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 糖心视频 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

  • Building A permanent structure as defined in Procedure 6.9.1 Facilities Information and Location Data.
  • Deconstruction The careful disassembly of a building in such a way that the maximum amount practicable of materials can be first reused, then recycled, rather than landfilled.
  • Obsolete The building has been through the full evaluation process and has been determined to be surplus to current and future requirements. A building can only be declared obsolete after the necessary evaluation and consultation processes are finished.

Part 4. Procedure

The following steps must be completed to declare a building obsolete:
  • The proposed building must be shown in the college’s or university’s Comprehensive Facility Plan (CFP) as a planned sale, demolition or disposal. The CFP will summarize the current Facility Condition Assessment observations, provide a rationale for why the building is no longer required, and allow the public an opportunity to comment on the plan. If a college or university wants to declare a building obsolete that is not referenced as such in the CFP, the President must present the Vice Chancellor for Finance and Facilities with evidence of a level of planning and consultation equivalent to that used in the development of the CFP.
  • The college or university will prepare a document summarizing the process used to arrive at the decision, the reasons the building should be declared obsolete, the consultative process used, and any issues resulting from the decision including any historic preservation, debt, and remaining legal obligations.
  • The President declares the building obsolete.
  • The President notifies the Vice Chancellor of Finance and Facilities (with copies to the Associate Vice Chancellor for Facilities and System Director for Capital Planning and Analysis) that the building is obsolete and provides a copy of the decision and the supporting documents.

The following steps are required to demolish or otherwise dispose of a building that has been declared obsolete.

  • Predesign is completed for the proposed removal project. The predesign should address as relevant to the scale of the effort and the building:
    • Building history and required historical preservation information. When appropriate, the State Historical Society must be notified to determine if the designated building has any historical significance.
    • Program relocation plans and impacts are identified.
    • Project hard and soft costs (including utility relocation, building connections and site restoration) are identified.
    • Logistical issues (e.g. noise, debris removal) and risks are identified. 
    • Any capital improvements made and the funding sources over the last 10 years are identified.
    • Rough estimates of the operational and energy savings are identified.
    • Plans and targets for sustainably salvaging, donating, recycling, reusing materials and other deconstruction opportunities to divert waste from landfills according to current statute are created.
    • A complete hazardous material survey is completed.
  • The campus identifies the necessary funding to complete the work.
  • The campus submits the predesign and funding plan to the Vice Chancellor for Finance and Facilities.
  • With the Vice Chancellor’s confirmation, the project may proceed.
  • Demolition must follow the current 糖心视频 Facilities Design Standards. Demolition drawings and specifications must be prepared by licensed professionals. Abatement of hazardous materials must be completed prior to any demolition. Demolition of the building must follow the approved plans and specifications. All safety protocols and continuity of operations plans must be confirmed before commencing with the work.
  • If demolition is funded from bond proceeds, then the project specifications 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 that has been declared obsolete and has no accompanying underlying real estate:

  • The campus notifies the 糖心视频 realestate team of the desire to sell the building.
  • The campus consults with the 糖心视频 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 and 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 makes 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 the surplus building may include the cost of the appraisal as part of the overall purchase price.
  • Working with the 糖心视频 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 糖心视频 facilities team, including risk management, real estate, and facilities information services.
  • 糖心视频 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 5. 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: 08/26/26
Date of Implementation: 08/26/26
Date of Last Review:

Date & Subject of Amendments:

 

No additional History

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