A.
Definitions
1.0
Lease
An agreement under which a tenant receives the possession and
use of real property for a certain period of time and the landlord receives the
payment of rent and/or the performance of other conditions. For the purposes of
these rules, the word "lease" is meant to include sub-leases and inter-agency
leases.
2.0
Lessor
The party who conveyed a right or estate in realty to the
lessee under a lease; commonly referred to as the landlord.
3.0
Lessee
The party who possesses a right or estate in realty, holding
under a lease; also commonly referred to as the tenant.
4.0
Real
Property
Land; the surface of the earth and whatever is erected,
growing upon, or affixed to the land; including that which is below it and the
space above it; synonymous with "land", "realty", and "real estate". For the
purposes of these rules, land under the jurisdiction of the State Board of Land
Commissioners and leases of land held by the Division of Wildlife or the
Division of Parks and Outdoor Recreation are excepted. (reference
24-30-1303(2),
C.R.S. 1977, as amended)
5.0
Agency
Any State-owned university, college, institution, department
or division.
6.0
Agent
Any person, partnership, association, or corporation
authorized or employed by another, called the principal (owner), to act for, on
behalf of, and subject to the control of the latter.
7.0
Real Estate
Broker
As defined in
12-61-101, C.R.S. 1973, as
amended.
8.0
Real Estate Marketplace
The intangible arena in which all real estate transactions
take place that together form a market.
B.
Rules for Leasing Real
Property
1.0 Agencies
shall notify the Department of Administration, State Buildings Division (SBD),
of need and intent to lease real property.
1.1
This notification shall occur prior to any contact or negotiation with
potential lessors (building owners or agents) or real estate brokers.
1.2 Agencies shall submit their request to
lease real property on Form SBD 43-80, "Lease Action Request" which will
include complete justification needed to evaluate the staff and equipment to be
housed, the program functions to be performed and any special requirements.
1.3 The Lease Action Request shall
also be used for requests to renew, terminate, extend or amend a lease
contract, or to exercise a lease contract option, or whenever a request will
result in a contract document requiring execution by the Department of
Administration.
2.0 Upon
receipt of a Lease Action Request, SBD will review and evaluate the request as
soon as possible and will then contact the requesting agency to discuss its
findings.
3.0 Upon approval by SBD,
a packet of instructions will be sent to the requesting agency outlining what
steps they are to perform and including such information as the physical
requirements a building must contain, guidelines for working with real estate
brokers, and guidelines in negotiating lease terms in conformance with
requirements of the Attorney General and the State Controller, good business
practice, and true representation of the Agency's needs and desires.
3.1 SBD will review and approve bids for
lease space obtained by the agency and review, assist, and make recommendations
during the negotiation of lease terms.
3.2 When deemed appropriate, SBD will become
directly involved in the bidding and negotiating process as Leasing agent for
the State.
4.0 Agencies
must rely on the services of their assigned attorney(s) in the Department of
Law if such services are required to draft a contract or review a contract as
to form. (Please refer to Chapter 3, State Fiscal Rules)
5.0 Lease contract routing will follow those
procedures as provided for in Chapter 3, State Fiscal Rules.
