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  • New Lease or Relocation

    The time frame for processing a lease document is estimated on a case-by-case basis, and is dependent on total square footage leased, amount of time needed for space planning and the extent of needed remodeling or construction.  When these specifics are determined, RECS will estimate the time frame.

    1. AGENCY/DEPARTMENT/DIVISION (“Agency”)

    When an Agency decides that it needs new space or is considering relocation, the designated Agency contact person should provide a written request to the RECS Lease Supervisor.  It is helpful to include pertinent information in the Agency’s request; if this information is not known, RECS will assist the Agency to determine the following:

    a. Name, address and telephone number of agency representative;
    b. Space Criteria:

    Office, storage, laboratory, land or other (hangars, boat slips, etc)
    Location
    Length of lease
    Date space is needed
    Estimated square footage
    Parking requirements Access to other agencies
    Public transportation, freeways, etc.
    Future expansion needs
    If land, type of land

    c. Budget constraints/considerations
    d. Funding Information and Certificate of Compliance Form completed in accordance with Minnesota Statutes 16B.24, Subd. 6.(a). (This document is required before RECS can commence the lease process See attachment No. 1)
    e. If applicable, submission of encumbrance letter pursuant to Minnesota Statute 16A.15, Subd.3.

    The Space Management Section of RECS provides a Space Analysis Form to assist an Agency in the determination of space needs. This form also helps RECS to determine an Agency’s required square footage. At the commencement of space programming, it is helpful to have an organizational chart for the agency or division.  It is also helpful to identify the type of furniture to be used in the space, (e.g., traditional, modular or a combination, existing or new).

    2. REAL ESTATE AND CONSTRUCTION SERVICES

    In order to find the most economical space that meets the needs and requirements of the Agency, upon receipt of a written request from the designated Agency contact person, RECS shall:

    a. Discuss the request with the Agency;

    b. Prepare a market comparison/analysis of viable options for an Agency's consideration.  In conjunction with this review, RECS will verify availability of space in vacant public buildings and in buildings of historical,         architectural or cultural significance pursuant to Minnesota Statute.  RECS uses the following resources:

    i. City and Economic Development Agency,
    ii. Canvas the city for space availabilities,
    iii. Check with DOT , DNR and MNSCU for availability in their buildings in the area,
    iv. On-line websites for space availability, and
    v. Brochures and availabilities received from brokers and landlords in the areas.

    c. Schedule and conduct tours of properties to be considered;
    d. Solicit lease proposals from property owners;
    e. Evaluate proposals, including an economic analysis; and
    f. Make a recommendation to the state agency of a preferred site based on the information collected.

    Upon its selection of a site, the Agency provides written documentation to RECS setting forth its reasons for such selection; whereupon RECS shall:

    a. Act as liaison between Agency and lessor;
    b. Coordinate space programming and planning services, including a floor plan layout showing remodeling to be accomplished, an itemized remodeling cost breakdown, and the construction schedule with completion         date;
    c. Negotiate the terms and conditions of the lease including rental rate, term of lease, remodeling specifications, review and verify adherence to State Space Guidelines, verify square footage, expansion space and parking;
    d. Draft and process the lease.

    3.               Other arrangements to be made by the Agency:

    Telecommunications (voice and data)

    •Furniture and equip m ent m ove

    •Mail distribution

    •Printed m aterial changes

    •Recycling program

     

  • RFP
    1. RECS has found that issuing an RFP results in more competitive rental rates. A Request for Lease Proposal (RFP) is typically issued in one of the following instances:

    a. A state Agency makes a request for a lease of new space when no existing space meets the Agency’s needs; or
    b. An existing lease of space for 50,000 square feet or more is due to expire, and the existing space needs extensive remodeling.

    2. Written Request for Lease of Space from Agency to RECS

    An authorized person from the requesting tenant-Agency shall provide Real Estate and Construction Services with a written request to include the following information:

    a. Reason for the request, e.g., lease renewal, additional staff, new programs, etc.;
    b. Funding Information and Certificate of Compliance form for Lease Request form (See Attachment No. 1)
    c. Encumbrance letter pursuant to Minnesota Statutes 16A.15. Subd. 3, if applicable
    d. Requirements applicable to the request:
    (i) location desired and criteria
    (ii) estimated square footage or description of other real estate to be leased
    (iii) space requirements, or other applicable requirements
    (iv) parking
    (v) access (to other agencies, public transportation, freeways, etc.)
    (vi) future growth needs/expansion
    (vii) length of lease (maximum of ten (10) years)
    (viii) date space is needed
    (ix) budget restraints/considerations
    (x) space planning information

    e. Upon review of the lease request, the Lease Supervisor will determine if the RFP process will be followed. If it is determined that the RFP process would be beneficial, the Planning Section will develop a space program that is made a part of the RFP.

    f. The steps set forth in Attachment 2 will be followed for the RFP process.

  • Renewal

    The estimated time frame for processing a lease renewal is 10 to 12 weeks if the terms and conditions of the lease remain generally the same. More time may be required if remodeling is needed.

    1. AGENCY/DEPARTMENT/DIVISION (Agency)

    When an Agency decides to renew a lease, the designated Agency contact person should provide a written request to the RECS Lease Supervisor. It is helpful to include the following information in the request.  If this information is not known, RECS will assist the Agency to determine the information.

    a. current lease number, address and city of leased premises;
    b. renewal term desired;
    c. improvements or remodeling requirements, (e.g., painting, carpeting, wall construction, electrical);
    d. any problems or concerns regarding the space; this is important to negotiating the most beneficial lease renewal for the Agency;
    e. additional space requirements, and parking needs, if applicable; and
    f. provide Funding Information and Certificate of Compliance form completed in accordance with Minnesota Statutes 16B.24, Subd. 6.(a).  This document is required before work by RECS can finalize lease         negotiations. (See Attachment No. 1).
    g. provide encumbrance letter pursuant to Minnesota Statute 16A.15, Subd.3., if applicable

    2. REAL ESTATE AND CONSTRUCTION SERVICES

    RECS will, upon receipt of a written request from the designated Agency contact person:

    a. discuss the request with the Agency;
    b. request lease renewal proposal from property owner;
    c. check the market for viable options for alternative space;
    d. act as liaison between Agency and lessor;
    e. negotiate the terms and conditions of the lease, including rental rate, term of lease, remodeling, expansion space and parking; and
    f. draft and process the lease agreement.

     


  • Additional Space

    Estimated time frame for processing:  12 weeks or more, depending upon the amount of space leased and the extent of remodeling needed

    1.      AGENCY/DEPARTMENT/DIVISIO N (Agency)

    W hen an Agency decides that it needs new space or is considering relocation, the designated Agency contact person should provide a written request to the RECS Lease Supervisor.   It is help f ul to include pertinent in f or m ation in the Agency’s request; if necessary, RECS will assist the Agency to deter m ine the f ollowing:

    a.    Current lease number and the reason for the request, (e.g., additional staff, new programs, change in space layout);
    b.      Funding Information and Certificate of Compliance form completed in accordance with Minnesota Statutes 16B.24, Subd. 6.(a). This document is required before any work by RECS can commence. (See Attachment         No. 1);
    c.      List of any improvements/remodeling requirements, (e.g., painting, carpeting, wall construction, electrical), if applicable, or other concerns regarding the space;
    d.      Date space is needed; and
    e.      If applicable, encumbrance letter provided pursuant to Minnesota Statute 16A.15, Subd.3.

    The Planning Section of RECS provides a Space Analysis Form to assist an Agency to determine its space needs. This form also helps RECS to determine the required square footage. When space programming commences, it is helpful to have an organizational chart of the tenant Agency or division.  It is also helpful to identify the type of furniture to be used in the space, (e.g., traditional, modular or a combination, existing or new).  Contact the Planning Section  for a copy of the Space Analysis Form.

    2. REAL ESTATE AND CONSTRUCTION SERVICES

    RECS will, upon receipt of a written request from the designated Agency contact person:

    a. Discuss the request with the Agency;
    b. Act as liaison between Agency and lessor;
    c. Obtain square footage and floor plan showing needed remodeling;
    d. Verify square footage;
    e. Review space plan and verify compliance with State space guidelines;
    f. Obtain an itemized cost breakdown for remodeling, if at Agency cost.
    g. Negotiate the rate per square foot and the terms and conditions of the lease amendment
    h. Draft and process the lease.

     


  • Remodeling
    REMODELING OF CURRENTLY LEASED NON-STATE OWNED SPACE

    1. $1,000.00 or less (only Agency order required):

    ACTION RESPONSIBLE PARTY
    a. Obtain cost breakdown and floor plan from lessor Agency Agency
    b.
    Create an order in the Automated Purchasing System Agency (AGPS) using document type Remodeling Request Memo  Order (RMK) setting forth lessor as payee
    Agency


    2. $1,000.01 through $5,000.00 (Remodeling Request Memo to RECS is required):

    Estimated time frame for processing: 1-2 weeks or more depending upon the information provided on the request memo

    ACTION RESPONSIBLE PARTY
    a. Obtain cost breakdown and floor plan from lessor Agency Agency
    b. Create an order in the Contract Financial Management Agency System (CFMS) using document type RMK setting
    forth lessor as payee
    Agency
    c.
    Complete the Remodeling Request Memo Agency (See Attachment No. 3).  Sign the Request Memo  Under the APPROVED (Agency).  The person  entering the contract and signing should be different  than the person approving on behalf of the Agency.
    Agency
    d. Forward the original and two (2) copies of the request Agency memo to Real Estate and Construction  Services Agency
    e. Review request memo and approve RECS
    f.
    Forward two (2) copies of the signed request memo RECS to the Agency.
    RECS
    g. Forward one (1) copy to lessor Agency Agency


    3. $5,000.01 or more (Lease Amendment required):
    Estimated time frame for processing:  6 weeks or more depending upon the extent of the remodeling

    Agency provides:
     
    a. written request for remodeling including the reason for the request, (e.g., additional staff, new programs, change in space layout)
    b. Funding Information and Certificate of Compliance form (See Attachment No. 1) 

    Real Estate and Construction Services will:

    a. contact Agency representative to discuss and verify the request
    b. contact lessor to discuss Agency's request
    c. request proposal from lessor
    d. obtain floor plan layout showing remodeling to be accomplished, an itemized cost breakdown for the remodeling and the construction completion date
    e. obtain Agency's approval of the floor plan layout
    f. negotiate/verify remodeling, costs and the terms and conditions of the lease amendment
    g. draft and process lease amendment
  • Amendments
    Any other change in lease terms and conditions will require an amendment to the lease of which RECS should be notified in writing as soon as possible.  Examples of such a change may be a change in lease commencement or expiration date, or in the level or type of services provided, e.g., security, janitorial services.
  • Parking
    RECS will negotiate the number quantity of stalls needed by the Agency and the correlating cost per stall, if any.
  • Maintenance and/or Service Issues
    When an Agency is experiencing problems such as non-compliance with lease terms and conditions or lack of required repairs and maintenance by the lessor, the Agency should contact RECS as soon as possible.  Examples of such issues may be inadequate janitorial service, heating, cooling and air quality, plumbing, roof leaks or lack of maintenance and repairs.  Historical documentation by the Agency of these problems is extremely important in order to resolve such issues as well as in future lease renewal negotiations.

    RECS will contact the lessor to obtain resolution of an issue depending upon the particular issue and will keep the Agency informed of communications.