The chancellor may execute and amend a negotiated lease of the John J. Hainkel, Jr., Home and Rehabilitation Center to LCMC Health, and the lease is exempt from the public-land lease statute.
§16.3. John J. Hainkel, Jr., Home and Rehabilitation Center; lease A. The chancellor of the Louisiana State University Health Sciences Center at New Orleans, referred to hereafter in this Section as the "chancellor", is hereby authorized to execute a negotiated lease to LCMC Health for the John J. Hainkel, Jr., Home and Rehabilitation Center, including the lease of the property, buildings, equipment, movable assets, and all other appurtenances of the facility, which is described as follows: That portion of ground, together with all the buildings and improvements thereon and all the rights, ways, privileges, servitudes, appurtenances, and advantages thereunto belonging, or in anywise appertaining, situated in the Sixth District of the city of New Orleans, State of Louisiana, Burtheville, being all of Square 22, composed of Lots 1 through 24, bounded by Patton, Constance, Calhoun, and Henry Clay, and said square measures 317 feet 8 inches 5 lines (317 feet 6 inches 7 1/2 lines title) front on Patton, 311 feet 3 inches 0 lines (311 feet 6 1/2 lines title) front on Constance, 289 feet 7 inches 4 lines (289 feet 3 inches 7 lines 7 inches title) front on Henry Clay, containing 91,063.10 square feet; all in accordance with survey of Joseph F. Varisco, Jr., dated November 14, 1975, resurveyed January 23, 1976. And, according to a survey of Joseph F. Varisco, Jr., dated September 14, 1977, revised November 27, 1979, said property has the same actual dimensions, encompasses all of Square 22 and contains improvements known as 612 Henry Clay Avenue. B. The lease of property by the chancellor shall be expressly exempted from the provisions of R.S. 41:1211 et seq., relative to the lease of public land. C. The chancellor shall be authorized and empowered to execute the appropriate instrument or instruments, and any corrections thereof, to effectuate the lease of the property described in Subsection A of this Section. Additionally, the chancellor is hereby authorized and empowered to negotiate such terms and conditions in the lease document as may be necessary to ensure: (1) That the facility shall continue to be named the "John J. Hainkel, Jr., Home and Rehabilitation Center" and operate as a long-term care facility that provides nursing home level services, and that may provide adult day health care services. (2) That the facility shall continue its mission to provide quality health care services to indigent persons. (3) That the facility shall continue as a medical and clinical training facility. (4) That the facility shall be operated by LCMC Health; however, LCMC Health shall have the option to enter into a sublease or a cooperative endeavor agreement to operate the facility consistent with the terms and conditions of the lease, which shall include but not be limited to requiring the lessee to maintain the facility in the same manner in which it was maintained prior to the execution of the lease and to seek to maintain the facility as a five star quality rated facility, subject to approval by the Louisiana Department of Health and the Senate and House committees on health and welfare, meeting jointly or separately. (5) Repealed by Acts 2019, No. 257, §2. (6) That the state shall continue and complete all previously funded or obligated capital outlay repairs to the facility. (7) Repealed by Acts 2019, No. 257, §2. (8) That the lease shall terminate if the facility ceases to operate as a long-term care facility. (9) Any and all other terms and conditions consistent herein to effectuate this Section. D. Nothing in this Section shall preclude the chancellor from negotiating readiness assessment criteria with LCMC Health prior to the commencement of the lease. Acts 2010, No. 933, §1, eff. July 2, 2010; Acts 2018, No. 205, §1; Acts 2019, No. 257, §§1, 2.