A BILL TO BE ENTITLED
AN ACT to require the state to terminate its lease of the indian cultural center property and the riverside golf course property and to direct the program evaluation division to study the options for the disposition of the properties.
Whereas, the State of North Carolina acquired the following tracts or parcels of  land located in Maxton Township, Robeson County, for the development, use, and maintenance of an Indian Cultural Center: (i) 386.69 acres, more or less, by deed from the Riverside Country Club of Pembroke, Inc., dated April 14, 1983, recorded in Book 533, Page 164, Robeson County Registry and by deed dated August 24, 1984, recorded in Book 563, Page 254, Robeson County Registry, less and except approximately 110 acres for the use and operation of the Riverside Golf Course; (ii) 99.62 acres, more or less, by deed from Evelyn S. Morgan Abbott, dated March 25, 1988, recorded in Book 575, Page 523, Robeson County Registry; (iii) 10 acres, more or less, by deed from H.C. Locklear, et ux, dated December 12, 1985, recorded in Book 586, Page 142, Robeson County Registry; and (iv) 42.50 acres, more or less, by deed from Ronald Revels and wife, Dorisetta Revels, dated December 17, 1996, recorded in Book 931, Page 415, Robeson County Registry; and
Whereas, pursuant to Chapter 1074 of the 1989 Session Laws, as amended by Chapter 900 of the 1991 Session Laws and Chapter 88 of the 1993 Session Laws, the General Assembly directed that the State of North Carolina enter into a 99‑year lease of the Indian Cultural Center property with a North Carolina nonprofit entity known as the North Carolina Indian Cultural Center, Inc. (NCICC); and
Whereas, the State of North Carolina entered into a 99‑year lease agreement, dated May 12, 1994, with NCICC, which lease was subsequently amended on December 9, 1997, and June 6, 2001, in accordance with S.L. 1997‑41 and S.L. 2001‑89 (collectively, the "lease"); and
Whereas, the lease provides in paragraph 8 that the Indian Cultural Center property is to "be maintained and improved, at no cost or expense to the [State of North Carolina], for those activities covered by the original charter of [T]he North Carolina Indian Cultural Center, Inc., on file with the North Carolina Secretary of State"; and
Whereas, as provided in its charter, the organizational purposes of NCICC are, in part: "a. [t]o respectfully present to the public accurate information on Native North American history, art, and culture"; and "b. [t]o develop, establish, manage, furnish, equip, maintain, preserve, exhibit and interpret to the public the North Carolina Indian Cultural Center with its Indian villages, arts and crafts, archaeological digs, museums, art exhibits, library, visitors' center, recreational facilities, entertainment, restaurants, concessions, and other related operations of an artistic, economic development, educational, and cultural nature"; and
Whereas, in addition to the maintenance requirements of paragraph 8, paragraphs 16 and 20 of the lease require NCICC to maintain during its term of possession, at its expense, the Indian Cultural Center property and all permanent structures located on the property in accordance with all applicable laws, rules, ordinances, orders, and regulations of State and county governmental agencies; and
Whereas, in March 2010, the Office of State Construction assessed the condition of the improvements at the Indian Cultural Center property, from which assessment it appears that the improvements on the property have not been maintained as required in paragraphs 8, 16, and 20 of the lease; and
Whereas, subsequently, the North Carolina Department of Insurance conducted a fire and safety inspection at the Indian Cultural Center property, from which inspection it appears that the improvements on the property have not been maintained as required in paragraphs 8, 16, and 20 of the lease; and
Whereas, the Riverside Golf Course, comprising approximately 110 acres, is contiguous to Indian Cultural Center property and uses as a means of access the main road extending through the Indian Cultural Center property; and
Whereas, pursuant to paragraph 13 of the lease, the State of North Carolina retained the right of ingress and egress, both vehicular and pedestrian, over the main road extending through the Indian Cultural Center property for the purpose of accessing the Riverside Golf Course; and
Whereas, NCICC has hindered or prevented access to the Riverside Golf Course by the State, its lessees, contractors, and invitees by changing the locks on the entrance gate to the Indian Cultural Center property and by other means; and
Whereas, paragraph 25 of the lease requires NCICC to keep in force, and maintain throughout the term of the lease, fire and extended coverage insurance on the permanent structures located on the Indian Cultural Center property; and
Whereas, pursuant to paragraph 26 of the lease, NCICC is required to keep in force, for the mutual benefit of the State and NCICC, at no cost to the State, comprehensive broad form general public liability insurance on the terms and conditions set forth in the lease; and
Whereas, NCICC has failed to provide evidence to the State that the insurance required under paragraphs 25 and 26 of the lease is in force; and
Whereas, upon consultation with the Department of Administration, the Office of the Attorney General provided NCICC with notice in a letter dated January 18, 2011, that NCICC was in breach of its obligations under the lease for defaults that included some of those set forth above; and
Whereas, the General Assembly also finds that NCICC is, and has been for some time, in breach of its obligations under the lease for the defaults set forth above and other defaults and that it would be in the best interest of the State if the lease were terminated and existing law amended to allow the State of North Carolina to effect an alternate arrangement for the disposition and management of the Indian Cultural Center property other than the lease with NCICC; and
Whereas, pursuant to subsection (a) of Section 18 of Chapter 1074 of the 1989 Session Laws, as amended by Section 22 of Chapter 900 of the 1991 Session Laws, Section 1 of Chapter 88 of the 1993 Session Laws, Section 33 of Chapter 561 of the 1993 Session Laws, Section 1 of S.L. 1997‑41, and Section 1 of S.L. 2001‑89, the Riverside Golf Course was excluded from the real property subject to the lease and operated for a period of time under separate lease agreements; and
Whereas, the Riverside Golf Course is not currently in operation and all lease agreements for the Riverside Golf Course have either expired or allow for termination upon 30 days' notice by the State; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  Termination of leases and repossession of land. – Notwithstanding the provisions of subsection (a) of Section 18 of Chapter 1074 of the 1989 Session Laws, as amended by subsection (e) of Section 22 of Chapter 900 of the 1991 Session Laws, Section 1 of Chapter 88 of the 1993 Session Laws, Section 33 of Chapter 561 of the 1993 Session Laws, Section 1 of S.L. 1997‑41, and Section 1 of S.L. 2001‑89, the State of North Carolina shall immediately terminate its lease of the Indian Cultural Center property pursuant to the terms of the lease and repossess the property. The State of North Carolina shall also terminate its lease of the Riverside Golf Course property upon giving 30 days' notice pursuant to the terms of the lease and repossess the property. The State of North Carolina shall not sell, lease, or otherwise dispose of the Indian Cultural Center property or the Riverside Golf Course property until the Joint Legislative Program Evaluation Oversight Committee has made its final recommendations upon completion of the study directed by Section 2 of this act and the General Assembly has enacted legislation directing action on this issue.
SECTION 2.(a)  PED Study. – The Joint Legislative Program Evaluation Oversight Committee shall include in the 2012‑2013 Work Plan for the Program Evaluation Division of the General Assembly a study to evaluate the options for disposing of the Indian Cultural Center property and the Riverside Golf Course property in such a way that ensures that the properties will continue to serve all of the purposes listed in this section. The purposes are:
(1)	The preservation, exhibition, and interpretation of Native North American arts, crafts, and artifacts.
(2)	The provision of information to the public on Native North American history and culture.
(3)	The installation of new and the renovation of existing public recreational and entertainment facilities.
(4)	The cultivation of economic development enterprises.
SECTION 2.(b)  Reporting. – The Program Evaluation Division shall submit its findings and recommendations to the Joint Legislative Program Evaluation Oversight Committee at a date to be determined by the Joint Legislative Program Evaluation Oversight Committee. The Committee shall submit its findings and recommendations to the General Assembly on or before the convening of the 2013 General Assembly.
SECTION 3.  This act is effective when it becomes law.