University Real Estate is owned by Regents of the University of Minnesota, a Minnesota constitutional corporation, not by the College or University Unit that occupies or otherwise uses the Real Estate. Real Estate owned and leased must be used for purposes that contribute to the University’s mission of research and discovery, teaching and learning, and outreach and public service, unless a written agreement provides for another approved use of the Real Estate.
Pursuant to the Board of Regents Policy: Reservation and Delegation of Authority (PDF), the Board of Regents reserves to itself authority to approve the use and lease of real property, if the initial term amount to be paid by or to the University exceeds $1,000,000.
The University requires a written agreement for the use of all Real Estate regardless of the duration of use or amount of rent paid, except if approved otherwise by the Real Estate Office or expressly permitted in this policy and associated procedures. No University Unit or individual can enter into a Use or Lease Agreement without the approval of the Real Estate Office.
The Real Estate Office is responsible for University Real Estate use and lease transactions, including the process for review and approval of proposed transactions as well as determining the appropriate fee to be charged or incurred. The Office of the General Counsel supports the use-and-lease-of-real-estate process through the development or approval of Use and Lease Agreements.
An exception to this policy and associated procedures may be granted by the Senior Vice President for Finance and Operations or their designee, provided the exception remains consistent with Board of Regents policy. Any exceptions granted will be documented in writing.
Reason for Policy
To implement Board of Regents Policy: Real Estate and Facilities (PDF) by providing a framework to ensure that Real Estate owned, used, or leased by the University is used to provide facilities for faculty, staff, and students in support of the University's mission. This policy ensures that (i) all appropriate due diligence is made regarding using and leasing Real Estate prior to entering into agreements, and (ii) Use and Lease agreements minimize financial and reputational risk, clarify legal responsibility, and enhance accountability and transparency.