NOTICE OF PROPOSED REGULATION AMENDMENT
Date: February 12, 2008
REGULATION TITLE: REGULATION NO.:
Lease of Space 6C1-3.025
SUMMARY: The amendment requires that the dean or the dean's designee of a college is
required to approve any lease agreements for which the college has financial responsibility.
AUTHORITY: BOG Resolution dated January 7, 2003
COMMENTS CONCERNING THE PROPOSED REGULATION SHOULD BE
SUBMITTED WITHIN 14 DAYS OF THE DATE OF THIS NOTICE TO THE
CONTACT PERSON IDENTIFIED BELOW. The comments must identify the regulation
you are commenting on.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED REGULATION
IS: Rebecca J. Holt, Administrative Assistant, 123 Tigert Hall, Post Office Box 113125,
University of Florida, Gainesville, Florida 32611, 352-392-1358 office, 352-392-4387 facsimile,
NAME OF PERSON WHO APPROVED THE PROPOSED REGULATION: Ed Poppell,
Vice President for Business Affairs
THE FULL TEXT OF THE PROPOSED REGULATION IS ATTACHED TO THIS
UNIVERSITY OF FLORIDA
6C1-3.025 Finance and Administration: Lease of Space
(1) Purpose. This regulationfatle implements the authority given to the University of
Florida to lease real property for the purpose of implementing approved programs of the
(2) Definitions. For purposes of this regulationmfte, a lease is a document containing
the terms and conditions establishing the relationship of landlord and tenant for real property,
including land and any improvements thereon.
(3) Approval. All leases shall be prepared in accordance with this regulationftae and
executed by the President or the President's designee. In addition, if a lease of real property is
being entered into for the benefit of a particular college and that college will have financial
responsibility for the lease, the Dean or Dean's designee for such college must authorize the
(4) Standard Lease. The University uses a standard lease, Form BCM 4054 (R5-01),
approved by the University's Office of the Vice President and General Counsel and incorporated
herein by reference. The standard lease may be obtained from the Purchasing Division, Elmore
Hall, Room 102, University of Florida. The University's lease form may be changed by deleting,
adding to or revising its terms, which shall remain consistent with the requirements of this
regulationaftle as far as practical given the circumstances of the lease, with the prior approval of
the University's Office of the Vice President and General Counsel.
(5) Escalation Clauses Prohibited. A lease shall not contain a rental escalation clause or
an open rental rate that permits an adjustment in the amount paid by the University based on the
happening of a future event, such as a change in the Consumer Price Index or other economic
indicator, without also including a ceiling on the total amount the rent may increase. Any such
clause in a lease shall be null, void, and unenforceable. The final cost to the University for the
complete term of a lease, including all renewal periods, must be clearly set forth in the lease.
(6) Right-to-Terminate Clause Required. All leases for a term exceeding one (1) fiscal
year shall include the following provision: "The State of Florida's performance and obligation
to pay under this Lease is contingent upon an annual appropriation by the Legislature."
(7) Renewal of Leases. Any lease may contain options to renew and any renewal(s)
shall be made according to the terms and conditions of the lease.
(8) Code Compliance in Leased Space.
(a) Any privately-owned building or any part thereof to be leased to the University shall
comply with those portions of Chapters 553 and 633, F.S., including, but not limited to, fire
safety, life safety and disabled access standards, applicable to University buildings.
(b) No construction or renovation of any state-leased building may commence until the
University has ascertained that the proposed construction or renovation plan complies with those
portions of Chapters 553 and 633, F.S. applicable to University buildings.
(c) The cost of all modifications or renovations made for the purpose of bringing state-
leased property into compliance with the applicable portions of Chapters 553 and 633, F.S., shall
be borne by the landlord unless otherwise agreed in writing by the University.
(9) Leases of 5,000 Square Feet or More.
(a) The University shall not enter into a lease for 5,000 square feet or more of space in a
privately-owned building except upon advertisement for and receipt of competitive bids and
award to the lowest bid meeting specifications. The University shall not enter into, within any
12-month period, more than one lease for space in the same privately-owned facility or complex
except upon the solicitation of competitive bids. Exceptions to these requirements are as
1. This section shall not apply to the renewal of leases when the lease contains renewal
terms. The University may approve extensions of an existing lease of 5,000 square feet or more
of space if such extensions are determined to be in the best interest of the University but in no
case shall the total of such extensions exceed 11 months. If at the end of the 11th month the
University still needs space, it shall be procured by competitive bid. However, if the University
determines it is in its best interest to remain in space it currently occupies, the University may
negotiate a replacement lease with the landlord if an independent market analysis demonstrates
that the lease rates offered are within market rates for the space and the cost of the new lease
does not exceed the cost of a comparable lease plus documented moving costs. The term of such
replacement lease may not exceed the base term of the expiring lease. The decision to extend a
lease and to remain in space currently occupied shall be based on the following factors: the cost
of moving, the disruption of activities that will occur as a result of moving, the location of the
space, the suitability of the space, the proximity of services, the layout and type of space, and the
quality of space involved.
2. This section shall not apply to specialized research, medical or educational facilities,
if the President or the President's designee certifies in writing that said facility is available from a
single source and that compliance with competitive bid requirements would be detrimental to the
3. This section shall not apply to any lease having a term of less than 120 consecutive
days for the purpose of securing one-time special use of the leased property.
4. This section shall not apply to buildings or facilities of any size leased for the
purpose of providing care and living space for persons.
5. This section shall not apply to emergency space needs in the event existing state-
owned or leased space is destroyed or rendered uninhabitable by an act of God, fire, malicious
destruction, or structural failure, or by legal action upon certification by the President or his
designee that other University controlled space is not available and the term of the lease does not
exceed 18 months, provided the University may modify the lease to extend month to month for
up to 6 additional months to allow completion of such construction or renovations.
6. This section shall not apply when leasing facilities in a research and development
park, a hospital, or other medical facilities, such as a medical office building, with which the
University is affiliated.
7. This section shall not apply to any lease for nominal or no consideration.
(b) The University shall not enter into a lease agreement in a privately owned building
when suitable space is available in a state-owned building located in the same geographic region
unless it is determined to be in the best interest of the University, such as when the cost of the
move from a private building to the state-owned building would exceed the rental savings
associated with the state-owned building.
1. A public solicitation for proposals will be publicized using newspaper
advertisements and/or contact with owners, developers or realtors in the city or area in which
space is desired.
2. The solicitation shall set forth, but not be limited to, the following:
a. Approximate net square footage required to be measured in accordance with
subsection 60H-2.003(2), F.A.C.
b. General area in which space must be located.
c. Date space must be available.
d. Name and address of location where specifications may be obtained.
e. Terms and conditions of lease.
1. Specifications shall be written by the University in general terms and shall afford
each prospective landlord, interested in submitting a proposal, knowledge of the University's
space requirements. Specifications shall not be structured to favor any specific location or
2. Specifications provided to each prospective landlord shall set forth, but not be
limited to, the following:
a. Approximate net square footage required; to be measured in accordance with
subsection 60H-2.003(2), F.A.C.
b. An approximate floor plan of space needed showing partitioning and other physical
c. General location of required space.
d. Date space must be available.
e. Term of lease with option to renew, if desired.
f. Services required to include parking, dining and transportation requirements.
3. Specifications shall also set forth that the prospective landlord will agree to:
a. Enter into the University's standard lease.
b. Provide a scaled floor plan showing present configurations and measurements that
equate to net rentable square footage offered.
c. Be an Equal Opportunity Employer.
d. Provide Full Disclosure Statements of Ownership.
e. Validate the proposal for a minimum of forty-five (45) days following the public bid
f. Propose a rental rate per square foot per year that will include all renovations and
other special requirements necessary to accommodate the program at the time of initial
occupancy, and clearly stating of that rental rate per square foot the amount allocated to (i) base
rent, (ii) the cost of tenant improvements or renovations necessary to make the space conform to
the University's specifications and (iii) operating costs, such as real property taxes and utilities,
being reimbursed by the University.
4. Specifications may provide that sealed proposals are to be submitted, in a titled
envelope, to a designated individual by a specified closing time and date, at which time all
proposals will be publicly opened.
1. Proposals shall respond specifically but need not be limited to each item included in
2. Each proposal shall be signed by the ownerss, corporate officers, or legal
representativess. The corporate, trade, or partnership name must be either stamped, written or
typewritten, beside the actual signaturess. If the proposal is signed by an agent, written
evidence of his authority must accompany the proposal. If a corporation foreign to the State of
Florida is the owner, evidence of authority to conduct business in Florida shall be presented.
1. The University reserves the right to accept or reject any or all bids submitted and, if
the University deems it necessary, to reinitiate procedures for soliciting competitive proposals.
2. The University, in conjunction with preparing specifications, shall develop weighted
evaluation criteria. The criteria items most significant to the University's needs should bear the
highest weight. The cost of relocation, if any; consolidation of activities, if desirable; and any
other factors deemed necessary should be weighed.
3. Selection shall be made by the University and shall be publicly posted at the
location where the bids were opened and remain posted for seventy-two (72) hours, which shall
be interpreted as three (3) working days, not counting Saturdays, Sundays, and State of Florida
5. Documentation to support the selection shall be maintained and shall include, but
not be limited to, the following:
a. A copy of all advertisements.
b. A copy of the proposal specifications.
c. A copy of all proposals received.
d. A synopsis of the University's findings for each proposal.
(g) Lease preparation and approval. After the selection has been awarded, a lease shall
be properly executed.
(10) Disclosure Statements -- Private Entities, Public Officials.
(a) The landlord shall provide the statements required pursuant to sections
255.249(4)(h) and (i), F.S., regarding ownership interests in the lease property.
(b) It is not necessary to make disclosure of any beneficial interest which is represented
by stock in any corporation registered with the Securities and Exchange Commission or
registered pursuant to Chapter 517, F.S., which stock is for sale to the general public. A
statement certifying the registration shall be provided by the landlord.
(c) It is not necessary to make disclosure under paragraphs (a) and (b) above of any
leasehold interest in property located outside the territorial boundaries of the United States.
(d) Each subsequent transaction pertaining to a lease for which a Disclosure Statement
has been provided, may be accompanied by a landlord's affidavit that the previous Disclosure
Statement submitted on (date provided) is still valid, if no change in the interest held or
individuals concerned has occurred.
(11) Certification of Compliance. The President or designee; shall certify that the lease
is in compliance with all leasing criteria provided by Chapter 255, F.S.
(12) Standard Method of Space Measurement. Space measurement shall be based on
usable space as defined in Department of Management Services subsection 60H-2.003(2), F.A.C.
(13) Space Allocation. Space allocation shall be based on the formula provided in the
publication "State Requirements for Educational Facilities, 1999 Volume I-Process and Rule and
Volume II-Building Code."
(14) Rental Rates. The rental rate for space shall be within rental rate guidelines
established by the University.
(15) Leases Not Requiring Competitive Bidding. In any leasing of space that is
accomplished without competition, the individuals taking part in the development or selection of
criteria for evaluation, in the evaluation, and in the award processes shall attest in writing that
they are independent of, and have no conflict of interest in, the entities evaluated and selected.
Specific Authority: BOG Resolution dated January 7, 2003-and 1001.71(4), FS.
Law Implemented 1001.71(5), 1001.75(5), 1001.22(7) FS.
History--New 1-28-80, Formerly 6C1-3.25, Amended 2-9-87, 5-18-92, 4-30-95, 5-23-96,
7-27-98, 1-12-00, 07-25-02, 6-3-03,