Renegotiated Lease

Process & Procedure
 
When a tenant agency remains in their current leased space however the lease term has expired and new lease terms have been negotiated.
 
Agency/OGS Real Estate Services

This occurs when a landlord and agency renegotiate their existing space at the end of the current lease term. Once this renegotiation is in process, a letter will be issued to both the agency and us. This letter also indicates that the new lease will supersede the existing lease, and will denote the new lease number.


OGS Real Estate Services

OGS Real Estate Services (OGS RES) will notify us and the agency via an email including a proposed lease letter, abstract of economic clauses, pro‐calc, and REP 555. Both the proposed lease letter and REP 555 should make note that this new lease supersedes the previous lease. These documents indicate that OGS RES is preparing to send the lease contract to Office of the State Comptroller (OSC) and request the generation of a Single Transaction Summary (STS). Additionally, OSC will request the approval to close out the original lease in the real estate module.


Agency

If the transaction is over $50,000, the agency will request a B-1184 from the Division of Budget. The B-1184 is a contractual pre‐approval request, which must be in an approved status prior to submission to OSC. This request allocates and authorizes funds for the duration of the contract. As such, the approved B-1184 must be included in the OSC submission package.


Business Services Center

Based on the OGS RES documents, we will determine the appropriate amount of funding required on behalf of the agency using our dollars and sense form and lease purchase request form. We will then submit the lease purchase request form to the agency to obtain necessary coding for that fiscal year.


Agency

The agency will review the submitted documents from us and provide coding. The agency will email us the completed documents.


Business Services Center

Based on information from OGS RES and the agency, we will enter the contract requisition into SFS and electronically submit to the agency for review and approval.


Agency

The agency will approve the contract requisition in SFS.


Business Services Center

Upon agency approval, we will generate and execute the STS and provide this document via email to both the agency and OGS RES.


Lease Execution

The lease is reviewed and executed in the following order: Agency → Landlord → OGS Commissioner → Office of the Attorney General (AG) → OSC.


Business Services Center

Once we receive the commencement letter from OGS RES, we will create a purchase order. Once dispatched, we will link the fixed costs in the real estate module and inform accounts payable. As soon as payments are up to date, we will notify OGS RES and the lease will be made active.