600 R.I. Code R. 600-RICR-00-00-1.4

Current through December 3, 2024

Section 600-RICR-00-00-1.4 - CONVEYANCE OF STATE-OWNED LAND, SPACE, OR OTHER REAL PROPERTY BY LEASE

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

1.4.1Notice to the 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 make available by 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.

1.4.2Open Space and Natural Resources Value Evaluation

For proposed leases for a period greater than one year, the agency, except when exempt by law, shall conduct an open space and natural resources values evaluation consistent with "Rules and Regulations Governing the Preservation and Protection of State Open Space" or other such rules as promulgated by the Department of Environmental Management in furtherance of the Preservation of State Open Space Act as set forth in R.I. Gen. Laws § 42-17.9-1 et seq.

1.4.3Preliminary Review

A. The agency shall request to come before the Committee for a preliminary review of a proposed action to make available by lease land, space, or other real property.

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

3. For proposed leases for a period greater than one year, a copy of the open space and natural resources values evaluation as set forth in § 1.4.2 of this Part;

4. An appraisal or other determination of value if available;

5. Any evidence of previous encroachment on the subject property for private use without prior authorization from the State.

6. Indication of the process that the agency intends to utilize to solicit a lessee, and if the agency is seeking a non-competitive process, it must include a written explanation as to why it determined that it would be in the best interest and convenience of the public and the State to utilize a non-competitive process; and

7. 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.

1.4.4Notification to Prior Owner and Municipality for Property Acquired by Condemnation

A. If the land, space, or other real property proposed to be leased was taken by condemnation, the agency is responsible for satisfying the requirements of R.I. Gen. Laws § 37-7-3, including notice provisions. To satisfy the notice provisions, the following actions must be taken:

1. The agency shall give written notice by registered or certified mail to the person or persons, if living, in whom the title to the property was vested at the time of the taking of its intent to lease the property and offer the person or persons the same terms and conditions of the intended lease, subject to any conditions, stipulations, or restrictions as may be imposed by the Committee. The person or persons shall have thirty (30) days from the date of mailing to accept the offer or his or her or their right to lease the property shall be deemed waived.

2. The agency shall give written notice by registered or certified mail to the city or town clerk and to the chief executive officer of the municipality in which the property is located of its intent to lease the property and offer the municipality the same terms and conditions of the intended lease, subject to any conditions, stipulations, or restrictions as may be imposed by the Committee and subject to the first right held by the person or persons, if living, in whom the title to the property was vested at the time of the taking. The municipality shall have thirty (30) days from the date of mailing to accept the offer or its right to lease the property shall be deemed waived.

B. Certain properties may be restricted to or dedicated for a specific use or purpose by statute or as a condition of the funding used to acquire the property. The Committee recognizes that in these instances, the property is not available for general lease and therefore such properties are exempted from the requirements set forth by §1.4.4(A) of this Part.

1.4.5Solicitation of Lessee

A. In order to provide a competitive and fair process, agencies seeking to lease property shall utilize an invitation to bid or request for proposals or other competitive process to solicit interest from potential lessees. Request for proposals shall be used in all cases where the highest offer is not the sole or primary consideration for determining a selection. All solicitations must conform to the State Purchasing Regulations and other terms as may be required by the Committee.

B. Notwithstanding § 1.4.5(A) of this Part, the agency may seek a non-competitive lease if the agency determines that it would be in the best interest and convenience of the public and the State to do so. The agency shall consider the following when determining the appropriateness of a non-competitive lease:

1. Whether due to size, location, configuration, or other physical or legal restrictions, the subject property could not be of use to more than one potential contracting party;

2. Whether the cost of preparing a request for proposals is excessive in relation to the proposed lease; and

3. Whether, in the absence of a request for proposals, the public's confidence in the integrity of the leasing process is likely to be eroded.

1.4.6Additional Assessment for Encroachment

A. When there is reasonable evidence of previous encroachment on State-owned property for private use, without prior authorization from the State, a one-time ten percent (10%) charge of the appraised annual fair market rent of the property may be assessed to the tenant or prospective lessee and shall be payable as part of the first month's rent or as otherwise agreed upon by the parties, subject to §§1.4.6(B) and (C) of this Part.

B. The Committee shall have the discretion to reduce this amount, in whole or in part, in recognition of one or more of the following mitigating circumstances:

1. That the encroachment does not involve physical improvements such as construction of structures, signage, or paved parking;

2. That the encroachment has been in place for a limited period of time, and/or it is considered likely that the property owner now seeking the lease was unaware of the encroachment onto State property;

3. That an encroachment onto a land abutting a State highway involves the maintenance of a landscaping amenity that would be considered an area improvement and one that relieves Department of Transportation staff of maintenance responsibilities; or

4. For other good cause.

C. The Committee shall have the discretion to increase this amount, in whole or in part, in situations where the encroachment on State-owned property is particularly egregious and/or has continued after the abutting owner had been instructed to discontinue use of such State-owned property for private purposes.

D. In no event shall a payment of or willingness or refusal to pay a one-time charge assessed by the Committee pursuant to this section be construed as to deprive the State or any aggrieved party of any legal remedy that may exist in law or in equity. Furthermore, in no event shall any payment of or willingness to pay a one-time charge assessed by the Committee pursuant to this section be construed as an admission of guilt.

1.4.7Request for Approval to Grant a Lease

A. The agency shall request to come before the Committee for approval to grant a lease of land, space, or other real property. An agency's request for approval shall not be submitted to the Committee until the agency is satisfied that an acceptable lease agreement has been agreed to by the agency and the prospective lessee(s), and that all applicable conditions required by §§ 1.4.1 through 1.4.5 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. For proposed leasing of property that was acquired by condemnation, the results of the agency's notification to the prior owner(s) and the municipality in which the property is located;

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

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

5. Certificate of disclosure disclosing the information of the lessee(s);

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

7. 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 property to be leased is currently surplus to State needs; whether approval of the action is advantageous to the public and in the best interest of the State; and whether the proposed action is consistent with the provisions of R.I. Gen. Laws § 42-17.9-1 et seq.

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 lessee(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.

1.4.8Electronic 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-00-00-1.4