61.62 - UI Property (Real Estate) Transactions

July 30, 2009 (formerly 10.62)

A. General. The acquisition or disposal of any interest in real property by the UI may require prior approval by the Board of Regents and are subject to relevant Board policies. This includes the purchase or sale of property, granting of easements, leasing of land or facility space either owned by UI or leased from outside parties, and exchanges of real property. Also included is the transfer of any interest in real property or the acquisition of any real property options.[rev. 7-09]

B. Process

B-1. Real Property Transactions. Any unit of UI desiring to enter into any transaction identified above, should direct an initial proposal or inquiry to the Real Estate Officer at (208) 885-6468. The following types of real estate transactions include most, but not all, real property situations.[num. & ed. 7-09]

B-2. Purchase of Real Property. The acquisition of real property by UI requires that an independent appraisal be obtained to provide an opinion as to fair market value. Generally, the University will not acquire real property in excess of appraised value. After receipt of an appraisal, UI will proceed with necessary legal review, all environmental assessments, preparation of necessary documents approving financial arrangements, and when necessary, obtain Board of Regents approval. The ownership of real property acquired must be taken in the name of the Board of Regents of the University of Idaho, and transactions can only be executed by the Vice President for Finance and Administration. [ren. & ed. 7-09]

B-3. Sale of UI Real Property. Generally, the sale of UI real property is restricted to only those cases where the long-term best interest of the UI would be served by such sale. The process for such sales is similar to the process for the purchase of real property. [ren. 7-09]

B-4. Lease and Rental Agreements for UI Use. The lease or rental of land or facilities to outside parties may require prior approval by the Board of Regents. These transactions can only be executed by the Vice President for Finance and Administration. Proposed lease or rental agreements require a justification, legal and insurance reviews, cost comparisons as to fair market value and approval of funding sources. [ren. & rev. 7-09]

B-5. Lease of UI Land or Facilities. The lease or rental of UI land or facilities to outside parties requires prior approval by the Board of Regents. Such proposed transactions are to be at fair market value for comparable private sector property. Again, the only individual authorized to execute documents for lease or rental agreements is the Vice President for Finance and Administration. [ren. 7-09]

B-6. Granting of Easements. The UI may grant access or utility easements on UI real property often requiring prior approval of the Board of Regents. Such easements may be permanent or time-limited, depending on what best serves the interest of the UI. Easements are executed by the Vice President for Finance and Administration subject to Board of Regents approval when needed. [ren. & rev. 7-09]

B-7. Exchanges of Real Property. The UI may enter into real property exchange transactions with the private sector when such transactions further the long-term best interests of UI. Exchanges require prior approval of the Board of Regents and follow the same process as for the purchase of real property. [ren. 7-09]

B-8. Transfer of Real Property. Under limited circumstances, the UI may request approval of the Board of Regents to transfer real property to another party. Such transactions are generally limited to other state or governmental entities for street or highway improvements or projects providing long-term benefits to UI. [ren. 7-09]

B-9. Options to Purchase. With prior approval by the Board of Regents, the UI may enter into options or rights to first refusal to acquire real property in the future. Such options may be incorporated into lease agreements or stand alone transactions. Such transactions can provide future long-term planning opportunities for the UI. [ren. 7-09]

B-10. Financing Arrangements. The acquisition of real property by the UI may require making financial arrangements to pay for property over a period of time. The UI generally pursues tax-exempt financing through bond issues or commercial loans based on a dedicated revenue source that will amortize the debt. [ren. 7-09]

B-11. Interest in Real Property. Any interest in real property acquired through purchase, lease, gift, exchanges, easements or options must be taken in the name of the Board of Regents of the University of Idaho and not in the name of units. [ren. & ed. 7-09]

C. Contact Information. For questions, contact the Real Estate Officer at (208) 885-6468. [add. 7-09]