623  Lease Standards

Approved by President
Effective Date: January 17, 2023

Responsible Division: Business and Finance
Responsible Office:  Campus Planning
Responsible Officer: Assistant Vice President, Campus Planning

I. Purpose

This policy sets forth real property leasing procedures for Middle Tennessee State University (MTSU or University).

II. Approval of Leases

A.  University as Lessee or Lessor. These agreements shall be approved by the President, including any amendment or cancellation, and, as applicable, by the State Building Commission (SBC), in accordance with T.C.A. § 12-2-114 and §12-2-115 and the Tennessee Higher Education Commission (THEC).

B.  Required signatures include:

1.  The Lessor/Lessee (signature shall be acknowledged by a notary public).

2.  President (signature shall be acknowledged by a notary public).

3.  State Attorney General and Reporter, in compliance with T.C.A. § 12-2-115.

4.  Commissioner of General Services, if procured by STREAM.

5.  Governor (signature is required for lease-outs).

III.  Leases where University is Lessee

A.  Leases involving consideration of greater than two hundred fifty thousand dollars ($250,000.00) per year or where the term of the lease, including all renewal and extension options contemplated in the lease is for term greater than five (5) years:

1.  All proposed leasing actions shall be submitted to THEC and the SBC by the University for review and analysis prior to issuance of advertisement.

2.  After review and analysis, THEC and the SBC shall provide comments to the University (SBC Policy).

3.  Leases approved during the annual budget review process will not require prior approval of the SBC Executive Sub-Committee (SBC Policy).

4.  Leases for which operating funds will be requested for more than five (5) years, or in which the total of the consideration, maintenance costs, utility costs, and/or custodial costs are estimated to exceed two hundred fifty thousand dollars ($250,000.00) per year, and funding for same is requested through state appropriations, shall be approved by THEC (THEC Policy).

B.  Leases for two hundred fifty thousand dollars ($250,000.00) or less per year, or for a five (5) year term or less shall be approved by the President, or his designee, using one of the following approved forms: MTSU Standard Lease Agreement, Mutual Use Agreement, Transient Use Agreement, or Tenant Use Agreement.

C.  Amendments to leases originally submitted to, and recommended by, the SBC shall receive SBC approval prior to execution of such amendments. Any amendment to a lease which was not submitted and approved by the SBC because the term was less than five (5) years,