6.7: Surplus Building Disposal Policy
Related Minnesota State Board Policy: 7.3 Financial Administration
Related Minnesota State Board Procedure: 7.3.13 Surplus Personal Property/Building Disposal
Related Minnesota State Board Policy 6.7: Real Estate Transactions and Management
Related Minnesota State Board Procedure 6.7.1: Acquisition and Disposition of Real Estate
Related Minnesota State Board Procedure 6.7.4: Carpentry Program Administration
Related Normandale Community College Procedure: 7.1.4 Surplus Personal Property Disposal
Related Normandale Community College Procedure: 7.1.5 Acquisition and Disposal of Sensitive IT Items
Purpose:
To establish the approved process to dispose of surplus college buildings efficiently in a cost-effective manner. For the disposal of college surplus personal property, refer to Normandale Procedure 7.1.4 for the prescribed process. For sensitive IT item disposal, refer to Normandale Procedure 7.1.5.
Part 1: Definition
Surplus buildings: State-owned buildings that are obsolete, unused, not needed for a public purpose, or ineffective for current use. Any liens against property must be satisfied before the property can be considered surplus.
Part 2: Building Disposal
If the system office or college determines that a building is no longer used or the building is a threat to the health, welfare, or safety of students, faculty or staff, it shall sell, demolish, or otherwise dispose of the building. Except in an emergency, the decision to remove or surplus any building on campus will be consistent with the system office approved Comprehensive Facilities Plan. Any sale of a building with real property owned by Minnesota State Colleges and Universities shall be governed by Board Policy 6.7, Real Estate Transactions, and Procedure 6.7.1, Acquisition and Disposition of Real Estate. Sale of carpentry program buildings are governed by Procedure 6.7.4 Carpentry Program Administration.
Subpart A: Prior to any sale of a building, consultation shall be required to determine whether general obligation bond proceeds were used in the acquisition, construction, renovation or betterment of the building. Any general obligation bond funds that were used would trigger statutory requirements under MN Statute §16A.695, which also requires Minnesota Management & Budget approval, and likely recapture of the original investment of the general obligation bond amount from the proceeds.
Subpart B: Prior to a sale the college shall obtain an environmental report to determine the presence of any hazardous materials in the building and make that report available for review by prospective buyers.
Subpart C: When appropriate, the State Historical Society shall be notified to determine if the designated surplus building has any historical significance, and the State Building Construction Division should be notified in order to update the master register of state buildings.
Subpart D: The college shall obtain at least one written appraisal from an independent appraisal firm for any building valued greater than $40,000. The sale price for surplus building may include the cost of the appraisal as part of the overall purchase price.
Subpart E: If a building has a real net value of $5,000 or more (after giving consideration to costs of removal, demolition, salvage and restoration of land), the building may be sold through sealed bids at a public auction to the highest responsible bidder or through a licensed real estate broker. A sale may not be made until publication of notice of the sale in a newspaper of general circulation in the area where the property is located and any other advertising deemed appropriate. Any of the property may be withdrawn from the sale prior to the completion of the sale unless the auction has been announced to be without reserve. If the sale is made at public auction, a duly licensed auctioneer must be retained to conduct the sale. The auctioneer's fees and other administrative costs of the auction must be paid from the proceeds from which an amount sufficient to pay them is appropriated.
Subpart F: Property owned by the state may be sold to a state employee after reasonable notice at a public auction or by sealed bids if the state employee is the highest bidder and is not directly involved in the auction or sealed bid process.
Policy History:
Date of Adoption: Established prior to 2011
Date of Implementation:
Date and Subject of Revisions: November 2023, Update title and content to focus on building disposal requirements; distinguish from procedures on surplus personal property disposal and sensitive IT item disposal; add related policies and procedures; update to conform to system policy.
Next Review Date: 2027