Real Property Management - Buildings and Land
Policy Number: 5.2.11-P
Current Effective Date: 10/04/2018
Original Effective Date: 03/31/2015
Revision Dates: 03/31/2015, 05/01/2016, 08/28/2017
Revision Number: 3
Responsible Official: Director of Asset Management
To outline the KCTCS guidelines and Kentucky Revised Statutes (KRS) requirements controlling the management of real property (buildings and land).
This procedure applies to all KCTCS colleges, the Kentucky Fire Commission, and Kentucky Board of Emergency Medical Services.
KCTCS may acquire state-owned or private property and dispose of KCTCS property within the guidelines of KRS and any related regulations, through the KCTCS Office of Facilities Support Services - Asset Management Office (AMO).
- The KCTCS President will approve the purchase and disposal of real property.
- The Secretary of the Kentucky Finance and Administration Cabinet, must approve in writing, the appraised value utilized for the purchase and sale of real property prior to KCTCS taking action to purchase or dispose of real property.
- All real property sales and acquisitions shall be reported to the KCTCS Board of Regents at the next regularly scheduled board meeting.
The college must request permission from the Vice President of Administrative Services for the AMO to obtain appraisals and proceed either with the purchase of disposal of real property.
- The appraised value of property will determine the maximum priceKCTCS may pay.
- In general, one appraisal is required if property value is estimated to be $200,000 or less; two appraisals are required if property value is estimated at more than $200,000.
- The appraised value is not to be shared with the property owner.
- An environmental assessment must be conducted prior to purchase.
- The AMO will handle negotiations with the property owner, offers to purchase, and coordinate the execution of all closing documents.
- A lease with an option to purchase shall be reported to the Capital Projects and Bond Oversight Committee after the proposed lease terms have been negotiated, but before execution in conformity with KRS.
Real property can be sold, transferred to another state or local entity of government, or demolished.
- The KCTCS President will submit a written request to the Secretary of the Kentucky Finance and Administration Cabinet declaring the property surplus to KCTCS’s needs and available for disposition.
- The AMO will conduct a survey of other state and local agencies to determine if there is interest in the property.
- The AMO will request an environmental assessment, which must be conducted prior to receiving approval to demolish a building.
- Upon receipt of an approved demolition order, the building can be demolished.
The proceeds from the sale of real property, purchased in whole or in part with capital construction funds, shall be returned to the source of the funds utilized for their purchase in a pro rata manner.
KCTCS may execute Easements and/or Right-of-Entry across property within the guidelines of KRS and if in the best interest of KCTCS or other public use.
The college will ensure the easement does not interfere with the college master plan.
The college President will approve proposed easements prior to their execution.