The University recognizes that:
- The purpose of a Non-University Entity may coincide with or complement that of the University;
- Its facilities may be particularly well-suited for specific short-term uses by Non-University Entities; and
- Excess capacity may exist for certain facilities during certain times of the year.
As a result of such recognition, the University allows for the use of University-owned facilities as specified below.
- Written agreements are required for all uses of University Real Estate by Non-University Entities (e.g. a group, individual, association, company), regardless of the length of use or amount of rent paid, except uses by Registered Student Organizations (RSOs) of classroom space with less than 100 seats.
- When University Real Estate is used by University staff or faculty for personal use, it is considered a use by a Non-University Entity.
- Uses of University Real Estate by Non-University Entities which complement or further the University's mission-related activities and/or provide services to the University community desired by the University are given preference.
- Non-University Entities are required to maintain liability and other appropriate insurance coverages as specified in the written agreement with a company acceptable to the University and which name Regents of the University of Minnesota as additional insured.
- Use of University property for events and/or activities co-sponsored by the University, a University unit, or by a student organization (through the Office of Student Activities) requires a written co-sponsorship agreement and approval by the Real Estate Office.
- If there is more than one Non-University Entity interested in scheduling a venue on the same/date and time and an agreement has yet to be executed, scheduling priority will be in the following order: 1) University co-sponsored events; 2) entities whose use is consistent with or complements the University’s mission; 3) other non-profit or governmental entities; 4) other permitted users.
Approval Authority for Use Agreements and Leases
All Use Agreement and Lease transactions require the Approval Authority of the Real Estate Office.
All Use Agreement transactions with a value exceeding $50,000 or that exceed a term of 50 days (Approval Authority for Use Agreements not exceeding $50,000 or a term of 50 days has been delegated to the Signature Authority) and all Lease agreements regardless of the term or value require the Approval Authority of the Real Estate Office. Use Agreement transaction values include the value of a single agreement if all University facilities and services for an event are described in one agreement, or the value of all agreements covering University facilities and services for an event.
For Use Agreements that require the Real Estate Office Approval Authority and Leases, the Real Estate Office will coordinate and confirm all additional required approvals such as Legal Authority, Funding Authority, and Board of Regents Approval.
The University will not enter into Use Agreements for the use of its property for events or programs by Non-University Entities whose primary purpose for the request is:
- Revenue generation - except in the case of Northrop Auditorium, Ted Mann Concert Hall, Rarig Center, Student Unions, Weisman Art Museum, Glensheen, the Arboretum, and Intercollegiate Athletics facilities;
- The sale, solicitation, or promotion of goods or services;
- Adult entertainment; and/or
Real Estate owned by the Regents of the University of Minnesota is reserved for University use. However, Colleges and University Units have discretion to enter into Use Agreements that allow Non-University Entities to use University property for permissible purposes. Use Agreements should be consistent with the primary mission of the University while exercising appropriate financial stewardship and management of risk. Use Agreements are typically a license agreement that grants a conditional, revocable right to use University Real Estate. Use Agreements are typically for short-term uses such as conferences and events (not exceeding 50 days) with a one-time payment but can be used for longer terms or if there are recurring payments.
All conditions relating to the use are specified in the Use Agreement. Facility Use Agreements, Permits, Housing Agreements, Food Truck Agreements, Occupancy Agreements, Multi-Facility Use Agreements, Access Agreements, Temporary Construction Agreements and Utility License Agreements are all common types of Use Agreements. See sections below for special circumstances relating to outdoor space, large scale special events, multi-facility uses, and co-sponsored events.
A Non-University Entity wishing to use University venues such as Athletic Facilities, Concert and Lecture Halls, Recreational Sports Facilities, and the Weisman Art Museum, etc., should contact the College or University unit assigned to the space. The College or University unit will serve as the Non-University Entity’s point of contact and will interface with Real Estate, Facilities Management, and other University departments as appropriate. University Relations is the principal point of contact for media requests.
Process for Short-Term Use Agreements
- The Non-University Entity should contact the College or University Unit controlling the space the Non-University Entity wishes to use. Refer to First Points of Contact to reserve space on the Twin Cities Campus. Numerous University facilities, such as the Cedar Creek Ecosystem Science Reserve, issue Use Agreements for short-term housing in residence halls, cabins, etc. Contact the desired University facility regarding availability and to request short-term housing. Contact the Real Estate Office for the use of any other University Real Estate or if another agreement, such as an Access Agreement or Temporary Construction Agreement is needed that involves the use of land.
- The College or University unit prepares the Use Agreement using a standard contract available on the Construction and Real Estate Section of the Standard Contracts Library website.
- Charges for the use of University space by the Non-University Entity for the event are determined by the College or University unit in consultation with the Real Estate Office. The College or University unit must recover all direct and indirect costs associated with the space, including custodial, trash removal, maintenance, etc. University units are responsible for the collection and receipt of all monies due from the Non-University Entity pursuant to the Use Agreement. University employees using University space for personal use must be charged at least 80% of the fees charged to the public to avoid imputing non-paid benefits for that employee.
- The College or University unit is responsible for obtaining evidence of insurance from the Non-University Entity as required by the Use Agreement.
- The College or University unit sends a copy of the fully executed Use Agreement, evidence of insurance, and transaction value to the Real Estate Office for inclusion in the University's records for tracking and reporting purposes.
Special Circumstances – Short-Term Use Agreements
The requirements for using outdoor space on the Twin Cities Campus are detailed in Administrative Policy: Using and Leasing University Outdoor Space: Twin Cities.
All outdoor activities on the Twin Cities Campus are scheduled by Student Unions and Activities, except athletic sports facilities and media events. To request the use of University outdoor space, please go to the Outdoor Events website.
Major Events on Twin Cities Campus
For major events on the Twin Cities Campus, such as visits by dignitaries, politicians or celebrities, a person interested in hosting a major event should submit a request to the major events committee. See Administrative Policy: Major Events – Twin Cities Campus.
Multi-Facility Use Agreement
On the Twin Cities campus, the use of rooms in one or more Residence Halls together with the use of University facilities and services for an event by a Non-University Entity requires a Multi-Facility Use Agreement. The First Point of Contact for multi-facility events is Conference and Event Services. Adult and Youth Conferences and Sports Camps are common events that require a Multi-Facility Use Agreement.
For all other multi-facility events on the Duluth, Morris, Crookston or Rochester Campuses, please contact the Real Estate Office.
If a College or University Unit is planning a co-sponsored event with a Non-University Entity on University property, please contact the Real Estate Office for additional guidance.
The University's requirements regarding the distribution of publications by non-University entities on University property are detailed in Administrative Policy: Distribution of Temporary Information through Publications, Signs, Banners or Chalking. Distribution from bins or racks requires a written agreement.
Leases and Long-Term Use Agreements
Real Estate owned by the Regents of the University of Minnesota is reserved for University use. However, there are a few exceptions where the University will grant non-University entities long term use of University Real Estate. Leases and Long-Term Use Agreements are typically used when University Real Estate is used and controlled by a Non-University Entity for a term that exceeds 50 days and if a recurring payment is involved. These agreements are used when the Real Estate owned by the University is used and controlled by a non-University entity on an on-going basis during the term of the agreement. Leases and Long-Term Use Agreements typically provide for the exclusive or non-exclusive use and possession of Real Estate for a defined term in exchange for a recurring payment of rent. A Lease or Long-Term Use Agreement does not indicate University endorsement of the policies, goals, or opinions of the Non-University Entity.
Process for Leases and Long-Term Use Agreements
When a Non-University Entity contacts a College or University unit to request a Lease or Long-Term Use Agreement covering University Real Estate, the College or University unit should provide the following general information to the Real Estate Office:
- Legal name and address of the non-University entity
- Type of organization (corporation, partnership, etc.)
- Name, email and phone number of Non-University Entity’s point of contact
- Location and current intended use of Real Estate to be used
- Number of square feet (if building space) or land area needed
- Parking and associated University Services needs
- Beginning and ending dates of use
- Any other pertinent information
Once the Real Estate Office receives the general information pertaining to the request it will review and consult with various stakeholders involved with the use of University Real Estate by the non-University entity, including but not limited to the Resource Responsibility Center Facility Lead (RRC-FL) contact for the College or University unit assigned to the subject space, PSRE Space and Facilities Planning, the Office of the General Counsel, the Office of Risk Management, and others as appropriate.
If the request involves the long-term use of building space, the Real Estate Office will refer the College or University Unit to PSRE Space and Facilities Planning to complete and submit a Space Request Form: Space Requests Overview. Campus space is a critical, valuable, and limited resource so all requests for the long-term use of University space require approval. Upon receipt and review of the space request form, PSRE Space will determine if providing the space to a non-University entity is appropriate.
If appropriate space is available and is sponsored by at least one senior leader, space can be assigned to a Non-University Entity, with contractual terms for the Lease or Use Agreement for that space determined by the Real Estate Office.
Whenever possible, the University uses standard agreement forms. The form of the agreement is determined by the Office of the General Counsel. Standard approved forms can be found here: Standard Contract Library website.
- The Real Estate Office negotiates the terms of the Lease or Use Agreement (in consultation with the Office of the General Counsel on legal issues, Office of Risk Management and Insurance on types and amount of insurance to be required, and other University units as appropriate) with the Non-University Entity. For Leases involving building space, the Dean, Director, or Department Head for the College or University unit currently assigned the space requested must approve the use of the space by the Non-University Entity.
- Charges for the use of University Real Estate by non-University entities are determined by the Real Estate Office through market comparisons and consultations with the appropriate University departments, while taking operating costs for the building into consideration. Exceptions are approved by the Senior Vice President for Finance and Operations or designee.
- The Real Estate Office, with the support of University Services Finance, manages the Lease or Use Agreement by collecting the rent or use fees from the Non-University Entity, performs any collection activities, ensures proper insurance documentation received and performs all other lease administration activities associated with the agreement. Security deposits equal to the first month's rent are typically required and paid prior to the execution of the Lease or Use Agreement and occupancy of the premises by the Non-University Entity, all as detailed in the final Lease or Use Agreement.
Delinquent Rental Accounts and Collections Process
The oversight of delinquent rental accounts and the collection process differs for Leases/Long-Term Use Agreements and for Short-Term Use Agreements.
Delinquent Lease and Long-Term Use Agreement Rental Accounts
The Real Estate Office with the support of University Services Finance, is responsible for managing the rental account and collections process for Leases and Use Agreements managed by the Real Estate Office. Nonpayment of rent or other amounts due pursuant to the terms of the Lease or Use Agreement is typically considered a default and cause for termination. Each agreement will specify when a late fee is charged for late rent payments and when interest accrues to the rental account. Typically, rent is considered late 10 days after the due date, and interest is retroactively accrued if payment is not received within 30 days of the due date. The Lease or Use Agreement will specify how payments are applied to delinquent accounts. The payment is most often applied first to the late charge, then to the interest, and then to the base rent due.
Collection Process for Delinquent Rents
The Lease or Use Agreement will specify the rights and obligations of the parties in the event of default, including default by the tenant in the timely payment of rent or other amounts due. Typically, the collection process is as follows:
- When a payment is 30 days delinquent, the Real Estate Office, in consultation with Office of the General Counsel, will send a notice advising the tenant and demanding immediate payment of the past-due amount with the associated late fees and interest.
- If the amount outstanding is not paid within the subsequent 30 days (60 days past due), the department will send the tenant a second notice indicating that they are in default and the agreement will be terminated without further notice and the amount outstanding may be referred to a qualified collection agency or to conciliation court.
- If the amount outstanding is not paid within the subsequent 30 days (90 days past due), the Real Estate Office will consult with the Office of the General Counsel on the appropriate process for reclaiming possession of the premises.
Short-Term Use Agreement Delinquencies
The University unit which issues and manages short-term Use Agreements for its facilities is responsible for the collection of fees due pursuant to the Use Agreement as well as the collections process for any delinquencies.
Nonpayment of amounts due pursuant to the terms of the Use Agreement is typically a default and cause for termination. The Use Agreement will specify when any late fee is added to a delinquent account and when interest begins to accrue. The collections process for delinquent payments on a Use Agreement has a much shorter time due the inherent nature of the shorter term and typical one-time payment associated with the use for a one-time event. To discuss the collections process for a specific Use Agreement, contact the Real Estate Office. In the event of serious delinquency of a Use Agreement payment, contact the Office of the General Counsel and Real Estate Office to discuss the appropriate collection process, which may include referring the amount outstanding to a qualified collection agency or to conciliation court.