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Policy Title: Acquisition of Real Estate and Leasing Activities

Boise State University Policy # 6310
Effective Date: May 2013

Purpose:
To establish protocols relating to the sale, purchase or lease of non-university owned real estate and facilities.

Additional Authority:
Idaho State Board of Education (SBOE) Governing Policies and Procedures § V.I.

Scope:
Applies to the purchase or sale of real estate including the purchase or sale of improvements upon real property, the lease of university-owned facilities, and the lease of facilities by the university as tenant.

Responsible Party:
Vice President for Finance and Administration (VPFA), 426-1200
Real Estate Services, 426-2861

Definitions:
Improvements upon Real Property – A permanent addition to or betterment of real property that enhances its capital value and is designed to make the property more useful or valuable. Improvements upon real property do not include ordinary repairs or furniture, fixtures and equipment.


Policy

  • I.   Policy Statement
  • The purchase, sale, and lease of real estate and improvements upon real property are regulated by SBOE policy and state law. In order to ensure compliance with applicable laws and policies, all matters related to the purchase, sale or lease of real estate or improvements upon real property will be centrally managed by Real Estate Services.
  • II.  Requirements
  • Prior to the purchase or lease of a facility, the requesting department should contact Campus Planning and Facilities to determine if any facilities currently owned by the university will satisfy the department’s needs.
    • A.  Sale or Purchase of Property: All sales or purchases of real property or improvements thereon shall be referred to and managed by Real Estate Services.  Real Estate Services will not authorize the sale or purchase of any asset, but will navigate the process by which review and approval may be obtained and make a recommendation to the appropriate decision-maker regarding the proposed sale or purchase.
    • B. University Lease as Landlord:  With the exception of the facilities and venues listed in Section III, all leases of university-owned or controlled spaces shall be coordinated through Real Estate Services. Real Estate Services may itself perform or may elect to delegate the functions of landlord and/or property/contract management.
    • C.  University Lease as Tenant:  Leases of non-university facilities shall be coordinated through Real Estate Services as follows:
      • 1.  Departments seeking to lease space must first consult with Campus Planning and Facilities to review the departments space needs and determine if there are any space options within university-owned facilities that will meet those needs. If no suitable space is available within university-owned facilities, the department will be referred to Real Estate Services for assistance in finding suitable outside space.
      • 2.  Real Estate Services will assist the department to develop a leased space budget and review spaces available for lease that fall within budget parameters. Leased spaces should follow space guidelines established by Campus Planning and Facilities as much as practically possible.
      • 3.  Departments will be referred to Campus Planning and Facilities for assistance estimating remodeling costs of leased property, if any.
      • 4.  Real Estate Services will determine if the proposed lease requires approval from the SBOE, and when required, draft an agenda item for Board approval.
      • 5.  The State of Idaho requires certain leases be procured through the Division of Public Works (DPW). Real Estate Services will serve as the single point of contact for DPW on matters related to leases.
        • a.  Real Estate Services will coordinate the development of a Request for Proposals for the public procurement of lease spaces when required. For leases that do not requiring public bidding, Real Estate Services will manage the procurement process with Purchasing.
        • b.  Real Estate Services and the department will review bid responses and evaluate the proposed lease spaces.
        • c.  Real Estate Services and DPW will negotiate the final terms of the lease with the landlord and provide the proposed lease to University General Counsel and the VPFA for review and approval. No lease will be signed by the university until the availability of sufficient funds or budget has been verified.
      • 6.  Following execution of the lease, Real Estate Services will assist the department in confirming that requested improvements have been made and guide the department to secure utilities not provided by the landlord.
      • 7.   It is the responsibility of the leasing department to coordinate occupation of the leased space consistent with Real Estate Services procedure.
      • 8.  Real Estate Services will communicate with the landlord regarding the lease contract, including renewals, extensions, and terminations of the lease, in addition to other non-operational issues. The department will communicate with property management regarding operational issues such as temperature control, noise, and maintenance and custodial issues.