March 25-26, 2004

REVISED

ITEM 122-1503-R0304:  Authorization to Sell 12.694 Acres of Land in Butte Industrial Park; Montana Tech of The University of Montana

THAT: The Board of Regents authorizes, in accordance with Montana University System Policy 1003.6, the sale of approximately 12.694 acres of land located in the Industrial Park on Basin Creek Road in Butte, Montana. This property is Lot 13 (5.172 acres), Lot 14 (5.184 acres), and part of Lot 15 (2.338 acres) of the Butte Industrial Park Addition, Butte-Silver Bow, Montana. On January 21, 2004, the appraised value of this property was $10,000 per acre ($126,940) and the highest and best bid was $16,937.14 per acre ($215,000) on March 15, 2004 by Butte Local Development Corporation.

 

EXPLANATION: On November 13, 1983, Lots 16 and 17 of the Butte Industrial Park and the Mineral Research Center buildings were transferred by the Montana Tech Foundation to the State of Montana for the benefit of Montana College of Science and Technology. On December 13, 1985 by Grant Deed, Lots 13, 14 and 15 of the Butte Industrial Park were transferred by the Montana Tech Foundation to The Board of Regents of Higher Education of the State of Montana. The only covenant established by the Grant Deed is that the proceeds from the sale of the property be used for educational purposes of the Montana College of Mineral Science and Technology, with preference to acquisition of scientific equipment and facilities. It is the intention of Montana Tech of The University of Montana, as successor of Montana College of Mineral Science and Technology, to place the proceeds, after paying costs of the sale, into a designated account for the purpose of buying scientific equipment or paying part of the construction costs of the Petroleum Engineering/Bureau of Mines and Geology Building.

Most of the usable property in the Butte Industrial Park has been used for buildings and Lots 13, 14 and part of Lot 15 named above represent most of the remaining usable property of the original Park. Additional land is available in the general area of the Industrial Park, including 60 acres owned by the Montana Tech Foundation, but this land is not developed with infrastructure.

To assist a client that wishes to build on part of the property and to have available land for additional economic development projects, the Butte Local Development Corp. (BLDC) approached Montana Tech about purchasing this property. BLDC was furnished a copy of Board of Regents Policy 1003.6 and told that we would have the property appraised and advertised as quickly as possible but that the orderly process provided in Policy 1003.6 would be followed to its fullest spirit and that we would accept what we considered the highest and best bid. The appraised value was a disappointing $10,000 per acre which is not an acceptable amount to Montana Tech. The property was advertised (copy attached) in the Montana Standard on February 27, March 3, 10 and 15, 2004 with a minimum bid of $15,000 per acre. In addition, this advertisement was posted on bulletin boards on campus, on the State Procurement Web Site for Bids and Requests for Proposals, the State Surplus Property e-mail list and The University of Montana Web and e-mail list.

Montana Tech of The University of Montana does not have a foreseeable need for this property. Should additional space be needed on Basin Creek Road, the South Campus (College of Technology) has approximately 16 acres adjoining the campus but not currently used.

 

ATTACHMENTS: Advertisement

Grant Deed

Appraisal