ctcLink Accounting Manual | 30.30 Acquisition of Real Property
30.30 Acquisition of Real Property
30.30.10 Rent/Lease of Real Property
The state Department of Enterprise Services’ division of Real Estate Services (RES) is responsible for all rental, lease, acquisitions and disposal of real property by/for community colleges.
Initial requests to lease or rent real property should be made to the Division of Real Estate Services. RES may at their discretion, delegate some authorities to the college. For additional information and forms see the DES-RES webpage.
State Board approval is required before any college enters into an option to purchase, a right of first refusal, or a letter of intent to purchase real property.
Approval by the Office of Financial Management is required for any lease agreement:
- greater than 10 years and less than 20 years in duration,
- for more than $1,000,000 annually,
- privately owned buildings that are in the planning stage of development.
For additional information and forms see the OFM-Lease Approvals webpage.
Approval by the Legislature is required for any lease or acquisition agreement that includes financing, an option to purchase (RCW 39.94) or is greater than 20 years in duration. Requests for long term leases or financing of real property are normally handled as part of the capital budget processes.
30.30.20 Purchase of Real Property
The Department of Enterprise Services’ division of Real Estate Services (RES), is responsible for all purchase, surplus or option to purchase arrangements for community and technical college real property. “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.” (See SBCTC Policy Manual, Chapter 6.50.)
After obtaining State Board approval, college work with DES-RES to complete the transaction.
Under RCW 28B.50, the State Board for Community and Technical Colleges holds title to the 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. Properties shall be acquired in the name of the State Board for Community and Technical Colleges through the Department of Enterprise Services’ division of Real Estate Services as required by RCW 43.82.
All costs associated with a real property acquired outside of the capital budget process, or with local funds are the responsibility of the acquiring college. The State Board will not support any request to the Legislature for major renovation or replacement funds on property until the college has owned it at least 20 years. A college must have owned a facility for at least 6 years before it will be evaluated for state funded minor repairs.
30.30.30 Acquisitions via Condemnation/Eminent Domain
The power of eminent domain is granted by statute to the State Board (RCW 28B.50.090 (15)).
Acquisitions requested by a college district board of trustees via condemnation must meet the legal requirements for condemnation and demonstrate a state use for the property.
Except in extraordinary circumstances and as a last resort, SBCTC prefers to transact land acquisition with willing sellers.
The State Board expects colleges will negotiate acquisition and use condemnation only as a last resort.
30.30.40 SBCTC Approvals
The SBCTC or its Director must approve all real property purchases or options, as follows:
- Purchases (or options) to be made with appropriated capital funds will be made and approved in the capital budget request and allocation process.
- Purchases (or options) to be made with non-appropriated (local) funds are reviewed and approved individually.
30.30.50 Gifts of Real Property
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)).
Real property received by a community or technical college as a bequest, grant or gift is subject to SBCTC review and approval if into service as an educational resource (SBCTC Policy Manual 6.50.20.A).
Real property received by a community or technical college as a bequest, grant or gift for non-educational use is exempt from SBCTC and OFM approval. The property and the related management or disposition of such gifts is the sole responsibility of the college district board of trustees. The property is still a State of Washington asset and is subject to all reporting requirements (SBCTC Policy Manual 6.50.20.A).
The SBCTC has established a policy to guide its consideration of gift or joint use facilities that may be proposed on state land or as public/private or multi-agency facilities (see SBCTC Policy Manual Chapter 6 Policy Resource).
30.20 Capital Project Approval Process << 30.30 >> 30.40 Disposition of State-Owned Real Property
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slocke@sbctc.edu
Last Modified: 7/31/24, 4:12 PM