12-2-114 - State leases Procedure. - Tennessee Statutes

12-2-114. State leases Procedure.

(a)  When it becomes necessary for any agency of the state to lease space, the commissioner of finance and administration, through the division of real property management, shall prepare a general statement of such agency's space needs, and shall advertise such needs in a newspaper of general circulation in the city and/or county where the space is needed. The advertisement shall be run on at least one (1) occasion at least two (2) weeks before proposals are opened. The cost of such advertisement shall be borne by the state department or agency requesting the space.

(b)  Advertising shall be required in all transactions involving new, succeeding, superseding leases or lease renewals except:

     (1)  Where the annual rental will be less than an amount to be specified by policy of the state building commission, the amount not to exceed twenty-five thousand dollars ($25,000), or where the term of the lease will be one (1) year or less;

     (2)  Where property is owned by a governmental agency and leased to another governmental agency;

     (3)  (A)  Where a supplemental agreement is made to an existing lease for additional space at a negotiated price without modifying the original lease term;

          (B)  If negotiations for a supplemental lease agreement to provide for additional space indicate the lessor will require a modification of the original lease term to cover both the existing space and the additional increment, the transaction is to be treated as a new lease and will require newspaper advertising; or

     (4)  Where the space required by the state department or agency, including institutions of higher education, has special and unique requirements as determined and approved by the state building commission.

(c)  The proposals shall contain the names of any persons who are contemplated to become financially interested in the lease and shall be displayed in such manner as to make them readily available and accessible for public examination.

(d)  After receipt of the proposals, the director of the division of real property management may then negotiate with the prospective lessors for leasing of the needed space, taking into account not only the rent offered but the type of space, the location, its suitability for the purpose, services offered by the lessor, moving costs, and all other relevant factors; provided, that if the lowest rental proposal is not accepted by the director, a statement of justification must be submitted to the commissioner of finance and administration and the state building commission and approval shall be obtained in writing from the commissioner prior to entering into the lease.

[Acts 1976, ch. 842, § 1; T.C.A., § 12-252; Acts 1980, ch. 740, § 1; 1981, ch. 196, § 1; 1981, ch. 332, § 29; 1984, ch. 754, § 1; 1989, ch. 454, §§ 4, 5; 1990, ch. 734, §§ 3, 4; 1997, ch. 402, §§ 6, 7.]