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UNIVERSITY POLICY
| SUBJECT: | FACILITY SERVICES | TITLE: | LEASING OF FACILITIES |
| CODING: | 00-01-70-35:00 | ADOPTED: | 10/01/97 | AMENDED: | 10/01/97 |
I. PURPOSE
To establish a procedure for leasing real estate property and administering the lease process in an efficient and uniform manner.II. ACCOUNTABILITY
Under the direction of the President, the Vice President for Administration shall ensure compliance with this policy. The Deans, Vice Presidents and Associate Vice Presidents shall implement this policy.III. APPLICABILITY
This policy applies to the leasing of all properties by UMDNJ schools/units.IV. REFERENCES
A. Renovation/Alteration/New Construction 00-01-70-45:00
B. Legal Commitment Authority 00-01-90-05:00
C. Contract Management 00-01-90-40:00
D. Request for Space 00-01-70-30:00
V. DEFINITIONS
A.
Lease - A contractual agreement for a specified period of time between
UMDNJ and
a non- UMDNJ facility owner or manager of real estate property for the
purpose of
utilizing a particular facility or area within a facility for the official
use of University
business, i.e., administrative, educational, research, clinical or any
related, approved
University activity.
VI. POLICY
A. Requirements:
1. A Dean, Vice President, or Associate
Vice President who wishes to lease a real
estate property must comply with this policy.
2. There shall be no action taken by
a school/unit to identify a property for a lease,
or contact a property owner or an owner's agent regarding a lease without
prior
approval of the Vice President for Administration.
3. A written request for space must be submitted
by the Dean, Vice President, or
Associate Vice President of the requesting school/unit to the Vice President
for
Administration. Space requests must contain, to the fullest extent possible,
information regarding location, square footage, use, time frames and that
the
requesting school/unit has the necessary funding to support a leased property.
If
it is determined that a valid space request cannot be accommodated within
currently available University owned or leased facilities, Facilities Planning
&
Construction shall be directed to review the requestor's current and projected
space needs and perform the necessary programmatic evaluation to verify
the
requested square footage, location and facility needs.
4. Should the leasing of space be considered
to satisfy the requestor's space needs,
Facilities Planning & Construction shall assist the designated representative
of
the requesting school/unit with the evaluation of available properties.
When
appropriate, this evaluation shall include, but not be limited to:
a. A full market evaluation to identify all available
properties for lease that are
suitable in size, structure, building systems, location, applicable zoning
and
any other special requirements that may be specific to the request.
b. The necessary structural, mechanical systems and environmental
investigations to ensure that the space is safe, complies with building
and
health code requirements and is in good operating condition.
c. Compliance with guidelines as required by the Americans
with Disabilities
Act (ADA).
d. Insure the rental for the proposed facility is in
keeping with similar buildings
within the immediate market area.
e. The suitability of a leased facility for the proposed
UMDNJ program(s) and
the stated requirements, special needs, limitations, etc.
The above may require such outside consultants as architectural, engineering,
environmental, etc. in completing as full an assessment as necessary to
insure the
proposed leased facility is safe, in full statutory compliance and at a
fair market
value. The expense to retain such outside consultants is the responsibility
of the
requesting school/unit with prior written approval from the Dean, Vice
President
or Associate Vice President.
5. An assessment regarding the evaluation of leased
properties (as set forth in #4
above) shall be presented to the Vice President for Administration and
the
appropriate Dean, Vice President or Associate Vice President for review
and
approval.
6. Upon approval to proceed with the leasing of
a property, Facilities Planning &
Construction shall assist the designated representative of the requesting
school/unit
in the negotiations for the leasing of the property. The Office of Legal
Management
shall provide support in the negotiations regarding legal issues. Risk
& Claims shall
provide support for insurance issues and will facilitate obtaining any
additional
insurance coverage required for the leased premises. The additional insurance
premium associated with the lease shall accrue to the school/unit responsible
for
the lease agreement.
7. The Office of Legal Management will insure that
all leases include language that
require landlords to maintain leased facilities free of hazardous materials;
in
compliance with all Building Codes; and in compliance with requirements
of Public
Employees Occupational Safety and Health (PEOSHA), National Fire Protection
Association (NFPA), and the Americans with Disabilities Act (ADA).
8. The lease agreement shall be reviewed and approved
by the Dean, Vice President
or Associate Vice President of the requesting school/unit, the Office of
Legal
Management, the Vice President for Finance and Treasurer, and the Vice
President for Administration.
9. The contract shall be executed in accordance
with procedures directed by the
University policies, # 00-01-90-05:00,
Legal Commitment Authority and #
00-01-90-40:00,
Contract Management.
10. Should the proposed leased premises require renovation
or alteration work that is
not to be done by the owner of the property, refer to University policy
#
00-01-70-45:00,
Renovation/Alteration/New Construction.
11. The requesting school/unit is responsible for informing
the supporting departments
and coordinating related activities as specified in the lease agreement
including:
a. notifying Facilities Planning & Construction of
departmental space assignments
within the leased facility for updating the University Space Database;
b. notifying the Business Office and Budget Office to ensure
necessary continued
funding;
c. ensuring adequate security, maintenance and other University services;
d. coordinating equipment and other procurement needs with Purchasing;
e. coordinating forms preparation with Accounts Payable to pay the rent; and
f. notifying Public Safety regarding the address of the
lease premises and the
lease commencement date.
12. Prior to termination of the lease, it is the responsibility
of the UMDNJ occupant to
remove all equipment and furniture, ensure the premises is clean and free
of all
debris, and notify Facilities Planning & Construction, the Office of
Legal
Management, Risk and Claims Management, Accounts Payable and the
school/unit's Business Office of the vacating of the space.
B. Responsibilities:
1. Individual schools/units are responsible for
tracking lease termination dates and,
when renewing or exercising an option to renew a lease, requesting the
Office of
Legal Management to prepare the necessary notice of renewal for
execution pursuant to Legal Commitment Authority policy. Copies of the
renewal
notification shall be sent to Facilities Planning & Construction, Accounts
Payable
and the school/unit Business Office.
2. The Office of Legal Management and the Controller's
Office will maintain a current
copy of each lease on file.
3. Facilities Planning & Construction will
maintain a database of all leases that shall
include:
a. School/Unit occupant;
b. Address of leased premises;
c. Size in square feet;
d. Use(s);
e. Term; renewal terms;
f. Expiration date; and
g. Rent.
Under the Direction of the President:
____________________________
Vice President for Administration
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