Section 5000.660  Non-State Use

a)         Excess Real Property

1)         Excess real property which cannot be used by a State agency may be leased to the public, with governmental units being the preferred tenants, for periods of time not to exceed five years unless longer periods are authorized by statute.  Vacant land shall be leased for periods of longer than five years if one of the following conditions is present:

A)        The lease is made with an organization which is providing program-related services to a State agency, a not-for-profit organization or a unit of local government and those services require the lessee to make permanent capital improvements to the leased land.

B)        A longer lease term is specifically authorized by statute.

2)         Rental shall be at the current fair market value payable to the proper State Treasury account in cash except that leases of Department of Corrections property for farming may be paid by crop share to the State.  Receipts payable by income in kind shall be strictly documented by grain receipts or other generally accepted accounting practices to verify value of income paid in kind.  Rental may be waived or reduced to less than fair market value upon a showing of clear advantage to the State.  Use of property for agency program related purposes or to prevent waste of the property are examples of clear advantage.

b)         Leases of excess property for office or storage use shall be accomplished by direct negotiation or sealed bidding pursuant to 44 Ill. Adm. Code 1.2010.

c)         Leases of excess property for farm purposes will be accomplished by sealed bid, pursuant to 44 Ill. Adm. Code 1.2010. A 10% performance bond or other security may be required of the winning bidder.

d)         Improvements made to State land will be forfeited to the State unless removed by lessee without damaging State property.  Upon removal, lessee will restore the State property to its original condition unless specific written permission to the contrary is given.

(Source:  Amended at 22 Ill. Reg. 20545, effective November 16, 1998)