from University of Minnesota Financial Procedure 3.14.3.1, Real Estate Transactions

Real property must be designated "Surplus Real Estate" before offered for sale, except in the following instances:

1. Property given to the University, when conversion to cash is consistent with the terms of the gift or bequest.
2. Property taken by another agency through eminent domain.
3. Property exchanged for other property of approximately equal value.

Property valued at more than $500,000 or larger than 40 acres in size is designated as Surplus Real Estate following review of the planned sale by the Board of Regents. Property not exceeding these limits can be designated surplus by the President or Vice President for Finance and CFO.

Surplus University real estate can be offered for sale to the public internally, with either an Invitation to Bid or a Request for Proposal issued by the Real Estate Office, or externally by listing the sale of the property with a real estate broker. Before the property is offered to the public, it is first offered to the State of Minnesota and the county and the municipality or township within which the property is located. The sale method will reflect market conditions and characteristics of the particular property.

Property may be sold without a public offering in certain circumstances:

• Public Offering Resulted in No Acceptable Bids or Proposals. Following a public offering in which no bid or proposal was accepted, property may be sold in a negotiated sale, provided the price is not less than the highest bid or proposal rejected.
• Sale to Other Governmental and Non-Profit Entities. Property may be sold to the State of Minnesota, a local governing unit (i.e. county, municipality) or a non-profit organization whose program complements the University's teaching, research and public service mission without public offering, as long as the price is not less than the appraised value.
• Abutting Property Owner. Property may be sold to an abutting property owner without a public offering when the property is essential to the economic well- being of the abutting property owner, provided the price is not less than the appraised value.
• Less than $10,000. When the value of the property is less than $10,000, no public offering of the property is required.
• The University reserves minerals and mineral rights when it conveys property.