Property (Real)

Effective Date: 12/15/00

Procedure Statement 1: Leasing of Off-Campus Space


Procedure Reference

Review PRO Policy 2: Rental of space to or from the University


Procedure Steps

  1. When needing additional space, first determine, through your regular administrative channels (department head, dean, etc.), whether University-owned space is available before seeking off-campus space.

  2. If University-owned space is not available, complete a "Lease Request Form" obtained from the Associate Vice Chancellor for Administration and Finance - Business Services (AVCAF - Business Services) office, and submit the completed form to the AVCAF - Business Services's office.

  3. If you anticipate the use of Overhead Funds to cover the rent, submit a request to provide Overhead funds for this purpose through the appropriate channels (i.e., Dean, Vice Chancellor for Academic Affairs, Vice Chancellor for Health Sciences, and ultimately to the Vice Chancellor for Administration and Finance). If approved, the Vice Chancellor for Administration and Finance notifies the Comptroller's Office for approval of Overhead Funds. Upon State Budget Office approval, the University Comptroller's Office transfers funds into the rental account for that purpose.

  4. The AVCAF - Business Services, in cooperation with the department requesting space, locates possible suitable space and determines rental cost.

  5. When satisfactory space is located, determine which of the categories listed below applies and follow the instructions of the appropriate category to complete the leasing process.

    1. If annual rent is $5,000 or less and the duration of the lease is three years or less, the AVCAF - Business Services prepares the lease agreement and secures the signatures of the Lessor and the Vice Chancellor for Administration and Finance.

    2. If annual rent is more than $5,000 but not more than $25,000 and the duration of the lease is three years or less, the AVCAF prepares and processes Department of Administration Property forms for approvals of the Vice Chancellor for Administration and Finance, the Chancellor, and the Director of the Department of Administration. A member of the Attorney General's staff prepares the lease agreement, and the Director of the Property Department assumes responsibility for execution and implementation of the agreement.

    3. If annual rent is more than $25,000 and/or the duration of the lease is more than three years, the Department Space Liaison, the Associate Vice Chancellor for Administration and Finance - Business Services (AVCAF - Business Services), and a representative of the Facilities Planner staff prepare specifications detailing space requirements. These specifications are submitted to the State Property Office for approval and authorization to advertise. The need for space is advertised in the local newspaper for five consecutive days, giving a specific cut-off date for the receipt of bids, which must be at least seven days after the last day the ad appears in the newspaper. The State Property Office, the Associate Vice Chancellor for Administration and Finance - Business Services, and the requesting department inspect the spaces offered by the bidders, and select the space at the lowest rental rate which meets the required specifications. The AVCAF - Business Services processes the approval through the offices of the Vice Chancellor for Administration and Finance, the Chancellor, the Department of Administration, the Governor and the Council of State.

    4. If the annual rent exceeds $50,000, the procedures followed in c. above apply. In addition, the Board of Governors of the University of North Carolina also must approve the request prior to transmittal to the State Property Office for presentation to the Council of State.