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SBCTC Policy Manual
Chapter 6: Capital Expenditures and Real Property Transactions


6.40.00 Real Property Transactions

Under RCW 28B.50, the SBCTC holds title to the state-owned real property of the community and technical colleges. College districts may acquire or alter property for the purpose of carrying out any approved program or activity provided prior approval of the State Board based on the recommendations of state board staff and the board of trustees of the benefiting college has been granted (see Appendix D: Real Property Acquisitions). Properties shall be acquired in the name of the State Board for Community and Technical Colleges through the Department of Enterprise Services as required by RCW 43.82.

Prior approval of the State Board or State Director is also required before any college enters into an option to purchase, a right of first refusal, or a letter of intent to purchase real property.

Colleges acquiring real property are expected to cover the repair and remodeling costs of that acquisition. The State Board will not support or recommend to the Legislature a proposal to significantly repair or remodel a facility recently acquired by a college district.

6.40.10 Ground Leases

The State Director is authorized to execute Certificates of Participation documents, including the ground lease, and to execute ground leases in general that are associated with previously-approved capital projects contained within the Capital Budget.

For off-budget projects requiring ground leases, the State Board will review requests early in the development phase with final review and approval needed for ground leases prior to projects entering the later design and bid phase.

6.40.20 Gifts

Any college district and/or the State Board can receive fee title to real property as a gift (see RCW 28B.50.090 (14); RCW 28B.50.140 (8)).

  1. For any gifted real property that is or will become a part of the educational or related support facilities of a college, SBCTC approval is required to complete the formal acceptance of the gift. Approval should be requested through SBCTC staff and will be based on a recommendation for acceptance from the board of trustees of the benefiting college.
  2. For any gifted real property that will not be used for educational or related supporting activities, the local board of trustees may hold fee title without SBCTC approval. An example of such a gift would be the bequest of an income-producing property that is neither intended nor feasible for use in college-related activities.

6.40.30 Acquisitions

Under RCW 28B.50, neither the college district nor the SBCTC have statutory authority to directly purchase or lease real property. Leases and lease renewals need to be approved by OFM before a college enters into any legal agreement (see RCW 43.82). Any such acquisition is the responsibility of the Department of Enterprise Services (DES) who acts as the public works agent for SBCTC. However, the DES may delegate limited authority to a college, acting on behalf of the State Board, to negotiate, acquire, amend an existing lease, etc. only after approval of OFM.

For property contiguous to an existing owned college site or within the master-plan area of a primary campus, a district will inform the State Director of their interest in acquiring the property. The State Director will request information necessary to evaluate the acquisition according to relevant State Board criteria (see Appendix E: Form and Criteria for Evaluating) and will assure any necessary involvement of acquisition staff from the Department of General Administration. The State Director may approve letters or agreements relating to a proposed acquisition by the requesting college or bring the matter before the State Board.

State Board approval is required for agreements relating to acquiring property that is neither contiguous to an existing owned college site or within a master plan area of an existing primary campus. The State Director will determine the facts of the situation, assure any necessary involvement of the acquisition staff of the Department of General Administration, and develop a plan with the district for subsequent review and approval by the State Board. The State Director may recommend approval or denial by the State Board based on State Board criteria (see Appendix E: Form and Criteria for Evaluating). The State Board, after evaluating a proposed acquisition, may delegate to the State Director outright or conditional authority to approve subsequent documents relating to that acquisition.

Additional authorization may be required prior to the college entering into real estate transactions (see Appendix F: Special Requirements for Real Estate Appropriation Approvals).

6.40.40 Disposals

The SBCTC has statutory authority to sell or otherwise dispose of state-owned real property held for the community and technical college system. All sales or exchanges of real property must be approved by the SBCTC.

  1. Sales of community or technical college real property can be approved by the SBCTC upon the recommendation of a local board of trustees and consistent with the needs of the local college and the two-year college system.
  2. Sales transactions should be administered by or with the advice of the Enterprise Services of Real Estate Services staff when technical concerns are significant or when the value of the property is high.
  3. Proceeds of the sale or exchange of real property normally remain with the local college, and may be expended or committed to college use with SBCTC approval.
  4. Easements for use of state owned college property must be approved by the SBCTC and are normally granted upon the recommendation of the benefiting college.
  5. Rental of college property for educational use of facility resources to non-college entities is within the authority of each local board of trustees, under the general oversight of the SBCTC.

Policy History

ActionDescriptionRevision Date
Passage of HB 2366 (2007) requiring OFM approval for leases 6.40.30 added “Leases and lease renewals need to be approved by OFM before a college enters into any legal agreement (see RCW 43.82).” 8/15/2008
SBCTC Resolution 02-09-16 Board approved Policy Manual 9/19/2002

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Page Manager: asavin@sbctc.edu
Page Reviewed/Updated: April 14, 2014, 2:42 PM

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