R712-1. Purpose: To provide for consideration of nontraditional arrangements for development of facilities on campuses of institutions in the Utah System of Higher Education.

R702-2. Reference

2.1. Utah Code 53B-6-101 (Master Planning for Higher Education)

2.2. Utah Code 53B-20-103 (Powers of State Board – Capital Facilities Projects)

2.3. Utah Code 53B-21-108 (Financing Projects by Contract or Lease Agreement)

2.4. Utah Code Title 63A, Chapter 5 (State Building Board – Division of Facilities Construction and Management)

2.5. Policy and Procedures R710, Capital Facilities

2.6. Policy and Procedures R491, University Research Parks

2.7. Policy and Procedures R587, Contract and Lease-purchase Financing

R712-3. General Policy: It is the general policy and expectation of the Board of Higher Education that nontraditional arrangements for development of facilities on campuses of institutions in the Utah System of Higher Education will be used sparingly and only where specific and unusual circumstances clearly so warrant.

R712-4. Policy on Lease-Purchase Acquisitions of Facilities for Institutional Use: Pursuant to authority contained in Utah Code §53B-21-108 the Board of Higher Education will consider institutional proposals for lease-purchase acquisition of facilities to be financed totally from institutional revenues not a part of the appropriated budget. Such a proposal will be finalized only after receipt of advice from the Attorney General’s Office that the specific proposal is within the Board’s authority to approve under current statute. Approval of such proposals is subject to the provisions of Policy and Procedures R587, Contract and Lease-purchase Financing.

R712-5. Policy on Facilities Developed and Owned by an Outside Party on Leased Institutional Land: The Board of Higher Education recognizes that in specific instances, institutional and/or public interests may be well served by arrangements for construction and operation of facilities by outside organizations or parties on leased institutional property. The Board will, therefore, from time to time consider proposals for such arrangements on institutional property other than property in designated research parks for which, under State statute and Policy and Procedures R491, University Research Parks, research universities have delegated responsibility. Such a proposal will be finalized only after receipt of advice from the Attorney General’s Office that the specific proposal is within the Board authority to approve under current statute, and final approval will be granted only where the following conditions are met: 

5.1. Program Benefits or Broad Public Purpose: The proposed arrangement provides significant benefits to the program, students, faculty, or staff of the institution, or serves a broad public interest that could not be served as well any other way;

5.2. Proper Developer and Use: The proposed outside developer/owner and the proposed use of the facility are proper and appropriate for the image and environment of the institution;

5.3. Adequate Compensation: Compensation to the institution, either in cash or in kind (or a combination thereof), is adequate to justify any financial considerations provided by the institution to the outside developer/user of the facility;

5.4. Contractual Provisions: Arrangements set forth in contract documents shall demonstrate that the provisions:

5.4.1. Are financially feasible for the institution;

5.4.2. Adequately protect the interests of the institution regarding:

5.4.2.1. Initial relationships with the outside organization or party,

5.4.2.2. Resolution of eventualities that can reasonably be foreseen,

5.4.2.3. Institutional right to control appearance of the facility, external remodeling/additions, level of building and landscape maintenance, parking rights, exterior graphics, access to institutional utility systems and access roads,

5.4.2.4. Termination, extension, or renewal of the land-lease, and ultimate ownership of the facility;

5.5. Construction Requirements: Contractual considerations shall ensure that the following conditions are met:

5.5.1. Quality Control: Adequate provisions for quality control in the design and construction of the project

5.5.2. Construction Codes: Provision to ensure compliance with appropriate state or local construction codes;

5.5.3. Life-Cycle Costing: Assurance that provisions dealing with the costs of design, construction, operation and maintenance, and disposing of the building have been met.

5.6. Attorney General Approval: Attorney General’s Office approves all contract documents as to form and legal authority.

R712-6. Delegation of Authority to Approve Certain Projects: The Board of Higher Education delegates the authority to institutional Boards of Trustees to approve nontraditional arrangements for facilities that met all of the conditions of this policy and have a project cost of less than $2,500,000.

6.1. Reporting: Institutions shall report all projects approved under this section at the next regularly scheduled Finance and Facilities Committee meeting.

Approved December 20, 1985, amended November 14, 2014 and January 15, 2021.