[nfbmi-talk] is this rfp for temp mcb training center?

[joe harcz Comcast]

Michigan Department of Technology, Management and Budget (DTMB) 

for 

DEPARTMENT OF ENERGY, LABOR & ECONOMIC GROWTH (DELEG) – KALAMAZOO or 

PORTAGE, KALAMAZOO COUNTY 

SR #2010-0623 September 8, 2010 

  RFP Summary, Submission Requirements and Checklist 

 SUMMARY 

Table with 2 columns and 9 rowsAgency: 

DELEG: Commission for the Blind - Training Center 

Location: 

Kalamazoo or Portage 

Square Footage/Use: 

4,000 – 6,000 square feet of warehouse space 

Floor(s): 

ground/first 

Parking 

Requirement: 

5 parking spaces 

Occupancy Date: 

November 1, 2010 

Month-to-month 

Agreement: 

Standard form of state month-to-month agreement is attached to this RFP. 

Note: 

The attached RFP and month-to-month agreement contain energy efficiency and 

prevailing wage requirements. 

Other: 

Standard cancellation upon thirty (30) days written notice to the Landlord 

Table end SUBMISSION DOCUMENT CHECKLIST 

Table with 1 column and 1 row?? Written summary of proposal 

?? Complete Space Available Proposal (SAP) form 

?? Proof of ownership of property 

?? Proof of legal authority to enter into agreement (see attached “legal documentation and signature 

requirements checklist”) 

?? Proposed floor plan/site plan 

?? Proposed time line from executed date of agreement 

?? Proposed changes to standard form of state month-to-month agreement, if applicable 

 Table end SUBMISSION DUE DATE / PROCEDURES 

Table with 1 column and 1 rowTwo (2) copies of each proposal, clearly indicating the appropriate proposal number SR #2010-0623, must 

be received by 3:00 p.m. E.S.T. on September 17, 2010 to: Michigan Department of Technology, Management 

and Budget, Real Estate Division, c/o Eric M. Yope, Property Specialist, Mason Bldg 1st Fl, 530 W Allegan St, 

Lansing, Michigan 48933. 

 Please be advised that proposals MUST be received by the date and time stated herein or they 

will not be accepted. There will be NO exceptions. 

 An electronic version of the proposal is also requested and should be submitted to 

dtmb-realestate at michigan.gov within 24 hours of the due date defined herein and please indicate the 

appropriate proposal number SR#2010-0623 in the subject line. Table end   Request for Proposal (RFP) 

Michigan Department of Technology, Management and Budget (DTMB) 

for 

DEPARTMENT OF ENERGY, LABOR & ECONOMIC GROWTH (DELEG) – KALAMAZOO or 

PORTAGE, KALAMAZOO COUNTY 

SR #2010-0623 September 8, 2010 

  Introduction and Overview 

 The State of Michigan, by the Department of Technology, Management and Budget (DTMB or State), for the 

Department of Energy, Labor & Economic Growth (DELEG or Tenant) is evaluating their space alternatives in 

Kalamazoo or Portage, Michigan. Please respond to the Request for Proposal (RFP) if you (Landlord or Bidder) 

have a potential location in the geographic boundaries set forth in this RFP. If you have more than one potential 

location, submit separate proposals for each location. 

 Please review and read this package thoroughly. Your proposal should be based on the sample documents and 

the requirements as detailed in this package. 

 Please be advised that State tax credits and incentives are administered by the Michigan Economic Development 

Corporation (MEDC), who is the appropriate contact for resources and program information. The DTMB will not 

accept proposals contingent upon receiving credits, incentives or other project cost inducements. 

 The State reserves the right to waive any irregularities or defects in any submission; to request clarifications or 

additional information regarding proposals; to conduct a Best and Final Offer (BAFO); and to reject any and all 

proposals at its sole discretion. The submission of this RFP does not constitute an agreement to lease with the 

State. The State shall assume no liability whatsoever for any expense incurred by a Bidder in replying to this 

RFP, or any development risk of a successful bidder. An agreement, if completed, shall be with the proposal 

deemed to have offered the best value to the State of Michigan. 

 Pursuant to 1984 PA 431, as amended, (“The DMB Act”), the Department of Technology, Management and 

Budget is the only agency authorized to enter into month-to-month agreements on behalf of the State of 

Michigan. No individual, employee or agent of the State of Michigan has authority to bind the State without 

proper authorization. Bidders are directed to section VI.4. Proposal Submission of this RFP for correct information 

on proposal submission. Bidders are hereby notified that communications during the RFP process non-compliant 

with the Proposal Submission guidelines may result in disqualification of a proposal. 

 Any release to the public of information relating in any respect to the contemplated month-to-month agreement 

or any other matters set forth (i.e. advertisement, ground breaking, press releases, etc.) must have prior written 

approval and be made only in the form approved by the DTMB Real Estate Division Director. 

  I. Space Requirements 

 I.1. Location: The space shall be located within one mile of the city limits of Kalamazoo or Portage. This 

includes properties on either side of the street delineating the boundaries. Please identify the location of 

the space by street and mailing address. 

 I.2. Space (Premises): The State requires approximately 4,000 – 6,000 usable square feet of warehouse 

space. The State reserves the right to increase or decrease the size of this requirement by up to 10%. 

Special circumstances may require more extensive program size changes. 

 Please verify that the Premises square footage is based upon the A.N.S.I. Z65.1 – 1996 method for 

calculating space. 

 I.3. Parking: The State requires five (5) common parking spaces. Please describe the parking provided at 

the site, including the total number of spaces available and provide detail as to how you will meet this 

parking requirement. 

 I.4. Occupancy/Commencement: The Occupancy/Commencement Date is the latest date on which the 

improvements to the Premises are substantially complete and the Landlord secures a Certificate of 

Occupancy, or the Tenant begins beneficial use of the Premises. The Landlord will deliver the Premises 

to the Tenant no later than November 1, 2010. Please provide an estimated time frame to build out the 

Premises, if applicable. 

  II. Month-to-month Term 

 II.1. Initial Month-to-month Term: The Initial Month-to-month Term is twelve (12) months. 

 Please propose a fixed, or flat, rental rate for a Gross Month-to-Month Agreement: including all expenses 

– taxes, insurance, janitorial services, maintenance, etc. 

 The State may elect to pay for utilities separately so please include a cost per square foot to reduce the 

rental rate if such occurs. 

 II.2. Adjustments/Escalations: There will be no adjustments made to the rental consideration. 

 II.3. Allowances and Contributions: Please include all allowances and contributions proposed with respect 

to design costs, construction, moving, and any allowance items (indicate a per square foot moving 

allowance in the space provided on the Space Available Proposal (SAP) form). 

 II.4. Concessions: Given current market conditions, the State is very interested in acquiring market 

concessions for this transaction. Any concessions, especially the timing of such, will be a major factor in 

assessing proposals received. Concessions may include reduced rent, free rent, moving allowances or 

any other item you are willing to incorporate into the proposal. Clearly a combination of these items may 

be included also. 

 II.5. Cancellation: Standard cancellation requiring thirty (30) days written notice. All State month-to-

months for real property are required to contain a cancellation provision as established within the 

framework of the Michigan Constitution. The attached SAP form and sample month-to-month contain 

this provision. 

 II.6. Security Deposit: The State will not provide a security deposit. 

 II.7. Alternative Terms: The State may consider proposals with alternative month-to-month terms and 

conditions if such are determined to be in the best financial interest of the State; however, bidders are 

encouraged to respond to the specific requirements listed in this RFP, as alternative proposals may or 

may not be considered. All proposed alterations from the standard form of month-to-month agreement 

attached to this RFP must be clearly identified. The State must receive sufficient information to 

accurately assess all proposals. The State reserves the sole and exclusive right to consider alternative 

proposals, to seek proposal clarification, and to reject any and all proposals. 

  III. Building Standards and Systems 

 III.1. Building and Tenant Improvements: The Tenant is requesting space that requires little or no 

renovations. Space must be a typical/standard warehouse setting, clean and ready for occupancy. The 

Landlord will be responsible for providing the Premises in turnkey condition.  Please provide a detailed description of the building and other material descriptions; for example, explain 

the HVAC system, the type of access and security system and procedures, and the telecommunications 

services available, barrier free design, etc. that will allow the State to understand the quality and 

appearance of the building. 

 Please include a proposed floor plan for the Premises. 

 III.2. Construction Taxes, Permits and Fees: The Landlord is responsible for all taxes, permits, fees, etc., 

required for any construction and/or remodeling. The Landlord is responsible for all necessary 

inspections by the architect/engineer during the construction and/or remodeling. 

 III.3. Environmental Disclosure: The Landlord covenants that he/she has undertaken a due diligence 

inquiry of the Premises. The Premises, and property on which the Premises are located, are free of any 

toxic, hazardous or injurious substances as defined under Federal and State laws and regulations. The 

attached sample month-to-month agreement contains environmental provisions that must be adhered to 

when entering into an agreement with the State of Michigan. These provisions, as recited in the month-

to-month agreement, will not be altered. Proposers are directed to the attached agreement to review all 

environmental requirements. 

 III.4. Energy Efficiency and Conservation: The following sections apply to space leased by State 

Departments or Agencies, pursuant to Executive Directive 2007-22: Enhanced Energy Efficiency and 

Conservation by State Departments and Agencies: 

 V. C – when the state is entering into a month-to-month agreement for a state department or 

agency to occupy a portion or all of a building leased by this state at a new location, the building 

qualifies for Energy Star® designation whenever feasible. 

 VI. B – all newly constructed buildings leased by the state are designed and constructed in 

accordance with the Leadership in Energy and Environmental Design (LEED) Green Building 

Rating System developed by the United States Green Building Council. 

 III.5. Prevailing Wages: In all contracts for the construction or renovation of the Premises, the Landlord 

must include a provision stating that the rates of wages and fringe benefits to be paid to each class of 

construction mechanics by the Landlord’s General Contractor, all of the General Contractor’s 

Subcontractors, and all lower tier Subcontractors shall not be less than the wage and fringe benefit rates 

issued by the Michigan Department of Energy, Labor & Economic Growth, Wage and Hour Division in its 

schedule of occupational classification and wage and fringe benefit rates for the locality in which the work 

is to be performed. “Construction mechanic” means a skilled or unskilled mechanic, laborer, worker, 

helper, assistant, or apprentice working on the construction or renovation of the Premises but shall not 

include executive, administrative, professional, office, or custodial employees. The Landlord or the 

Landlord’s General Contractor must keep posted on the construction or renovation site, in a conspicuous 

place, a copy of all prevailing wage and fringe benefit rates and the address and telephone number of the 

Michigan Department of Energy, Labor & Economic Growth’s Wage and Hour Division, currently 7150 

Harris Drive, P.O. Box 30476, Lansing, Michigan 48909-7976, Phone: (517) 335-0400 and a notice that as 

the intended beneficiaries of 1965 PS 166, as amended, MCL 408.551, et seq., construction mechanics 

who have not been paid in accordance with the Act may file a claim with the Department of Energy, 

Labor & Economic Growth. The Landlord or the Landlord’s General Contractor must keep an accurate 

record showing the name and classification of each person performing work on the site, the dates on 

which work was performed, the hours each person worked on the site, and the actual hourly wages and 

benefits paid to each person. This record must be made available for inspection by the Department of 

Technology, Management and Budget and/or the Michigan Department of Energy, Labor & Economic 

Growth, at any time, upon request.   IV. Forms, Documents, and Overview 

 IV.1. Enclosed Documents: The enclosed documents (electronic copies only) are provided to assist you in 

establishing your rental rate: 

• Sample Month-to-Month Agreement 

• State of Michigan Minimum Building Design Standards. These standards are to be used in 

determining the cost of remodeling and/or construction. 

• Legal Documentation and Signature Requirements 

• Executive Directive 2003-22 “Locating in Urban Areas” 

• Executive Directive 2007-22 “Enhanced Energy Efficiency and Conservation” 

• Excerpt from PA 295 of 2008 

• ANSI Standards 

• Bidder’s Acknowledgment 

 IV.2. Space Available Proposal form(s): To be considered, your proposal shall be made on the enclosed 

Space Available Proposal form(s) and all blank spaces on the form(s) shall be filled in. Please note: 

Proposal forms not completely filled in may be rejected.  Your signature shall be in longhand, and no part of the proposal form shall be altered (except for your 

alternate proposals, if any). 

 IV.3. Standard Agreement Form: All Agreements entered into by the State of Michigan are based on the 

Standard Agreement form pre-approved by the Attorney General’s office, which is enclosed with this RFP. 

Any requested exceptions or alterations to this Standard Agreement form must accompany your proposal. 

However, the Attorney General’s office must approve as to legal form any proposed revisions. Exceptions 

to the Standard Agreement form may have an impact on the recommendation. The State of Michigan 

reserves the right to make further modifications to the Agreement document to accurately reflect final 

business terms. 

  V. Required Approvals for State Month-to-months 

 V.1. Requirements for State Month-to-months: The proposed Month-to-month shall not be binding or 

effective on either party until signed and notarized by the Landlord and the Tenant; and signed and 

notarized by the Department of Technology, Management and Budget. The effective date of the 

proposed Month-to-month is the date the last State governmental approval is obtained as set forth on the 

signature page. At any time prior to the last State governmental approval, the State reserves the right to 

reject the proposal and terminate the Month-to-month approval process. 

 V.2. Legal Documentation: Pursuant to The DMB Act (Public Act 431, as amended) all month-to-months 

must included the submission of documentation necessary to evidence legal authority of Bidder to enter 

into the month-to-month agreement, including the signatory’s authority to bind. For your convenience, a 

guideline indicating necessary legal documentation is included with this RFP. Failure to provide 

appropriate legal documentation may result in your proposal being rejected. 

  VI. Selection Criteria and Submission 

 VI.1. Selection Criteria: The selection of the recommended proposal is based on, but is not limited to, the 

following criteria: 

• A clear and concise proposal, particularly in terms of dates, numbers, dollars, and any other 

information requested in this RFP. Vague and/or general proposals may be rejected. 

• The ability to comply with Barrier Free Design 

• The ability to comply with Executive Directive 2003-22 “Locating in Urban Areas” and Executive 

Directive 2007-22 “Enhancing Energy Efficiency and Conservation” 

• The ability to meet any build out specifications and timelines, and special needs of the Tenant 

• The overall condition of the building, including infrastructure, HVAC, property, etc. (existing space) 

• The overall cost, which is deemed in the best interest of the State 

• The type of accessibility (e.g. roads, public transportation, etc.) 

• The type of utilities available 

 VI.2. Required Documents: Please return the following documents for our review and consideration. Please 

note: Failure to provide the following may result in your proposal being rejected. 

• Written Summary of Proposal 

• Completed Space Available Proposal form(s) 

• Proof of ownership of Property 

• Proof of legal authority to enter into the proposed agreement 

• Proposed Floor Plan/Site Plan 

• Project timeline from date of executed agreement 

• Signed Bidder’s Acknowledgement 

• Proposed changes to the standard form State month-to-month agreement, if any 

 VI.3. Questions and Answers: Questions concerning clarifications or standards contained in this RFP are to 

be submitted by e-mail only (please indicate the appropriate proposal number in the subject line) no later 

than 5:00 p.m. on September 10, 2010 to dtmb-realestate at michigan.gov.  All questions and answers will be posted to the website at www.michigan.gov/dtmb-realestate no later 

than September 14, 2010. Prospective Bidders should check the website for any updates, questions and 

answers.  The State will not respond to telephone inquiries or visits by Bidders or their representatives, or respond 

to questions after the due date. 

 VI.4. Proposal Due Date: Two (2) copies of each proposal, clearly indicating the appropriate proposal 

number SR# 2010-0623, must be received by 3:00 p.m. Eastern Standard Time on September 17, 

2010 to: 

 DTMB - Real Estate Division 

c/o Eric M. Yope, Property Specialist 

Mason Building 1st Floor 

530 West Allegan Street 

Lansing, MI 48933 

  Please be advised that proposals MUST be received by the date and time stated herein or 

they will not be accepted. There will be NO exceptions. 

 An electronic version of the proposal is also requested and should be submitted to 

dtmb-realestate at michigan.gov within 24 hours of the due date defined herein and please indicate the 

appropriate proposal number SR# 2010-0623 in the subject line.  All proposals shall be valid for one-hundred and twenty (120) days from the submission due date, unless 

mutually agreed to in writing by both parties. 

 VI.5. Best and Final Offer (BAFO): A BAFO may be requested at the sole and exclusive discretion of the 

DTMB. A BAFO or other alteration to original proposals submitted after the Proposal Due Date will not be 

accepted unless requested in writing by the DTMB.  A BAFO may be requested from one or more proposers during the review and evaluation process. If the 

evaluation process does not lead to a viable recommendation and there are alterations to the original RFP 

requirements, the requirements will be presented to all Bidders with a due date for submission. 

 Bidders will not be provided any information about other proposals, or where a Bidder stands in relation 

to others, at any time during the evaluation process. 

 VI.6. State Acceptance and Authority: After all proposals have been analyzed and the recommendation is 

made to and accepted by the Department, DTMB will notify all Bidders accordingly. Any proposals not 

meeting the minimum requirements of the enclosed sample month-to-month and instructions may be 

rejected. 

 It is the State’s practice to select the lowest most responsive bid in consideration of all factors set forth in 

this RFP. The lowest bid does not necessarily mean it will be selected. 

 The DMB Act (1984 Public Act 431, as amended) specifies that the DTMB is the only department 

authorized to enter into month-to-month agreements, subject to obtaining all necessary approvals. No 

individual, employee or agent of the State of Michigan has authority to bind the State 

without proper authorization. 

 In accordance with the above, oral and written promises or representations made regarding a month-to-

month agreement, existing or proposed, or transmittal of written documents that have not been executed 

by an authorized representative of the DTMB, shall not be binding on the State. You must receive a fully 

executed document, signed by an authorized representative of the DTMB, for an agreement to be valid. 

   Thank you for your interest in doing business with the State of Michigan. 

  Request for Proposal (RFP) 

Michigan Department of Technology, Management and Budget (DTMB) 

for 

DEPARTMENT OF ENERGY, LABOR & ECONOMIC GROWTH (DELEG) 

 – KALAMAZOO or PORTAGE, KALAMAZOO COUNTY 

SR #2010-0623 

 September 8, 2010 

   Bidder’s Acknowledgement 

 This Acknowledgment must be signed, dated, and returned with your Proposal 

 Please review and read this RFP thoroughly. Your proposal should be based on the sample 

documents and requirements as presented in this RFP. The Bidder acknowledges and certifies 

that they are authorized to submit the proposal; that they have read and fully understand all 

terms and conditions of this RFP; that the proposal complies with the requirements of this RFP; 

and that they shall be responsible for any errors or omissions in the proposal. 

  _______________________________________ _________________________ 

Signature of Authorized Bidder/Representative Date 

  _______________________________________ 

Printed Name 

  GROSS SPACE AVAILABLE PROPOSAL SR# 2010-0623 (warehouse) 

 State of Michigan - Department of Management and Budget - Real Estate Division 

 This form is a proposal only to serve notification that the property noted below, with the building construction/remodeling, as per prints and specifications, is 

available for lease to the State of Michigan. NOTE: The State reserves the right to accept any proposal, to reject any or all proposals, and/or to waive any defects 

in proposal. Establishment of a lease agreement, if made, shall be with the Proposer whose proposal is in the best interest of the State of Michigan. 

Table with 2 columns and 3 rowsNAME OF PROPOSER (LESSOR): 

CONTACT PERSON: 

ADDRESS OF PROPOSER (STREET) 

 CURRENT LEGAL ENTITY (i. e., HUSBAND/WIFE, LLC, CORP., 

PARTNERSHIP): 

CITY STATE ZIP CODE 

 TELEPHONE NUMBER: 

FAX NUMBER: 

EMAIL ADDRESS (Print Clearly) 

 Table endTable with 3 columns and 2 rowsBUILDING ADDRESS AND/OR LEGAL DESCRIPTION OF LEASED 

PREMISES 

TOTAL BUILDING SQ. FT. 

(PROVIDE DOCUMENTATION) 

PERCENT OF BUILDING 

LEASED TO THE STATE ___% 

  Zip Code: __________ 

SQ. FT. OF LEASED PREMISES 

CURRENT STATE EQUALIZED 

VALUE (SEV) $ 

DATE OF SEV 

Table endTable with 5 columns and 3 rowsINITIAL LEASE TERM: 1-year 

CANCELLATION: Standard 30-day notice 

(A) 

MONTHLY BASE RENT 

$ 

(B) 

MONTHLY OPERATING COST 

$ 

(C) (A + B = C) 

MONTHLY RENT 

$ 

ANNUAL RENT 

$ 

SQ FT RATE 

$ 

     Table endTable with 5 columns and 2 rowsRENEWAL OPTION TERM: -year 

CANCELLATION: Standard -day notice 

(A) 

MONTHLY BASE RENT 

$ 

(B) 

MONTHLY OPERATING COST 

$ 

(C) (A + B = C) 

MONTHLY RENT 

$ 

ANNUAL RENT 

$ 

SQ FT RATE 

$ 

Table endTable with 3 columns and 1 rowTOTAL DEVELOPMENT COST OR 

REMODELING COST: $ 

LUMP SUM COST INCLUDED IN FIRST 

MONTH RENT: $ 

NO. OF ON-SITE PARKING SPACES: 

 Table endTable with 4 columns and 2 rowsIf applicable, indicate any of the following: 

 Moving Allowance $ __________ Free Rent for months/years (circle one) 

SERVICES TO BE PROVIDED BY LESSOR AND/OR STATE: 

 Telephone System 

State 

Table endTable with 4 columns and 1 rowHeat and Air Conditioning Utilities 

LESSOR 

Alarm System 

State 

Table endTable with 4 columns and 1 rowElectricity 

LESSOR 

Grounds Maintenance 

LESSOR 

Table endTable with 4 columns and 1 rowWater and Sewer 

LESSOR 

Snow Removal 

LESSOR 

Table endTable with 4 columns and 1 rowJanitorial Services and Supplies 

N/A 

Trash Removal (dumpster) 

LESSOR 

Table endTable with 4 columns and 1 rowRestroom Supplies 

N/A 

Parking Lot Maintenance 

LESSOR 

Table endTable with 4 columns and 1 rowWater Well and/or Septic System Maintenance 

LESSOR 

Maintenance of Portable Fire Extinguishers 

LESSOR 

Table endTable with 4 columns and 1 rowMaintenance of Sidewalks, Curbs, and Gutter 

LESSOR 

Replacement of Tubes and Bulbs 

LESSOR 

Table endTable with 4 columns and 2 rowsPest Control 

LESSOR 

Building Maintenance (including Physical Plant) 

LESSOR 

FAILURE TO RETURN THIS FORM WILL EXCLUDE YOU FROM CONSIDERATION AS A PROPOSER ON THIS PROJECT. YOUR NAME WILL REMAIN 

ON THE BIDDERS LIST FOR FUTURE PROJECTS. 

Table endTable with 2 columns and 3 rowsI/We have confirmed financing arrangements if I/we are selected by the State of Michigan to construct and/or remodel and lease to the State this Building for possession by the 

Michigan Department of Energy, Labor and Economic Growth and are prepared to submit written evidence of such funding arrangements within 15 days of being selected as the 

successful Proposer. 

THIS FORM MUST BE COMPLETELY FILLED OUT, SIGNED AND 

RETURNED TO THE FOLLOWING ADDRESS: 

Eric Yope 

PROPOSAL TO BE RECEIVED IN THIS OFFICE ON OR BEFORE: 

September 17, 2010 

 State of Michigan 

 DTMB, Real Estate Division 

POSSESSION TO TAKE PLACE ON OR BEFORE: 

November 1, 2010 

Table end Mason Bldg 1st Floor 

Table with 2 columns and 1 row PO Box 30026 

WHAT IS THE CURRENT ZONING? 

Table end Lansing, Michigan 48909 

Table with 2 columns and 2 rows DO YOU HAVE LEGAL TITLE TO PROPERTY? 

SIGNATURE(S) 

 DATE 

Table end DEFINITIONS ON NEXT PAGE

   SQUARE FOOTAGE (Leased Premises) - The amount of square footage using inside 

dimensions that can be used by the State for which rent is charged (based upon the 

A.N.S.I. Z65.1 - 1996 method for calculating space). 

 MONTHLY BASE RENTAL RATE – For example: The portion of the monthly rental 

payment, which is attributable to debt service and return on equity (excluding operating 

costs). 

 MONTHLY OPERATING COST – For example: The portion of the monthly rental 

payment, which is attributable to operation expenses, such as utilities, maintenance, 

real estate taxes and/or insurance. 

 Monthly Base Rental Rate + Monthly Operating Cost = Total Monthly Rent 

 POSSESSION - Lawful availability and physical access to install the State's furnishings 

and compliance with submitting a certificate of occupancy and completion of remodeling 

standards and specifications. 

 RENEWAL OPTION - A lease covenant giving the State the right to extend a lease for 

an additional period on specified terms. 

 TOTAL DEVELOPMENT COST - The total cost of the project, including the construction 

of the building and purchase of the land. 

 LUMP SUM COST - Predetermined dollar amount based on a percentage of the total 

development cost, payment of which shall be made to the Lessor upon submission of 

proper invoices concurrently with the first month's rent consideration for satisfactory 

completion of the remodeling or construction work. 

                                DMB-654 (Rev. 4-21-10) 

Issued by Authority of Act 431 OF 1984