Leases of Excess Property to Governmental and Private Entities

PURPOSE: This rule establishes a uniform procedure for leasing excess property to other governmental and private entities. (1) Definitions. As used in this rule, 1 CSR 35-2.060— (A) “FMDC” means the Office of Administration, Division of Facilities Management, Design and Construction; (B) “State-owned property” means real property, either improved or unimproved, that is owned by the state of Missouri and vested in the governor. This does not include property owned or possessed by the State Highways and Transportation Commission, Conservation Commission, Department of Natural Resources, the University of Missouri, or other institutions of higher education; (C) “Excess property” means state-owned property that is vacant or not fully utilized and not capable of being effectively utilized by any consolidated state agency; (D) “Holding agency” means a consolidated state agency that is or was an occupant of excess property; (E) “Non-state entity” means a private entity or governmental entity that is not part of the three (3) primary branches of state government; (F) “Consolidated state agency” means an organizational unit of the primary branches of state government without legal authority to engage in leasing real estate transactions; and (G) “Non-consolidated state agency” means an organizational unit of the primary branches of state government with its own legal authority to engage in leasing real estate transactions. (2) The commissioner of administration is the exclusive representative of the state of Missouri in all leasing transactions involving state-owned property. No consolidated state agency shall lease state-owned property to any non-consolidated state agency or to any non-state entity nor encumber stateowned property nor obligate the state of Missouri in any real estate leasing transaction in any form. Consolidated state agencies shall not authorize nor allow any other state agency (consolidated or non-consolidated) or non-state entity to possess or occupy state-owned property assigned to it without approval of the commissioner of administration. (3) FMDC shall act as the designee of the commissioner of administration in all matters involving the leasing of real estate, unless otherwise directed by the commissioner. (4) When FMDC becomes aware that state-owned property is vacant or under-utilized by a holding agency, FMDC will determine if such state-owned property may satisfy space needs of other consolidated state agencies. If FMDC determines that a state-owned property cannot be effectively utilized by any consolidated state agency, FMDC may make a determination that such property is excess property and offer such property for lease to non-consolidated state agencies or to non-state entities. (5) Leases of Property to Non-Consolidated State Agencies. (A) FMDC may lease state-owned property to non-consolidated state agencies on terms FMDC deems appropriate. (6) Leases of Property to Non-State Entities. (A) In leasing excess property to non-state entities, FMDC shall give preference to organizations that provide services related to the programs of a state agency or to the functions and objectives of state government. (B) A non-state entity shall pay rent for the leasing of excess property from the state of Missouri at fair market value unless the commissioner of administration determines that reducing or waiving the rental payments is in the best interests of the state of Missouri and is for a public purpose. (C) Leases of excess property shall be awarded by FMDC to the bidder or offeror who submits the highest and best bid or proposal in response to a publicly advertised invitation for bids or request for proposals; however, the commissioner of administration may waive the requirement for competitive bidding or proposals if the commissioner determines that it is in the best interest of the state to directly negotiate a lease with a non-state entity. (D) The terms of any lease agreement (other than rent) with any non-state entity shall be determined by FMDC in its discretion. (7) All agreements for the lease of state-owned real property to a non-consolidated state agency or to a non-state entity shall be signed by the commissioner of administration and the director of FMDC. AUTHORITY: sections 34.030 and 37.005, RSMo Supp. 2022.* Original rule filed April 15, 1998, effective Nov. 30, 1998. Amended: Filed Feb. 17, 2023, effective Sept. 30, 2023. *Original authority: 34.030, RSMo 1939, amended 1945, 2017, and 37.005, RSMo 1973, amended 1983, 1986, 1987, 1991, 1996, 1997, 2006, 2008, 2010, 2011, 2012, 2014, 2017.