Leasing
Leasing News and Updates
Leasing Space In The Twin Cities Metropolitan Area For Your Campus This Power Point presentation was presented at the Metropolitan Alliance CFO meeting November 6, 2009, and covers principles of developing leased space off campus. The presentation includes recent examples of leased space within the Twin Cities.
When do I need to use a lease or facility agreement?
All off-campus use of facilities not owned by Minnesota State Colleges and Universities require a written facilities use agreement, signed by both parties, and describing the terms of use of a non-owned facility.
On campus use involves a different evaluation. Campus staff will need to look at 1) the type of user, 2) the type of use, and 3) the type of risk involved. Any facility use outside of the normal academic uses should be formalized with a written agreement, and any facility use by individuals not within their scope of employment or by separate legal entities require a written facilities agreement and liability insurance coverage prior to the beginning of such use.
Five Key Leasing Questions
- Who is the landlord or tenant?
- What is the lease value? (including any renewals)
- How long is the expected use? (Term)
- Where is the property?
- What is the expected use?
Process
A fairly compehensive set of procedures have been established for leasing and facilities use. System leasing procedures are located on the Board of Trustees website, and describe in more detail the requirements for using on or off campus real estate.
- On Campus Leasing Procedure
- College and universities generally manage day to day use of their campus facilities.
- An Facilities Use Agreement should be used for shorter-term, non-exclusive use of facilities on campus. This could include any short-term events, such as for third-party use of campus classrooms, lecture halls, unions, etc.
- There are many campuses with campus facility use policies, such as: MSU Mankato: Finance and Administration, St. Cloud State: Business Services, Southwest State: Use of Facilities, Use by non-university individuals or entities , and MSU Moorhead: Facilities Use Policies
- Any exclusive, long-term use of a campus facility land or campus buildings
- A certificate of insurance is required.
- When another public entity, such as a school district, state agency, or the University of Minnesota intends to use space, it may be beneficial to utilize a Joint Powers Agreement. Please contact Real Estate Services to determine whether a particular facility use would benefit from such an agreement.
- Off Campus Leasing Procedure
- All leases or use off campus requires a written facilities agreement (lease, license or otherwise).
Short Term
Longer Term
Leasing Approvals
Generally, each president has authority to enter into real estate leases up to $100,000 or for five (5) years or less (including all renewals). Standard lease forms must be used, and are found on the Facilities Contracts page.
- The Chancellor must review and approve leases in excess of $100,000 or longer than 5 years.
- The Board of Trustees must approve all leases (whether on or off campus) valued at $2 million or more (including all options to renew).
Lease Module Documentation
- The Web-based ISRS leasing documentation is available on the ITS website at: http://www.its.mnscu.edu/isrs/doc/accounting_webapp/miscellaneous/Lease.html
- Lease numbering is now described in a separate document
