Subject: PHYSICAL PLANT
Policy: REAL PROPERTY LEASES
Revised:
Effective date:
August 31, 2005
Review date:
August 2007
Responsible Party: Office of
Legal Counsel
100.00
INTRODUCTION AND PURPOSE: This policy governs the leasing or rental of
real property, including any interest in land, buildings, office space,
laboratory space, storage space, or water or mineral rights, by the university
from non-university landowners/lessors and the long- term leasing or rental of
real property, water or mineral rights, including any interest in land,
buildings, office space, laboratory space, storage space, or water or mineral
rights owned or controlled by the university to non-university users.
A lease or rental of real
property, including any interest in land, buildings, office space, laboratory
space, storage space, or water or mineral rights, may only be entered into
under the procedures outlined herein. Any lease not entered into under the
procedures outlined in this policy shall be null and void and will not bind
the university.
200.00
LEASE FOR UNIVERSITY USE:.
Any request for
leasing, or for the extension or renewal of a lease, of real property for
university purposes must be submitted and processed as follows:
A written request shall be
submitted by the requesting department head, principal investigator, director
or other officer through the direct line of administrative authority to the
appropriate vice president or the /MAES Director, or their designees.
This request must include or be
accompanied by the following information:
1. A description of the
real property proposed to be leased or of including its general location and
character and a description of the floor plan, power supplies, air handling,
utilities arrangements to the extent known.
2. An explanation of
the need for such space.
3. A detailed factual
justification for entering into the lease.
4. A statement
addressing the adequacies of power supplies, air handling equipment and
general physical structure and floor plan. Estimated costs of any
modifications or remodeling necessary to meet user needs should also be
included, indicating proposed sources of funding for any such modifications or
remodeling.
300.00
NEGOTIATION. Upon approval of the appropriate parties under Section 200,
the university will negotiate the terms of the lease. The Office of Facilities
Services shall be responsible for negotiation of leases when rent will be paid
with instructional funds. The Vice President for Research or designee shall
be responsible for the negotiation of leases when rent will be paid from
direct costs in grants or contracts; or from recovered Facilities and
Administration fees (formerly IDCs). All other leases shall be negotiated the
vice president/MAES Director or designee which is responsible for the funds
that will be used to pay the rent. A final proposed lease shall be prepared
and submitted to Legal Counsel for legal review.
5. If available, a
proposed lease agreement (a standard lease form used by landlord may be
acceptable) which includes, among other things, the following:
a. Term of lease
b. Monthly rental
payments
c. Responsibility for
utilities, maintenance, snow removal, custodial, grounds care, etc.
d. Parking arrangements
e. Responsibility for
structural and roof maintenance and repairs
f. Responsibility for
insurance of structure, operation and general liability insurance
g. Responsibility for
property taxes, other taxes and assessments, ownership of any improvements
made.
If no lease agreement is
available, requesting party should provide the information requested above in
summary form.
400.00 LEGAL
REVIEW. Upon approval by the appropriate vice president of any lease or
extension or renewal of any lease, the appropriate vice president shall
forward to the Office of Legal Counsel for review and evaluation, the
following information:
The initial request and other
information required under paragraph (a) above.
A letter of approval from the
appropriate vice president, including a statement identifying the proposed
source of funding for lease costs, if the lease is approved.
500.00 REGENTS=
APPROVAL. If the
lease will exceed two years in duration, including options to renew, the lease
shall be submitted by the appropriate vice president or MAES Director to the
Montana Board of Regents for approval as required under policy 1007.
http://www.montana.edu/wochelp/borpol/bor1000/1007.htm.
600.00 EXECUTION.
Once the lease is approved as required under this policy and
Policy 1007 of the Montana Board of Regents, the lease shall be signed by
the appropriate vice president or MAES Director for and on behalf of the
university, and thereafter shall be binding on the university. The
appropriate vice president or MAES Director shall retain the real property
lease and report the following information to the Office of Facilities
Services:
1. Lessor or Lessee if
university property is leased to non-university
2. Location
3. The user of the
property
4. Rent
5 Duration.
The Office of Facilities
Services shall maintain a list of all leases entered into by the university.
700.00 LEASE OF
UNIVERSITY or MAES PROPERTY. Any proposal for leasing, or for the
extension or renewal of a lease, of real property owned by the university or
MAES to a non-university entity must be submitted and processed as follows:
A written request shall be
submitted by the requesting department head, principal investigator, director
or other officer through the direct line of administrative authority to the
appropriate vice president or MAES Director. This request must include or be
accompanied by the following information:
1. A description of the
real property proposed to be leased or of its general location and character.
2. An explanation of
why the space is not needed for university business.
3. A detailed factual
justification for entering into the lease.
4. The proposed terms
of the lease, including
a. Duration of lease
b. Monthly rental
payments which must be equivalent to fair market value
c. Responsibility for
utilities, maintenance, snow removal, custodial, grounds care, etc.
d. Parking arrangements
e. Responsibility for
structural and roof maintenance and repairs
f. Responsibility for
insurance of structure, operation and general liability insurance
