January 20-21, 2005
ITEM 126-105-R0105 Planning for OCHE/MGSLP Office Space
THAT: The Board of Regents of Higher Education authorizes the Commissioner of Higher Education to execute a non-binding letter of intent for purposes of securing office space when the current OCHE lease terminates on 6/1/2006.
EXPLANATION: OCHE has received notice from MHESAC that their current lease will be terminated no later than 6/1/2006. MGSLP (a program within OCHE) has a separate lease from MHESAC. The MGSLP lease cannot be terminated by MHESAC. However, MGSLP and OCHE share administrative services and MGSLP would prefer to relocate with OCHE when OCHE is required to relocate to new space. OCHE/MGSLP has been unable to find suitable existing space that would accommodate their needs. OCHE has been contacted by developers interested in building office space for OCHE/MGSLP to be occupied in June 2006. The non-binding letter of intent would include the minimum lease period required (anticipated 10-15 years), space requirements, and estimated base rent plus operations during the term of the lease. It is anticipated that the base rent plus operations will be within the current $15-$16/sq. ft. expended by OCHE/MGSLP. Space requirements are expected to increase marginally to allow space for recently added staff in OCHE/MGSLP with some allowance for future growth.