September 21-23, 2005
ITEM 128-2702-R0905 Authorization to Execute Purchase of Property; Montana State University-Billings
THAT: The Board of Regents of the Montana University System authorize Montana State University-Billings, following appropriate reviews and approvals, to execute the purchase of property immediately adjacent to the College of Technology (COT) campus contingent upon final appraisal.
1. The COT resides in a 125,000 sf building on 20.03 acres which was transferred from the Yellowstone County School District # 2 (SD # 2) to the Montana University System in the mid-1980’s along with the responsibility for postsecondary occupational education.
2. The 57th Legislative Assembly funded a Facility Planning Study which outlined a $10M need for the COT Campus and identified two parcels of property for future expansion.
3. The U.S. Department of Housing and Urban Development (HUD) granted $1M to renovate a portion of the COT (approved by the BOR # 116-2702-R0902). Other Federal appropriations given to the COT for enhancement of two year educations are: $396,800 for the Healthcare Career Pathways Program, $745,575 for Process Plant Operator Training; $438,398 for the Healthcare Degree and Certificate Program, and $695,450 for the Computer Technology Program.
4. The 59th Legislative Assembly appropriated the remaining $9M to meet the infrastructure needs of the COT.
5. The two adjacent parcels of property which were identified were 7.25 acres of SD # 2 property to the North (approved for acquisition by the BOR # 103-2702-R0599) and 6.14 acres of private property to the west.
6. The appraised value of the 6.14 acres is being established by a certified appraiser, engaged by MSU – Billings. The seller is requesting $1,500,000 for the purchase of the property.
7. To purchase the 6.14 acres, MSU – Billings will seek an INTERCAP loan in the amount of $1,000,000 and an internal loan of $500,000.
8. This project requires authorization of the Board of Regents, both for the purchase itself and for the INTERCAP loan. Final purchase and loan document(s) will be executed by MSU-Billings upon the review and approval by MSU and MUS Legal Counsel, the President of MSU, and the Commissioner of Higher Education.
ATTACHMENTS: Plat of property
Copy of appraisal [to be submitted at Board Meeting]
Copy of financing and repayment plan