November 21-22, 2002

ITEM 117-1003-R1102  Assignment and Transfer of Management and Control of the Daly Family Mansion, Hamilton, Montana, from the Montana Historical Society to The University of Montana; The University of Montana-Missoula

THAT: Pursuant to Montana Board of Regents Policy 1003.6.V, the Board of Regents of the Montana University System authorizes The University of Montana to accept the assignment and transfer of management and control of the Daly Family Mansion in Hamilton, Montana, from the Montana Historical Society.

EXPLANATION: The Montana Historical Society has proposed to assign and transfer management and control of the Daly Family Mansion in Hamilton, Montana, to The University of Montana. The University is interested in accepting management and control of the Mansion in order to develop important new educational programs for University students and faculty, as well as members of the public, regarding the Mansion's historical and cultural significance. The Historical Society has maintained an agreement with the Daly Mansion Preservation Trust for many years for the Trust to manage the property directly pursuant to Sections 22-3-601 through 22-3-603, authorizing the Historical Society to enter into such agreements with local historical property management and preservation groups. The Daly Family Mansion Trust strongly supports the proposed assignment and transfer of the Mansion's management and control responsibilities to the University. Because title to the Mansion remains with the State of Montana, the Montana State Land Board has declined to exercise jurisdiction over this matter. Under the proposed assignment and transfer, and subject to the contingency reversion condition noted herein, the Historical Society would relinquish all further responsibility for the Mansion. The University would follow, to the extent practicable, all statutory and other legal requirements applicable to Montana historical properties. The University does not intend to spend University funds in connection with the Mansion's management and control responsibilities. The University does intend to work closely with the Mansion Trust and the University Foundation on capital fundraising activities to benefit the Mansion. The University President's Office will participate directly in all significant trust activities. Following the November 2002 Board of Regents' meeting, UM Legal Counsel David Aronofsky prepared language for insertion as Paragraph V into the draft Assignment and Transfer Agreement between the University and the Historical Society, and also as the third paragraph in Article XI in the draft Management Agreement between the University and the Trust, permitting reversion of Mansion management and control authority, at the University's discretion and subject to Board of Regents' approval, back to the Historical Society if the Trust becomes unwilling or unable to continue managing the Mansion. The Montana University System Chief Legal Counsel has reviewed and approved as to form the proposed reversion language.

ATTACHMENTS: 1) December 10, 2002, Draft Assignment and Transfer Agreement between the Montana Historical Society and the University.

2) December 10, 2002, Draft Management Agreement between the Daly Mansion Preservation Trust and the University.

3) September 24, 2002, letter from State of Montana Trust Lands Attorney Tommy Butler to University Legal Counsel David Aronofsky confirming the Mansion's title ownership and retention by the State of Montana.

4) August 28, 2002, letter from State of Montana Trust Land Management Division to University Legal Counsel David Aronofsky indicating State Land Board determination not to exercise jurisdiction over this matter as long as Mansion title is not to be transferred from the State.