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Section 4: Methods of Awarding Leases

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A lease will be awarded on a sealed bid basis except that leases may be negotiated to be consistant with property rights owned by others. For example:

  • a party that holds a valid property right in the adjacent property
  • a party that has a written concurrence from the adjacent property owner, and tenant if applicable, concurring with TxDOT leasing the subject property to the party requesting the lease for a specific purpose
  • for a leaseback, a party that had an interest in the property at the time of TxDOT's acquisition; and
  • if the lease is for an area under an elevated structure, it can be negotiated with the adjacent property owner or tenant to the centerline of the highway. If the party requesting the lease desires to lease the entire area under an elevated structure follow the procedures described below.

If a party that holds a valid property right in the adjacent property requests a lease, and there is more than one adjacent owner, the party requesting the lease may provide concurrence letters from the other adjacent owners or the department may send a notification letter to all adjacent owners. The letter should notify the adjacent owners of the interest to lease and request that they respond in writing within thirty days if they also are interested in leasing any of the subject area. If there are no responses, the department may negotiate the lease with the requesting party. If there is more than one interested party, the lease should be awarded by sealed bid.

In the event the criteria described above can not be met, the lease should be awarded through a sealed bid process, provided that it does not interfere with any access or other rights any adjacent owner may have. The bid must be advertised at least twenty days before the bid opening by having notice thereof published once per week for three consecutive weeks preceding such bid opening in a newspaper of general circulation in the county in which the property to be leased is located. Form ROW-L-6, Notice of Lease of State Land, and Form ROW-L-7, Sealed Bid, Lease of State Real Property are available.

Note that the vast majority of leases TxDOT enters into are negotiated because most parties interested in leasing TxDOT property are adjacent owners.

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