POL - 30.01.1 Real Property Transactions Policy

1. Purpose

The purpose of this policy is to provide guidance pertaining to real property transactions, which the North Carolina Central University (NCCU) Board of Trustees has delegated authority. This policy is implemented in accordance with North Carolina General Statutes 116-36, 116-31.12, UNC Policy 600.1.3.

2. Scope

This policy applies to all real property transactions at NCCU.

3. Application

3.1 This policy applies to real property transactions of NCCU, it does not govern transactions by the Board of Trustees of the Endowment Fund, organized pursuant to G.S. 116-36, or Associated Entities, organized pursuant to G.S. 116-30.20.

3.2 This policy shall apply to Millennial Campus real property transactions, provided however, that acquisitions of real property on a NCCU Campus for a period of 10 years or less and dispositions of real property by easement, lease, or rental agreement on a Millennial Campus for a period of 99 years or less shall not require the approval of the Governor and the North Carolina Council of State.

3.3 All instruments involving acquisition or disposition of an interest in real property are entered into the name of NCCU or UNC System by and on behalf of the State, regardless of whether executed by the Governor, President, Chancellor, or other official.

3.4 In addition to the authorizations provided under this policy and supplemental regulations, all permanent acquisitions, and dispositions of real property, including by Deed or Demolition, must be approved by the Governor and Council of State.

3.5 Real property may not be sold, leased, or rented at less than Market Value to any private entity that operates, or is established to operate for profit.

3.6 No permanent improvements, as defined by UNC Regulation 600.1.3[R], may be made on premises leased by NCCU that are not owned by NCCU without the prior approval of the Department of Administration and the Board of Governors.

4. Real Property Transactions

4.1 The Board of Governors delegates to NCCU Board of Trustees the power to authorize the acquisition or disposition of the following interests in real property without obtaining approval of the Board of Governors:

4.1.1 The acquisition or disposition by Deed with a value less than $1,000,000

4.1.2 The acquisition or disposition by Lease, on a Millennial Campus or otherwise, where the Annual Rental Value is less than $1,000,000 and the term is not more than 10 years.

4.1.3 The delegation of authority may be delegated to a standing committee of the Board of Trustees but may not be further delegated.

5. Additional Delegated Authority to the President and Board of Trustees.

5.1 Upon request by the Chancellor, the president may delegate to the Board of Trustees of NCCU or the Chancellor additional authority beyond the authorizations set forth herein to acquire and dispose of an interest in real property as provided in a supplemental regulation. Such additional delegated authority shall not exceed the delegation limits established under section 4 of this policy. The president may modify, revoke, or suspend the additional delegated authority of NCCU or take other remedial action as the president deems necessary and appropriate in his discretion. The minimum criteria NCCU must meet to receive and maintain additional delegated authority shall include, but not be limited to:

5.1.1. NCCU has performed a written comprehensive assessment that demonstrates it has the administrative, technical and support resources necessary to properly conduct the delegated authority.

5.1.2. NCCU’s Chancellor has certified in writing that NCCU has the administrative, technical, and support resources necessary to properly conduct the delegated authority.

5.1.3. NCCU has the properly constituted and active campus property review committee comprised of individuals with sufficient technical expertise, strategic perspective, and executive authority to perform the duties required.

5.1.4. NCCU has appropriate and sufficient technical and professional staff with demonstrated capability in the development, evaluation, and execution of commercial real property transactions.

5.1.5. An assessment team, assembled and led by Vice Chancellor for Business and Finance, including the Chief Legal Counsel (or designee), has reviewed NCCU’s assessment, has performed an onsite or virtual review of the capabilities appraisal that confirms NCCU’s assessment, and has recommended delegation to the chancellor.

5.1.6. NCCU will be reviewed for re-authorization pursuant to this section at least every five years.

6. Procedures and Reporting Requirements

6.1. The Vice Chancellor for Business and Finance shall have general authority to establish such procedures and reporting requirements for NCCU and affiliated entities as may be prudent to enable implementation of this policy and associated regulations.

6.2. NCCU, without additional delegated authority, shall report all real property transactions to the Vice Chancellor for Business & Finance at least quarterly.

6.3. Copies of all real property instruments must be filed with the office of the Chancellor, including an annual report submitted to the UNC System Office documenting all real property transactions made pursuant to this policy.

6.4. All delegations of authority are subject to any necessary approvals from the State Officials and agencies, including any required approvals from the UNC System Office as identified in this policy.

6.5. All delegations of authority that require approval beyond NCCU level are to be initiated by submission of the property forms for acquisitions and dispositions to the State Property Office.

6.6. The State Property Office will assist Facilities Management with preparation of all real property instruments.

6.7. All real property instruments must be reviewed and approved by the NCCU Office of Legal Affairs.

6.8. Facilities Management will obtain all necessary signatures prior to submission for Chancellor’s signature. Facilities Management requires the funding source for Acquisition Forms.

6.9. All real property instruments must be approved and signed by the Chancellor.

6.10. A copy of instruments is forwarded to the State Property Office. The State Property Office will assign a lease number, write the number on document, and enter in Lease Log. The lease is copied and returned to Facilities Management, where a copy is filed, a copy is sent to Capital Asset/Financial Reporting, a copy is sent to the Risk Manager and Insurance Specialist, and the original is returned to the lease department. If Third Party Entity is Leasor and NCCU is the Lessee, the State Property Office provides the lease.

6.11. Facilities Management prepares and submits the following documents for leased space requisition to Associate Vice Chancellor of Facilities Management:

6.11.1. PO-27 Lease Specifications

6.11.2. Requesting party organizational chart showing job titles and number of personnel

6.11.3. Requesting party must ensure funds are available prior to submission.

6.11.4. State Property Office will advertise and request bids.

6.11.5. Once bids are received, the State Property Office, the Associate Vice Chancellor of Facilities Management and requesting department will inspect and review the bidding properties.

6.11.6. The Associate Vice Chancellor of Facilities Management will submit a recommendation for lease to the State Property Office based on the review process.

6.11.7. State property office will coordinate the drafting/execution of the lease.

6.11.8. Once executed, the State property office assigns the lease number, writes the number on the document, and enters the lease in the Lease Log.

6.11.9. Lease is copied and returned to Facilities Management, where a copy if filed, a copy is sent to Capital Assets/Financial Reporting, a copy is sent to the Risk manager and Insurance Specialist, and the original is returned to the requesting department.