Acquisition of Real Estate and Leasing Activities (Policy 6310)
University Policy 6310
Vice President and Chief Financial Officer, (208) 426-1200
Finance and Leasing, (208) 426-2861
Scope and Audience
This policy 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.
State Board of Education Policy, Section V.I.
1. Policy Purpose
To establish protocols relating to the sale, purchase, or lease of non-University owned real estate and facilities.
2. Policy Statement
The purchase, sale, and lease of real estate and improvements upon real property are regulated by State Board of Education 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 Finance and Leasing.
3.1 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.
4. Responsibilities and Procedures
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.
4.1.1 Sale or Purchase of Property
All sales or purchases of real property or improvements thereon shall be referred to and managed by Finance and Leasing. Finance and Leasing 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.
4.1.2 University Lease as Landlord
With the exception of the facilities and venues listed in Section 4.1.3, all leases of University-owned or controlled spaces shall be coordinated through Finance and Leasing. Finance and Leasing may itself perform, or may elect to, delegate the functions of landlord and/or property/contract management.
4.1.3 University Lease as Tenant
Leases of non-University facilities shall be coordinated through Finance and Leasing as follows:
a. 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 Finance and Leasing for assistance in finding suitable outside space.
b. Finance and Leasing 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.
c. Departments will be referred to Campus Planning and Facilities for assistance estimating remodeling costs of leased property, if any.
d. Finance and Leasing will determine if the proposed lease requires approval from the State Board of Education, and when required, draft an agenda item for State Board of Education approval.
e. The State of Idaho requires certain leases be procured through the Division of Public Works (DPW). Finance and Leasing will serve as the single point of contact for DPW on matters related to leases.
(i.) Finance and Leasing 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, Finance and Leasing will manage the procurement process with Purchasing.
(ii.) Finance and Leasing, along with the department, will review bid responses and evaluate the proposed lease spaces.
(iii.) Finance and Leasing, along with DPW, will negotiate the final terms of the lease with the landlord and provide the proposed lease to University General Counsel and the Vice President and Chief Financial Officer for review and approval. No lease will be signed by the University until the availability of sufficient funds or budget has been verified.
f. Following execution of the lease, Finance and Leasing will assist the department in confirming that requested improvements have been made and guide the department to secure utilities not provided by the landlord.
g. It is the responsibility of the leasing department to coordinate occupation of the leased space consistent with Finance and Leasing procedure.
h. Finance and Leasing 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.