The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)



STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL


Opinion No. 6790

March 7, 1994

COUNTIES:

Authority of a county board of commissioners to lease real property

When a county leases a building to serve as a county facility, MCL 46.11(b); MSA 5.331(b), limits to five years the term of a lease under that subsection.

When a county leases county-owned property, the county is not limited to a term of five years by MCL 46.11(b); MSA 5.331(b), and the length of the lease's term rests with the discretion of the county board of commissioners.

Honorable Pat Gagliardi

State Representative

The Capitol

Lansing, MI

Honorable James Mick Middaugh

State Representative

The Capitol

Lansing, MI

You have each asked about the statutory powers of a county to engage in leasing of real property, under MCL 46.11; MSA 5.331, as a lessor or lessee. Leasing involves the conveyance of the possessory interest in real property for a period of time by the owner (lessor) to a tenant (lessee). 15 Michigan Law & Practice, Landlord and Tenant, Sec. 1, p 186.

Two subsections of MCL 46.11; MSA 5.331, authorize leasing by county boards of commissioners:

A county board of commissioners, at a lawfully held meeting, may do 1 or more of the following:

(b) Purchase or lease, for a term not to exceed 5 years, real estate necessary for the site of a courthouse, jail, clerk's office, or other county building in that county.

(d) Authorize the sale or lease of real estate belonging to the county, and prescribe the manner in which a conveyance of the real estate is to be executed. [ Emphasis added.]

When the language of a statute is clear and unambiguous, no interpretation is necessary. Owendale-Gagetown School Dist v State Bd of Education, 413 Mich 1, 8; 317 NW2d 529 (1982). When these two subsections are read together, it is clear that a county is limited by MCL 46.11(b); MSA 5.331(b), to a term of five years when seeking to lease facilities for county use, such as a courthouse or jail. When the county seeks to lease county-owned property to others, there is no limitation on the term of the lease which may be set at the discretion of the county board of commissioners. See, OAG, 1975-1976, No 4938, p 279 (January 30, 1976), which concluded that a county board of commissioners may lease a county-owned building determined to be excess to the needs of the county to a private individual for a period longer than the commissioners' terms of office.

In light of the five-year limitation in MCL 46.11(b); MSA 5.331(b), if the county were to seek a term in excess of five years for property that the county sought to lease as a tenant, the county would need statutory authority for the transaction other than MCL 46.11(b); MSA 5.331(b). For example, the municipal building authority act, MCL 123.958; MSA 5.301(8), authorizes leases to municipalities, including counties, by a building authority for up to fifty years.

It is my opinion, therefore, that when a county leases a building to serve as a county facility, MCL 46.11(b); MSA 5.331(b), limits to five years the term of a lease under that subsection. It is my further opinion that when a county leases county-owned property, the county is not limited to a term of five years by MCL 46.11(b); MSA 5.331(b), and the length of the lease's term rests with the discretion of the county board of commissioners.

Frank J. Kelley

Attorney General