Policy 803

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    LEASING SCHOOL SPACE

     

     

    I.             PURPOSE

     

    This policy provides the general conditions for the leasing of excess space by the school district.

     

    II.            GENERAL STATEMENT OF POLICY
     

    The Richfield Public Schools exists for the purpose of providing educational services to its residents.  Therefore, it is the policy of the school district that only the space not used for educational programs may be made available for lease.

     

    The preference for the leasing of space shall be given non-profit organizations and those organizations whose activities help to facilitate the mission of the school district.  Space may be leased to commercial enterprises where applicable laws and regulations permit.

     

    The lease rate at a minimum shall cover the tenant’s portion of the annual operational cost of the facility and the use of the proceeds shall be in compliance with all Minnesota statutes.

     

    The superintendent or his/her designee is authorized to negotiate lease agreements and sign contracts approved by the Board. 

     

    ADOPTED BY THE BOARD OF EDUCATION:  September 2, 1980

     

    AMENDED BY THE BOARD OF EDUCATION:  October 6, 1980, June 18, 1990, September 5, 2000, March 21, 2005

     

    REVIEWED BY THE BOARD OF EDUCATION:  September 19, 2016

     

803.1 Administrative Guidelines

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    LEASING SCHOOL SPACE

     

    I.       PURPOSE

     

             The purpose of this administrative guideline is to assist in the implementation of Board Policy 803, Leasing School Space.

     

     

    II.     RULES AND REGULATIONS

     

    A.     Declaration of Excess Space

     

    1.        Space not used for educational programs may be made available for lease.

     

    2.     The Business Manager, or designee, shall coordinate efforts to determine if excess space is available for lease.

     

    B.     Lease Procedures

     

    1.      Requests for lease of space shall be forwarded to the Business Manager, or designee.

     

    2.    The prospective tenant shall provide in writing a complete description of their organization and a detailed explanation of how the space will be used including times of day, personnel, parking requirements, traffic volume, and any special needs.

     

    3.   The preference shall be given non-profit organizations and those organizations whose activities help to facilitate the mission of the school district.

     

    4.      The prospective tenant shall be given a standard lease form for signature by the responsible authority.

     

    5.      The request will be reviewed by the Business Manager, or designee, with a recommendation to the School Board.

     

    6.      The approved recommendations shall be submitted to the School Board with a lease signed by the prospective tenant.

     

    7.      The Business Manager, or designee, shall have the authority to approve the annual renewal of a Standard Lease Agreement.

     

     

     

     

    C.     Initial Lease Request Review and Renewal Agreement Considerations

     

    1.     The compatibility of the organization’s use of the space with the Board policy governing lease of space.

     

    2.     The compatibility of the organization with other building occupants and neighbors.

     

    3.     The financial stability including credit history and timely rental payments of the organization and its ability to fulfill the terms of the lease.

     

    4.     The organization’s need to make building modifications and their ability to reverse those changes should the space be needed for another use.

     

    5.     Special needs the organization may have which exceed the usual and customary services provided by the District as part of the lease.

     

    6.     Applicants ability to provide certificates of combined single limit insurance coverage with a minimum limit of $500,000.

     

    7.      An adverse determination or review of the above considerations shall be cause to deny the leasing of space or renewal of a previously approved standard lease agreement to an organization.

     

    D.     Compensation

     

    1.      The Board of Education shall review and establish the lease rate based on an annual amount per square foot.

     

    2.      Adjustments in the established rate to reflect special conditions shall be approved by the Board of Education.

     

    3.         Rent shall be paid monthly or as otherwise provided in the lease.

     

    4.         The School District may require a $1000 damage deposit at the signing of the Standard Lease Agreement.  The deposit may be used for but not limited to the restoration of the leased space to its original condition at the termination of the lease.

     

            E.   Use of Proceeds

     

    In accordance with Minnesota Statute the use of lease revenue is site specific and should first be used to support the ongoing maintenance including capital repairs of the facility generating the revenue.  The revenues in excess of these expenditures shall be used to retire the outstanding debt of that facility after which the revenues may be used for the betterment of other school facilities.  

     

    I.       STANDARD LEASE AGREEMENT
     

    A.     The standard lease agreement form is available in the Business Office.  Specific changes to the standard agreement as agreed to by both parties shall be contingent upon final approval by the School Board.

     

    B.           The lease termination date should be June 30 to facilitate District planning for school year space need.

     

    Dated:            September 5, 2000

    Reviewed:     October 17, 2016

    Revised:        March 21, 2005, October 17, 2016