July 12-13, 2001


ITEM 112-2003-R0701������ Authorization to Take Steps Necessary to Sell Property Bequeathed to the University by Helen Lutz; Montana State University-Bozeman


THAT:����������������������������������� The Board of Regents of Higher Education authorizes Montana State University-Bozeman to take steps necessary to accomplish the sale of the Lutz property located in Gallatin County, Montana.


EXPLANATION:����������������� In 1983, 560 acres of land located in Gallatin County was received by the MSU Foundation from the estate of Helen Lutz.� The land was exchanged with the university in the 1990 land exchange.� In the will and deed of distribution, the land was conveyed �to be used exclusively for agricultural experiment purposes.�� The estate advised the MSU Foundation at the time of conveyance that it had been Ms. Lutz�s desire that her long-time tenant farmer be allowed to share crop the property.� The land was under this share crop arrangement until 1997 and has been subject to a cash lease since that time.� See attached deed of distribution and related correspondence.


The College of Agriculture/Montana Agricultural Experiment Station desires to sell the property and use the proceeds for agricultural experiment purposes.� MSU believes it is advisable to seek clarification from the state district court that the language directing the use of the property for agricultural experiment purposes would not preclude sale by MSU.� Therefore, MSU intends to proceed with a court action prior to the sale to assure the land can be sold and the proceeds used for the purpose stated by Ms. Lutz. Upon receipt of a favorable court ruling, MSU would proceed with a sale of the land as required under the state statutes governing the sale of university real property, including Board of Regents and Montana Board of Land Commissioner�s approval.


ATTACHMENTS:��������������� Deed of distribution and related correspondence