California Department Of General Services

There are several job shipment approaches that can be utilized by the state to build capital properties: Design-Bid-Build (Section 6828), Design-Build (Section 6829), and Lease-Based Development Agreements. This area describes the procedure for pursuing a Lease-Based Development structure.


In general, when a new state-owned capital center is proposed, the state's preferred approach is to acquire residential or commercial property for the subject job. For this approach, an acquisition phase is funded through the yearly spending plan procedure, and the appropriate department will engage with the Department of General Services (DGS) to look for ideal websites. Once a residential or commercial property is obtained, future stages for the job will be moneyed through the budget plan process, and the project will be developed and built with DGS as the project manager, (or by the suitable agency for non-DGS managed tasks), with oversight by the PWB. Government Code ยง 14669 authorizes the DGS to employ, lease, lease-purchase, or lease with the choice to purchase any genuine or personal residential or commercial property for the use of any state firm, subject to specified limitations.


However, in instances where the state is unable to determine and acquire a suitable website that supports a specific capital task, a lease-based advancement option might be thought about. This kind of lease structure is typically referred to as a Build-to-Suit Lease. Under this lease structure, the state is not needed to make any payments, consisting of interim financing, until occupancy.
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