Acquisitions and Dispositions
Acquisitions for real property must be approved by the Board of Trustees unless the property is located within the Master Plan.
- Real Estate Services will assist with obtaining an MAI appraisal if needed.
- Real Estate Services will negotiate for the purchase of real property when appropriate.
- Real Estate Services will work with University Legal Counsel and/or outside counsel to draft and execute a Purchase and Sale Agreement and see the transaction through closing.
Dispositions of real property are through the State Property Control Act.
On August 7, 2019 the Governor of IL signed Public Act 101-0213, amending the State Property Control Act. The amendment authorizes Illinois public universities to sell, lease or otherwise convey their “surplus” real estate. The Board of Trustees must determine on a case-by-case basis whether the real estate in question is “surplus.” Surplus means real estate that is “vacant, unoccupied, or unused and which has no foreseeable use” by the university.
The Act allows the university to retain the proceeds from such sale or lease so long as such proceeds are held in a separate account and utilized for funding deferred maintenance and emergency repair work.
The objectives of the guidelines are to:
- Ensure that all actions and transactions are performed in accordance with the guidelines within the Act
- Assure fair market value for all assets and ensure sale or lease terms that are in the University's best interest
- Utilize a sale process that is open, transparent, and consistent with State/federal regulations and professional real estate standards
- Assure compliance with conditions for the use of funds and maintain appropriate financial records
- Follow relevant Board of Trustees directives
Overview of Procedure:
- Chancellor of any University may initiate the process with a written request to the Comptroller
- Comptroller consults with appropriate University officials and Real Estate Services if appropriate
- If the property is deemed to meet the requirements of Surplus, the Board of Trustees must designate it so.
- Real Estate Services will arrange for a property appraisal by at least one MAI appraiser and undertake any additional due diligence necessary to determine the fair market value of the property. A title search will be conducted.
- Real Estate Services will facilitate the sales transaction most likely through outside brokerage or an open RFP process.
- Net proceeds from the sale will be deposited into an appropriate surplus property plant fund designated by University Accounting and Financial Reporting (UAFR).