Cease Lease Agreement - Excel

Document Sample
Cease Lease Agreement - Excel Powered By Docstoc
					                                         Cash for Buildings application
This is an application form for the Cash for Buildings (CB) programme. CB allows schools that are entitled to additional buildings through the New
Teaching Space for Roll Growth or the School Property Guide Deficiency programmes to choose between annual cash payments or new
buildings. This application must be submitted to the Ministry for approval before a school is eligible for cash payments. Refer to the Property
Management web pages or ask your local office for further information.

It is important that schools do not enter into any agreement assuming that they will receive funding before this application is approved.

  How the template works

The application form asks for information about your school's financial position and whether you intend to lease property using the CB funding.
Applicants' eligibility for cash payments depends on whether they have an entitlement to additional space and a sound financial position.

The template multiplies the gross square metres of area deficiency (which can be obtained from the Teaching Space Template or the SPG
calculator) by a conversion rate to calculate the annual cash payments. The conversion rate is set so that the net present value of the cash
payments over 40 years approximately equals the cost of providing the actual building.

  Section 1: Space deficiency

The following policies govern schools' entitlement to extra building accommodation:

New Teaching Space for Roll Growth (RG) Programme - this determines when additional classrooms are required to accommodate roll

School Property Guide (SPG) Deficiency Programme - this calculates a school's space entitlement, based on its roll, and usually addresses
non-teaching space deficiencies such as administration, library or resource areas.

If your school is entitled to additional space under either of these programmes, you can apply for CB.

  Section 2: How to apply

In terms of your school's financial position, the application form asks whether the school has received support from the School Support
Programme over the previous three years. When you submit the application, the local office’s financial advisors will make an assessment about
whether your school is at risk financially. This will include consideration of your school's working capital position, whether it has made an
operating loss and other factors. Schools that are considered at risk will not be eligible for CB.

  Section 4: Reviews

At the second Five Year Agreement (5YA) review after you enter the CB programme, and at each subsequent review, the Ministry will assess
your school's space entitlement. If your roll declines so that the amount of floor space your are entitled to under the RG or SPG deficiency
programmes is less than your actual space, your will cease to be eligible for the programme. If you have not entered a lease using the CB
funding, you can opt out of the programme each year and take your building entitlement if you are still eligible for additional space. If you have
entered a lease, you can only exit the CB programme if you can also exit the lease.

The annual payments will be inflation adjusted every three years after you enter the programme.

  Section 5: Leases

If your school chooses to lease space using the CB funding, you can begin to negotiate lease agreements with landlords provided they are likely
to be below $250,000 in total value over the term of the lease. Leases above this threshold will be negotiated and managed by the Ministry's
property manager and the Ministry will be party to the lease agreement rather than the board. If you indicate in the application form that you
intend to lease space, the local office will make an assessment about the value of any proposed lease arrangements in order to determine
whether they are likely to be over or close to the $250,000 threshold.

It is important that any lease agreements include adequate protections for your school. They should include rights of renewal that occur at the
same time as your school's 5YAs are renegotiated. This ensures that if the CB funding ceases you will be able to exit the lease. In addition, the
rent reviews in the lease should be reasonable and you should consider whether the annual (inflation adjusted) CB payments will be sufficient to
meet the lease obligations.

The Ministry must approve lease agreements before they come into effect and will consider the above issues. Boards are advised to get their own
legal advice on any leases they enter.
                                          Cash for Buildings template
Complete all white boxes                                                                                                  Version 2010 - 01
All budgets in this template exclude GST                                                                                        12/15/2010

  School number

  School name

  School type

  School type code

    Section 1: Entitlement

  Are you entitled to additional space?

  If so, how much addtitional space are you entitled to?                                                             m2

  Conversion rate ($/m2)                                                                                     #N/A

  Calculated annual entitlement                                                                               #N/A
  (Space Entitlement x Conversion Rate)

    Section 2: School financial details

  Have you received support from the School Support Programme over the past 3 years?

  Do you intend to enter a lease using the cash payments?

        12/15/2010 4:29 PM                 D:\Docstoc\Working\pdf\5f15733c-69a1-47dc-8390-c75dbbb34788.xls

Shared By:
Description: Cease Lease Agreement document sample