City as Tenant Procedures

This procedure explains the leasing process when the City is the tenant.

Governing policy: Lease Policy

Department: Finance & Property Services

Last revised: May 2013

Procedure

1. Facilities, Space and Asset Management Committee (FSAM) Review

For all operational leasing transactions that require Council/Mayor approval, Public Works Property Services must send a recommendation with an overview of the lease to FSAM for evaluation within the space needs of the City. 

2. Conference Rooms and Special Event Facilities

Rentals for short-term events such as conference rooms or special event facilities should be handled through the standard agreement process.  However, existing City space such as the Convention Center and the Currie Conference Room should be considered first.  Persons who are in positions identified on the positions Authorized to Sign Contracts list may sign standard agreement forms as the department head for use of City facilities or non-City facilities for conference or training purposes as long as the period of use is two months per year or less and the cost is less than $50,000.

3. Right of Entry

Occasionally, for City benefit, the City may require short-term access to non-City real property for appraisal, survey, testing, inspection or similar purposes.  A standardized right of entry form will be used in these situations.  Each right of entry is subject to approval by the CPED Director with respect to development property or activities or the Finance Officer with respect to other property or activities, or their designees, provided the right of entry period is less than thirty (30) days.  No compensation shall be paid for these rights of entry.  See Right of Entry City as Grantee.

4. Short-Term and Long-Term Leases

For leasing as a tenant, the following process must be followed:

  1. Departments with a need to lease land from outside parties shall consult with City Property Services as a first step.  The department should provide City Property Services with:
    1. Estimated square footage needed
    2. Length of time space will be needed
    3. Source of funding and available dollars (if known)
    4. Special location needs
    5. Special security needs
  2. City Property Services may be able to direct the department to an available existing City-controlled space.  If there is no suitable space available, the department shall rely on City Property Services to guide it through the leasing process, including the identification of alternative leasing opportunities.
  3. If Council/Mayor approval is required, then City Property Services staff shall submit all new City leases of real estate from outside parties to the Facilities, Space & Asset Management Committee (FSAM) along with a recommendation. 
  4. If FSAM approves the staff recommendation, as applicable, then, either (i) City Property Services will request Finance Officer’s approval, if Lease term is one year or less and the total rent payments are $50,000 or less for the Lease term. (Short-Term Lease) or (ii) City Property Services will coordinate the City Council/Mayor approval process.
  5. Property Services will attempt to use the short term lease template if the Lease is a Short-Term Lease.  Otherwise, Property Services shall draft the lease agreement in conjunction with the department, the City Attorney's Office, the Risk Management Office, and the landlord.  The department will consult with their assigned budget staff to ensure funds are available for the entire lease term. Each such lease must state the financial or other consideration involved with the lease.
  6. City Property Services shall coordinate the signature and execution process for the lease agreement.
  7. Once signed, the lease must be entered into the City’s real estate database and provided to the Contract Management Office.
  8. The department shall be responsible for paying the invoices and shall assign a department coordinator to handle daily interactions with the building management.
  9. All lease amendments must be coordinated through City Property Services.

Contact us

Finance & Property Services

Phone

612-673-3000

Address

Physical Address
Public Service Center
250 S. Fourth St., Room 401
Minneapolis, MN 55415
 
Mailing Address
City Hall
350 S. Fifth St., Room 325M
Minneapolis, MN 55415