November 20-21, 2003

ITEM 121-108-R1103Authorization to Accept Offer for the Sale of Property Located at 11 Park Road, Havre, Montana; Montana State University-Northern

 

THAT: The Board of Regents of Higher Education authorizes Montana State University-Northern to accept an offer for the sale of the property located at 11 Park Road, Havre, Montana.

 

EXPLANATION: Montana State University-Northern desires to sell residential property that the University has owned for many years. Legal description of property is Lot 0 of Ken-Wright Hills Second Filing, a subdivision of a portion of Section 8, Township 32 North, Range 16 East M.P.M. The lot includes no structures and 1.55 acres of land. The former Chancellor's residence was demolished in 2002, following irreparable water damage. Sale of the lot will be as is.

In accordance with Section 20-25-307, MCA, Montana State University-Northern solicited proposals for the purchase of the property. The property was appraised at $38,500 in 2002. A minimum bid of $38,500 cash was required.

In addition to the proposal offer amount, the proposed purchasers agree to pay any lender costs that might be required, which may include: appraisal, survey of the property, title insurance costs; real estate commissions, or closing costs. The University will pay no real estate commissions. Proposed buyers submitted evidence of pre-approval for loans as an attachment to their bid. Payment in full at the time of closing is required.

As required, MSU-Northern published a public notice of the Request for Proposals in the Havre Daily News for four consecutive weeks during August and September 2003.

One bid was received and the bid opening took place on September 12, 2003. The proposed purchaser with the highest acceptable bid ($45,000) was notified and the buy/sell agreement was negotiated and signed. Upon final approval from the Board of Regents, the proposed sale will be presented to the Board of Land Commissioners at their December 15, 2003 meeting.

The sale will be finalized at closing by issuance of deed, without covenants of warranty, as specified under Section 20-25-307, MCA. A closing date in January 2004 is anticipated.

In the event of default by the apparent successful purchaser, the purchasers bid security of $500 will be forfeited to the University as damages and the next highest proposed purchaser will be notified.

 

ATTACHMENT  Land Appraisal Report and Purchase Agreement