M E M O R A N D U M

		September 20, 2011


To:	Members of the Board of Trustees

From:	Nancy L. Zimpher, Chancellor

Subject: 	Acquisition of Real Property (Building) - Cayuga Community College


Action Requested

	The proposed resolution approves the site and value of a purchase of real property by Cayuga Community College.

Resolution

	I recommend that the Board of Trustees adopt the following resolution:

Whereas Education Law §6306(4) provides that a community college may acquire by deed real property suitable for carrying out the program and purposes of the college; and 

Whereas Cayuga Community College seeks to acquire property to be renovated as a permanent location for the Fulton Campus and seeks a determination by the State University Board that the value of such real property for purposes of Education Law §6304(1)(c) is $l.0 million, as established by appraisal; and 

Whereas the subject real property is a vacant building, formerly known as the P&C Market, consisting of approximately 51,658 sq. ft. on approximately 1.432 acres, located at 11 River Glen Plaza Drive, City of Fulton, Oswego County, New York (the “Site); now, therefore, be it

Resolved that the Site be, and hereby is, approved retroactive to the date of purchase, May 16, 2011; and, be it further

Resolved that the value of the Site for purposes of Education Law §6304(1)(c) is determined to be $1.0 million; and, be it further

Resolved that the Chancellor, or designee, be, and hereby is, authorized to transmit such determination as to the value of such real property to the State Director of the Budget for appropriate action.

Background

	Cayuga Community College has operated a branch campus in Fulton, New York since 2001.  The campus quickly exceeded its intended capacity and attempted to keep up with the increasing demand for community college offerings in the City of Fulton.  There is little room for expansion at the current location, which is leased.  Fall 2009 enrollment yielded an 18% increase in headcount and an FTE increase of 23% over the previous year.  Despite the addition of seven new class sections, students increasingly must take classes at non-peak times such as late afternoon and on Sunday.  Additional classroom space is necessary to provide students with the courses they need.

	The purchase and renovation of the P&C building would provide space for growth needed at this time.  The Site provides improved access, traffic control and safety, and visibility, along with the potential for future expansion.  Once the Site is purchased, Cayuga Community College will embark upon a capital project to renovate the Site to meet the needs of the campus and the student population it will serve.  The cost of completing this work is set at $11.23 million, of which $5,451,731 will be provided by the State and the remainder by the local sponsor, Cayuga County.  The State’s share of the project will be financed under the State University’s community college financing program.

	It should be noted that the subject Site has been purchased by Cayuga Community College prior to the receipt of approval of the site by the State University Trustees as required by 8 NYCRR §603.5(a).  Accordingly, the resolution approves the site retroactively to the date of purchase.  The College’s justification for making the purchase prior to receipt of approval by the SUNY Board of Trustees is that time was of the essence to secure the property before another buyer could do so. 

	Education Law §6304(1)(c) provides  that the value of real property used to fund a local sponsor’s share of capital costs is to be determined by the State University Board, with approval of the Director of the NYS Division of the Budget. Accordingly, the resolution approves the value of the property for the purpose of funding the local sponsor’s share of capital costs as $1.0 million, the appraised value.
Board Resolution	-2- 	September 20, 2011