pordos
Sent: Friday, December 06, 2019 2:00 PM
To: oama@lists.imla.orgmailto:oama@lists.imla.org
Subject: [Oama] Use of Public Property

CAUTION: This email originated from outside of the organization. Do not click any links or open any attachments unless you recognize the sender and know the content is safe.

I am City Attorney for a Town that wants to lease a public building (owned by the Town) to an unincorporated, informal "group" of senior citizens for use as a "Senior Center".  The lease would be for one (1) year, renewable each year.  Primary purpose is to serve daily (M-F) lunch, hold meetings and similar functions typical of a "Senior Center".  The Town does not want to charge any rent, nor make the seniors pay for utilities, insurance, etc.  The Town will maintain the building.  In other words, the Town wants to let the seniors use the building totally free of charge.

Any issues with the Town allowing the seniors group to use the building free of charge.

Thanks.
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