1. A. Sufficient resources to evaluate and implement project: a lease-purchase contract can be very complex and involve multiple professional disciplines.

   (1) The agency/department seeking to implement a lease-purchase project shall collaborate with the property control division in seeking sufficient resources and expertise to at the minimum analyze, evaluate and negotiate the following to be consistent with the guidance document approved by the CBPC:

   (a) baseline costs;

   (b) market/feasibility studies;

   (c) architectural and engineering specifications;

   (d) construction/development budgets;

   (e) developer qualifications;

   (f) legal aspects of developer agreements;

   (g) comprehensive financial modeling including alternative finance scenarios.

   (2) To the extent these resources do not exist within the agency/department, the agency/department in consultation with the property control division shall engage those third party resources deemed necessary to implement said transaction. The costs of these third party resources may be paid directly by the agency/department or factored into and become a part of the total project cost funded through the lease-purchase project.

2. B. Develop baseline cost model: the user agency/department in concert with PCD shall develop a baseline cost model by which to compare the lease-purchase scenario. The baseline cost model should be forecast for the anticipated useful life of the new facility. Costs should include but not be limited to:

   (1) all third party leasing costs as escalated over the proposed term including pass-through of operating expenses;

   (2) debt service/capital costs for owned facilities that are to be vacated or replaced;

   (3) anticipated deferred maintenance expenses for owned facilities; and

   (4) ancillary costs that will be eliminated by acquisition of new facility for example, third party parking expenses, special meeting spaces, external storage facilities, etc;

   (5) for comparison purposes, the total baseline cost as well as the cost of the lease-purchase scenario shall be discounted to a net present value using the state’s then applicable cost of tax exempt borrowing.

3. C. Comprehensive space needs assessment: the agency/department shall have prepared and submitted to the property control division for approval a comprehensive space needs assessment. The space needs assessment will reflect the current space standards for all state employees as well as take into consideration the special space needs of the agency/department including but not limited to meeting rooms, hearing rooms, storage and technology requirements.

[1.5.25.9 NMAC - N, 01/01/11]