Authority to Approve

1. All Leases of Real Property to or from the University shall be submitted to and approved by University Office of General Counsel as to form and legal sufficiency, and approved by the President of the University, or their designee, except that such Leases may be approved without the President’s approval or designation as specifically provided in this policy.
2. Leases of real Property may be executed by the Senior Vice President, Finance, Administration, and Operations or the Executive Vice President, Research and Industry and Defense Programs, without approval or express designation by the President unless:
   1. the lease expressly requires or authorizes Capital Improvements on University owned property;
   2. the lease is an oil, gas or mineral lease covered by K.S.A. 76-165;
   3. the lease is for a term of more than 10 years, exclusive of renewal periods; or
   4. tenant’s annual lease costs, exclusive of operating expenses and tenant improvements, is for an amount in excess of $100,000.

Lease Rates

1. All Leases of Real Property under which the University serves as lessor shall be reviewed by the Senior Vice President for Finance, Administration, and Operations to determine whether the rental rate and other consideration to be received by the University reflect fair market value for the applicable lease arrangement. If the Lease provides for rental payments or other consideration that is less than fair market value, including a Lease that provides for non-monetary consideration in whole or in part, the Lease may be approved only if:
   1. the President determines that the proposed use of the Real Property provides a benefit to the University and is consistent with or advances the University’s mission, operations, or strategic interests; and
   2. the Senior Vice President for Finance, Administration, and Operations certifies that the rental rate and other consideration are fair and equitable under the circumstances and appropriate for the type and purpose of the Lease, taking into account any non-monetary consideration, benefits to the University, responsibilities assumed by the lessee, and other relevant terms of the Lease.

Notice of Intention to Lease

1. The University shall not enter into a Lease of Real Property under which the University serves as lessor unless a notice of intention to Lease said property has been published at least thirty days prior to execution of any Lease; provided, however, that this requirement shall not be imposed on Leases with University Controlled and Non-Controlled Affiliated Organizations, another state agency, or a political subdivision.

Oil, Gas and Mineral Leases

1. No lease of land for the production of oil, gas, or other minerals shall be for a period of more than ten (10) years, and for so long as oil, gas, or other minerals are produced in paying quantities thereon.
2. Before entering into any such oil, gas or other mineral lease upon such land, the University shall give not less than 30 days’ public notice of its intention to lease said lands by a publication in the Kansas register. Leases shall be made only upon competitive bids and shall be awarded to the highest responsible bidder.
3. The right to reject any and all bids for leases shall be reserved by the University. No lease for the production of oil, gas, or other minerals shall be entered by the University unless it retains to the University a royalty interest of no less than one-eighth (1/8) part of all oil, gas, or other minerals produced.
4. All leases of University-owned land for the production of oil, gas, or other minerals shall be approved by the University Office of General Counsel as to form and executed by the University President. Upon the execution of such a lease, the University shall provide information to the state geological survey, to the extent applicable under K.S.A. 76-323b.

Changes to this Policy

1. The University may amend, revise, update, or correct this policy without Kansas Board of Regents approval when the change is administrative, technical, clerical, conforming, or otherwise non-substantive in nature, does not materially alter the purpose, scope, authority, requirements, rights, obligations, or substantive effect of the policy, or is being made to comply with state or federal law.

1. Authorized Official: An Employee designated by the applicable divisional vice president and authorized to initiate, pursue, negotiate, coordinate, or otherwise facilitate a proposed Lease on behalf of the University, subject to all reviews, approvals, and signature authority required by this policy, other University policies, and applicable law. Designation as an Authorized Official does not in any way confer authority to approve, execute, or otherwise bind the University to a Lease.
2. Capital Improvements: Means large capital improvement projects on state property that are expected to equal or exceed $1,500,000 in estimated construction costs, regardless of funding source, including new construction, building additions, major renovation, remodeling or alterations, demolition of structures, annual maintenance, deferred maintenance, rehabilitation and repair, fixed equipment replacement, and utility or infrastructure projects.
3. Controlled Affiliated Organizations: University affiliated organizations that are identified in WSU Policy 1.06 / Controlled Affiliated Organizations.
4. Employee: An individual who provides services to the University on a regular basis in exchange for compensation and receives a W-2 for such services. This includes temporary and part-time Employees.
5. Lease or Leases: Any agreement, arrangement, or instrument under which the University acquires, grants, or otherwise provides a right to possess, occupy, access, or use real property, exclusively, for a specified or determinable period of time and with or without monetary consideration. The term includes leases, subleases, occupancy agreements, use agreements, ground leases, and other similar arrangements involving land, buildings, structures, improvements, facilities, or portions thereof. For purposes of this policy, Leases do not include non-exclusive license agreements, finance leases, capital leases, equipment leases, or other financing arrangements primarily involving personal property.
6. Non-Controlled Affiliated Organizations: Wichita State University Foundation and Alumni Engagement.
7. Real Property: Land and any buildings, structures, fixtures, facilities, and other improvements located on, attached to, or otherwise constituting part of such land, together with any appurtenant rights and interests therein. The term includes all or any portion of a parcel, building, structure, facility, or improvement, whether owned, leased, controlled, or proposed to be acquired, leased, or controlled by the University or a third party landlord.
8. University: Wichita State University.

Lease Requests

1. All requests to enter into a Lease, including amendments, renewals, cancelations, and terminations, shall be submitted to the Office of General Counsel and the Office of University Property at the following link: Property Lease Requests.
2. The Director of University Property will work with the appropriate Authorized Official to confirm the University’s business and operational requirements for the proposed Lease and to identify the information reasonably necessary to evaluate, draft, and negotiate the Lease. Such information may include, as applicable:
   1. the proposed use of the Real Property;
   2. location and space requirements;
   3. desired term, commencement date, renewal options, and termination rights;
   4. rental rate and other monetary or non-monetary consideration;
   5. responsibility for utilities, maintenance, repairs, improvements, and other operating expenses;
   6. required tenant improvements or alterations; access, parking, security, technology, signage, and other operational requirements;
   7. insurance and risk-management considerations; funding source and budget authority;
   8. accessibility and other legal or regulatory requirements; and
   9. any other material business terms, conditions, or University requirements applicable to the proposed Lease.

Lease Approval

1. Lease documents shall be approved by the Office of General Counsel as to form and legal sufficiency and submitted to the President, or their designee, for final approval and signature.

Lease Records

1. A fully executed copy of all Leases, and any Lease extensions, amendments, addendums, cancellations, or terminations shall be transmitted to, and maintained by, the Office of General Counsel.