Did Port Barre have to publicly bid a realty firm's contract to find tenants for a town building?

Plain-English summary

Port Barre proposed hiring Randolph McCormick Realty to find tenants for a town-owned building. The Attorney General said the proposed agreement was a services contract, so Louisiana's Public Bid Law did not require the town to competitively bid that agreement.

The answer did not exempt a later property lease. The opinion said the Public Lease Law governed leasing the building and required public advertising and serious consideration related to property value, utility, and local market conditions. It also identified municipal property-lease requirements and said the realty firm, acting for the town, had to follow them. If tax-exempt state bond proceeds helped fund the building, the AG said the town should review its cooperative endeavor agreement for conflicting obligations.

Currency note

This opinion was issued in 2002. 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.

Common questions

Did the town have to bid the contract with the realty firm?
The AG said no. It treated the tenant-finding agreement as a services contract outside the public bid requirement it discussed.

Did hiring the firm remove the rules for leasing the building?
No. The opinion said the Public Lease Law and municipal property-lease provisions still governed the resulting transaction.

What lease terms and process did the opinion identify?
It described public advertising of the property's availability and consideration tied to its value, utility, and local market conditions.

Background and statutory framework

The opinion distinguished Louisiana's public bidding rules for public work and purchases from a contract for services. It then applied public lease and municipal property statutes to the building itself. Its no-bid conclusion was expressly conditioned on compliance with other applicable restrictions. The date line in the available extract is damaged, so this record leaves the exact issue date blank.

Citations and references

• La. R.S. 38:2211 et seq.
• Louisiana Revised Statute 41:1211 et seq
• Louisiana Revised Statute 33:4712, discussed for municipal leases

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/02-0220

Original opinion text

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DEPARTMENT OF JUSTICE
One American Place
301 Mare Street, Suite 600
CIVIL DIVISION
P.O. Box 94005
BATON ROUGE
TEL.: (225) 342-7013
FAX: (225) 342-2090
RICHARD P. IFYOUB
70804-9005
ATTORNEY GENERAL

AUG g 0 200Z
OPINION NUMBER 02-0220

90-A-l-(b) Public Funds & Contracts- Professional Services La. R.S 33:4717
La. R.S. 38:2211 et seq.
La. R.S. 41:1211 et seq.
Mr. P. Craig Morrow, Jr.
MORROW, MORROW, RYAN AND BASSEi-I
As the contract between the Town of Port Barre and RMR is a
contract for services, Jt may be awarded without the necessity
Post Office Drawer 1787
of competit=ve bidding or competit=ve negot=ation so long as the
Opelousas, LA 70571-1787
municipality does not v=olate other statutes or restrict=ons

Dear Mr. Morrow:

You have requested an opinion from this office regarding a proposed contract between the Town of Port Barre and Randolph McCormick Realty, Inc. (RMR).
The stated objective of the proposed agreement is to obtain tenants for a building owned by the town "to bring economic prosperity and jobs to the local residents." Specifically, you ask the following question:

Is the Town of Port Barre prohibited by Public Bid Law from entering into a contract with RMR?

Louisiana Revised Statute 38:2211A (10) states:

"Public entity" means and includes the state of Louisiana ... or any political subdivision of the state, including but not limited to any political subdivision as defined in Article VI Section 44 of the Constitution of Louisiana ....

Louisiana’s Public Bid Law, La. R.So 38:2211 et seq, applies to political subdivisions of the state. However, Attorney General Opinion No. 92-492, discussing Public Bid Law, states:

Court decisions interpreting this provision over the years have made clear that the public bid requirement is applicable to "public work" and to "purchases of materials and supplies", but not to contracts for services.

Page 2

Opinion Number 02-0220
P. Craig Morrow, Jr.
Morrow, Morrow, Ryan and Bassett
Page: -2-

The proposed contract between the Town of Port Barre and RMR is a contract for services. Thus, the Town of Port Barre is not prohibited by Public Bid Law from entering into a contract with RMR.

Next, you ask if there are any other provisions of the law that might apply to a proposed contract between RMR and the Town of Port Barre. The provisions of Public Lease Law, Louisiana Revised Statute 41:1211 et seq are applicable. Attorney General opinion 90-147 states that the lease of public property for a reasonable compensation and in conformity with LSA-R.S. 41:1212 does not violate Article VII, Section 14 of the 1974 Louisiana Constitution. The Public Lease Law statutes require among other things that the availability of the property be advertised to the public and that the lease should be for a serious consideration related to the value and utility of the property and the market conditions in the area. (Attorney General Opinion No. 89-209).

Louisiana Revised Statute 33:4712 provides specific requirements regarding the lease of property by a municipality. As the agent for the city in this matter, RMR must follow the provisions of these statutes. The guidelines and procedures are exacting in nature and the municipality must insure that the procedural requirements are followed to avoid violation of statutory mandates. Finally, Louisiana Revised Statute 33:4717.1 discusses use of property for industrial inducement.

If the State of Louisiana funded the building in part using tax exempt bond proceeds, you should review the Cooperative Endeavor Agreement with the state to be certain there is no conflict or continuing obligation.

In conclusion, as the contract between the Town of Port Barre and RMR is a contract for services, it may be awarded without the necessity of competitive bidding or competitive negotiation so long as the municipality does not violate other statutes or restrictions.

Please do not hesitate to contact this office if you have additional questions.

Very truly yours,

RICHARD P. IEYOUB
ATTORNEY GENERAL

By:
SUE MCNABB
Assistant Attorney General
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