July 12-13, 2001
ITEM 112-2701-R0701 Increase Purchase Price Within Property Acquisition Zone; Montana State University- Billings
THAT: The Board of Regents of Higher Education of the Montana University System authorizes Montana State University-Billings to increase the purchase price within the Property Acquisition Zone 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 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 for a purchase price not to exceed $115,000, 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 Zone may be acquired without the specific approval of the Board of Regents of Higher Education.
Any of the residential properties within the Property Acquisition Zone 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 $115,000. 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 Education.
Purchase of properties within the designated property Acquisition Zone may be made on a cash, contract, mortgage, 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 services 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.
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 with 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 any approved University development purpose may be acquired by condemnation only after review and approval thereof by the Board of Regents of Higher Education.
EXPLANATION: Due to the substantial increase in property values in the Billings area, the previous purchase price limit of $75,000 is no longer a realistic value for the properties within this acquisition zone. Our most recent purchase, approved at the last Board of Regents' meeting, was for $89,000. However, no price will be paid in excess of the higher of two appraisals without specific approval of the Regents, as is provided for above.