Section 15-1741. Re-entry at expiration of the license period

1.  Upon  the  expiration  of  the original license period any and all
  interest of the licensee in and to state property which  is  covered  by
  the  license,  together  with  any and all works and structures thereon,
  shall vest in and become the property of the state free and clear of any
  and all liens and encumbrances, provided, however, that  the  department
  may  at the time the license is granted, or at any later time during its
  continuance, enter into an agreement with the licensee that an allowance
  will be made to the licensee for  and  on  account  of  improvements  to
  property  of  the state, or improvements the value of which is dependent
  on the use of state property, for which in view of  the  rent  paid  the
  licensee  shall  not  have  been  compensated  by  the  privilege of the
  license, but such agreement must be  made  before  the  improvement  for
  which such allowance is to be made, is undertaken. If the amount of such
  allowance  exceeds  the  amount  of  indebtedness, which may be lawfully
  incurred for such purposes without an appropriation, the time when  such
  property  is  vested  in  the state shall be postponed until an adequate
  appropriation is made therefor. The allowance so made or to be made  may
  be  by  way  of  an  extension  of  the license pursuant to an agreement
  between the department and the licensee.
    2. Any agreement with the licensee for  an  allowance  on  account  of
  improvements to property of the state or improvements the value of which
  is  dependent  on  the  use  of state property, shall not provide for an
  allowance in excess of the reconstruction cost, less a  deduction  equal
  to  that portion, if any, of the aggregate income from the project, over
  and  above  actual  and  reasonable  expenses  of  operation,  including
  repairs,  which  shall  exceed  an  amount equal to eight per centum per
  annum, to the time that the state property is taken over by  the  state,
  of  the  actual  and  reasonable  cost  to the licensee of the lands and
  interests in lands, the actual and reasonable cost to  the  licensee  of
  the  ways,  means and works and the allowances made for organization and
  development expenses.