Off-Campus Leasing

Off-Campus Space Needs

Campus departments, colleges and business units may have the need to lease off-campus space for a variety of reasons.  Real Estate Services is tasked with facilitating this process and will assist campus units in navigating this complex process.  The leasing process can be very cumbersome and the time needed is generally based upon the annual cost of the lease.  The following guidelines are provided as a reference to indicate an approximate time frame involved in leasing real property:

 

Annual Lease Cost Approval Authority Level Estimated Time Needed
Less than $100,000 EVP for Finance and Admin. 3 – 6 Months
Over $100,000 CPBOC (Frankfort) 6 – 12 Months
Over $200,000 UK Board of Trustees and Line item authority in state executive branch budget bill 1 – 3 Years

 

Information Technology Services (ITS) should be contacted as soon as a location for new space has been identified to obtain an estimate for network services.  These services can add to both the time needed and the cost of moving into a new facility.  Lead times and costs vary based on a variety of factors (e.g., external telecom vendors, circuit/fiber availability, wireless density, security requirements).  ITS strives for accuracy in calculating equipment, material, and labor costs in estimates.   Under UK Cost Accounting Standards (CAS), ITS is required to charge actual costs, which may be more or less than stated on the ITS estimate. To submit a request to ITS, visit this link: http://www.uky.edu/its/phone-internet-services/service-requests.

The University is required to follow very strict state statutes and policies when leasing real property.  For this reason it is critical that any unit desiring additional space follow the below process to ensure that the University does not inadvertently deviate from state law.

 

Steps in the process are as follows:

  1. Complete Space Request Form.
  2. Evaluate existing space resources through the appropriate space management office to ensure University resources are not already available.
    • Provost Office of Resource Management – 257-1063
    • UK HealthCare Facilities Planning – 323-8589
    • UK Facilities Management – 257-5929
  3. Obtain written approval on the space request form from the Provost or appropriate EVP or his/her designee.
  4. Forward the completed space request form to Real Estate Services.
  5. Designated unit representative works with Real Estate Services' staff to advertise, inspect proposed real property, and negotiate lease.
  6. As soon as a new location has been identified, the designated unit representative must submit a request to ITS for networking communications needs: http://www.uky.edu/its/phone-internet-services/service-requests.
  7. Real Estate Services processes the completed lease through the UK Legal Office for review.
  8. Required for leases over $100,000
    • Real Estate Services completes necessary documents to obtain authorization from the Kentucky Legislative Research Commission Capital Projects and Bond Oversight Committee (CPBOC) in Frankfort.
  9. Required for leases over $200,000
    • Real Estate Services will coordinate with the University Budget Office to ensure specific line item authority exists within the Kentucky executive branch budget bill.
    • Real Estate Services completes necessary documents for UK Board of Trustee approval.
  10. Execution of the lease by the Executive Vice President for Finance and Administration

 

Public Registry:
Existing lease space modification information is available by appointment at the University of Kentucky Real Estate Services’ office. From time to time, the University may need to modify an existing lease which will result in the payment of a square foot rate for the leased space which is greater than the square foot rate contained in the original lease. KRS 56.813(4) requires that this information be made available for public inspection and comment.

 

Kentucky Revised Statutes (KRS): Applicable Links:
KRS 56.803 – State leasing requirements
KRS 56.805 – Emergency leasing provisions
KRS 56.806 – Terms of leases
KRS 56.813 – Request for additional space
KRS 56.823 – Requirement to report leases to Capital Projects and Bond Oversight Committee
KRS 56.832 – Property leasing in foreign jurisdictions
KRS 48.111 – Requirement to have line item budget authority for leases in excess of $200,000 annually