Acquiring and Disposing of University Real Estate
Responsible University Officer(s):
- Associate Vice President and Controller
- Assistant Director - Leasing and Facility Management
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 the 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 $1,250,000 or larger than 10 acres, consistent with Board policies.
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.
|Primary Contact(s) and Overall Process||Director of Real Estate||612-625-5345||612-624-6345
|Acquisition and Disposition Transactions||Real Estate Transactions Manager||612-626-0565||612/624-6345
- University Real Estate
- Land (surface or subsurface), buildings (including space within a building), air rights, water rights and mineral rights.
- University Real Estate Transactions
- The process for acquisition or disposition of real estate, including an interest in real estate.
- Board of Regents
- Has exclusive authority and power on behalf of the University to approve the University’s acquisition and disposition of real estate when the property’s value exceeds $1,250,000 or the size exceeds 10 acres.
- Vice President and CFO
- As delegated by the President, has signature authority for real estate agreements that do not require Board of Regents approval. The Vice President and CFO has re-delegated this authority to the Director of Real Estate. The Vice President and CFO is also the signatory for agreements for real estate purchase and sale transactions approved by the Regents.
- Real Estate Office
- Has responsibility for all transactions involving the University’s acquisition or disposal of real estate or an interest in real estate, including permanent easements and street vacations and dedications. Office maintains a historical database of University-owned real estate.
- Environmental Health and Safety
- Works with the Real Estate Office to ensure appropriate environmental investigations are completed for all real estate considered for University acquisition by purchase or gift acceptance, including estimates of remediation, as required.
- Office of General Counsel
- Develops or approves real estate transaction agreements.
- Board of Regents Policy - Reservation and Delegation of Authority
- Administrative Policy: President's Delegations of Authority
- Administrative Policy: Use and Lease of Real Estate
- October 2015 - Comprehensive Review, Minor Revision: 1. Clarifies that uses of funds in the Real Estate Acquisition Accounts may be used for the purchase of other capital assets/real estate. All other uses much receive approval by the President. 2. Provides more details around transactions under the Board of Regents threshold.
- August 2012 - Threshold limits increased from $250,000 to $1,250,000. All real estate transactions will now require a 2-month Board of Regents, Facilities Committee review/approval process.
- October 2005 - The words "must be approved by" changed to "must be reported to" in this sentence in the Policy Statement: Uses of the Real Estate Acquisition Account for purposes other than the purchase of real estate must be reported to the Board of Regents. Similar change made to procedure 220.127.116.11.
- July 2004 - Revised to reflect Real Estate Delegations Assigned in the Delegations Library. Added question 8 to FAQ. Updated appraiser requirements and marketing plans for sales in excess of $50,000. Responsible University Officer changed from Treasurer to Vice President for Finance and CFO.
- September 2003 - Revised to reflect Reservation and Delegation of Authority policy.
- November 1998 - Added Frequently Asked Questions section.
- March 1995