(a) Authority of city.--A city may lease city real estate on a long-term improvement lease, at a nominal rental fee or otherwise, to a nonprofit corporation for the purpose of providing an auditorium for a dramatic, musical, artistic, literary, scientific or patriotic society or event or for another purpose as may be approved by council.

(b) Term.--A long-term improvement lease:

(1) May not be for a term of more than 99 years.

(2) May provide for a right of renewal for a like term.

(3) Shall contain provisions for the improvement of the real estate by the lessee by the erection of a suitable building of dignified and appropriate architecture. The absolute ownership of the building shall revert to the city, free of claim or charge, at the end of the term of the lease or a renewal of the lease.

(c) Use of building.--A building erected under a long-term improvement lease may be used for a public purpose, including as an auditorium for a dramatic, musical, artistic, literary or scientific event and for the accommodation of a patriotic society or group or other accommodation and feature, as may be approved by the city.

(d) Title and local taxation.--The title to property subject to a long-term improvement lease shall remain with the city. For purposes of local taxation, the property subject to a long-term improvement lease and the leasehold estate created by the lease shall be deemed to be devoted to a public purpose and public use.

(e) Lessee.--The lessee under a long-term improvement lease shall be exclusively liable for the maintenance and upkeep of the demised premises and shall be solely responsible for the maintenance and operation of the demised premises.

(f) Lessor.--A long-term improvement lease may provide that the lessor is entitled to receive a sum equal to the net income of the demised premises after reasonable reserves and proper amortization charges.