THE UNIVERSITY OF MEMPHIS OPERATING PROCEDURES


SUBJECT:  Long-Term Lease/Rental of University Property

PROCEDURE NO.:  2D:02:02C                   DATE:   December 1, 1988

SUPERSEDES PROCEDURE NO.:  2D:02:02C        DATED:  November 8, 1978

                           
                           Purpose

To establish guidelines and procedures for the long-term
lease/rental of University real property (excluding residence
halls and married student housing).  For purposes of this
procedure, long-term lease/rental shall mean the lease or rental
of property wherein a formal agreement is executed between the
University and a tenant.

                       
                       Responsibility

Primary responsibility for the long-term lease/rental of
University property shall rest with the Director of Physical
Plant and Planning.  This responsibility shall include lease
issuance/renewal, determination of lessor/lessee covenants, the
establishment of appropriate rental rates, and the maintenance of
a prospective tenant list for residential properties.

                        
                         Procedures

Long-term lease/rental of the various types of University real
property will be handled in accordance with the following general
procedures:

 Rental Housing (Dwellings)

 1.  Applications for rental housing will be placed on file in
     order of date received and processed accordingly.

 2.  Priority will be given to University affiliated individuals
     and to those with duties requiring housing near the campus.

 3.  Rental housing will be offered without regard to handicap,
     race, color, creed, sex, age, religion, veteran status, or
     national origin of applicants.

 4.  Applicants will be offered housing consistent with the
     criteria contained in their application form, i.e., number of
     bedrooms requested, etc.

 5.  The University of Memphis reserves the right to refuse to rent
     to parties it feels will not serve the best interests of the
     University.

 Commercial Property

 1.  University commercial properties are defined as those which
     are primarily used by a profit oriented business and/or are
     used primarily as office space.

 2.  Leases for commercial property will be executed in accordance
     with a "Standard Commercial Lease Form" or a special lease
     form developed specifically to meet the needs of the lessor
     and lessee.

 3.  Lease covenants will be in accordance with the standard
     commercial lease form where applicable, but may include any
     additions or deletions as appropriate to set forth lessor/
     lessee responsibilities.

Space Within University Campus Buildings

The determination of leasable space within on-campus University
buildings will be the responsibility of the Physical Facilities
Office.

                       Lease/Rental Fees

Lease/Rental fees will generally be established and maintained in
accordance with the fair market value of like rental property in
the Memphis area.  However, other factors will be taken into
consideration when appropriate.  These include:  (1) tenant
maintenance of properties that were purchased for future
expansion programs; (2) tangible and intangible benefits realized
by the University through the lease; (3) an appropriate return on
debt retirement; and (4) the University's policy of supporting
community and state educational programs.