Renewal of commercial property lease from district; appraisal establishing fair market rental value required.

Miss. Code Ann. § 51-15-165
in effect
Sign in to generate a plain English summaryAsk Belisarius Agent
Any holder of a lease that is not a residential lease subject to Section 51-15-163 shall have the right, exclusive of all other persons, to renew the lease at fair market rental value at any time prior to expiration of the lease. Other than the right of a lessee to renew at fair market rental value, nothing in this section is intended to limit or restrict the right of the district to negotiate terms of any lease in furtherance of any of the purposes authorized by this section and in a manner deemed favorable to the district by the board of directors. Prior to entering into any lease under this section, whether a new or renewal lease, the district shall obtain at least one (1) appraisal from a competent appraiser establishing the fair market rental value of the land, exclusive of improvements made by the leaseholder or any predecessor in title, and, except as otherwise provided in paragraph (b) of this subsection, the land shall not be leased for an amount less than the fair market rental as determined by the appraiser and approved by the board. The district may require such other terms as it deems advisable. The cost of the appraisal shall be paid by the district and may be included in the costs of lease renewal to be reimbursed by the lessee. The lessee may obtain an appraisal from a certified real estate appraiser establishing the fair market rental value of the land. If the fair market rental value of the land established in such appraisal differs from the fair market rental value of the land established in the appraisal obtained by the district, the land shall not be leased for an amount less than the average of the fair market rental value established by the two (2) appraisals. For the purposes of this section, “terms” means rent, rent escalation clauses, rental adjustment periods and method of determination, term of years, permitted use, condition of improvements, removal of improvements, and compliance with district rules and regulations. In the event a lessee has not obtained a new lease pursuant to the provisions of this section, any preemptive right of the lessee to lease the property shall be extinguished upon expiration of the lease, and, at the direction of the district, the lessee shall remove all improvements and other structures on the property immediately upon termination of the lease.

Starting a business in Mississippi? Mississippi LLC guide: costs and requirements