University real estate (land, buildings, air rights, water rights and mineral rights) is owned by Regents of the University of Minnesota, a Minnesota constitutional corporation, not by the collegiate or administrative unit that occupies or otherwise uses the real estate.
Pursuant to Board of Regents Policy: Reservation and Delegation of Authority, the Board of Regents reserved to itself authority to approve the purchase or sale of real property having a value greater than $1,000,000, located within 2 miles of a University campus, or larger than 10 acres.
Acquisitions must support the University’s educational, research or outreach mission. Disposal may occur when it is determined the real estate is no longer needed, now or in the future, to fulfill the University’s mission and is designated as surplus.
Proceeds from the sale of restricted University real estate are used in accordance with the purposes designated by the donors. Proceeds from the sale of unrestricted University real estate are deposited to the appropriate Real Estate Acquisition Account for use by that campus or research center to fund future real estate acquisitions or the purchase of other capital assets consistent with the University’s strategic positioning initiative.
The Real Estate Office is responsible for University real estate acquisition and disposition transactions, including the process for review and approval of proposed transactions, the appropriate use of sale proceeds, and management of the Real Estate Acquisition Accounts.
Reason for Policy
By ensuring that all appropriate inquiries are made as to the acquisition of each proposed real estate asset prior to acquisition, the University minimizes its potential for legal and financial exposure to claims for damages under applicable laws, including those governing the environment and hazardous materials. The University disposes of property expeditiously and in a manner that maximizes return, considers other public purposes and avoids conflict of interest.