Regents of the University of Minnesota, a Minnesota constitutional corporation owns all University real estate (land, buildings, air rights, water rights, and mineral rights). Real estate is not by the collegiate or administrative unit that occupies or otherwise uses the real estate.
Pursuant to the Board of Regents Policy: Reservation and Delegation of Authority, the Board of Regents reserves to itself authority to approve the purchase or sale of real estate (i) having a value greater than $1,000,000, (ii) located on or within 2 miles of a University campus, or (iii) larger than 10 acres.
Acquisitions must support the University’s educational, research or outreach mission. Dispositions may occur when it is determined the real estate is no longer required, to fulfill the University’s mission, or the disposition of the real estate better meets the University’s needs or better supports the University’s mission.
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 other investments consistent with the University’s Strategic Plan, Campus Master Plans, or long-term Capital Plans.
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. The Office of the General Counsel supports the acquisition and disposition process through the development or approval of real estate transaction agreements.
The Senior Vice President for Finance and Operations may grant an exception to this policy and associated procedure, provided the exception remains consistent with Board of Regents policy. Any exceptions granted will be documented in writing.
Reason for Policy
By ensuring that all appropriate due diligence is made regarding the acquisition of proposed real estate assets prior to acquisition, the University minimizes its legal and financial exposure to claims for damages under applicable laws, including those governing the environment and hazardous materials. The policy also ensures that the University disposes of real estate in a manner that maximizes return, considers other public purposes and avoids conflict of interest.