ITEM 58-101-R1287 Property Acquisition Zone, University of Montana
THAT, The Board of Regents of Higher Education of the Montana University System authorizes the University of Montana to designate a Property Acquisition Zone defined as Blocks 25 and 36 of the Supplementary Plat of a portion of the Montana Addition to the City of Missoula (all properties within the two blocks between Eddy Street on the South, South Fifth Street East on the North, Maurice Avenue on the East, and Arthur Avenue on the West) 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 the University of Montana at Missoula as hereinafter prescribed.
1. No property outside the designated Property Acquisition Zone may be acquired without the specific approval of the Board of Regents of Higher Education.
2. 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 $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 Education.
3. 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.
4. Properties within the Property Acquisition Zone may be purchased with rents from such properties accrued for that purpose, auxiliary services funds, building fee proceeds, or other nongeneral fund resources available to the President for that purpose.
5. In the course of acquiring properties within the Property Acquisition Zone, no ongoing payment obligation of the University of Montana shall be incurred in excess of funds known or reasonably projected to be available for that purpose.
6. Rents from properties owned or acquired within the Property Acquisition Zone, as well as other peripheral owned and rented residences, 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 purposes will be accrued, invested, and reinvested to fund and finance further acquisitions or improvements of properties within the Property Acquisition Zone.
7. Conversion of any property within the Property Acquisition Zone 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 Zone, shall require approval of the Board of Regents of Higher Education.
8. 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 each proposed purchase within the Property Acquisition Zone, and no purchase ‘hall be made without the approval of the Commissioner.
9. Properties which cannot be purchased but which 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.
NOTE: The University has purchased fifteen properties within the described Property Acquisition Zone over the years, in keeping with the long term campus development plan. Parking problems and recent establishment of a resident only parking district around the University have prompted acceleration of the acquisition program. Delegation of general authority to acquire properties within the zone 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.
The properties acquired to date have been obtained at an average price of $48,633. It is anticipated that the average purchase price of the remaining nineteen properties within the described Zone will exceed that amount due to inflation in the interim between now and the time of actual acquisition. However, no price will be paid in excess of the higher of two appraisals without specific approval of the Regents, as is provided in paragraph number 2 above.