Real Property and Water Rights

The Law

Meetings for the discussion of the purchase, acquisition or disposal of real property or water rights by the public body.

Commentary
This exception is intended to enable a public body to consider the purchase, acquisition or disposal of real property or water rights without the risk of alerting those who could take action that would result in lost opportunities or greater costs to the public body. The exception applies only to discussions of the proposed transactions it covers. Action on the purchase, acquisition or disposal of real property or water rights by the public body must take place in an open meeting, as required by Section 10-15-1(B).

Example 64:
A board of county commissioners is considering acquiring land for a playground and purchasing playground equipment. The discussion concerning the acquisition of the land may be conducted in closed session. The discussion concerning the purchase of the equipment may not be held in closed session because the equipment is not “real property.”

Example 65:
A city council is considering leasing some of its water rights to another entity. The lease constitutes the “disposal” of water rights and discussion of the transaction may be conducted in closed session.

Example 66:
A state hospital is considering the purchase of an industrial laundry business. If the transaction involves the acquisition of real estate along with the business, the hospital board may discuss that part of the transaction in a private meeting. However, other aspects of the purchase, such as the washing machines, the business’ goodwill, and the operation of the business are not real estate and would not be covered by this exception. These other aspects would have to be discussed in a public session unless another exception applies, such as the exception for sole source purchases in excess of $2,500.