7320.1 Definition of a Real Property Lease
A written agreement in which the owner of the property allows Wright State University to use the property for a specific period of time for specific periodic payments (rent) and other terms and conditions.
7320.2 Real Property Leasing Policy
This policy sets forth the procedures that shall be followed to execute a real property lease agreement. It should be noted that this policy is not applicable to the rental of storage facility space or the rental of space for a short duration, such as renting an auditorium for one evening, a banquet facility for a social function, or conference space for a meeting.
- A unit planning to lease space shall obtain the approval of its Director, Dean, or Vice President.
- The Dean/Vice President will submit a Lease Justification Form to the Senior Vice President of Business and Fiscal Affairs for review and approval. The form includes the reason the unit is requesting additional space, the proposed functional use of the space, estimated square footage, etc.
- The Senior Vice President will seek comment from the Associate Vice President of Facilities Planning and Development as to the availability of space on campus and as to the appropriateness of the proposed leased space for the purpose for which it would be used. The Senior Vice President for Business and Fiscal Affairs will also seek comment from the Associate Vice President of Budget Planning and Resource Analysis with the respect to budgetary implications. If there are questions about the value of taking a given activity off campus, the Senior Vice President will refer the issue to the provost for his determination.
- Upon signed approval of the Lease Justification Form by the Senior Vice President for Business and Fiscal Affairs, the office of Facilities Planning and Development will assist the unit in finding suitable space to meet the needs identified and approved in the Lease Justification Form.
- The Purchasing Office will negotiate the tentative lease terms and conditions with the Lessor once a location is identified.
- The requesting unit or college shall be assisted by Purchasing, office of General Counsel, office of Risk Management, and other university departments it deems appropriate and obtain their approvals of the lease agreement’s terms and conditions.
- The lease agreement will be executed by either the senior vice president for Business and Fiscal Affairs or the associate vice president for Budget Planning and Resource Analysis.
- Upon execution of the agreement, the Purchasing Office will notify the requesting department that a requisition must be processed by the department responsible for payment. Procurement cards may not be used to pay the real property leases. The only exception to this is payment for storage facility space.
- It is the responsibility of the unit occupying the leased space to make arrangements with the Purchasing department for the monthly lease payments. Although the leasing of real property does not easily lend itself to formal bidding procedures, it is a purchase of service and is therefore subject to all applicable portions of the university purchasing procedures found in University Policy 9320.
- All leases that have annual lease payments between $250,000 and $499,999 must be reported to the WSU Board of Trustees. All leases that have annual lease payments of $500,000 or more must be approved in advance by the WSU Board of Trustees.