Subsection A. Real Property
The Board of Trustees is the legal entity for all transactions involving interests in real property for the university. No real property shall be acquired or conveyed without Board approval.
1. Classification
For the purpose of this Regulation, transactions involving interests in real property are classified as follows:
a. Acquisition
Acquisition includes any contract, agreement, deed or other document legally sufficient to acquire title to real property, including any lease which contains an option to purchase real property. Acquisition may occur by purchase, gift, eminent domain or any other method by which title to real property is transferred.
b. Conveyance
Conveyance includes any contract, agreement, deed or other document legally sufficient to transfer an interest in real property, including any easement or lease which contains an option to purchase real property. Conveyance may occur by sale, gift, eminent domain or any other method by which title to real property is transferred.
c. Lease
A lease is a contract vesting exclusive, continuous possession of real property for a specific term. This category includes situations in which the Board acts as lessor or situations in which the Board acts as lessee.
d. License
A license is a privilege to use real property on a temporary or occasional basis, including the rental of lodging in connection with official travel. A license does not operate to confer on, or vest in, the licensee any title, interest, or estate in such property. Licenses for the use of real property where the Board is "licensee" shall be treated like Purchases in accord with Section V.B.1.a. of these Regulations.
2. Approval Requirements
a. Acquisitions
No property shall be acquired except with Board approval. When the university determines that it wishes to acquire real property, the president shall make a report and recommendation to the Board which shall include an assessment of facilities need, physical and structural review of the premises, and the results of an appropriate review of the proposed transaction for legal sufficiency.
b. Conveyances
No property shall be conveyed except with Board approval. When the university determines that it wishes to convey an interest in real property, the president shall make a report and recommendation to the Board.
c. Leases (Board as Lessee)
- (1) Transactions involving an obligation in the aggregate of $250,000 or more, regardless of the source of funds, shall be approved by the Board. The president is authorized to enter into all other leases of real property.
- (2) In cases in which Board approval is required, the university shall provide an assessment of facilities need, physical and structural review of the premises and an appropriate review of the proposed transaction for legal sufficiency.
- (3) Except under well-justified special circumstances, the university shall follow principles of openness and competition in negotiating leases, designed to assure the best overall economic value is being obtained for the university.
- (4) "Lease obligations" shall include all costs identified in the lease agreement to be paid by the university including, but not limited to, rents for the initial and any option term, reasonably estimated utilities, janitorial or maintenance services, insurance, taxes, improvements, remodeling or renovation.
d. Leases (Board as Lessor)
- (1) Transactions involving an obligation in the aggregate of $250,000 or more and any real property transactions involving multiyear obligations in excess of three years shall be approved by the Board. The president is authorized to enter into all other leases of real property.
- (2) In cases in which Board approval is required, the university shall make a report and recommendation to the Board which shall include an appropriate review of the proposed transaction for legal sufficiency.
- (3) "Lease obligations" shall include all the income identified in the lease agreement to be received by the university.
e. Child Care Services
Prior to seeking Board approval for the acquisition or lease of any facility in which more than 50 persons shall be employed, the university shall carry out an assessment of child care needs for such employees. The assessment of child care needs will be in accordance with standards and criteria as adopted by the Board. The assessment of child care needs will accompany any request for Board approval of said facility.
3. Signature Requirements
All documents involving interests in real property approved by the Board shall be signed by the chair and the secretary. The president, the treasurer and assistant secretary are authorized to sign on behalf of the chair and secretary provided no one official may sign both names to the same document. Documents subject to approval by the president shall be signed by the president. The president is authorized to delegate in writing the authority to sign such documents to members of the university staff.
4. Reports on Obligation of Financial Resources
The president shall provide the Board with the following reports on transactions involving real property:
a. Quarterly Reports
The president shall provide quarterly reports of all transactions involving real property greater than $100,000 but less than $250,000.
b. Annual Report on Capital Activities
At the conclusion of each fiscal year, the president shall provide the Board with a summary of all transactions involving real property conducted during the fiscal year by category.
5. Disclosure of Beneficial Interests
Contracts for real property where a state official, a university employee, or the spouse, child, or other relative of an official or employee has a beneficial interest in the property shall be presented to the Board for approval. The following information shall be presented to the Board prior to considering approval:
a. Identification of the official or employee or the relative having a beneficial interest in the transaction.
b. Verification by the president that the transaction in question is at arm's length with consideration not in excess of fair market value and consistent with good business practices.