Acquisitions and Dispositions
REG 07.50.1
Authority: Vice Chancellor for Finance and Business
History: First Issued: October 30, 2000.
Additional References: Real Estate Website ; Exhibit 1
NCSU Lease Request For Space
; Exhibit 2
Note to Proposer ; Exhibit 3
State Property Transactions
; Exhibit 4
Centennial Campus Disposition by Lease Space in Buildings
; Exhibit 5
Real Estate Check List for Development Officers
.
Contact Info: Real Estate Director (919-515-3235)
1. PURPOSE
The purpose of these operating procedures is to protect the
Real Estate interests of North Carolina State University and its Foundations/Endowments
during the acquisition or disposition of real property.
2. GENERAL GUIDELINES/APPLICABLE RULES
Before action is taken regarding real estate, the University
Real Estate Office must review proposed acquisitions and dispositions.
3. PROCEDURES
3.1. Acquisition by Lease - All lease requests must be submitted to
the Real Estate Office on RE-1 and PO-27
forms. (See Exhibit 1 and 2
for examples of these forms.) The Real Estate Office will process the requests
according to the following regulations. (See Chart
Exhibit 3.)
3.1.1. Leases with an annual rent of $25,000.00 or less and a term not exceeding
3 years:
The Real Estate Office will conduct a search for space by seeking quotes
or competitive bids. After the space has been selected, a lease document
will be created and approved by the University on leases of $5,000.00
or less and by the State Property Office for leases between $5,001.00
and $25,000.00.
3.1.2. Leases with an annual rent exceeding $25,000.00 or a term exceeding
3 years (including renewal terms):
The Real Estate Office will forward a properly authorized request to the
State Property Office requesting leased space. The State Property Office
will advertise for bids. After the bids are received, the State Property
Office and the University will make a selection. The State Property Office
will create the lease.
3.2. Dispositions by Lease - The University occasionally leases
property to corporations, individuals, and other government departments.
3.2.1. Leases to organizations, corporations, individuals, or other non-state
governmental agencies:
These leases are created using the same rent value, term, and approval
guidelines used for acquisitions by lease. The only exception to these
regulations is the disposition of leases on Centennial Campus. (See
Chart Exhibit 4: Centennial Campus Disposition by Lease - Space
in Buildings - Centennial Campus Financing Act 1987, G.S. 116-198.31.40
as amended by NC General Assembly under Session Law 1998-159.)
3.2.2. The disposition of space to University Departments or State agencies
is usually accomplished by "use agreements." "Use agreements" are executed by a responsible official from each agency. The State Property
Office should review large inter-agency agreements before they are executed.
3.3. Acquisition by Purchase/Gift -
3.3.1. Departments, Foundations or Endowments forward detailed information
concerning the proposed gift to the Real Estate Office. (Endowment and
Foundations development officers should attach the following information
to an RE-2 Form - Real Estate Check List for Development Officers
- See Exhibit 5):
a. Ownership
b. Description of property and improvements
c. Copy of the Deed
d. Map of property
e. Encumbrances; i.e., easements, leases, taxes
f. Zoning
g. If gift, outstanding liens or debt service
h. Describe any use of hazardous or toxic chemicals
on the property
i. Value
j. Commercial properties - supply copy of prior year
income tax return, plus other pertinent financial information
k. Details of any known problems, i.e., pending litigations,
disputes, planned neighboring developments, etc.
l. Other available information
3.3.2. NCSU Real Estate will review the proposed acquisition and forward its
recommendation to the Vice Chancellor for Finance and Business or the
Treasurer of the Foundation/Endowment. Expenses incurred as a result of
this review will be paid by the appropriate agency initiating the proposed
acquisition.
This will include:
a. Summary of the on-site inspection of the property.
b. A Phase I Environmental Site Assessment.
c. Legal access to the property (easements, right of ways, etc.)
d. Identification of any encumbrances which may impact the use or marketability
of the property.
e. Evaluation of cash flows, if applicable.
f. An appraisal of value will be required for the purchase of any property.
Two appraisals will be required for any property valued in excess
of $100,000.00.
g. The Chancellor will approve purchases not exceeding $50,000.00 and pass
them to the Board of Trustees’ Buildings and Property Committee.
Purchases exceeding $50,000.00 will be approved by the Board of Trustees.
The Treasurer of Foundations/Endowments will present the purchase request
to the Board for approval.
h. Approved acquisitions will be sent to the State Property Office for
review and presentation to the Governor’s Council of State for approval.
The Foundations/Endowments Board will present approved acquisitions to
the Treasurer for execution.
3.4. Disposition by Sale -
The sale of property by the Stated or Endowments and Foundations will follow
the same regulations and approval processes used for acquisitions.
3.5. Easements -
Easements are non-possessory rights to use the land of another. The State,
Foundation, or Endowment may acquire or grant easements.
3.5.1. Acquisition of an easement is accomplished using the same approval process
as acquisition by purchase.
3.5.2. Granting an easement is usually done to accommodate public utilities
or local governments. The process of approval follows the same guidelines
as an acquisition by purchase. One exception is that the Chancellor has
the authority to approve routine utility easements.
3.6. Severance -
Severance includes such actions as removal of timber or demolition of buildings.
3.6.1. Severance of timber from lands managed by North Carolina State University
are permitted under a Resolution adopted by the Council of State on February
8, 1968, and amended on September 6, 1977.
3.6.2.Severance of buildings require the approval of the Chancellor, Board
of Trustees’ Buildings and Property Committee, and the Council of
State. All buildings scheduled for severance must be certified as being
asbestos free before they will be approved by the Council of State.
3.6.3. Severance from Endowment/Foundation properties require approval by the
respective Boards and execution by the Treasurer.
