Pennsylvania Code › Title 43 - MILITARY AFFAIRS › Part I - Department of Military Affairs › Chapter 3 - STATE ARMORY BOARD › USE OF ARMORIES › Section 3.38 - Long-term rentals

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
				  State Board may approve the leasing of an armory or armory land under a
				  long-term lease when the State Board determines by majority vote that the
				  armory or armory land will not be necessary for military purposes during the
				  term of the lease.
(b) The term of
				  a lease under this section may not be more than 1 year, provided that the lease
				  may provide for renewals for a like term for a period of up to no more than 5
				  years, at the option of the State Board.
(c) Leases of armories and armory property
				  shall be for fair market rental as determined by the State Board. However, the
				  State Board may approve a long-term lease for less than fair market rental when
				  it determines that the lease is in the best interests of the Commonwealth
				  because the lessee is a nonprofit, community service, educational or
				  governmental entity.
(d) Long-term
				  leases shall provide that the Adjutant General may terminate the lease upon 15
				  days written notice when the Adjutant General determines, in his sole
				  discretion, that the armory or the armory land is necessary for use by the
				  Pennsylvania military forces. The lease shall also provide that when an
				  emergency is declared or threatened, the Adjutant General may suspend or
				  terminate the lease agreement immediately and the Pennsylvania military forces
				  may take immediate possession of the armory.
(e) Long-term lease agreements shall provide
				  that the lessee shall procure at the expense of the lessee property damage
				  insurance to insure the leased premises against damage by fire, storm,
				  vandalism, civil disturbance or natural disaster. The amount of the insurance
				  coverage shall be specified by the lease agreement and, prior to the
				  commencement of the lease term, the lessee shall present to the State Board a
				  certificate of insurance indicating that such coverage is in effect for the
				  term of the lease and any renewals thereof. When the lessee is a governmental
				  agency that provides self-insurance, the lessee shall provide a letter to that
				  effect indicating the limitations on self-insurance coverage and the authority
				  for such coverage.
(f) The lease
				  agreement shall provide that the lessee agrees to indemnify and hold harmless
				  the Commonwealth, the Department, the State Board and their agents, employes
				  and assigns against claims, demands or actions that may be brought against them
				  for personal injuries, death, property damage and the like that may arise out
				  of a transaction or occurrence or act or omission concerning or happening on
				  the leased premises during the term of the lease. The lessee shall procure at
				  the lessee's own expense public liability coverage naming the Commonwealth, the
				  Department, the State Board and their agents, employes and assigns, as
				  additional insureds. The amount of liability coverage shall be specified in the
				  lease agreement. Prior to the commencement of the lease term, the lessee shall
				  present to the State Board a certificate of insurance indicating that the
				  required insurance is in force for the lease term and any renewals thereof.
				  When the lessee is a governmental agency that provides self-insurance, the
				  lessee shall provide a letter to that effect indicating the limitations on
				  self-insurance coverage and the authority for such coverage.