ITEM 110-1003-R0101������ Authorization to Proceed with Acquisition of Land and a Building for the Montana Technology Enterprise Center, in Collaboration with the Missoula Area Economic Development Foundation; The University of Montana-Missoula
THAT: The Board of Regents of the Montana University System authorizes The University of Montana to use $750,000 from federal grants to purchase land and a building.� The University will also make available approximately 2.5 acres of University land ($512,500 value) as a match.
EXPLANATION:����������������� The University of Montana-Missoula (UM-M) and the Missoula Area Economic Development Foundation (MAEDF) incorporated the Montana Technology Enterprise Center (MonTEC) as a Montana public benefit corporation under the Montana Nonprofit Corporation Act.� MonTEC provides facilities for start-up, technology-based companies. MonTEC Bylaws stipulate equal ownership of all MonTEC assets by UM-M and MAEDF and that each entity shall appoint an equal number of directors to the Board of Directors.� In addition, MonTEC remains eligible for certain federal grants unavailable to UM-M.�
UM-M received two HUD-EDI grants totaling $962,500, and hereby requests authorization to use $750,000 of this amount for the purchase and renovation of a facility for MonTEC.�
An additional $1,500,000 grant from EDA exists.� This grant requires a match.� UM-M can meet this requirement by making available (without transferring title) to approximately 2.5 acres of UM-M land immediately adjacent to the building and land sought.� The MonTEC plan calls for a parking lot on this land built with MonTEC funds.� UM-M will have access to this parking lot during times not in conflict with MonTEC operation.�
����������������������������������������������� The EDA has not yet decided which specific entity will serve as the grantee.� One alternative presently under EDA consideration specifies that 100 percent of the $1,500,000 will go to MonTEC.� The other alternative notes that equal shares of the grant would be awarded to UM-M and MAEDF.� If EDA approves the latter alternative, authorization is requested for UM-M to use its $750,000 share for purchase and renovation of the facility for MonTEC.
����������������������������������������������� A Memorandum of Understanding UM-M and MAEDF stipulates that UM-M retains complete title to the 2.5 acres of land used as a match for the EDA grant; that MonTEC cannot transfer any real property without prior consent of the Montana Board of Regents; that ratios of funds and other assets contributed to MonTEC by UM-M and MAEDF will determine proportional ownership of MonTEC assets; and that MonTEC Bylaws will be changed to the full extent necessary to meet these conditions and requirements.
����������������������������������������������� Once operational, MonTEC will become a self-supporting facility with no obligation from UM-M to support it financially.
ATTACHMENTS:��������������� Buy-Sell Agreement and Memorandum of Understanding between UM-M and MAEDF.