Article 40 - Real Property and Capital Improvement Leases
(30 ILCS 500/Art. 40 heading) ARTICLE 40 REAL PROPERTY AND CAPITAL IMPROVEMENT LEASES
(30 ILCS 500/40‑5)
Sec. 40‑5. Applicability. All leases for real property or capital improvements, including office and storage space, buildings, and other facilities for State agencies, shall be procured in accordance with the provisions of this Article.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.) |
(30 ILCS 500/40‑10)
Sec. 40‑10. Authority. State purchasing officers shall have the authority to procure leases for real property or capital improvements.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.) |
(30 ILCS 500/40‑15)
Sec. 40‑15. Method of source selection.
(a) Request for information. Except as provided in subsections (b) and (c), all State contracts for leases of real property or capital improvements shall be awarded by a request for information process in accordance with Section 40‑20.
(b) Other methods. A request for information process need not be used in procuring any of the following leases:
(1) Property of less than 10,000 square feet with
| rent of less than $100,000 per year. | |
(2) (Blank).
(3) Duration of less than one year that cannot be |
| |
(4) Specialized space available at only one location.
(5) Renewal or extension of a lease; provided that: |
| (i) the chief procurement officer determines in writing that the renewal or extension is in the best interest of the State; (ii) the chief procurement officer submits his or her written determination and the renewal or extension to the Board; (iii) the Board does not object in writing to the renewal or extension within 30 days after its submission; and (iv) the chief procurement officer publishes the renewal or extension in the appropriate volume of the Procurement Bulletin. | |
(c) Leases with governmental units. Leases with other governmental units may be negotiated without using the request for information process when deemed by the chief procurement officer to be in the best interest of the State.
(Source: P.A. 95‑647, eff. 10‑11‑07; 96‑920, eff. 7‑1‑10.) |
(30 ILCS 500/40‑20)
Sec. 40‑20. Request for information.
(a) Conditions for use. Leases shall be procured by request for information except as otherwise provided in Section 40‑15.
(b) Form. A request for information shall be issued and shall include:
(1) the type of property to be leased;
(2) the proposed uses of the property;
(3) the duration of the lease;
(4) the preferred location of the property; and
(5) a general description of the configuration |
| |
(c) Public notice. Public notice of the request for information for the availability of real property to lease shall be published in the appropriate volume of the Illinois Procurement Bulletin at least 14 days before the date set forth in the request for receipt of responses and shall also be published in similar manner in a newspaper of general circulation in the community or communities where the using agency is seeking space.
(d) Response. The request for information response shall consist of written information sufficient to show that the respondent can meet minimum criteria set forth in the request. State purchasing officers may enter into discussions with respondents for the purpose of clarifying State needs and the information supplied by the respondents. On the basis of the information supplied and discussions, if any, a State purchasing officer shall make a written determination identifying the responses that meet the minimum criteria set forth in the request for information. Negotiations shall be entered into with all qualified respondents for the purpose of securing a lease that is in the best interest of the State. A written report of the negotiations shall be retained in the lease files and shall include the reasons for the final selection. All leases shall be reduced to writing and filed in accordance with the provisions of Section 20‑80.
When the lowest response by price is not selected, the State purchasing officer shall forward to the chief procurement officer, along with the lease, notice of the identity of the lowest respondent by price and written reasons for the selection of a different response. The chief procurement officer shall publish the written reasons in the next volume of the Illinois Procurement Bulletin.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.) |
(30 ILCS 500/40‑25)
Sec. 40‑25. Length of leases.
(a) Maximum term. Leases shall be for a term not to exceed 10 years inclusive, beginning January, 1, 2010, of proposed contract renewals and shall include a termination option in favor of the State after 5 years.
(b) Renewal. Leases may include a renewal option. An option to renew may be exercised only when a State purchasing officer determines in writing that renewal is in the best interest of the State and notice of the exercise of the option is published in the appropriate volume of the Procurement Bulletin at least 60 days prior to the exercise of the option.
(c) Subject to appropriation. All leases shall recite that they are subject to termination and cancellation in any year for which the General Assembly fails to make an appropriation to make payments under the terms of the lease.
(d) Holdover. Beginning January 1, 2010, no lease may continue on a month‑to‑month or other holdover basis for a total of more than 6 months. Beginning July 1, 2010, the Comptroller shall withhold payment of leases beyond this holdover period.
(Source: P.A. 96‑15, eff. 6‑22‑09; 96‑795, eff. 7‑1‑10 (see Section 5 of P.A. 96‑793 for the effective date of changes made by P.A. 96‑795).)
(30 ILCS 500/40‑30)
Sec. 40‑30. Purchase option. Initial leases of all space in entire, free‑standing buildings shall include an option to purchase exerciseable by the State, unless the purchasing officer determines that inclusion of such purchase option is not in the State's best interest and makes that determination in writing along with the reasons for making that determination and publishes the written determination in the appropriate volume of the Procurement Bulletin. Leases from governmental units and not‑for‑profit entities are exempt from the requirements of this Section.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.) |
(30 ILCS 500/40‑35)
Sec. 40‑35. Rent without occupancy. Except when deemed by the Board to be in the best interest of the State, no State agency may incur rental obligations before occupying the space rented.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.) |
(30 ILCS 500/40‑40)
Sec. 40‑40. Local site preferences. Upon the request of the chief executive officer of a unit of local government, leasing preferences may be given to sites located in enterprise zones, tax increment districts, or redevelopment districts.
(Source: P.A. 90‑572, eff. date ‑ See Sec. 99‑5.) |
(30 ILCS 500/40‑45)
Sec. 40‑45. Leases exempt from Article. A lease entered into by the State under Section 7.4 of the State Property Control Act is not subject to the provisions of this Article.
(Source: P.A. 93‑19, eff. 6‑20‑03.) |
(30 ILCS 500/40‑46)
Sec. 40‑46. Leases exempt from Article. A lease entered into under Section 7.5 of the State Property Control Act is not subject to the provisions of this Article.
(Source: P.A. 93‑19, eff. 6‑20‑03.) |
(30 ILCS 500/40‑55)
Sec. 40‑55. Lessor's failure to make improvements. Each lease 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 in 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 certified by the chief procurement officer and the leasing State agency.
(Source: P.A. 93‑839, eff. 7‑30‑04.)
(30 ILCS 500/40‑150)
Sec. 40‑150. Proposed contracts; Procurement Policy Board. This Article is subject to Section 5‑30 of this Code.
(Source: P.A. 93‑839, eff. 7‑30‑04.)