Procedure 6.9.1 Building Disposal

System Procedures
 Chapter 6 - Facilities Management

for Board Policy 6.9

Part 1. Purpose

To establish a process that disposes of obsolete college or university buildings in an efficient, cost-effective, and safe manner to strategically reinvest operating dollars in ways that positively impact students and the campus environment.

If a college, university or the system office determines that an owned building is no longer needed, it shall declare the building obsolete and sell, demolish, or otherwise dispose of the building.

Part 2. Authority

A college or university president has the authority to declare a building obsolete after the evaluation and consultation process outlined in this procedure has been completed.

A college or university president has the authority to demolish an obsolete building after the process outlined in this procedure has been completed.

Any sale of a building with real property owned by Minnesota State must comply with 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.

Part 3. Definitions

  • Must include requirements to comply with Minnesota Statute 16B.327, which outlines the percentage of material that must be diverted from a landfill along with nonhazardous material recycling.

The following steps are required to sell a building with no accompanying underlying real estate that has been declared obsolete:

  • The campus notifies the Minnesota State realestate team of the desire to sell the building
  • The campus consults with the Minnesota State Facilities division and Minnesota Management and Budget 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 Minn. Stat. §16A.695, which also requires Minnesota Management & Budget approval, and in some cases the recapture of the original investment of the general obligation bond amount from the proceeds.
  • The campus obtains an environmental report to determine the presence of any hazardous materials in the building and make that report available for review by prospective buyers.
  • The college or university obtains 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.
  • Working with the Minnesota State real estate team, the campus initiates the sale of the building. 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 must 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.

The following steps are required to be completed after sale, demolition or disposal:

  • The college or university notifies the Minnesota State facilities team, including risk management, real estate, and facilities information service.
  • Minnesota State facilities information services will update workday location records, facility condition assessment records, and the Department of Administration's State Building Construction Division, the keeper of the state’s master register of state buildings.

Part 4. Accountability and Reporting

Periodic reports may be presented to the Board of Trustees on the status of buildings and removal history.

Related Documents:

Procedure History:

Date of Adoption: 06/25/26
Date of Implementation: 06/25/26
Date of Last Review:

Date & Subject of Amendments:

 

No additional History

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