The board of supervisors of any county with a population of two hundred thousand (200,000) or more shall have the authority to create, by appropriate order spread on its minutes and approved by vote of at least three-fifths (⅗) of its members, a sixteenth section development authority for the purpose of developing all or any part of a sixteenth section, or lands granted in lieu thereof, controlled by the board; provided, however, that said authority shall not be created by said board unless and until the county school board and, in the event the sixteenth section or lands granted in lieu thereof is located within a municipal separate school district, the trustees of the municipal separate school district submit to the board a resolution, properly adopted, requesting the creation of said authority and designating the sixteenth section, or lands granted in lieu thereof, to be developed and leased. The order shall designate the sixteenth section, or lands granted in lieu thereof, to be developed in whole or in part by the authority; provided, however, that the order shall designate only one sixteenth section, or one section of land granted in lieu thereof, to be developed in whole or in part by the authority.

The board of supervisors of the county may acquire by condemnation any necessary easements for traffic thoroughfares or utility rights-of-way upon specific recommendation and request by the trustees, but for no other purpose shall the right of condemnation be allowed. Any condemnation award shall be paid from the funds of the authority.

The county school board and, in the event the sixteenth section or lands granted in lieu thereof is located within a municipal separate school district, the trustees of the municipal separate school district are specifically authorized to lend to the authority such funds for interim financing of development as may be available to the said board and trustees and deemed desirable. In the event that any such loan is made by the county school board and the trustees of the municipal separate school district, the participation of each in such loan shall be determined by the percentage of revenue from the sixteenth section, or lands granted in lieu thereof, to be developed by the authority which each received in the most prior year of receipt.