THE PUBLIC BUILDING AUTHORITY ACT OF 1971
In 1971 the State of Tennessee adopted the Public Building Authorities Act of 1971, which authorized local governments to create public building authorities. A public building authority is a public, non-profit corporation. A public building authority is governed by a board of directors, which is appointed by the governing body of the municipalities. Each public building authority is granted operating authority set forth in TCA §12-10-109, together with any authority incidental thereto or necessary for the performance of its powers. Below is a list of statutory authorities granted to public building authorities within the state of Tennessee.
A PUBLIC BUILDING AUTHORITY MAY:
• Improve, repair, extend, equip, furnish, operate and maintain project.
• Take any of the actions in regard to real and personal property.
• Take any of these actions within the municipality or outside the municipality.
• Demolish existing structures which are not needed for the project.
• Pave and improve streets within the project, and construction, repair and install sidewalks, sewers, gutters, water mains and similar improvements and facilities in the area.
• Provide off-street parking facilities for any project.
• Procure insurance and indemnities.
• Make rules and regulations with regard to the operation, maintenance and management of projects.
• Operate, maintain and manage projects, and enter into contracts for the operation, maintenance and management of projects.
• Lease all or any part of a project to any municipal corporation, the State of Tennessee, the United States, or any agency, authority, branch, bureau, commission, corporation, department or instrumentality thereof, for a term of up to 40 years.
• Employ, contract with, compensate and discharge engineering, architectural, legal and financial experts and/or any other professional and non-professional employees.
• Lease space in any project that is not needed by a public lessee to any other person, corporation, partnership, or association.
• Borrow Money, issue and sell revenue bonds for projects, including soft costs and capitalized interest during construction and for two (2) years after the estimated date of completion.
• Collect rent and otherwise enforce the lease obligations.
• Accept donations, contributions, capital grants and gifts.
• Enter into a contract with the lessee which will rent the project whereby the lessee is obligated to pay all or part of the maintenance and operational costs.
• Borrow money pending the issuance of revenue bonds by interim certificates, notes or other temporary obligations.
• Sell, exchange, donate or convey all or any of it's properties in furtherance of the purposes for which it was organized.
• Mortgage and pledge projects including assignment of rents to secure payment of bonds.
• Sell, lease or convey air rights and easements by public bid or private sale.