Could Kentwood rent its community center for private events without bidding out the rental?

Plain-English summary

Kentwood's mayor asked whether the town could rent its community center to individuals or groups for a small fee for events such as birthdays, reunions, and weddings. In 2000, the attorney general's office said the town could make casual rentals for those events if rent reimbursed its costs, including electricity and cleaning.

The office drew a line at an ongoing lease to someone operating a private business for private gain. It said the town had to bid that lease under the Lease of Public Lands Law, R.S. 41:1211, et seq. The opinion did not treat every occasional private gathering as that kind of business lease.

Currency note

This opinion was issued in 2000. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Town officials at the time

The office said Kentwood could allow casual use of its community center for gatherings such as birthdays and reunions if the rent covered the town's costs. It required bidding if the arrangement became an ongoing private business lease for private gain.

Event organizers at the time

The opinion treated occasional rentals for personal gatherings differently from an ongoing business lease. Its examples included birthdays, class reunions, family reunions, weddings, and receptions.

Prospective business tenants at the time

The office said a person seeking to operate a private business at the center on an ongoing basis would need a lease bid under the Public Lease Law.

Common questions

Q: Could Kentwood rent the community center for a wedding or reunion?
A: Yes. The opinion said the town could rent it on a casual basis for those kinds of events if rent reimbursed town costs such as electricity and janitorial service.

Q: Could the town charge a fee smaller than its operating costs?
A: The opinion's approval of casual rentals was conditioned on receiving enough rent to reimburse the town for its costs.

Q: What if a business wanted to lease the center continuously?
A: The opinion said an ongoing lease to someone operating a private business for private gain had to be bid under the Lease of Public Lands Law.

Background and statutory framework

The mayor described a community center used for private gatherings in a small town. The office cited Presley v. Vernon Parish School Board for a distinction involving casual use of public property, then noted the later enactment of the Lease of Public Lands Law. Its answer turned on the difference between occasional event rental at a cost-covering rate and an ongoing private business lease.

Citations and references

• R.S. 41:1211, et seq. (Lease of Public Lands Law)
• Presley v. Vernon Parish School Board, 19 La.App. 217, 139 So. 692 (1932) (casual use of public property, as discussed in the opinion)

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/00-0372

Original opinion text

October 9, 2000
OPINION NUMBER 00-372

90-B-1 Public Lands - Leases of other than oil and gas Article VII, §14 of Louisiana Constitution
Honorable Bobby Gill, Mayor
41:1211, et seq.
Town of Kentwood
Town may lease, on a casual basis, its Community Center.
308 Avenue G
If, however, the Town is to lease the Center to a business
Kentwood, LA 70444
operation, it must follow the Public Lease Law.

Dear Mayor Gill:

You requested the opinion of this office concerning whether the Town of Kentwood (the “Town”) can legally rent the Community Center to a private individual or a group for a small fee to cover a portion of the daily upkeep. You advised that the Community Center is the one place that individuals, in a town the size of Kentwood, turn to when in need of a facility for occasions such as birthdays, class reunions, family reunions, weddings, receptions, and the like.

We direct you to Presley v. Vernon Parish School Board, 19 La.App. 217, 139 So. 692 (1932) wherein the School Board desired to lease a portion of the school ground on which school was being conducted, to a person who proposed to enter into private business dealings with pupils and teachers, and also with the public, at any hour for private gain. The Louisiana Supreme Court held that the school board did not have the power to lease ground unless it was for a casual use, not prejudicial to nor inconsistent with the main purpose for which the property was acquired. Since that time the legislature has enacted the Lease of Public Lands Law, R.S. 41:1211, et seq.

We would suggest that the Town can lease the Community Center on a casual basis, for occasions such as birthdays, class reunions, weddings, etc., provided that the Town receives an amount of rental sufficient to reimburse the Town for its cost, such as electricity, janitorial, etc. However, if the Town intends to lease the Community Center to a person who will enter into a private business for private gain on an ongoing basis, the Town must bid such a lease in accordance with the provisions of the Lease of Public Lands Law.

Page 2

Honorable Bobby Gill
OPINION NUMBER 00-372
Page -2-

Trusting this adequately responds to your request, we remain

Yours very truly,

RICHARD P. IEYOUB
Attorney General

BY:
MARTHA S. HESS
Assistant Attorney General

RPI/MSH

Page 3

OPINION NUMBER 00-372
Syllabus

90-B-1 Public Lands - Leases of other than oil and gas

Article VII, §14 of Louisiana Constitution
41:1211, et seq.

Town may lease, on a casual basis, its Community Center. If, however, the Town is to lease the Center to a business operation, it must follow the Public Lease Law.

Honorable Bobby Gill, Mayor
Town of Kentwood
308 Avenue G
Kentwood, LA 70444

Date Received:

Date Released: October 9, 2000

Martha S. Hess
Assistant Attorney General