600 R.I. Code R. 600-RICR-00-00-1.2

Current through December 3, 2024

Section 600-RICR-00-00-1.2 - ACQUISITION OF LAND, SPACE, OR OTHER REAL PROPERTY BY LEASE

No agency shall become a lessee of land, space or other real property unless said action is approved by the Committee.

1.2.1Assessment of Need and Survey of Available and Suitable State Property

A. The agency must prepare a needs statement setting forth in writing all factors relevant to its assessment, including but not limited to:

1. The amount of land, space and/or other real property necessary;

2. The level of finish desired for any interior space;

3. Location requirements;

4. Utility needs or requirements; and

5. Any special needs or requirements.

B. The agency shall determine whether land, space, or other real property under its control or under the control of other agencies is suitable to its needs and available.

1.2.2Notice to the Rhode Island Commerce Corporation

To satisfy the requirements of R.I. Gen. Laws § 37-6-6, the agency shall give written notice to the Commerce Corporation of its intent to lease land, space or other real property and shall afford the Commerce Corporation with not less than seven (7) business days from the date of the notice to reply. The Commerce Corporation may provide the agency with a recommendation or it may request additional time to conduct a study and/or make a recommendation. If the Commerce Corporation fails to reply to the agency within seven (7) business days or other due date as determined by the agency, it shall constitute a waiver of the Commerce Corporation's opportunity to provide a recommendation on the proposed action.

1.2.3Preliminary Review

A. The agency shall request to come before the Committee for a preliminary review of a proposed action to lease.

B. An agency's request for a preliminary review must include the following records which shall be submitted to the Committee:

1. A written request for preliminary review;

2. A copy of the agency's needs statement;

3. The results of the agency's consideration to utilize available and suitable land, space, or other real property owned by or under the control of the State;

4. Evidence that the Commerce Corporation was notified of the intent to lease land, space, or other real property and any response from the Commerce Corporation; and

5. Any other information and/or records requested by the Committee that are reasonably necessary for its review.

C. Following receipt of a written request made by the agency, the Committee may, in its sole discretion, waive the preliminary review of the proposed action.

D. Following the satisfactory submission of all appropriate records and information, the Committee shall conduct a preliminary review of the proposed action and may provide the agency with substantive and/or procedural guidance for the completion of the leasing process.

1.2.4Solicitation and Evaluation of Proposals

A. Unless the agency or the agency's particular transaction is exempt from complying with the State Purchasing Regulations pursuant to 220-RICR- 30-00-1.2(B), all solicitations to procure land, space, and/or other real property by lease shall be issued by the Division of Purchases on behalf of the agency in accordance with 220-RICR- 30-00-5 or issued in a manner otherwise approved in writing by the Chief Purchasing Officer.

B. If the agency or the agency's particular transaction is exempt from complying with the State Purchasing Regulations pursuant to 220-RICR- 30-00-1.2(B), all solicitations to procure land, space, and/or other real property by lease shall be issued in a manner that adheres to the general principles, policies, and practices set forth in R.I. Gen. Laws § 37-2-1 et seq.

C. The Committee is authorized to direct agencies to include certain terms or provisions within a solicitation.

D. As part of its evaluation of proposals, the agency must utilize the siting criteria set forth in R.I. Gen. Laws § 37-6-2(b).

E. To comply with R.I. Gen. Laws § 37-6-2(b)(4), for the lease of office space only, the agency shall request an evaluation by the Division of Planning. The agency shall give written notice to the Division of Planning of its preferred leasing proposal and shall afford the Division of Planning with not less than seven (7) business days from the date of the notice to reply. The Division of Planning may provide the agency with the results of its evaluation or it may request additional time to complete an evaluation. If the Division of Planning fails to reply within seven (7) business days or other due date as determined by the agency, it shall constitute a waiver of the Division of Planning's opportunity to evaluate the proposed action.

1.2.5Federal Funding Agency Notification

A. If the agency anticipates utilizing federal funds, either in full or in part, to make lease payments and the receipt or utilization of such federal funds is conditioned upon the agency satisfying certain federal requirements, the agency shall provide the appropriate federal official or federal grant officer with a copy of the solicitation and the proposal that agency recommends.

B. Upon request by the Committee, the agency shall provide the Committee with a summary of the requirements and assurance that the agency has fulfilled or is fulfilling such requirements.

1.2.6Long-term Leases

A. If the proposed action requires approval of a resolution by the General Assembly pursuant to R.I. Gen. Laws § 37-6-2(d), the agency shall request that the Committee submit a resolution to the General Assembly. As part of its request, the agency must submit the following information to the Committee:

1. Information relating to the purpose of the lease agreement;

2. The agency's current lease costs;

3. The expiration date of any present lease agreement;

4. The range of costs of a new lease agreement;

5. The proposed term of a new lease agreement; and

6. The location and owner of the desired property.

1.2.7Certification of Good Standing and Disqualification for Tax Delinquency

A. All prospective lessors and other individuals and entities who intend to enter into a lease agreement with the State shall provide the agency with a certificate (letter) of good standing issued by State Tax Administrator.

B. All prospective lessors and other individuals and entities who intend to enter into a lease agreement with the State shall provide the agency with certification that, in regard to the property that is the subject matter of the lease agreement, all property taxes owed to the city or town in which the property is located are current or will be current at the time of execution of the lease agreement.

C. Any prospective lessor or other individual or entity who is unable to certify that he or she or it is in good standing in regard to State taxes and, in regards to the property that is the subject of the lease agreement, certify that all local property taxes are current shall be disqualified from entering into a lease agreement with the State; provided, however, that the Committee may waive this requirement under the following circumstances and the Committee may require additional safeguard provisions be incorporated into the lease agreement:

1. The prospective lessor or other individual or entity who would otherwise be disqualified from entering into a lease agreement with the State submits a sworn statement setting forth a truthful listing of all taxes alleged to be owed on the property, together with proposed schedules of payment of said taxes. The payment schedule must be approved, in writing, by the appropriate authority of the city or town that is owed the taxes. Said payment schedule shall be incorporated into the lease agreement, and, in the event that the contracting party shall fail to comply with the schedule the contracting party shall notify the Director of Administration and the State may, in its sole discretion, rescind the lease agreement with no penalty to the State, or make payments to the city or town on behalf of the contracting party in accordance with the proposed schedule, said payments to be in lieu of any payments that would otherwise be due the contracting party, or both; or

2. The prospective lessor or other individual or entity who would otherwise be disqualified from entering into a lease agreement with the State submits a sworn statement that any taxes owed are the subject matter of a timely tax appeal, specifying the amount of tax, the nature of the dispute, and the status of the tax appeal. Said statement shall further acknowledge that in the event the contracting party does not prevail in the appeal, the contracting party agrees to timely pay to the State, city, or town all taxes adjudged to be due and owing.

1.2.8Request for Approval of Lease

A. The agency shall request to come before the Committee for approval to lease land, space, or other real property. An agency's request for approval shall not be submitted until the agency is satisfied that an acceptable lease agreement has been agreed to by the agency and the prospective lessor(s), and that all applicable conditions required by §§ 1.2.1 through 1.2.7 of this Part have been met.

B. An agency's request for approval must include the following records which shall be submitted to the Committee:

1. A written request for approval;

2. Any updates to the records submitted as part of the preliminary review;

3. A copy of the selected proposal;

4. The agency's evaluation of the proposal including an explanation of the rating system used and documentation as to scoring;

5. The proposed lease agreement of which the agency is seeking Committee approval;

6. For the lease of office space only, evidence that the Division of Planning was requested to participate in the evaluation and any response from the Division of Planning;

7. Any substantive written communications between the agency, or the Division of Purchases or other purchasing unit acting on behalf of the agency, and the prospective lessor(s);

8. Certification of no conflict of interest for every State employee who has acted or is in acting in the selection of the site;

9. Certificate of disclosure disclosing the information of the lessor(s);

10. Certificate of authority, if the lessor is a corporation, partnership, or other entity, showing that the person executing the lease agreement on behalf of the lessor is duly authorized to bind the entity;

11. Certificate (letter) of good standing for all lessors issued by the State Tax Administrator;

12. Certification of local property tax compliance that demonstrates that all property taxes linked to any property being leased are current;

13. Evidence of insurance, identifying authorized insurer, with coverage in amount and type as required by the Committee.

14. Evidence and/or assurances demonstrating agency compliance with federal funding conditions;

15. Certificate of compliance with accessibility for people with disabilities, in conformity with R.I. Gen. Laws § 37-8-15.1, or a waiver of said law granted by the Governor's Commission on Disabilities, and the Building Commissioner's certification of conformance with the remaining sections of the accessibility standard;

16. Copy of any applicable resolutions approved by the General Assembly; and

17. Any other information and/or records requested by the Committee that are reasonably necessary for its review.

C. Following the satisfactory submission of all appropriate records and information, the Committee shall review the proposed action. The Committee shall consider whether the agency has demonstrated that the proposed lease is necessary or advantageous to the establishment, acquisition, construction, development, betterment, or maintenance of any governmental facility, public work, or public improvement and whether approval of the proposed action is in the best interest of the State.

D. If the Committee votes to approve the proposed action, the Committee will provide the agency with certification attesting to its approval.

E. In addition to the Committee's approval of the proposed action, the lease agreement as executed by the agency and the lessor(s) must be approved as to substance by the Director of Administration and approved as to form by the Attorney General prior to becoming valid.

1.2.9Electronic Copy of Executed Leases

A. In order to comply with R.I. Gen. Laws § 37-6-30, the agency shall provide the Executive Secretary with an electronic copy of the executed lease within three (3) business days of execution. In addition, the agency shall provide the Executive Secretary with indexing information including the following:

1. The name and address of the lessee;

2. The name and address of the lessor;

3. The address of the property being leased;

4. The date the lease begins;

5. The date the lease was approved by the Committee; and

6. The date the lease expires.

600 R.I. Code R. 600-RICR-00-00-1.2