Lease of real property to certain nonprofit organizations

1. The governing body may lease real property to a nonprofit organization that: (a) Is recognized as exempt under section 501(c)(3) of the Internal Revenue Code; (b) Is affiliated by contract or other written agreement with the city; and (c) Provides to residents of the city or to other persons a service that the city would otherwise be required to expend money to provide, Ê under such terms and for such consideration as the governing body determines reasonable based upon the costs and benefits to the city and the recommendation of any city officers who may be involved in approving the lease. 2. To lease real property pursuant to this section, the governing body must approve the lease and establish the recommended amount of rent to be received for the real property. The governing body shall render a decision on an application to lease real property pursuant to this section within 60 days after it receives the application. 3. In determining the amount of rent for the lease of real property pursuant to this section, consideration must be given to: (a) The amount the lessee is able to pay; (b) Whether the real property will be used by the lessee to perform a service of value to members of the general public; (c) Whether the service to be performed on the real property will be of assistance to any agency of the city; and (d) The expenses, if any, that the city is likely to incur to lease real property pursuant to this section in comparison to other potential uses of the real property. 4. The governing body may waive any fee for the consideration of an application submitted pursuant to this section.