Item 103-2702-R0599
May 20-21, 1999
ITEM 103-2702-R0599 Authorization to Acquire Real Property; Montana State University-Billings
THAT:
The Board of Regents of Higher Education of the Montana University System authorizes Montana State University-Billings to designate Property Acquisition Zones defined as: (1) Lots 16 through 24 and Fraction of Lots 25 through 27, Block 2, Normal Subdivision (the College of Business Building); (2) North 28th Street Right of Way adjoining the east property line of Lots 16 through 23, Block 2, Normal Subdivision (portion of North 28th Street being vacated adjacent to the College of Business); (3) Normal Avenue & Marbarra Lane Right of Way, Babcock Subdivision; (4) Lots 9 through 30, Panoramic Heights Subdivision; (5) Block 21, Sunnyside Subdivision (all properties within the block between North 27th and North 26th Streets and 12th Avenue North to the Billings Bench Water Authority canal); and (6) the remaining 7.25 acres of Tract 2, Certificate of Survey No. 2547, situated in the SW 1/4 of Section 2; T.1.S., R.25.E., P.M.M., and to acquire any of the properties therein, to be held by the Board of Regents of Higher Education for the use and benefit of Montana State University-Billings as hereinafter prescribed.
No property outside the designated Property Acquisition Zones may be acquired without the specific approval of the Board of Regents of Higher Education.
Any of the properties within the Property Acquisition Zones which become available for purchase may be purchased upon obtaining a minimum of two appraisals and negotiating a purchase price which is not in excess of the higher of the two appraisals, provided that the purchase price does not exceed $75,000. Any acquisition at any price in excess of the higher of the two appraisals shall require prior specific approval of the Board of Regents of Higher Educator.
Purchase of properties within the designated Property Acquisition Zones may be made on a cash, contract, mortgage, exchange, donation, assumption of indebtedness, or trust deed basis, and the University is authorized to retain the services of appraisers, trustees, real estate agents, or escrow agents as may be required to appropriately complete the transfer.
Properties within the Property Acquisition Zones may be purchased with rents from such properties accrued for that purpose, auxiliary service funds, building fee proceeds, or other non-general fund resources available to the Chancellor for that purpose.
In the course of acquiring properties within the Property Acquisition Zones, no ongoing payment obligation of the University shall be incurred in excess of funds known or reasonably projected to be available for that purpose.
Rents from properties owned or acquired within the Property Acquisition Zones, as well as other peripheral owned and rented properties, will be used to pay any expenses, incident to ownership, maintenance, improvement, and management of said properties, and rent receipts in excess of those required for those purposes will be accrued, invested, and reinvested to fund and finance further acquisitions or improvements of properties within the Property Acquisition Zones.
Conversion of any property within the Property Acquisition Zones to any use other than as a rental property, which conversion would result in a reduction of rental income available for making payments on or maintenance and operation of rental properties within the Zones, shall require approval of the Board of Regents of Higher Education.
A report containing the property description, the two required appraisals, the purchase price, and the terms and conditions of purchase shall be forwarded to the Commissioner of Higher Education prior to the proposed purchase within the Property Acquisition Zones, and no purchase shall be made without the approval of the Commissioner.
Properties which cannot be purchased but are necessary to complete a parcel or boundary configuration for an approved University development purpose may be acquired by condemnation only after review and approval thereof by the Board of Regents of Higher Education.
EXPLANATION:
Over the years, the University has purchased numerous properties within the existing Property Acquisition Zones, in keeping with the long-term campus development needs. The University has researched the various options of expansion. Expanding to the north is not possible due to the Rim Rocks. Expanding west, as we have in the past has, become prohibitive due to the extremely high-priced real estate. Expanding to the south is prohibitive because of the competition with the medical corridor. The only viable option is moving east across 27th Street. The opportunity to secure additional holdings adjacent to the Campus will safeguard and ensure the long-term interests of the University. Delegation of general authority to acquire properties within the Property Acquisition Zones and within the limitations and reporting requirements herein proposed would facilitate acquisitions and obviate delays and repetitive considerations incident to transaction-by-transaction review by the Regents. An appendix to this document, which consists of a map of the proposed Property Acquisition Zones, will be provided at the May Board of Regents meeting.