(1) The Governor’s Office of General Services is hereby authorized and empowered, in its discretion, to lease for a period of not more than twenty (20) years with an option to renew for a period of twenty (20) years all, or to rent on a monthly basis any part, of those lands being part of the southwest corner of Section 14, Township 6 North, Range 1 East, in the City of Jackson, Hinds County, Mississippi, and being more particularly described as follows:

Beginning at southwest corner of West Broadmoor Subdivision, as recorded in Plat Book 6, Page 35, in the office of the Chancery Clerk of Hinds County, Mississippi, and run thence easterly along the south boundary of Lot I, of the aforesaid subdivision 261.4 feet to the western right-of-way line of North State Street, run thence southwesterly along the western right-of-way line of North State Street, 111 feet, run thence westerly 242 feet, more or less to the point of beginning.

The rental or lease shall be subject to the following terms and conditions:

(a) That the Governor’s Office of General Services find and determine that the said lands, or parts thereof, are neither now needed nor are they programmed by the State of Mississippi for governmental purposes within the period of the proposed term of said lease or rental.

(b) That the annual amount paid for leased lands be in an amount of not less than seven and one-half percent (7½%) of the current fair market value as determined by the averaging of at least two (2) appraisals. Thereafter, appraisals on said property may be made every five (5) years (computed from the date of the beginning of each such lease) at the insistence of either party and at the cost of the party demanding same, and the annual rental shall be adjusted in accordance with said appraisal. All such appraisals shall be based on land value less any improvements that may have been heretofore added by the leaseholder in possession, or that may hereafter be added by the leaseholder in possession; provided, however, that all improvements permanently affixed to any of the said lands under lease or rental as provided for herein shall become the property of the State of Mississippi upon final termination of such lease or rental.

(c) That in the case of monthly rental of said lands or any part thereof, the Governor’s Office of General Services be authorized to make such terms and agreements as to the amount and conditions thereof, and to follow such procedures as will insure a fair and equitable return to the state.

(d) That all lease and rental monies from any such leases or rentals be deposited in the state land acquisition fund.

(e) That nothing in this section be construed to authorize the sale or transfer of title to the said lands.

(2) It is the intent and purpose of this section to provide a fair and equitable return for the lease or rental of said state lands. The Governor’s Office of General Services is hereby empowered and authorized to follow such procedures and to make such arrangements, not inconsistent with the provisions here, as may be reasonably necessary to effect such purpose and intent.