That`s where you have it. The probable end of the McGee-Lease-Leaseback affair. But on the other hand, with McGee, never say never. In the number one shooting, James McGee sued the Torrance Unified School District over the validity of the district`s lease agreements with general contractor Balfour Beatty Construction, LLC. Under California`s lease-leaseback status, a school district can lease property it owns to a developer who, in turn, builds a school on the land and leases the facility back to the school district. The main advantage of the lease-leaseback method of project execution is that a school district does not spend money on the construction of the facility, since the borough pays for the facility over time through leasing payments to the developer. In shootout number one, McGee argued that the Torrance Unified School District is required to offer competitive leaseback projects. The 2nd County Court of Appeal disagreed. Like McGee, the First District Court of Appeal expressly dismissed Davis v. Fresno Unified School District, which held that hire-purchase status, Education Code Section 17406, required a „genuine lease agreement” and „contractor financing.” Referring to the plain language of Section 17406, the Tribunal expressly rejected Davis` analysis of whether a lease was „actual” and whether it could obtain „financing from contractors” and stated that on May 2, 2017, the Appeal First District Court published its observations in an unpublished notice in California Taxpayers Action Network v. Mt. Diablo Unified School District. et al., which refuse to dismiss six of the seven grounds of appeal, on the ground that the statutes of long-term leave, Education Code Section 17400 et seq., are exempt from tendering obligations.
In this case, the California Taxpayers Action Network filed a reverse validation action seeking a US$14,000,000 lease with Taber Construction for heating, ventilation and air conditioning work at eight different school sites. The Court held that the plain language of Section 17406 of the Educational Code, which provided that the method of delivery of the project „without advertising for tenders” could be obtained and that the tendering requirements contained in Section 17417 of the Educational Code were not applicable, since Section 17406 begins with the phrase „notwithstanding Section 17417”. The Tribunal`s opinion was supported by the 1973 California Attorney General`s opinion that lease-lease agreements were excluded from the bidding process and by the fact that previous laws attempted to introduce a tendering requirement into leaseback status, which the Governor eventually vetoed. This was in line with previous decisions in the absenteeie challenges in the Los Alamito Unified School District vs. Howard Contracting and McGee vs. Torrance Unified School District. . .