11. LAND TRANSACTIONS
a. Leases (Including Oil and Gas Agreements)
i. All leases of real property shall be approved by university counsel as to form, shall be submitted to the Board for approval in accordance with paragraph iv. of this subsection, and shall be submitted to other state agencies for approval where required by law. (K.S.A. 75 3739(l), 75-3743, 75 3744, 76-165, and/or 76-769(b))
ii. No real property owned or controlled by the State of Kansas shall be leased unless a notice of intention to lease said property has been ¬published at least thirty days prior to execution of any documents; provided, however, that this requirement shall not be imposed on leases with another state agency or a political subdivision. (K.S.A. 75 430a(d)).
iii. No lease of land for the production of oil, gas or other minerals shall be for a period of more than ten years and so long as oil, gas or other minerals are produced in paying quantities thereon, shall be awarded only upon competitive bids pursuant to K.S.A. 76-165, and shall retain to the state a royalty interest of not less than one-eighth part of all oil, gas or other minerals produced. When a state university leases land for the production of oil, gas, sand, gravel or any other mineral, the university shall provide information to the state geological survey in accordance with K.S.A. 76-323b. (K.S.A. 76 164 through 76 168)
iv. State university leases of state-owned property to third parties not associated with the state university may be executed by the state university’s chief executive officer without Board approval unless
(1) the lease involves construction on state property;
(2) the lease is an oil, gas or mineral lease covered by K.S.A. 76-165;
(3) the lease is for a term of more than 10 years; or
(4) the lease is for an amount in excess of $25,000 per year.
v. Leases with state university endowments, foundations, and other related organizations are governed by subsection 11.e. below.
i. The state universities’ chief executive officers shall act on behalf of the Board in granting or conveying right-of-way easements across any land under the custody and control of the Board. Easements may be granted with or without receiving consideration therefore, and may permit use of the land for purposes of access, convenience or necessity and such other right-of-way purposes as are customarily related to such easements. (K.S.A. 74-3264 and 75-2131)
ii. Easement documents shall be submitted to the Attorney General for approval as to form (K.S.A. 74-3264 and 75-2131).
c. Sale of Real Property
i. Following receipt of the appraisals required by law, any sales of real property owned or controlled by the Board of Regents or a state university must be approved by the Board of Regents and authorized by the Legislature. K.S.A. 74 3254 may serve as pre-authorization by the Legislature to dispose of certain devises. (K.S.A. 75-3043a and 74-3254)
ii. No real property owned or controlled by the Board of Regents or a state university shall be sold unless a notice of intention to sell said property has been published at least thirty days prior to execution of any documents. (K.S.A. 75 430a(d))
iii. No real property owned or controlled by the Board of Regents or a state university shall be sold, and no transaction for the sale of such property shall be closed, until the property has been surveyed as required by law. (K.S.A. 75-6611)
iv. Sales of real property to state university endowments, foundations, and other related entities are governed by subsection 11.e. below.
d. Acquisition of Real Property
i. The Board of Regents may acquire real property necessary to properly maintain and carry on a state university or the business thereof. (K.S.A. 76 147)
ii. State universities shall submit a description of all properties that they desire to purchase, or otherwise acquire, to the Board for approval. If such property is valued at less than $250,000, the Board President and Chief Executive Officer, upon the recommendation of the Director of Facilities, may approve the acquisition on behalf of the Board. Such description shall include a legal description of the property, anticipated use and the estimated cost of purchase and any cost relating to the razing or renovating and maintaining such property.
iii. No real property shall be purchased by the Board of Regents or a state university until the property has been appraised as required by law. (K.S.A. 75-3043a or 76-147) Prior to purchase, a warranty deed and environmental assessment will be required. Exceptions to the requirement for a warranty deed may be made by the Board President and Chief Executive Officer.
iv. Each state university shall record all deeds to real estate acquired, and any other instruments relating to the acquisition required by law to be recorded, with the register of deeds of the county where the real estate is located. All original instruments relating to land acquisitions shall be maintained in the Board office. (K.S.A. 75 3516)
v. Acquisition of real property from state university endowments, foundations, and other related organizations are governed by subsection 11.e. below.
e. Real Property Transactions with State University Endowments, Foundations and Other Related Organizations
i. State university endowments, foundations and other related organizations are organized under the laws of the State of Kansas and exist to support the state universities. While state law and organizational charters typically impose upon these related organizations special responsibilities for the administration of property received by the organizations, this policy shall establish the basis for all real property transactions described herein between all related organizations, the state universities and the Board. For purposes of this paragraph e., the term “related organizations” includes all state university affiliated corporations as defined in section II.D.6. of this Policy Manual.
(1) The approval of the Board of Regents shall be required prior to the acceptance by a state university of any gift of property from any related organization.
(2) In the event any related organization desires to sell to the Board or the university properties held by the related organization as a result of purchase, or a gift or devise that conveyed unrestricted and unqualified fee to the related organization, the purchase price shall not be more than the highest appraised value as determined by two independent real estate appraisers. (K.S.A. 76-147)
(3) Where trades of real property between the State and any related organization may benefit the state university and disposal of the state property has been approved by the Legislature, the Board of Regents may authorize the state university to negotiate a trade of the realty. The valuation of the related organization’s property shall be determined in the same manner as that of state properties. (K.S.A. 75-3043a or 76-147)
(4) Leases of real property by the state universities from any related organizations shall be subject to the approval of the Board and to the following limitations:
(a) If the related organization holds properties in ¬unre¬stricted accounts for which no remuneration is required under its fiduciary responsibility, or if the property is held on the basis of a gift or ¬de¬vise which so permits, the related organization may make the property available to the state university on a no fee basis.
(b) Any occupancy by the state university shall be subject to a written agreement.
(c) For properties held by any related organization as ¬in¬vestments for eventual development by the state university, the rental cost shall not exceed an amount calculated to amortize the investment, or the market value in a case where the state university seeks to occupy a property previously leased by the related organization on a private or commercial -ba¬sis.
ii. Construction of Buildings: When any related organization constructs a building on the organization’s property for the state university’s use and at the request of the state university, the state university is authorized to enter into lease agreements on an amortizing basis, subject to the advance approval of the Board of Regents.
iii. Issuing Bonds: In the event any related organization proposes or is requested to issue bonds and the proceeds will be used to fund construction or improvement upon Board-owned property, the state university having possession of the property shall obtain Board approval of the project before the bond issuance process is initiated.
f. Designation on the State or National Historic Register: Each state university shall seek approval from the Board prior to initiating the process to place state property on the state or national historic register.