July 12-13, 2001

 

ITEM 112-2005-R0701   Authorization to Accept Offer for the Sale of the Spring Creek Residence; Montana State University-Bozeman

 

THAT:         The Board of Regents of Higher Education authorizes Montana State University-Bozeman to accept an offer for the sale of the Spring Creek Residence in Bozeman.

 

EXPLANATION:    Montana State University-Bozeman desires to sell residential property that has served as the President's residence until recently. The property is located in the Westridge subdivision at 2310 Spring Creek Drive in Bozeman, Montana. Legal description of property is Lot 2 in Block 3 of Westridge, a subdivision of a portion of the Northerly half of the NW1/4 of Section 19, Township 2 South, Range 6 East M.P.M. The property includes a house of 3,764 square feet and 32,885 square feet of land. The kitchen was recently renovated.

In accordance with Section 20-25-307, MCA, Montana State University-Bozeman solicited proposals for the purchase of the residence. The property was appraised at $370,000 in 2001 and $390,000 in 2000 by two independent appraisers. A minimum bid of $370,000 cash was required.

In addition to the proposal offer amount, the proposers agree to pay any lender costs that might be required, which may include: appraisal, survey of the property, title insurance costs; real estate commissions, or closing costs. The University will pay no real estate commissions. Proposers submitted evidence of pre-approval for loans as an attachment to their bid. Payment in full at the time of closing is required.

As required, MSU-Bozeman published a public notice of the Request for Proposals in the Bozeman Chronicle on May 6, 2001. A classified advertisement was published in the May 13, May 20, May 27 and June 3, 2001 issues of the same newspaper.

Two bids were received and the bid opening took place on June 18. The proposer with the highest acceptable bid was notified and the buy/sell agreement was negotiated and signed. Upon final approval from the Board of Regents, the proposed sale will be presented to Board of Land Commissioners at their July 16 and August 20 meetings. The sale will be finalized at closing by issuance of deed, without covenants of warranty, as specified under Section 20-25-307, MCA. A closing date in August 2001 is planned.

In the event of default by the apparent successful proposer, the proposer's bid security will be forfeited to the University as damages and the next highest proposer will be notified.