Current through Register Vol. 48, No. 38, September 20, 2024
a) Length
of Leases
1) Maximum Term. Except when a
longer term is authorized by law, leases, inclusive of renewals, shall be for a
term not to exceed 10 years and shall include a termination option in favor of
the State after 5 years.
2) Renewal
Option. Leases may include a renewal option. An option to renew may be
exercised only when the CPO-GS determines in writing that
renewal is in the best interest of the State. The CPO-GS shall
publish a notice of the intent to exercise the option in the Bulletin at least
30 days prior to the exercise of the option. [30 ILCS
500/40-25(b)]
3)
All leases shall include a
provision that they are subject to termination and
cancellation in any year the General Assembly fails to make an appropriation to
make payments under the terms of the lease. [30 ILCS
500/40-25(c)]
4)
Month-to-Month and Holdover. No
lease may continue on a month-to-month or other holdover basis for a total of
more than 6 months. [30 ILCS
500/40-25(d)]
b) Lessor's Failure to Make Improvements
Each lease that includes a provision for the lessor
to make improvements must provide for a penalty upon the lessor's failure to
make improvements agreed upon in the lease. The penalty shall consist of a
reduction on lease payments equal to the corresponding percentage of the
improvement value to the lease value. The penalty shall continue until the
lessor complies with the lease and the improvements are accepted by the leasing
State agency. [30 ILCS
500/40-55] The penalty amount shall be retained by
the State agency.
c) All
leases shall be accompanied by a full written disclosure of the identity of
every owner or beneficiary having an interest in the premises being leased.
1) The disclosure shall be subscribed and
sworn or otherwise affirmed by an owner, authorized trustee, corporate
official, partner, managing agent or other authorized person.
2) The disclosure shall set forth all
ownership interests. By way of example, the disclosure should identify the
names of the beneficiaries of a land trust in addition to the trustee, the
names of all partners whether general or limited in nature, the names of all
members or managers of a limited liability company and the names of all
shareholders in a corporation who are entitled to receive more than 5% of the
total distributable income of the entity. If the entity is publicly traded and
no readily known individual owns more than a 5% interest, then the requirements
of this subsection (c) may be met by an officer or managing agent of the entity
making an affirmative statement to this effect.
3) The disclosure shall set forth the
identity of any State officer, employee or elected official, or the wife,
husband or minor child of that person, having an ownership or beneficial
interest under the lease. In the event a person is so set forth, the disclosure
shall include a specific designation of the percentage of total distributable
income to the person, together with that of the wife, husband or minor child of
that person, is entitled to receive from any firm, partnership, association or
corporation that is the lessor.
4)
It shall be the responsibility of the lessor to notify the CPO-GS, CMS, SPO or
those who conduct leasing activities of any changes in ownership or beneficial
interest and to submit updated disclosure statements reflecting the changes
within 30 days after the change.
d) Space that is not in compliance with
accessibility regulations, or is not capable of being brought in compliance
with the installation of minimum essential features of accessibility by the
time of occupancy, shall not be considered for use. Each RFI will provide
reference to the Illinois Capital Development Board website for applicable
technical standards of the Illinois Accessibility Code.
e) Leases may include an option for square
footage reduction. When operational needs indicate that reduction in the square
footage of a leased property is necessary and in the best interests of the
State, as determined by the CPO-GS, a contract for the lease of real property
may be amended to reduce the square footage of the leased property.
