Scope
University-wide
Policy Statement
The general principles outlined in these protocols apply to all Syracuse University units. These protocols specifically address property transactions involving SU Abroad.Long Term Program Planning by SU Abroad
SU Abroad shall prepare a Program and Space Outline for each one of the international sites. The outline shall address:
Current Programs
- Description of current programs offered at each site, including an assessment of the University's commitment to maintaining the existing programs and retention of program space.
- Evaluation of the current program space utilization with emphasis on functionality (including a breakdown of current space allocation between administrative, classroom, academic support and public space); suitability; code compliance including life safety and fire protection; appropriate zoning; access; attractiveness; related operating costs.
- Proposed future programs for each site.
- Assessment of the existing space's capability of supporting proposed new program elements.
- Modification of existing space, additional or new space required for future programs with projected facility costs, including specific program requirements, such as specialized space, laboratories, computer access, darkrooms, etc., and associated proposed occupant capacities and projected square footage.
- Budget analysis, including estimated cost of modified or additional/new space, proposed funding for modified or additional space with possible offsets through disposition of current properties, savings in facility operating costs, property taxes, etc. For the purpose of the budget analysis, SU Abroad shall assume that the SU Abroad Real Estate Purchases and Sales Reserve account will serve as the primary funding source. However, SU Abroad may pursue other funding mechanisms such as fund raising or debt financing in accordance with the prior written approval of the Chancellor. The analysis should include projected costs for a professional realtor, legal services, market analysis or appraisal, environmental assessments, and property and liability insurance mandated by the host country and/or necessary to protect the University's interest. Political risk insurance to guard against political violence, currency inconvertibility and expropriation of University property shall be considered in any analysis.
- Outline shall take into consideration the economic stability and political climate in each host country and the time period for the University's commitment to maintaining a presence in each host country.
Protocol for Locating New or Additional Space
After the Program and Space Outline for a site has been approved by the Vice Chancellor and Provost, the process of locating space will be directed and managed by the Executive Vice President and Chief Financial Officer, including, but not limited to review and authorization of steps taken to locate appropriate space, and select the project manager, local real estate professionals, attorneys, architects, appraisers, and brokers retained to advise the University, according to directives issued by the Executive Vice President and Chief Financial Officer. A request to commence the process of locating space should be provided to the Executive Vice President and Chief Financial Officer at least six months prior to the anticipated move in date.
Since the real estate market and sales practices differ from host country to host country, services shall be retained of a trained and reputable real estate professional, licensed to conduct business in each host country, to advise and represent the University's interest in each transaction; a local real estate attorney to review and oversee any proposed property transaction from a legal standpoint and to advise the University on tax and title issues; a local insurance agent/broker to advise the University on insurance matters germane to the host country; and professionals to advise the University on compliance with environmental and other local government regulations.
The following checklist shall be followed once a suitable property is located. All documents shall be provided in English.
- A property assessment detailing how the proposed property meets the program needs approved in the basic Program and Space Outline shall be forwarded to the Vice President for Undergraduate Studies and the Vice Chancellor and Provost for review and approval.
- A detailed exterior and interior property description, including square footage, floor plans, and architectural and mechanical drawings shall be forwarded to the Office of Campus Planning, Design & Construction for review and approval. In addition, a detailed engineering evaluation, including a complete structural assessment, assessment of the HVAC system, boilers, electrical, water and sewer service, sprinkler and security system, elevators and handicapped accessibility shall be forwarded to the Office of Campus Planning, Design & Construction for review and approval. This engineering evaluation shall be performed by a duly qualified engineering firm licensed to do business in the host country.
- A site survey showing the property lines and all easements or right of ways shall be forwarded to the Real Estate Office for review and approval.
- An environmental report, performed by a qualified and appropriately licensed professional, including a history of the property's prior uses and neighborhood data shall be forwarded to the Office of Risk Management and the Environmental Health Office for identification of potential hazards and liabilities and for review and approval. The report must be performed in accordance with standards and requirements specific to the geographic area of the proposed purchase and must conform to most recent recommendations published by the American Society for Testing and Materials (ASTM). The report must contain the results of a complete asbestos survey; as well as testing for lead in paint or plumbing fixtures; mercury; radon; and other known materials unique to the geographic area of the proposed purchase which may pose a human health risk.
- An insurance report (including copies of insurance policies) detailing the coverages necessary for protection of the property shall be submitted to the Office of Risk Management for review and processing.
- An independent market analysis or appraisal supporting the proposed purchase price of the property shall be forwarded to the Real Estate Office for its review and comments. It shall contain an evaluation of the property's current zoning and suitability for educational use; it shall also address whether the property has any historic or other significant architectural designation that would impact the proposed rehabilitation of the property for the University's intended use. It shall also identify all ingress and egress points to the property from public streets, availability of on-site and public parking and access to public transportation. Photographs and maps of the property and its surrounding neighborhood shall be included. The market analysis or appraisal shall also include a description of construction or public works projects known or planned in the vicinity of the property which may impact the University's intended use of the property.
- A detailed financial analysis to include: the proposed purchase price, funding source(s) for the purchase price, rehabilitation costs and their funding source, ongoing operating costs (utilities, insurance, real estate taxes, interior, exterior and grounds maintenance, etc.) and their funding source shall be forwarded to the Office of Budget and Planning for review and approval. A copy shall be provided to the Treasurer's Office. The SU Abroad Property Purchase Formula worksheet attached as Appendix A to this protocol shall be used.
The Offices of Campus Planning, Design & Construction, Risk Management, Real Estate, Budget and Planning and the Treasurer shall submit their findings and recommendations to the Executive Vice President and Chief Financial Officer in writing. The Executive Vice President and Chief Financial Officer shall issue a recommendation in writing to the Chancellor with a copy to the Vice Chancellor and Provost.
If the Chancellor, after reviewing the recommendations of the Vice Chancellor and Provost and the Executive Vice President and Chief Financial Officer, approves going forward with the purchase, the Chancellor shall have the Executive Vice President and Chief Financial Officer submit a proposed purchase recommendation to the Facilities Committee of the Board of Trustees for its review. The Facilities Committee, if it approves the purchase proposal shall submit it to the Executive Committee of the Board of Trustees for its consideration. Upon approval by the Executive Committee, the following checklist shall be followed to close on the property purchase:
- A purchase contract shall be prepared by a local attorney using standard University purchase contract language. The contract must be reviewed by the Real Estate Office and the offices of Bond, Schoeneck & King in Syracuse, New York. Upon satisfactory legal review, the purchase contract will be executed by the Executive Vice President and Chief Financial Officer on behalf of the University.
- A copy of the deed or equivalent document, abstract of title or equivalent document, and all other documents customarily associated with a property purchase in the host country must be reviewed by the local attorney. A copy of all documents should be provided to the offices of Bond, Schoeneck & King in Syracuse, New York and to the Real Estate Office at Syracuse University for review and approval.
- A detailed property description including year built, type of construction, insurable replacement value and description of fire protection and security systems shall be forwarded to the Office of Risk Management for its review and procurement of necessary and adequate insurance coverage. This report shall include the anticipated closing date of the purchase.
- Prior to closing, a property inspection attended by a designated staff member of SU Abroad and a designated staff member of the Office of Campus Planning, Design & Construction shall be scheduled and any deficiencies noted must be corrected prior to closing. A copy of the inspection report shall be forwarded to the Office of Risk Management.
- Once a closing date has been set, arrangements for international wire transfer shall be made with the University's Treasurer's Office.
In accordance with the assessment in the Program and Space Outline, the Executive Director of SU Abroad shall recommend to the Vice President for Undergraduate Studies in writing that an overseas program site be offered for sale. SU Abroad's recommendation shall include the reasons why the University should divest itself of the property, the proposed time frame of the sale and an estimated sales price. The recommendation shall provide a description of all fixtures and furnishings included in the proposed sale. If the Vice President for Undergraduate Studies concurs with the recommendation, the Vice President shall forward it to the Vice Chancellor and Provost. A copy of the letter shall be provided to the Chancellor and the Executive Vice President and Chief Financial Officer. If the Chancellor approves in principle that the property shall be offered for sale, the checklist below shall be followed to effectuate the sale. All documents shall be in English. The Executive Vice President and Chief Financial Officer will direct and manage, including but not limited to review and authorization of the steps to be taken to dispose of the property, and select local real estate professionals, attorneys, appraisers, and brokers retained to advise the University according to the directives issued by the Executive Vice President and Chief Financial Officer.
- An independent property appraisal or market analysis shall be obtained showing a range of market value for the property and forward it to the Real Estate Office for its review and determination of a proposed asking price. If fixtures and furnishings are included in the proposed sale, the appraisal shall include an appraised value for these items.
- The proposed asking price shall be approved by the Executive Vice President and Chief Financial Officer, the Chancellor, and the Facilities and Executive Committees of the Board of Trustees.
- Services shall be retained of a trained and reputable real estate broker, licensed to do business in each host country, to market the property; and of a local real estate attorney or other qualified professional to review and oversee any proposed sales from a legal standpoint and to advise the University on tax and title issues. A copy of the proposed listing agreement with the real estate broker shall be forwarded to the local attorney, to the offices of Bond, Schoeneck & King and to the Real Estate Office for review and approval. Any listing agreement shall contain language that a sale is subject to the approval of the Executive Committee of the Board of Trustees. A percentage commission rate no higher than the customary commission rate in the host country shall be agreed upon before the listing agreement is signed by the Executive Vice President and Chief Financial Officer.
- The purchase offer shall be reviewed by the local attorney, and if necessary revised to include standard University contract language. A copy shall be provided to the Offices of Bond, Schoeneck & King and the Real Estate Office for review and concurrence.
- The Real Estate Office shall issue a recommendation to the Executive Vice President and Chief Financial Officer whether the University should accept the offer.
- The Executive Vice President and Chief Financial Officer will forward a recommendation to the Chancellor with a copy to the Vice Chancellor and Provost.
- If the Chancellor approves going forward with the proposed sale, a sales recommendation shall be submitted by the Executive Vice President and Chief Financial Officer to the Facilities Committee of the Board of Trustees. If the Facilities Committee approves the sale, it shall forward its recommendation to the Executive Committee of the Board of Trustees for its consideration.
- If the Executive Committee approves the sale, the Executive Vice President and Chief Financial Officer shall sign the sales contract on behalf of the University. If a down payment is tendered as part of the purchase offer, the down payment shall be deposited in the SU Abroad Real Estate Purchases and Sales Reserve.
- The local attorney shall commence title work, including preparation of a proposed deed or equivalent document and update the abstract of title or equivalent document. Copies of all documents shall be provided to the Offices of Bond, Schoeneck & King and the Real Estate Office for review and approval.
- If required by local law or by the sales contract, arrangements shall be made to have a property survey updated and provide it to the purchaser, and also provide the purchaser with other documents or drawings related to the property.
- SU Abroad shall make arrangements with local utility companies, contractors, and service providers to have all services that are in the University's name terminated as of the closing date.
- Once a closing date has been set, a proposed closing statement detailing all financial adjustments shall be prepared by the local attorney and forwarded to the Offices of Bond, Schoeneck & King and the Real Estate Office for review and approval. A copy shall be sent to the Treasurer's Office for review and approval.
- An original Deed or equivalent document shall be sent to the Executive Vice President and Chief Financial Officer for signature.
- The Treasurer's Office shall issue instructions for an international wire transfer to receive the proceeds of the sale.
- The Deed or equivalent document shall be held in escrow by the local attorney until the international wire transfer is received by the University.
- Proceeds from the sale shall be deposited in the SU Abroad Real Estate Purchases and Sales Reserve Account.
After the Program and Space Outline for a site has been approved, the alternative of leasing new or additional space may be considered. A request to commence the process for locating leased space should be provided to the Executive Vice President and Chief Financial Officer at least six months prior to the anticipated move in date. The Executive Vice President and Chief Financial Officer will direct and manage, including but not limited to review and authorization of the steps to be taken to locate appropriate space and select local real estate professionals, attorneys, architects, and brokers retained to advise the University, according to directives issued by the Executive Vice President and Chief Financial Officer.
Since the rental markets differ from host country to host country, services shall be retained of a local trained and reputable real estate professional, licensed to do business in each host country, to represent the University in its search for leased space. Once suitable space is located, the following checklist shall be followed. All documents should be provided in English:
- A written description of the leased space, including a floor plan, detailing how the proposed leased space meets the program needs approved in the Program and Space Outline shall be forwarded to the Vice President for Undergraduate Studies and the Vice Chancellor and Provost for review and approval. A copy shall be provided to the Office of Campus Planning, Design & Construction.
- The financial details of the lease, including lease rate, lease term, security deposit, inclusion of utilities or other services, furnishings, renewal options, and landlord/tenant rights and obligations under the lease shall be provided to the Office of Budget and Planning for review and approval. SU Abroad shall also identify the proposed funding source for the lease payments to the Office of Budget and Planning.
- If the Executive Vice President and Chief Financial Officer approves going forward with the lease, an actual lease document shall be prepared by a local real estate broker or a local real estate attorney. The lease document shall include standard University contract language. If a satisfactory lease termination clause cannot be negotiated, SU Abroad must account for the financial exposure in its analysis provided to the Budget Office, including a projection of continued lease, utility and insurance payments, program and staff termination costs and write-off of fixtures, furniture, equipment and improvements, and provisions for funding these expenditures. Any lease document shall include a clause that permits the University to sublease the leased premises with the Landlord's consent, which shall not be unreasonably withheld. If a satisfactory subleasing clause cannot be negotiated, SU Abroad must account for the financial exposure in its analysis provided to the Budget Office, including a projection of continued lease, utility and insurance payments.
- A copy of this document shall be provided to the University's Real Estate Office and to the Offices of Bond, Schoeneck & King for review and approval. The lease document shall be signed by the Executive Vice President and Chief Financial Officer.
- A copy of the lease shall be provided to the Office of Risk Management for review and for procurement of appropriate insurance coverage.
- SU Abroad shall make all necessary arrangements to commence lease payments and procure utility and other services not covered by the lease.
International Property/Purchases/Leases Protocol
AVAILABLE FUNDS
| Total reserves: | $______________ |
| Less reserves to be maintained: | $______________ |
| Funds available for purchase: | $______________ |
ESTIMATED COSTS
| Building purchase: | $______________ |
| Taxes on purchase: | $______________ |
| Legal fees: (1) | $______________ |
| Renovation expenditures: | $______________ |
| Moving expenses: | $______________ |
| New F, F & E: | $______________ |
| Travel: (1) | $______________ |
| Engineers and consultants: (1) | $______________ |
| Real estate commissions: | $______________ |
| Other fixed costs: (2) | $______________ |
| TOTAL ESTIMATED COSTS: | $______________ |
Notes: Include VAT on all taxable items.
- Purchase evaluation, tax advice, contract documents to conclusion of purchase.
- Any obligations on current leases or other obligations related to the operation of current building(s) that might be vacated or sold until completed sale or termination.
Policy Administration
Links to Procedures and Related Information
Amended: September 26, 2000
Amended: September 12, 2002
Amended: September 30, 2003
Amended: July 27, 2004
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