CHAPTER 458

An Act to amend and reenact § 51-111.52:1, of the Code of Virginia,
relating to the investment of Virginia Supplemental Retirement Sys-
tem funds in buildings for occupancy by State agencies. rH 859]

Approved April 2, 1968

Be it enacted by the General Assembly of Virginia:

1. That § 51-111.52:1, of the Code of Virginia be amended and reenacted
as follows:

§ 51-111.52:1. Investment of funds in buildings for occupancy .by
State agencies.—(a) Whenever the Governor shall be of the opinion that
there is a need for additional space for the use of agencies of the State,
he may, with the approval of the Virginia Public Buildings Commission,
select a suitable site or sites owned by the Commonwealth upon which
a building or buildings to provide such space may be constructed, or addi-
tion or additions may be made to an existing building or buildings owned
by the Commonwealth, and the Governor on behalf of the Commonwealth
may, without rent and for a period not exceeding ninety-nine years, lease
such site or sites to the Virginia Supplemental Retirement System, here-
inafter referred to as retirement system.

(b) The retirement system is authorized to construct on such site or
sites that may be leased to it, in conformity with plans and specifications
approved by the Division of the Budget, one or more buildings for the
use and occupancy of such State agencies as the Governor may select and
under the same terms and conditions an addition or additions may be
made to an existing building or buildings owned by the Commonwealth.
The amount that may be invested by the retirement system for such pur-
pose shall not exceed the principal amount of * thirty-five million dollars.

(c) The Division of the Budget, out of appropriations made to it for
such purpose, shall pay to the retirement system an annual rental in an
amount to be determined by the retirement system, such rental to be
fixed and adjusted in respect to the total investment of the retirement
system in such building or buildings so as to provide a rental income to
the retirement system sufficient to restore to it the total investment in
such building or buildings within a period not exceeding twenty years
from the time such building or buildings are completed and are suitable
for occupancy, and also to provide to the retirement system the annual
interest charges of not more than five per centum on the unpaid balance
of the total investment of the retirement system in such building or
buildings as the same shall appear from time to time.

(d) “Total investment,” as used in this section, shall include loss of
income to the retirement system upon construction costs incurred during
the erection of such building or buildings. Whenever the retirement system
has recovered the amount of its total investment in such building or
buildings, and the interest thereon, the lease for such site or sites shall
thereupon terminate and the real estate and the improvements thereon
shall thereupon revert to and be the property of the Commonwealth, free
from the provisions of such lease.

(e) The retirement system shall not at any time be responsible for
the maintenance and operation of such building or buildings that it may
construct under the provisions of this section.