AGENCY TESTIMONY
DCAS leasing process explained
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166 sec
Commissioner Molina details the multi-step leasing process followed by DCAS, from the initial approval of space needs to the final execution of the lease.
- Process begins with OMB approval of new space needs
- DCAS works with tenant representatives to solicit potential landlords and determine agency needs
- The process includes proposal reviews, negotiations, legal drafting, and public review as required by the New York City Charter
- Final steps include Mayoral approval and lease execution by DCAS
Louis Molina
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The leasing process is a multi disciplinary effort that involves multiple steps and review for DCAS.
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The process begins when the city of office of management and budget also known as OMB, approves a new need for space.
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With that approval, we assess city owned properties to determine if there is an existing property that meets the need.
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When there is no existing city property that best meets the need identified, We work with our tenant representatives also known as brokers to assist us in putting out a solicitation to potential landlords for space that may
Erik Abad
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be a good fit for the best price possible.
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At the same time, we work with the client agency and our tenant representatives to determine what equipment design and square footage may be needed to best meet agency needs.
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That notification to the commercial market sent out by our tenant representatives may be referred to as a request for
Louis Molina
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a proposal or RFP.
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To be clear, this RFP is not a solicitation for a city procurement.
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In other words, it is not an RFP as defined by the procurement policy board also known as PPP rules, and it is not subject to the PPP rules of competition given the legal framework that governs the city's real property transactions The goal of this notification is to cast a wide net and drive competition in the commercial market such that the city gets the best offer possible.
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Once we receive responses, decays reviews the proposals received.
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To narrow in on the best possible options before beginning with potential negotiation with potential landlords in concert with our tenant representatives.
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We exchange term sheets, compile site reports that assess building conditions, develop scopes of work that outline the required design and construction plans, take measurements and develop cost estimates for each project.
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Once we have decided on the terms of the lease, with the selected vendor, Decast attorneys draft the lease and it goes through OMB and law department review and approval.
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In addition to those internal reviews, every city lease goes through a public review process as required by the New York City charter, the city planning commission reviews, the city's identified need for space, the location proposed to meet that need, and the square footage allocated.
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A public hearing is then conducted, and the city council is given the opportunity to review the city planning commission's decision.
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It is only after those public approvals are received that the transaction can be finalized for Mayoral approval and finally lease execution by DeCast.
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The city cannot enter into a lease without first going through this public review process.
