BOT 614: Real Estate

Board of Trustees Policy

 

POLICY NUMBER: BOT 614

POLICY NAME: Real Estate

Effective Date: April 2, 1982
Last Review Date: October 25, 2024
Next Scheduled Review Date: October 2029

 

I.  POLICY STATEMENT

This Real Estate Policy supplements Article 12 of the Bylaws of the Board of Trustees of Michigan State University (“board”) with respect to real estate and other property transactions.


II.  RESPONSIBLE OFFICE

Office of Infrastructure Planning and Facilities.


III.  SCOPE

This policy applies to existing real estate and other property governed by the Board of Trustees and real estate and other property that the University wishes to acquire, sell, or lease on behalf of the board.


IV. DEFINITIONS

Real Estate: Interests in land (surface or subsurface), buildings, air rights, water rights, and mineral rights. 


V. 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”).

1. Acquisition or Sale:Based upon its assessment of the University’s needs and suitability for University purposes, the administration may recommend that the board acquire or dispose of real estate. Except as provided in this policy, acquisitions, sales, and other dispositions of real estate require approval by the Board of Trustees. The administration may obtain rights to acquire or sell real estate such as purchase agreements or options, contingent on approval by the Board of Trustees.

The president may acquire or sell real estate without prior approval by the board if such an acquisition or sale is necessary for the University to:

  • Avoid the loss of life, health, safety, or property;
  • Meet time limits established by a person or entity external to the university; or
  • Obtain cost savings for the university.

Any acquisition or sale of real estate without prior board approval shall be reported at or before the next regularly scheduled board meeting. Before proceeding with such an acquisition or sale, the president must consult with a minimum of two trustees. Ideally, these consultations will include the chair of the board and the chair of the Budget and Finance Committee. The board chair and the chair of the Budget and Finance Committee may request that the president consult with the full board before the acquisition of real estate proceeds. The vice chair of the board shall serve as an alternate for purposes of consultation under this subsection if the board chair or the chair of the Budget and Finance Committee has a conflict of interest that precludes either trustee from consulting with the president.

2. Gifts: Gifts of Real Estate to be used for University purposes and that will incur construction, operating, or maintenance expenses, or otherwise affect the University’s operating budget, will require approval and acceptance by the Board of Trustees. Other gifts of Real Estate, including Real Estate designated for sale, may be accepted and sold by the administration in accordance with guidelines established by the administration.  All gifts accepted by the administration shall be reported at the next regularly scheduled meeting of the Board of Trustees

3. Easements: The president is 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. The president may delegate authority under this subsection to other university officials. The delegation shall be made in writing and a copy of the delegation shall be kept in the Office of the President. 

4. Real Estate Leases: The president is authorized to execute on behalf of the board, as lessor or lessee, leases of real estate for terms of less than ten years. The president is authorized to execute on behalf of the board, as lessor, mineral rights leases..  The president may delegate authority under this subsection to other university officials. The delegation shall be made in writing and a copy of the delegation shall be kept in the Office of the President.  Board approval is required for execution of any other real estate leases. Leases entered into on behalf of the university must be registered with the Real Estate Office. 

5. Administrative Policies and Guidelines: The administration is authorized to establish administrative policies, procedures and guidelines for the acquisition, sale, disposition and management of University Real Estate consistent with the bylaws and policies of the Board of Trustees.

VI. HISTORY

Enacted:           April 2, 1982

Amended:         April 4, 1986
                          February 13, 2004
                          January 25, 2013
                          October 25, 2024

Retired Policy No. 02-06-05

 

Policies