November 21-22, 2002
ITEM 117-2001-R1102 Authorization to Enter into Negotiations for a Trade of Land with SAAM Real Estate, the Owner of Two Lots in the Greekway Subdivision; Montana State University- Bozeman
THAT: The Board of Regents of Higher Education authorizes Montana State University-Bozeman to negotiate a land trade with the owners of Greekway Subdivision lots 4 and 5 for lots 6,7 and 9.
EXPLANATION: The plat of the Greekway Subdivision, an addition to the City of Bozeman in 1964. The recorded plat contained two restrictions: 1) The lots cannot be subdivided and 2) no building less than 6,000 square feet can be constructed on any lot. An unrecorded restriction contained in the original certificates of purchase added the restriction that any building constructed must be a single family dwelling and "For the purpose of this covenant, a sorority or fraternity house shall be considered a single family unit." The subdivision was created with the intention that it would house the university's fraternity and sorority residences.
Some of the lots were purchased by fraternity and sororities and developed [Lots 3 and 8 on attached map]. Other lots were sold but were never developed. [Lots 2,4,5, 6 and 9.] Lots 1 and 7 were never sold and MSU regained ownership of lots 6 and 9. The purchasers of Lots 2,3,4, 5 and 8 completed payment and deeds were issued, However, the deeds issued to the purchasers of Lots 4 and 5 by the university failed to include the restriction for single family dwellings and the reference to sorority and fraternity houses. This restrictive covenant was never recorded on the property. SAAM Real Estate, a Bozeman development company, has purchased the lots from the fraternity or sorority owners and hold the lots by deed without a restrictive covenant. The company plans to construct multi-unit apartment complexes on the lots.
MSU seeks permission to negotiate a land trade with SAAM Real Estate. MSU would like to propose that MSU trade Lots 4 and 5 for lots 6, 7, and 9, with the difference in the square footage to be paid in cash by SAAM Real Estate after an appraisal of the lots. MSU seeks to undertake the trade to consolidate its ownership of lands west of the Greekway Road for future university uses. If MSU is successful in negotiating a proposed land trade with SAAM after receipt of the appraisals, MSU will proceed to comply with the requirements of Section 20-25-307, MCA, including providing public notice of the proposed land exchange and allowing the public opportunity to comment. Any negotiation for the land exchange will be conditioned upon approval of the Board of Regents and concurrence of the Board of Land Commissioners as required under Section 20-25-307, MCA.
ATTACHMENT Sub-Division Map