REAL ESTATE

REAL ESTATE 02-06-05

BACKGROUND

This Real Estate Policy supplements Article 11 of the Bylaws of the Board of Trustees of Michigan State University (“Board”). “Real Estate” means interests in land (surface or subsurface), buildings, air rights, water rights, and mineral rights.

POLICY

Purposes: University real estate should (i) serve the University’s instructional, research, or outreach missions, (ii) provide protection for other University real estate, or (iii) be held for future such uses (“University Purposes”).

Purchase: Based upon its assessment of the University’s needs and independent appraisal of real estate suitable for University Purposes that becomes available for purchase, the administration may recommend that the Board purchase the real estate. Purchase of real estate will require the Board’s approval. If necessary, the administration may obtain options to purchase real estate pending final action by the Board with respect to the purchase, preferably after obtaining independent appraisal of the real estate to be optioned.

Gifts: The Board may accept gifts of real estate to be used for University Purposes, including gifts subject to restrictions that do not render such use impractical. Gifts of real estate also may be accepted for sale.

Sale: When University real estate is not needed for University Purposes, the real estate may be publicly offered for sale, with the terms of the offer, such as asking price and inclusion or exclusion of mineral rights, to be based upon independent appraisal and upon consultation with the Board Finance Committee. Any sale of University real estate will require Board approval.

Easements: The President and the Vice President for Strategic Infrastructure Planning and Facilities are each authorized to grant easements and similar rights in University-owned real estate that do not materially affect its use for University Purposes or its value.

Real Estate Leases: The President and Vice President for Strategic Infrastructure Planning and Facilities are each authorized to execute on behalf of the Board, as lessor or lessee, leases of real estate for terms of less than ten years and to execute on behalf of the Board, as lessor, oil and gas leases in accordance with the Board’s prior separate delegation of authority concerning such leases. Board approval will be required for execution of any other real estate leases.

Enacted: 4/2/82

Amended: 4/4/86, 2/13/04, 1/25/13