Use and Lease of University Real Estate by Non-University Entities
- 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, designated outdoor spaces per the Outdoor Space Reservation Process, and RSO events covered by the University's liability insurance.
- 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.
Leases are required when University real estate is used and controlled by a non-University entity on an on-going basis, typically, for a period of more than ninety (90) days. A lease does not indicate University endorsement of the policies, goals, or opinions of the non-University entity.
The University's requirements regarding the distribution of publications by non-University entities on University property are detailed in Administrative Policy: Distributing Publications and Installing Banners at the University. Distribution from bins or racks requires a written agreement. See Administrative Procedure: Distributing Publications.
Antennae, Satellite Dishes and Towers
The University's decision to permit installation of antennae, satellite dishes and towers on University land or facilities is guided by the following considerations:
- They must have no adverse impact on existing University operations or facilities.
- They must not be aesthetically offensive, or visually disruptive.
- They must offer an efficient and cost effective alternative for achieving the intended communications objective.
- They must be exclusively used for a University purpose, or their installation must create a financial benefit to the University.
- Exterior locations must be approved by Planning and Architecture.
Proposals for leases for antennae, satellite dishes and towers by non-University entities are sent to the Real Estate Office and must include:
- Identification of applicant, owner and operator of the proposed facility.
- Justification statement, including details on size and location, accessibility requirements, orientation requirements, maintenance/repair requirements, expected installation life, cost and budget for installation and on-going operation, source of funding.
- Legal issues analysis, including ownership, contract authority, discussion of applicable regulations, licenses.
- Location alternatives analysis, including co-location opportunities at other antennae, dishes and towers, functional/operational trade-offs, distance parameters/limits, access.
- Discussion of the aesthetic considerations, including campus image implications, visual disruption, size/scale implication, screening or shielding potential.
- Discussion of the factors related to the installation of the proposed facility, including structural integrity, wind and vibration, effect on warranties (roof), safety/security of location, potential for interference, permitting/code compliance.
- Requested lease terms and conditions, including business terms.
Process for Leases
When a non-University entity contacts a University unit to request a lease covering University real estate, refer them to the Leasing Manager. The information typically required:
- Name and address of non-University entity
- Type of organization (corporation, partnership, etc.)
- Name and phone number of contact person
- Intended use of real estate
- Number of square feet needed (if building space)
- Parking requested
- Beginning and ending dates of use
- Any other pertinent information
Whenever possible, the University uses standard lease agreement forms. These forms are available on the Office of General Counsel Standard Contract Library website.
- The Leasing Manager negotiates the terms of the lease agreement (in consultation with the Office of 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 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 set by the Real Estate Office in consultation with the appropriate University departments, using market comparisons. Exceptions are approved by the Vice President and CFO or designee.
- The Real Estate Office manages the lease (e.g. collects the lease rent from the non-University entity, performs any collection activities, ensures proper insurance documentation received, tracks options). Security deposits equal to the first month's rent are typically required and paid prior to the execution of the lease and occupancy of the premises by the non-University entity, all as detailed in the final lease.
Other Agreements for On-Going Use of University Property
Contact the Real Estate Office in the event other agreements for the on-going use of University real estate are requested, such as a license agreement for a pipeline or electrical line.
Use agreements are required when University real estate is used by non-University entities for events, conferences and other short-term purposes, except uses by Registered Student Organizations (RSOs) of classroom space with less than 100 seats, designated outdoor spaces per the Outdoor Space Reservation Process, and RSO events covered by the University's liability insurance. All conditions relating to the use are specified in the use agreement, which may be called license agreement, facility license agreement, temporary construction agreement, access agreement, etc.
On the Twin Cities Campus, Sports Facilities, Concerts and Lectures, Recreational Sports, the Weisman Art Museum or other administrative units may be the first point of contact for a non-University entity wishing to use certain University venues (http://www.realestate.umn.edu/Lease/facilityContacts.html), and may serve as the interface to Real Estate, to Facilities Management and other University departments as appropriate. University Relations will be the principal point of contact for media requests and will schedule all media events involving the use University facilities.
The scheduling priority for permissible uses of University property is detailed in the appendix: Using and Leasing University Real Estate (Permissible Uses and Scheduling Priority).
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. The procedures for using and leasing University outdoor space are detailed at: http://outdoor.umn.edu/.
Large Scale Special Events on Twin Cities Campus
For large-scale events on the Twin Cities Campus, such as visits by dignitaries, politicians or celebrities, the Vice President for University Services appoints a University Coordinator who assembles a University planning and implementation team for the event. See Protocols for Large-Scale Special Events on Campus.
Multi-Facility Use Agreement
Agreements for the use of rooms in one or more Residence Halls on the Twin Cities Campus together with additional University facilities and services for an event by a non-University entity, such as Adult and Youth Conferences and Sports Camps, are managed by Conference and Event Services. See the process for a multi-facility use agreement at http://www.uces.umn.edu/.
For all other multi-facility use agreements (i.e. conferences involving multiple facilities and/or services at the Duluth, Morris, Crookston or Rochester Campus), contact the Real Estate Office.
Process for Other Use Agreements
- The non-University entity contacts the University department assigned the space the non-University entity wishes to use. The contacts to reserve space on the Twin Cities Campus are available at http://www.realestate.umn.edu/Lease/facilityContacts.html. (For the short-term use of all other University real estate, contact the Senior Real Estate Specialist.)
- The University department prepares the use agreement using a standard form available on the Office of General Counsel Contracts Library website.
- Charges for the use of University property by the non-University entity for the event are set by the department which is assigned the space in consultation with the Real Estate Office. The department must, however, recover all direct and indirect costs, including custodial, trash removal, etc. Fees for the use of University property by employees for personal use must be at least 80% of the fee charged to the public without imputing non-paid benefits for that employee. Departments are responsible for the collection and receipt of all monies due from the non-University entity pursuant to the use agreement.
- The University department is responsible for obtaining from the non-University entity evidence of the insurance required by the use agreement.
- The University department sends a copy of the fully executed use agreement to the Real Estate Office for inclusion in the University's on-line lease inventory and the University's fiscal year lease report.
Other Agreements for Short Term Use of University Property
Numerous University facilities, such as the Cedar Creek Ecosystem Science Reserve, issue housing agreements for short-term housing in dormitories, cabins, etc. Contact the manager at the desired University facility to determine availability and process.
Contact the Senior Real Estate Specialist in the Real Estate Office if another agreement such as an access agreement or temporary construction agreement is needed for the short-term use of University land or building space.
Use of University Real Estate for Co-Sponsored Event
The process for a co-sponsored event which requires the use of University real estate is detailed in the appendix: Use of University Real Estate for Co-Sponsored Event.
Delinquent Rental Accounts and Collections Process
The Real Estate Office is responsible for managing the rental account and collections process for leases managed by the Real Estate Office. The University unit which issues and manages use agreements for its facilities is responsible the collection of fees due pursuant to the use agreement as well as the collections process for any delinquencies.
Delinquent Lease Rental Accounts
Nonpayment of rent or other amounts due pursuant to the terms of the lease is typically a default and cause for lease termination. Each agreement will specify when a late fee is added for late rent payments (typically 5 days after the due date), and when interest, typically retroactive to the due date, accrues to the rental account (typically if payment not received within 30 days of due date). The final lease will specify how payments received on delinquent accounts will be applied, typically first to the late charge, then the interest, then to the base rent due.
Collection Process for Delinquent Rents
The final lease 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 sums due. Typically, if a lease payment is thirty days delinquent, the department managing the lease will send notice to the tenant demanding immediate payment of the past-due sum, plus the associated late fees and interest. This notice will also advise the tenant the lease is now in default and subject to termination. If the amount outstanding is not paid within the subsequent thirty days (sixty days past due), the department sends the tenant a second notice indicating the amount outstanding may be referred to a collection agency or to conciliation court and the lease will be terminated without further notice. If the amount outstanding is not paid within the subsequent thirty days (ninety days past due), the department managing the lease should consult with the Office of General Counsel and Real Estate Office on the appropriate process to reclaim possession of the premises which may include referring the amount outstanding to a qualified collection agency or to conciliation court.
Use and Other Agreements
Nonpayment of amounts due pursuant to the terms of the use agreement, co-sponsorship agreement, etc. is typically a default and cause for termination. The use, co-sponsorship or other 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, co-sponsorship and other agreements has a much shorter time line than for lease agreements. To discuss the collections process for a specific use, co-sponsorship or other agreement, contact the Senior Real Estate Specialist. In the event of serious delinquency of a use agreement payment, contact the Office of 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.
Approval Authority for Leases and Use Agreements
All use agreement transactions with a value exceeding $10,000 (i.e. the value of a single agreement if all University facilities and services for an event are described in one agreement; otherwise, the value of all agreements covering University facilities and services for an event) and all lease agreement transactions require the Approval Authority of the Real Estate Office, which will coordinate all additional required approvals (e.g. Legal Authority, Funding Authority, Board of Regents Approval if required). The Approval Authority for use agreements not exceeding $10,000 has been delegated to the signature authority.
All leases and use agreements are entered into the University's on-line lease inventory available at the Real Estate Office website (www.realestate.umn.edu) and are included in the annual fiscal year lease report produced by the Real Estate Office.