Step 1:

• Unit identifies space need that cannot be accommodated within the existing unit.

Step 2:

• Unit's designated representative conveys space need to the Space Committee chair. (Contact: Rich Linton, Vice President for Research and Graduate Studies; and Chair of the Space Committee)

Step 3:

• If appropriate, the chair refers the request to the University Planning Office, which will work with the unit:

  1. to confirm that no appropriate space exists within the department or unit to accommodate the space need

  2. to prepare a formal space request to send to the Space Committee.

Step 4:

• The Space Committee reviews the request to determine whether:

  1. the needed space can be found in existing space on campus and whether resources are available to pursue the project. If Space Committee funds are committed, it will remain involved with the process until renovations and the move are completed.

            OR

  2. an alternative solution involving new or off-campus space is necessary (see Section B).

B.    Validation and Determination of Alternative Solutions

The Space Committee works with University Planning Office staff to determine if the identified space need is suitable for new space and recommends a solution. A rough cost estimate is prepared by the University Planning Office to establish the project's magnitude.

C.    Alternative Solution Types

• Lease
• Purchase
• Build

1.    Lease

When a unit is considering leasing property and has not followed the procedure outlined above, the unit should notify the Space Committee chair of the unit's space needs and intention to lease.

Before contacting a realtor:

• Determine key leasing needs as well as those the unit is willing to forego (square footage, configuration, office versus industrial/ warehouse, special needs such as parking, sinks, ground-level access).

• Determine budget limits.

• Decide on preferred duration of lease. Duration will affect the landlord's willingness to make improvements to the property.

• Designate one person in the unit to coordinate the process and contact realtors. Realtors contact each other. Multiple coordinators will confuse the process.

• Obtain a list of commercial realtors from the Business Affairs Office Contracts Manager.

Ways to pay for leased space:

• Fully Serviced - the most common lease arrangement for office space. Includes all lease, maintenance, and operations costs.

• Gross or Modified Gross - tenant pays rent, utilities, and janitorial services.

• Triple Net - uncommon for office space; base rent plus everything else including utilities, janitorial services, taxes, insurance, and maintenance.

• Note: UO Facilities Services will not be responsible for the janitorial, operations and maintenance of the leased spaces or for the costs for these services.

Miscellaneous information:

• Negotiations usually begin with a non-binding Intent to Lease. When terms are agreed upon, a binding lease is written. Lease must be approved and signed by the Business Affairs Office Contracts Manager.

• Responsibility for design, renovation, or remodel costs should be set forth in the lease.

• Contact Telecommunications and Network Services for cost estimates before a final leasing decision is made. (Note: All costs related to this are to be paid by the leasing unit or are to be included in the overall lease agreement.)

• Leases usually designate pass-through increases of operating costs prorated by tenants.

• Rent usually increases annually by a fixed amount, percent, or in relation to the Cost Price Index (CPI).

• Insurance - The State of Oregon is self-insured under provisions of ORS 30.260 through 30.300. for all liabilities, including personal injury and property damage. The limits of liability for this coverage are $200,000 for bodily injury, $50,000 for property damage, and$500,000 per occurrence. Contact the Business Affairs Office Contracts Manager for exceptions.

• Allow time for necessary reviews: Department of Justice if lease life value exceeds $100,000, Oregon State Board of Higher Education if lease duration exceeds 15 years.

• Work through a broker. Do not ask current occupants of buildings to show you around.

• A "Lease Space Request Form" must be signed by the Office of Resource Management prior to finalizing the lease. http://baowww.uoregon.edu/Forms/lsr.pdf

2.   Purchase

• Obtain a list of commercial realtors from the Business Affairs Office Contracts Manager.
• Unit selects a preferred property.
•  Telecommunications, Network Services, and Facilities Services must review the potential property.
• Other reviews include a building inspection, independent appraisals, and a hazardous waste inspection.
•  If required, UO Design Services will provide design and rough estimate for space renovations.
• Both Resource Management and Business Affairs Office must approve financing plan.
• Legislative approvals are required if the acquisition and renovation cost exceeds $500,000 or if state bonds are used for purchase.(Contact: Cathy Soutar, Planning Associate and Space Analyst, University Planning Office)
• Potential reviews: Department of Justice, Department of Administrative Services

3.    Build

• The University Planning Office will work with the unit to prepare and submit a project description to the vice presidents as part of the regular biennial capital construction process. The University Planning Office guides this process. (Contact the University Planning Office for a copy of the its Procedure Guide.)
• The president and vice presidents decide whether the proposal will move forward.