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September 13, 1999 <br /> <br />Honorable Elwood Thorpe <br />State Representative <br />600 22nd Avenue NW <br />Minor, ND 50V03 0986 <br /> <br />Dear Representative Thorpe: <br /> <br />']'hank you for your letter asking whether the Minor City Park District <br />may enter into a multiple ye~ lease arrangement with the Minor Family <br />YMCA under which the ~inot Park District would lease the YMCA's swimming <br />pool and, in turn, hire the YMCA as manager of the leased pool. <br /> <br />The arrangement in question appears to constitute two agreements, one <br />providing for the rsnta] by the park district of the YMCA's swimming <br />pool and, contained as a part thereof, a management agreement whereby <br />the park district hires the YMCA to be assigned ~ole management <br />responsibility of the leased premises. The question reiat~q to such an <br />agreement is whether a current municipal board, in this case the board <br />of the park district, may enter into a contract which extends beyond the <br />term of any of its members and thereby infringes on the governmental <br />powers and discretion of ~uture boards. <br /> <br />N.D.C.C. ch. 40-49 provide~ for municipal park distr~cts and the duties <br />and responsibilities of such districts. N.D.C.C. §40-49-04(2) allows <br />park districts to enter contracts. The concluding paragraph of N.D.C.C. <br />~ 40-49-04 defines the term ~park" as including ~public grounds used or <br />acquired for use as airfields, parade grounds, public recreation areas, <br />playgrounds and athletic fields, memor~] or cemetery grounds, and sites <br />or areas devoted to use and accommodation of the public as distinguished <br />from use for purposes of municipal administration." A lengthy list of <br />powers of the board of park coi~nissioners is provided in N.D.C.C. <br />§ 40 49-12. Subsections 1 and 2 of N.D.C.C. § 40 49 12 deal with the <br />acc~/isition o~ property and sites and the ~le and exclusive authority <br />of th~ board t~ maintain, govern, and improve land, to provide <br />structures thereon and construct, maintain, manage, and govern <br />buildings, pavilions, play and pleasure grounds or fields and such other <br />improvements as ih deems necessary. <br /> <br />In those jurisdictions that have considered the binding effect of <br />contracts entered into by public entities which extend beyond the terms <br />of the officers then acting for the entity, the distinction made in <br />court opinions has been between the contr~ting authority of those <br />entities relating to their governmental and legislative powers as <br />opposed to their business or proprietary powers. The courts have held <br />that no action taken by a p~b]4c entitv in sxerclse of its goverrh~ental <br />powers is binding on successors. Proprietary powers, on the other hand, <br />are not subject to the same limitation. Letter from Attorney General <br />Nicholas Spaeth to John Schneider (August 24, ]987) (citing 10 <br />McQuillin, Municipal Corporations § 29.101 (3rd ed. 1981)). The <br />u~derlying purpose of the rule distinguishing between a public entlty's <br />legislative or goverD/nental powers and its business or proprietary <br />powers is ~to protect the public by insuring that each governing body <br /> <br /> <br />