November 20-21, 2003
ITEM 121-2701-R1103 Authorization to Acquire Real Property; Montana State University-Billings
THAT: The Board of Regents of Higher Education of the Montana University System authorizes Montana State University-Billings to designate additional Property Acquisition Zones defined as: (1) Lots 32 through 38, Block 2, Normal Subdivision (the Mental Health Center); (2) Blocks 16, 13, 10, 8 & 4, Grandview Subdivision (the Tree streets between Poly Dr. and Grandview Blvd); (3) Lots 2 & 3, Block 20, Sunnyside Subdivision (properties along the east side of North 26th St. between the BBWA canal and 12 Ave North); and (4) the Old # (D 867) 300= x 300= & # (D 866) Fraction 263.67= x 360= of N1/2SE NE1/4 of Section 31; T.1.N., R.26.E., (known as Shadowlawn), and to acquire any of the properties therein, to be held by the Board of Regents of Higher Education for the use and benefit of Montana State University-Billings as hereinafter prescribed.
1. No property outside the designated Property Acquisition Zones may be acquired without the specific approval of the Board of Regents of Higher Education.
2. Any of the properties within the Property Acquisition Zones that become available for purchase may be purchased upon obtaining a minimum of two appraisals and negotiating a purchase price not in excess of the higher of the two appraisals, provided that the purchase price does not exceed $150,000. Any acquisition at any price in excess of the higher of the two appraisals shall require prior specific approval of the Board of Regents of Higher Education.
3. Purchase of properties within the designated Property Acquisition Zones may be made on a cash, contract, mortgage, exchange, donation, assumption of indebtedness, or trust deed basis, and the University is authorized to retain the services of appraisers, trustees, real estate agents, or escrow agents as may be required to appropriately complete the transfer.
4. Properties within the Property Acquisition Zones may be purchased with rents from such properties accrued for that purpose, auxiliary service funds, building fee proceeds, or other non-general fund resources available to the Chancellor for that purpose.
5. In the course of acquiring properties within the Property Acquisition Zones, no ongoing payment obligation of the University shall be incurred in excess of funds known or reasonably projected to be available for that purpose.
6. Rents from properties owned or acquired within the Property Acquisition Zones, as well as other peripherally-owned and rented properties, will be used to pay any expenses, incident to ownership, maintenance, improvement, and management of said properties. Rent receipts in excess of those required for those purposes will be accrued, invested, and reinvested to fund and finance further acquisitions or improvements of properties within the Property Acquisition Zones.
7. Conversion of any property within the Property Acquisition Zones to any use other than as a rental property, which conversion would result in a reduction of rental income available for making payments on or maintenance and operation of rental properties within the Zones, shall require approval of the Board of Regents of Higher Education.
8. A report containing the property description, the two required appraisals, the purchase price, and the terms and conditions of purchase shall be forwarded to the Commissioner of Higher Education prior to the proposed purchase within the Property Acquisition Zones, and no purchase shall be made without the approval of the Commissioner.
9. Properties which cannot be purchased but are necessary to complete a parcel or boundary configuration for an approved University development purpose may be acquired by condemnation only after review and approval thereof by the Board of Regents of Higher Education.
EXPLANATION: The University continues to stay abreast of the dynamic real estate market. Over the years, we have purchased numerous properties within the existing Property Acquisition Zones, consistent with the Campus Master Plan. The opportunity to secure additional holdings adjacent to the Campus will safeguard and ensure the long-term interests of the University. Delegation of general authority to acquire properties within the Property Acquisition Zones and within the limitations and reporting requirements herein proposed would facilitate acquisitions and obviate delays and repetitive considerations incident to transaction-by-transaction review by the Regents.