OSU PaCS 503: Leases to External Entities

Purpose

To provide guidance on the appropriate processes relating to leasing of real property to or from outside entities.

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Applicability

Any departments considering leasing real property to or from outside entities.

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Background

This policy establishes the process and criteria by which OSU will determine whether and under what circumstances it will lease space in OSU buildings and facilities to outside individuals or organizations.

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Policy

Oregon institutions of higher education generally may not lease space in their buildings or facilities to outside (non-OSU) individuals or organizations unless the lease is approved by the University President.  By adoption of this policy the authority for approval of such leases is delegated to the Vice President for Finance and Administration.  This policy does not confer rights to any person or entity to lease space in OSU buildings or facilities.  The decision whether to lease space to an outside individual or organization in an individual case is entirely within the discretion of OSU.

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Procedure

Application Process/Approvals

• A campus unit proposing that the University lease space in any University building or facility to an outside individual or organization shall submit a Request for Space form to OSU Facilities Services, Campus Planning Manager.  The Request for Space form must include the written approval of the Dean of the requesting College for the administrative unit. The Request for Space form is available from Facilities Planning.  Please be sure to provide all the information requested on the form.
• The Campus Planning Manager will forward to the Vice President for Finance and Administration any Request for Space that is recommended for approval.  The Vice President for Finance and Administration will make the University’s final decision to approve a Request for Space. 
• A Request for Space approved by the Vice-President for Finance and Administration will be forwarded to the Director of Business Services to initiate the Lease Agreement.

Each application will be evaluated by the following criteria:

	OFFICE USE ONLY
Is Lessee’s use of the space consistent with and supportive of the OSU Strategic Plan vision and OSU mission, the Campus Master Plan, OSU’s policies and the OSU Zoning District?	Yes	No
Will Lessee’s activities or affiliations create any possible conflicts of interest? Do any OSU personnel have any relationship with the Lessee?  Any possible conflicts of interest must be documented, and a plan must be in place to manage any conflicts of interest, before the proposed use of space is approved.
Will the Lessee’s activities include research of any kind?
Will the Lessee’s research include humans, animals or biosafety?
Is there capacity to fulfill the proposed use?  Will the proposed use reduce space needed for instruction or research activities?
Is there a need at OSU for the services or goods produced by Lessee and is it consistent with University services & facilities use classifications?
Can the proposed services or goods be produced by existing campus resources, thus making a new lease unnecessary?
Does Lessee have sufficient financial resources to fulfill the terms of the lease?
Are there other considerations?  Additional considerations must be documented and evaluated before lease negotiations are complete.
Is there a parking impact?

Rates (subject to change)

• Standard rate for full-service office is $1.25 per square foot per month.
• Standard rate for full-service lab is $3.00 per square foot per month.
• Standard rates include steam (heat), electricity, water, gas, janitorial, garbage, and shared common area.
• Any revenue generated from the lease agreement will be credited to the General Fund for facilities services and maintenance.

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