The way in which the word "leased" is used confuses the matter even further, because it is ambiguous as to which capacity the governmental entity occupies, whether as a lessor owner of the property that has leased the property to a lessee tenant of the property, or as a lessee tenant of the property that has leased the property from a lessor owner of the property.
My guess is that the intent is to cover property that has been leased by a lessee tenant governmental entity from a lessor owner of the property, which lessor owner of the property could be either a private party or another governmental entity.
Maybe that's clarified elsewhere in the statutes.
But then what about property that is owned by a governmental entity and leased by the governmental entity as lessor to a private lessee party and is to be operated in conjunction with the adjoining remainder governmental property? An example would be a concession area or store building leased by the governmental entity to a for-profit private business inside or adjoining the boundaries of a public park.