The University may lease real estate (land [surface or subsurface], building space, mineral rights, water rights and air rights) only for purposes that contribute to its mission of teaching, research and public service. University units are responsible for overseeing the proper use of leased property assigned to them. Typically, a written lease or license or other appropriate agreement is required regardless of duration of use or amount of rent to be paid, except as noted in the Special Situations section of this policy.
Special Situations
Hotel room reservations, for short stays that do NOT require advance payment or evidence of liability insurance, do NOT require a license or other written agreement. However, using conference facilities and meeting rooms DOES require a license or other written agreement.
The purpose of this policy is to enhance accountability and ensure that real estate leased to the University is used to provide facilities for faculty, staff and students in support the University mission, and to minimize financial risk, clarify legal responsibility of the University and uphold the University's reputation.
Information related to using and leasing Non-University real estate procedures can now be found as a part of the Financial One Stop. Following is a list of specific tasks within the Financial One Stop:
There are no forms for this policy.
- Cosponsor Contract
- A contract between the University and a non-University entity that includes a definition of real property or real estate to be used for a cosponsored activity. Developed or reviewed and approved by the Office of General Counsel.
- Lease
- A contract used for a longer term where the occupant controls the space it occupies.
- Real Property or Real Estate
- Land (surface or subsurface), buildings or other improvements (or space within a building, etc.), air rights, mineral rights and water rights.
- University Cosponsor
- A University unit, college, department or program, or Campus Life student organization that is cosponsoring an activity along with a non-University entity.
- University Unit
- Any college, department or program of the University covered by University's liability insurance. This includes Campus Life student organizations.
- Use Agreement or Hotel Agreement
- A contract used for events or other short-term (in most cases seven days or less) uses of a non-University space, typically for a couple of hours, where the user does not take control of the space.
- Board of Regents
- Approves real estate leases if the amount to be paid by or to the University during the initial term exceeds Two Hundred Fifty Thousand Dollars ($250,000).
- President
- Delegates authority to the Senior Vice Presidents, Vice Presidents and Chancellors, who have redelegated to others, authority to execute leases and use/license agreements covering use of non-University real estate by their unit. Such signature authority is subject to approval authority on the Director of Real Estate for all leases involving the University as tenant and for use agreements involving the University as landlord or tenant with a value in excess of $10,000, as well as Board of Regents approval as appropriate.
- Office of Space Management
- Review space requests by University units before non-University real estate is leased. Investigate the availability of campus options. Determine the type and amount of space that should be leased by the requesting college, department or program if the need for the space is confirmed and no campus options are available.
- Real Estate Office
- Develop and maintain the process for using and leasing non-University real estate. Conduct lease negotiations. Work with the Office of General Counsel in preparation or review and approval of leases, and coordinate lease approvals. Responsible for administration of leases (pay rent, track lease renewals, etc.) and coordination of leasehold improvement projects completed by landlords in space leased to the University.
- Office of the General Counsel
- Review Non-standard use agreements and advise units of needed changes. Assist in resolution of disputed charges.
- University Departments
- Prepare use and lease agreements and get proper approvals. Administer use and lease agreements.
There are no appendices for this policy.
There are no frequently asked questions for this policy.
Amended: April 2005 - Facilities Management changed to Capital Planning and Project Management.
Amended: August 2004 - Revised to reflect the Reservation and Delegation of Authority policy of November 1, 2002. Updated Policy Statement, Reason for Policy, Contacts, Special Situations, Definitions and Responsibilities. Procedures are now Financial Onestop Tasks. Exclusions section which referred to the former University of Minnesota Hospital and Clinic is eliminated.
Amended: March 1995
- Effective:
- September 1994
-
To obtain a copy of a historical policy,
e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.
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