Sec. 603.5. Real property

(a) Acquisition of real property.

Real property may be acquired for community college facilities by gift only after the State University trustees have approved the selection of the site, and by purchase or condemnation only after an appraisal has been prepared and the State University trustees have approved the selection of the site, the educational value of the property and a capital budget which includes the acquisition costs.

(b) Appraisal of real property.

Any appraisal of real property required by this Subchapter shall be prepared by an appraiser selected by the State University, approved by the college trustees and engaged by the college or sponsor. Prior to the enactment of an appropriate capital budget, appraisal costs shall be paid in the first instance by the sponsor or the college. Any appraisal required by this Subchapter shall be dated within one year of the date of the transfer of title of the real property.

(c) Title to real property.

Title to the real property shall be vested with the sponsor, and the real property shall be dedicated to be held in trust for the college with a resolution of the governing legislative body of the sponsor, which resolution shall describe the parcel by a metes and bounds description. The description shall be incorporated into a deed which shall place the property in trust on behalf of the community college, which deed shall be filed and recorded in the office of the county clerk in which the property is located.

(d) Disposal of real property.

A local sponsor may dispose of real property if the college board of trustees and the State University have passed resolutions declaring that the property is no longer useful or required for community college purposes and the minimum rental and the market value at the time of disposal has been determined by an appraisal and approved by the State University trustees. The following methods of disposal are approved:

(1) sale to the sponsor for not less than the market value;

(2) sale by competitive bidding to the highest bidder as approved by the local sponsor and State University;

(3) by method applicable to local sponsor and approved by the State University trustees.

In the event the disposal cannot be prudently considered or no buyer can be found, the sponsor shall endeavor to lease the property in the following manner:

(4) rental to the sponsor for not less than the minimum rental;

(5) rental to a third party for not less than the minimum rental. In any case, where a local sponsor has received State financial assistance based on expenditures for community college capital facilities and the local sponsor shall thereafter dispose of such facilities by sale or by discontinuance of their use for community college purposes, State financial assistance for costs of any new capital facilities shall be reduced by crediting to such assistance otherwise payable an amount computed as follows:

(6) one half of the value of such facilities at the time so disposed of as fixed by the State University trustees with the approval of the Director of the Budget; or

(7) if the State contributed less than one half, such lesser percentage of original capital costs as may have been paid by the State; and

(8) in no event shall such value be fixed for such purpose at more than the original cost of such facilities nor less than the amount actually received by the local sponsor upon the sale thereof.

Where disposal of the real property is in part payment for a new capital article for community college purposes, this section shall not apply.