BOARD OF REGENTS BRIEFING PAPER
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1 BOARD OF REGENTS BRIEFING PAPER Title of Agenda: Transfer of Real Property ( N. Center Street, Reno, NV) from the University of Nevada, Reno Foundation to the Nevada System of Higher Education for the Benefit of the University of Nevada, Reno, Meeting Date: September 6-7, BACKGROUND & POLICY CONTEXT OF ISSUE: The University of Nevada, Reno Foundation (Foundation) is requesting approval for a deed transfer of Foundation real property to the Nevada System of Higher Education for the benefit of the University of Nevada, Reno (UNR). Since the property was first gifted to the Foundation in 1986, UNR has used it for campus related entities and activities. Currently the UNR Real Estate and Rentals Department is responsible for the overall management and maintenance of the property. The property is being offered for transfer without monetary consideration. Location of Property: The property is located just south of the UNR main campus at 821 N. Center Street (Exhibit 1). Property Description: The property comprises a land area of approximately 6,000 square feet (0.14 acres) and consists of two buildings. The main building is a 1,348 square foot former residence currently being utilized as business offices. The second building is a 500 square foot residential cottage (Exhibit 2). Current Use: The main building is currently leased as office space to the International Studies program known as the Northern Nevada International Center. The smaller building is leased as a residential rental. UNR manages and maintains the property through a lease agreement with the Foundation. Foundation Corporate Resolution: The Executive Committee of the Foundation approved a resolution on February 13, 2012 to gift the property to NSHE (Exhibit 3). The property may be used for visiting professors, meetings, University events, or any other purpose for the advancement of the University of Nevada, Reno as determined by the President of the University. Estimated Value: The approximate current market value of the property, as estimated by the University of Nevada Real Estate Department, is $250,000. No formal appraisal was conducted or expense incurred since this is a transfer without monetary consideration. Other: No mineral or water rights are associated with this property. Closing Costs: University of Nevada, Reno will pay the closing costs which include, but are not limited to, a policy of title insurance, escrow fee, and deed preparation. Total closing costs are estimated at $700. Phase 1 Environmental Report: Based on regulatory database review, there are no known violations of environmental laws and regulations related to the site. The report provided evidence that two underground heating oil tanks were removed from the property in At the time of the tank removals, soil contamination was found beneath each tank. Remediation and testing were conducted and on August 15, 2000 the Nevada Division of Environmental Protection issued a No Further Action letter. Revised: April 2011 (INVESTMENT AND FACILITIES COMMITTEE 09/06/12) Ref. IF-2b, Page 1 of 5
2 Original Gift Deed: The property was gifted to the Foundation in The will accompanying the deed to the Foundation stated that the property could be used for any other purpose for the advancement of the University of Nevada, Reno as determined by the President of the University. There were no deed restrictions on the transfer or sale of the property. 3. SPECIFIC ACTIONS BEING RECOMMENDED OR REQUESTED: President Marc Johnson requests approval of the deed transfer of N. Center Street from the University of Nevada, Reno Foundation to the Nevada System of Higher Education for the benefit of the University of Nevada, Reno. 4. IMPETUS (WHY NOW?): The property was a gift to the Foundation for the benefit of UNR. The property is currently used by and has been managed and maintained by the UNR Real Estate and Rentals Department. The property is offered for deed transfer without any consideration. 5. BULLET POINTS TO SUPPORT REQUEST/RECOMMENDATION: The property is located within the Board approved Campus Master Plan, and within the key UNR planned Gateway project. Acquisition is consistent with both the University s Strategic Plan and Campus Master Plan. The property has equity with no debt service or major concern for property condition or other liability. 6. POTENTIAL ARGUMENTS AGAINST THE REQUEST/RECOMMENDATION: None. The Foundation is anxious for UNR to own and operate the property for its benefit, both in the near and long term given its development potential as part of the Gateway Project. 7. ALTERNATIVE(S) TO WHAT IS BEING REQUESTED/RECOMMENDED: Pass on the opportunity and the University will continue to manage and maintain the property through a lease agreement with the Foundation until such time that it may acquire the property for market value or other agreed upon terms. 8. COMPLIANCE WITH BOARD POLICY: X Consistent With Current Board Policy: Title # 4 Chapter # 10 Section # 1.9 Amends Current Board Policy: Title # Chapter # Section # Amends Current Procedures & Guidelines Manual: Chapter # Section # Other: Procedures & Guidelines Manual, Chapter 5, Section 3, Preparation and Approval of NSHE Contracts. Fiscal Impact: Yes No X_ Explain: This transfer of real property involves no consideration. Revised: April 2011 (INVESTMENT AND FACILITIES COMMITTEE 09/06/12) Ref. IF-2b, Page 2 of 5
3 EXHIBIT 1 819/821 N. Center Street Location 10TH N VIRGINIA ST N VIRGINIA ST University of Nevada, Reno Campus E 9TH ST E 9TH ST E 9TH ST LAKE ST W 9TH ST N CENTER ST N CENTER ST N CENTER ST E 8TH ST N CENTER ST E 8TH ST I80WB FY I80EB FY White arrow shows the location of 819/821 N. Center Street south of the University of Nevada, Reno campus (INVESTMENT AND FACILITIES COMMITTEE 09/06/12) Ref. IF-2b, Page 3 of 5
4 EXHIBIT 2 819/821 N. Center Street Parcel N CENTER ST N CENTER ST White arrow shows the property parcel of 819/821 N. Center Street south of the University of Nevada, Reno campus (INVESTMENT AND FACILITIES COMMITTEE 09/06/12) Ref. IF-2b, Page 4 of 5
5 (INVESTMENT AND FACILITIES COMMITTEE 09/06/12) Ref. IF-2b, Page 5 of 5
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