PM-6 - Lease of Immovable Property

The University may lease its land or building to a third party only pursuant to one of two statutes. The first, set forth in La. R.S. 17:3361, et seq., authorizes the University to lease its land or buildings to the following:

Leases convected under this provision may be granted for a term not to exceed ninety-nine years. Leases to fraternities, sororities, religious or quasi-religious organizations are limited to one acre in area, but the statute does not include an acreage limitation for leases to the other types of entities. Leases entered into under these provisions need not be publicly bid, unless the president, in the best interest of the University, requires that a bid process be utilized. Where bidding is not required, negotiation of the terms of the lease must be coordinated with the President's office.

Also, the University may lease its property to a third party through the Lease of Public Lands provisions contained in La. R.S. 41:1211, et seq. Such leases are publicly advertised and bid, and their initial terms cannot exceed ten (10) years. No such lease can cover an area larger than 640 acres, and no lessee may own more than one lease at one time. The preparation of the advertising specifications shall be coordinated through the Office of the President.

All leases of property belonging to the University require the approval of the LSU Board of Supervisors, but, ordinarily, such leases do not require the approval of the Division of Administration. All such leases shall be made in the name of the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College.

Leases of building by the University from a third party are considered to be procurement and are governed by the provisions of Title 39 of the Louisiana Revised Statutes, the Procurement Code. However, under the Procurement Code, only leases for the use of 2500 square feet or more of space in a privately owned building must be advertised and bid. Leases of immovable property other than buildings and leases of building space less than 2500 square feet are not required by law to be advertised and bid. The President, in his discretion, may require that such a lease be advertised and bid if he deems it to be in the best interest of the University. In any case where bidding is required, the preparation of the advertising specifications shall be coordinated through the Office of the President. Where bidding is not required, negotiation of the terms of the lease must be coordinated with the President's office.

La. R.S. 39:1642 provides that leases of building space wherein the University is the lessee shall require the approval of the Division of Administration. All leases by the University of property from third parties shall be made in the name of the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College. Leases by the University for building space of 2500 square feet or more or of immovable property other than buildings shall be approved by the Board of Supervisors. Leases by the University for building space of less than 2500 square feet require Board of Supervisors' approval only at the discretion of the President.