Use and Lease by Non-University Groups

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Last Updated: February 1998

Responsible University Officer:
  • Treasurer

Procedure Contact:
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PROCEDURE

Insurance

Non-University groups are generally required to maintain insurance with a company acceptable to the University as follows: Provide one million dollars of comprehensive general liability coverage to include bodily injury, property damage, and fire damage legal liability which identifies the Regents of the University of Minnesota as additional insured.

Leases

Leases are required when University property is used by non-University groups regardless of the duration of such use. All conditions relating to that use are specified in the lease. A lease does not indicate official University sanction or agreement with the policies, goals, or opinions of the non-University group.

Nonpayment of rent or other amounts due pursuant to the terms of the lease shall be a default and cause for lease termination. Interest and a 5% late fee will be added to any rental payment more than five days delinquent. Rental payments received will be applied first to the late charge, then the interest, then to the base rent due.

If a lease payment is thirty days delinquent, the department managing the lease must send notice to the tenant demanding immediate payment of the past-due sum, plus the associated late fees and interest. This notice must also advise the tenant the lease is now in default and subject to termination. If the amount outstanding is not paid within the subsequent thirty days (sixty days past due), the department must send the tenant a second notice indicating the amount outstanding will be referred to a collection agency or to conciliation court and the lease will be terminated without further notice. If the amount outstanding is not paid within the subsequent thirty days (ninety days past due), the department will reclaim possession of the premises and refer the amount outstanding to a qualified collection agency or to conciliation court.

All Other Uses

If after six months, the amount remains unpaid, the department may request the lease receivable to be cancelled. Refer to the Receipts policy. On the Twin Cities campus, Sports Facilities, Concerts & Lectures, Recreational Sports, the Weisman Art Museum or other administrative units may be the first point of contact for a non-University group wishing to use University property (see the Appendices section), and may serve as the interface to Real Estate, to Facilities Management and other involved University departments. University Relations will be the principal point of contact for media requests to use University facilities.

Non-University groups, whether using University property by a lease or a cosponsored arrangement, shall provide evidence of liability coverage which names Regents of the University of Minnesota as additional insured. Additional insurance coverages may be required depending on the type of event. All outdoor student group activities on the TC Campus are scheduled by the Office of Student Activities, except athletic sports facilities and media events. Media events are scheduled by University Relations.

  1. When a non-University group contacts a department to request use of University property, refer them along with any prepared lease agreement to the Real Estate Office. The non-University group generally provides the Real Estate Office with a written request to lease/use University property. Information required:

    • Name and address of organization.

    • Type of organization (corporation or partnership, etc.)

    • Name and phone number of contact person.

    • Intended use of property.

    • Number of square feet needed (if building space).

    • Dates and time of use.

    • Any other pertinent information.

    Whenever possible, the University uses standard use and lease agreement forms. These forms are available in the Real Estate Office.

  2. The Real Estate Office negotiates the terms of the permit/use agreement (including insurance requirements in consultation with the University Office of Risk Management and Insurance) with the non-University group. The Provost (or designee) will generally recommend the lease along with the Dean, Director, or Department Head for the unit currently assigned the space requested. If other approvals or scheduling are necessary, the Real Estate Office will coordinate them.

    The user will be required to provide the University a certificate of insurance by the non-University groups' insurance company, prior to lease commencement and name Regents of the University of Minnesota as additional insured. A 30 day notice or modification by the insurance carrier is to be shown on the certificate.

  3. Charges for lease space are set by the Real Estate Office in consultation with the appropriate University departments, using marketing comparisons. Nominally, basic costs to the University will be covered for leases to other state units. Exceptions are approved by the Senior Vice President for Finance and Operations or designee.

  4. If University services are needed for parking, audiovisual, etc., the Real Estate Office refers the non-University group to the appropriate contacts to arrange for the services.

  5. The Real Estate Office will collect security deposits from the non-University group when applicable. The Real Estate Office also manages the lease (i.e. collect the lease rent from the non-University group and perform any collection activities). Security deposits equal to the first month's rent must be paid prior to the execution of the lease and occupancy of the premises. Security deposits will not earn interest, unless required by State law.

Contracts

Contracts for the use of University property (land, building space, etc.) for events and/or activities not cosponsored by a University department must be approved by the Real Estate Office, which solicits all appropriate approvals.

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