1.  The Department of Mental Health, Mental Retardation and Substance Abuse Services is hereby authorized to solicit proposals from a private sector entity, or a private sector entity in cooperation with the City of Staunton, for the redevelopment of the existing campus of Western State Hospital for commercial, industrial, and residential uses no later than July 1, 2006.

2. The purpose of the solicitation shall be to determine the interest of the private sector, through public-private partnerships or other methods, in engaging in activities at the site that foster economic development and urban development efforts.  The solicitation shall provide for an opportunity for a public-private partnership for the construction of a new hospital facility. Development of the remainder of the site shall not begin until construction of the hospital has commenced.  

3. The responsibility for operation of the facility shall remain with the department.  No proposal shall be accepted that includes private operation of the facility. 

4. The department is authorized to enter into a comprehensive agreement pursuant to the Public-Private Partnership Educational Facilities and Infrastructure Act of 2002 (PPEA) for the design and construction of the facility under a capital lease agreement, the term of which shall not exceed 20 years, or if more cost effective, by financing through the Virginia Public Building Authority or other appropriate mechanism for a principal amount not to exceed $81 million.

5. In order to maintain the mission of Western State Hospital, the proposal must include provisions that ensure the best interests of the consumers and employees of the facility.  The details of the proposed development shall be made available for public comment at least 30 days prior to entering into any comprehensive agreement. Such activities shall not require the creation of a state and community consensus and planning team pursuant to § 37.2-316, Code of Virginia.

6. Any net proceeds received from the sale of surplus land currently occupied by Western State Hospital shall be invested in the Mental Health, Mental Retardation, and Substance Abuse Services Trust Fund established pursuant to § 37.2-318, Code of Virginia.