Procedure 6.7.4 Carpentry Program Administration

System Procedures
Chapter 6 - Facilities Management

Part 1. Authority
Board Policy 6.7 delegates to the chancellor authority to acquire, develop, and sell real property and to contract for the development of real property owned by other parties in conjunction with technical college carpentry programs. Minn. Stat. § 136F.36, subd. 2 requires the development of policies for leasing requirements and construction supervision.

Part 2. Approval for the Acquisition of Real Property

Subpart A. Approval for the acquisition of real property
The technical college shall submit to the Vice Chancellor for Finance and Facilities as soon as possible a description and anticipated costs of the real property the technical college is planning to acquire for use in its student carpentry program. The technical college may proceed with the acquisition after receiving a written memorandum from the Vice Chancellor for Finance and Facilities. The approval memorandum will include delegation authority to the president of the technical college to execute all legal documents required to acquire the specific property, a copy of which will be forwarded to the Attorney General's Office. All legal documents must be reviewed by the Attorney General's Office.
Subpart B. Procedures for acquiring real property
After the president has received approval from the Vice Chancellor for Finance and Facilities to acquire a specific piece of real property for a technical college carpentry program project, the following procedures must be followed by the technical college:

Funds needed may be obtained from any authorized source including, but not limited to, General Fund appropriations for instructional expenditures, non- instructional expenditures, money carried forward, and non-Treasury sources of money.

Real property may be acquired by any authorized means, including gift or purchase. A technical college may, at its discretion, determine if purchase acquisition should be by quit claim deed, warranty deed, or limited warranty deed. Acquisitions may not be made by contract for deed. A technical college may, however, enter into a written agreement giving the technical college an option to acquire a parcel of land within a specified time period.

All documents related to an acquisition or acquisition option must be prepared or approved by the Office of the Attorney General.

All taxes and special assessments constituting a lien on any real property received and accepted as a gift, grant, bequest, devise, or endowment must be paid in full by the landowner before title is transferred to the State.

The technical college shall purchase title insurance.

A title review must be undertaken by the Office of the Attorney General before title to any property passes to the State.

The technical college may mandate that environmental assessments or other environmental investigations be done prior to any or all acquisitions of real property for instructional construction.

Part 3. Approval for Selling a Student Constructed Structure on Real Property Purchased by the Technical College or Student Construction Improvements to Real Property Owned by a Party Other than the Technical College
All student-constructed structures to be sold on real property purchased by the technical college (or student construction improvements to real property owned by a party other than the technical college (including real property owned by a technical college foundation) require the written approval of the Vice Chancellor for Finance and Facilities. The approval memo will include a paragraph delegating to the president of the technical college the authority to sign all legal documents for that particular structure and, if a part of the sale, the real property. A copy of the approval memorandum will be forwarded to the Attorney General's Office which will serve as official notice of delegation of authority for the property or improvements cited in the memorandum.

Subpart A. Student constructed structures on real property purchased by the technical college
Before a technical college sells a student constructed structure on real property purchased by the technical college, the president shall submit for approval a written memorandum to the Vice Chancellor for Finance and Facilities which must include:

The name(s) of the proposed buyer(s);

The proposed purchase price;

The appraised value of the real property (if an appraisal is required or has been obtained);

An itemization of the closing costs to be paid by the technical college;

The anticipated gross expenditure for the acquisition or net proceeds for sale;

The anticipated closing date;

Proposed contingencies, if any; and

A statement as to whether the technical college wants to extend to the buyer(s) warranties similar to those appearing in Minn. Stat. ch. 327A. If the technical college wants to extend warranties, this statement should include

A description of the warranties to be offered (i.e., a listing of the warranties and limitations/exclusions); and

A statement that the technical college either carries insurance which specifically covers the warranties or has encumbered the amount necessary to cover the maximum liability under the warranties until the warranties expire.

The technical college must have the proposed purchase agreement or other appropriate legal document prepared or approved by the Office of the Attorney General.

Subpart B. Student construction improvements to real property the technical college does not own
Before a technical colleges signs a contract related to a carpentry program development of real property owned by a party other than a technical college (including real property owned by a technical college foundation), the president shall submit for approval a written memorandum to the Vice Chancellor for Finance and Facilities which must include:

The name(s) of the land owner(s);

A general description of the improvements to be done by the technical college;

The proposed amount the landowner(s) will pay to the technical college to compensate the technical college for the fair market value of its contributions to the improvements;

A statement as to whether the technical college wishes to extend to the landowner(s) warranties similar to those appearing in Minn. Stat. ch. 327A . If the technical college wishes to extend warranties, this statement should include:

A description of the warranties to be offered (i.e., a listing of the warranties and limitations/exclusions); and

A statement that the technical college either carries insurance which specifically covers the warranties or has encumbered the amount necessary to cover the maximum liability under the warranties until the warranties expire.

A list (if known) of the co-contractors and/or subcontractors and a description of their work.

The technical college must have the proposed contract or other appropriate legal document prepared or approved by the Office of the Attorney General.

Part 4. Requirements for the Sale of Houses or Improvements Made to Real Property Owned by a Party other than the Technical College.

Houses or improvements must be sold at fair market value. The technical college may obtain an appraisal to assist in determining fair market value.
Real property acquired under an instructional construction program may be sold upon the terms and conditions established by the technical college, in accordance with applicable law. "For sale by owner" sales may be conducted by the technical college. All documents related to sales of houses or improvements must be prepared or approved by the Office of the Attorney General.
Where sale is by public auction, the auction must, unless special approval is received from the chancellor, be conducted by a duly licensed auctioneer. The contract with the auctioneer must be prepared or approved by the Office of the Attorney General. Sale must be to the highest responsible bidder. The auction must not be held unless at least two weeks' notice has been provided in at least one newspaper of general circulation in the area where the property is located. The notice must state the name(s) address(es), and license number(s) of the auctioneer(s) conducting the sale. The auctioneer fees and other administrative costs of the auction may be included in the sale price, paid from the proceeds of the sale, or paid from any other available funds not otherwise restricted or encumbered. A list of the conditions of sale must be available to potential bidders before or at the auction. The technical college shall state in the conditions of sale whether it reserves the right to reject any bid or to withdraw the property from sale.
Where sale is by sealed bid, sale must not be made unless at least two weeks' published notice has been provided in at least one newspaper of general circulation in the area where the property is located. The notice must state the time and place for receiving bids and contain a brief description of the real property for sale. The real property must be sold to the highest responsible bidder. The technical college may at its discretion refuse to sell real property where no acceptable bid is presented.
Where sale is by a real estate agent, sale must be conducted only by a duly licensed agent. The contract with the agent must be prepared or approved by the Office of the Attorney General. The real estate agent's fees and other administrative costs of the sale may be included in the sale price, paid from the proceeds of the sale, or paid from any other available funds that are not otherwise restricted or encumbered.
Sale may, in the discretion of the technical college, be with or without warranties similar to those which appear in Minn. Stat. ch. 327A. The technical college may modify the warranties which appear in Minn. Stat. ch. 327A. Should warranties not be offered, the technical college shall give clear notice of this fact to the buyer. If warranties are offered, the technical college must obtain insurance which specifically covers the warranties or must encumber the amount necessary to cover the maximum liability under the warranties until the warranties expire.
Net proceeds of the sale of real property through instructional construction programs will be retained by the technical college.
Where real property acquired through an instructional construction program cannot be sold for fair market value the technical college may at its discretion lease the real property under the terms and conditions it prescribes, in accordance with applicable law. Proceeds from the lease of real property will be retained by the technical college.

Part 5. Development and Construction Supervision.

The technical college may contract with any responsible person, firm, corporation, association, or governmental agency as necessary for the instructional construction program. Contracts must be prepared or approved by the Office of the Attorney General.
The technical college may specify in its instructional construction contract that supervision and control of instructional construction lies exclusively with the technical college.
Instructional construction must be conducted subject to state and local building codes.
In contracts for sale of improvements or real property, the technical college may, at its discretion, offer warranties similar to those which appear in Minn. Stat. ch. 327A. The technical college may modify the warranties which appear in Minn. Stat. ch. 327A. Should warranties not be offered, the technical college shall give clear notice of this fact to the buyer or landowner. If warranties are offered, the technical college shall obtain insurance which specifically covers the warranties or must encumber the amount necessary to cover the maximum liability under the warranties until the warranties expire.
The technical college shall require those providing services to the technical college during the construction of a house must comply with all applicable licensing requirements, including Minn. Stat. ch. 326A.
The technical college may require the escrowing of funds or the posting of performance and payment bonds in connection with any or all instructional construction contracts.
The technical college may require that any or all subcontractors involved in instructional construction waive their right to place a lien on the property.
The technical college shall collect and keep on file lien waivers, on forms prepared or approved by the Office of the Attorney General, for all materials, labor, skills, and machinery paid for by the technical college in connection with an instructional construction project.
The technical college should normally competitively bid contracts related to instructional construction, but may negotiate contracts without competitive bidding when it deems appropriate.
The technical college will pay any building permit fees and surcharges customarily imposed by the municipality in which the construction takes place.
The technical college may, using forms prepared or approved by the Office of the Attorney General, choose to conduct an inquiry into the creditworthiness of a landowner before entering into a contract for use of the landowner's property for an instructional construction project.

Procedure History:

Date of Adoption: 11/22/96
Date of Implementation: 11/22/96
Date of Last Review: 01/22/26

Date and Subject of Amendments:

01/22/26 – Full Review. Amendments include technical edits, updated position titles, and the application of new formatting and writing standards.

11/18/05 - Formerly procedure 6.5.2; re-numbered procedure adopted.

06/21/00 - Contains language formerly in system procedure 7.9.1

No additional History

Procedure 6.7.4 Carpentry Program Administration

Related Documents:

Procedure History: