48-4202. Formation of district; termination

A. The board of supervisors of each county having a population of more than one million five hundred thousand persons or any county in which a major league baseball organization has established or seeks to establish a spring training operation may organize a countywide district to include both the incorporated and unincorporated areas of the county, if the board determines that the public convenience, necessity or welfare will be promoted by establishing the district.

B. Two or more municipalities in the same county may organize a district for multipurpose facilities if the governing bodies of the municipalities determine that the public convenience, necessity or welfare will be promoted by establishing the district. The district shall be composed of the areas within the corporate boundaries of the municipalities. After formation, the boundaries of the district shall not be altered. A district may be established under this subsection in the same county in which a district is established under subsection A of this section. A district formed pursuant to this subsection shall be deemed a county stadium district for the purposes of this chapter. Notwithstanding any other law, a district may not be organized under this subsection from and after October 31, 1999, except that a district may be organized under this subsection after October 31, 1999 if before that date the governing body of two or more of the municipalities identified the location of a multipurpose facility site and has voted with the purpose of forming a district for multipurpose facilities under this subsection.

C. The board of supervisors of any county in which a state supported university is established may organize a single university athletic facilities district if the board determines that the public convenience, necessity or welfare will be promoted by establishing the district. The district shall include only the area in the county within the contiguous exterior boundaries of real property owned by the Arizona board of regents and shall exclude any such real property subject to an existing ground lease or subject to an existing agreement granting a third party the right or option to a ground lease. After formation, the boundaries of the district shall be altered only as the Arizona board of regents acquires and disposes of real property. A district may be established under this subsection in the same county in which a district is established under subsection A of this section. A district formed pursuant to this subsection is deemed a county stadium district for the purposes of this chapter.

D. The county board of supervisors shall be the board of directors of a countywide district established under subsection A of this section.

E. The board of directors of a district established under subsection B of this section shall consist of persons who are residents of the county in which the district is located, at least four of whom must reside in the municipality in which the district is located and who are appointed as follows:

1. Five members who are appointed by the governor, each of whom must have experience in commercial real estate, construction, redevelopment, real estate law, architecture, economic development or commercial or public finance. The governor may receive nominations for appointment from any interested organization or person. Members appointed by the governor serve at the pleasure of the governor.

2. Two members who are appointed by the president of the senate. The members appointed by the president serve at the pleasure of the president.

3. Two members who are appointed by the speaker of the house of representatives. The members appointed by the speaker serve at the pleasure of the speaker.

F. The board of directors of a district established under subsection C of this section shall be established pursuant to an intergovernmental agreement between the county and the Arizona board of regents.

G. The directors of any district are not eligible for compensation for their services but are eligible for reimbursement for their necessary expenses in attending to and traveling on district business.

H. The board of supervisors may pay the necessary costs incurred in connection with establishing a countywide district from any county monies available for that purpose. The municipalities may pay their proportionate share of the necessary costs incurred in establishing a district formed by two or more municipalities under subsection B of this section from any monies available for that purpose. The Arizona board of regents may pay the necessary costs incurred in connection with establishing a district under subsection C of this section from any monies available for that purpose.

I. Subject to limitations imposed by this chapter, by intergovernmental agreement and by the ordinance or resolution authorizing the formation of the district, the district is a tax levying public improvement district and a political taxing subdivision of this state and has all the powers, privileges and immunities granted generally to municipal corporations for the purposes of implementing this chapter, including eminent domain, as provided by section 48-4203, subsection A, paragraph 7, and immunity of its property, bonds and interest on and transfer of its bonds from taxation.

J. Notwithstanding any other law, on the termination of a district established under subsection B of this section, the board of directors shall dispose of the district's real property and improvements as follows:

1. If the district leases property to a single lessee, the lessee has the first right to acquire title to the property at its appraised value. The board shall transmit all proceeds from the transaction to the state treasurer for deposit in the public safety personnel retirement fund established pursuant to title 38, chapter 5, article 4 for the purpose of paying the unfunded accrued liability under the public safety personnel retirement system.

2. If the district leases property to multiple lessees, each lessee has the right to offer a bid to purchase the entire property at fair market value, and the board shall accept the bid that will transfer and terminate the district's title to the property. The board shall transmit all proceeds from the transaction to the state treasurer for deposit in the public safety personnel retirement fund established pursuant to title 38, chapter 5, article 4 for the purpose of paying the unfunded accrued liability under the public safety personnel retirement system.

3. If the property is not conveyed pursuant to paragraph 1 or 2 of this subsection within six months after the board of directors offers it for disposal, but not later than the termination of the district, whichever occurs first, the property escheats to the state land trust for the benefit of the permanent state school fund pursuant to article XI, section 8, Constitution of Arizona, and section 37-521.