9.11 Use of Property not Owned by the Board of Regents
9.11.1 Leasing Authority as Tenant
The Chancellor and/or the USG chief facilities officer are authorized and empowered to execute, accept, and deliver for, on behalf of, and in the name of the Board of Regents of the University System of Georgia and under its SEAL, and without prior approval by the Board, any and all rental agreements, supplemental agreements, and subrental agreements in which the Board of Regents is named as the landlord of the property rented and where the total rent to be paid to the Board does not exceed the sum of $20,000 per month (BoR Minutes, August, 2007).
9.11.2 Leasing as Tenant
It is the intention of the Board of Regents to ensure that currently-owned USG space is utilized with the greatest efficiency. The Board of Regents wants to ensure that institutions lease space only when it is appropriate to do so given the nature of the space needed, location of programs, and the space demands on the campus. When leasing is required, the Board of Regents also wants to ensure that the rental rates are of benefit to the institution as noted below.
As institutions have primary responsibility for space management, it is incumbent on institutions to assure adequate review of each leasing decision. Institutions are to establish review procedures that ensure that all available space on campus is utilized to maximum benefit, and that leased space is sought only when:
- There is no appropriate space available on campus;
- The program requires an off-campus site;
- It is more economical to lease than build additional space;
- No other campus has appropriate space that may be used; or,
- There are other extraordinary circumstances that require leasing.
Property to which title is held by the Building Authority of the State of Georgia and that is leased to the USG cannot be subleased or rented. It is permissible to license an outside party to use it for a purpose consistent with the mission of the institution in return for out-of-pocket costs for utilities and custodial services. Institutions are charged with ensuring that they obtain the best rental rates in the area where leasing is to occur, and they negotiate multiple year renewal options when possible (BoR Minutes, August, 2007).
9.11.3 Reporting of Leases as Tenant
Institutions are to report annually on all leased space to the Office of Facilities, which will exercise oversight on leasing activity. The report should be submitted in conjunction with the submittal of capital budget requests.