Mich. Admin. Code R. 18.502 - Leasing of facility space; legal lessee; attorney general and board approval of lease required; competitive award process required specifications; objectives; justification of rent and rate increases required; options

Current through Vol. 22-05, April 1, 2022

Rule 2.

(1) Pursuant to sections 4 and 13 of Act No. 51 of the Public Acts of the First Extra Session of 1948, as amended, being SS18.4 and 18.13 of the Michigan Compiled Laws, facility space for the various state departments shall be leased in a manner which provides an equal opportunity for all individuals to participate in the procurement process insofar as there is no abrogation of the director's authority to award contracts which he or she deems to be in the best interest of the state.
(2) The state of Michigan is the legal lessee of all property occupied and rented by a state department or agency. An individual state department or agency shall not lease property in the name of the department or agency unless specifically authorized by statute.
(3) All lease contracts are subject to the approval of the attorney general as to legal form.
(4) All lease contracts are subject to the approval of the state administrative board prior to execution by the director.
(5) Unless otherwise waived by the director, the awarding of lease contracts shall be determined through a competitive bid proposal or sealed bid process. If waived, lease terms shall be subject to a complete market analysis or financial analysis, or both, to substantiate the rental amount.
(6) Specifications shall be written to encourage overall economy and efficiency through maximum competition in providing facilities, building space, equipment, services, and supplies to satisfy the state's needs.Specifications shall not be unduly restrictive.
(7) Sites or locations for leased space shall be evaluated consistent with the following criteria:
(a) Consolidating a state department, agency, or departments into 1 building if practical.
(b) Providing maximum occupancy of state-owned and leased facilities.
(c) Centralizing a department, agency, or departments into downtown areas if practical.
(d) Complying with policies and directives from the governor or director which are in the best interest of the state.
(e) Entering into lease contracts with local governments if possible to take advantage of their tax-exempt status and to encourage joint location of government services.
(f) Protecting the health, safety, and welfare of the public and employees.
(8) Lease contracts renewed through negotiation shall justify any increases in rental rates through comparative data. If a renewal includes renovations or additional construction, costs shall be substantiated and rental rates justified through market analysis or financial analysis, or both.
(9) The director may option a specific site or sites which meet a department's or agency's program needs, subject to the following criteria:
(a) The fair market value of the site or sites shall be determined by appraisal.
(b) Any deposit money required by an option shall be paid by the user department or agency.
(c) Purchase options for the acquisition of property for state use which specify a deposit in an amount greater than 1 dollar shall contain a clause that the owner shall return the deposit money to the user department or agency if the option is not exercised. The requirement for this clause in a purchase option may be waived by the director for good cause when deemed in the best interest of the state.
(d) The state has the right to assign an option to the successful bidder.


Mich. Admin. Code R. 18.502
1983 AACS

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