Timing

[snova4]

UND owns the land the REA is on along with everything in front of it from Gateway to 6th Ave except for where the fire station is. I believe they also still own the land where all the condos behind the REA are plus the Wellness Center.

Why, when I took my buddy from Chicago, on an REA tour last year did they say that the land the REA sits on was on a 99 year lease?

[snova4]

Although located on the campus of the "University of North Dakota the arena and land itself is owned by The Engelstad Family Foundation and rented conditionally to UND each year for $1. This setup was created to give the Engelstad family control and final say regarding the facility."

Weird, that took like thirty seconds of searching.

[82SiouxGuy]

Why, when I took my buddy from Chicago, on an REA tour last year did they say that the land the REA sits on was on a 99 year lease?

UND owns the land.  It was donated years ago when someone donated the entire property from 6th Ave N to Gateway Drive.  Jdub is correct, the property where the fire station is located was transferred to the city when that building was built.  It is leased to Ralph Engelstad Arena Trust on a 99 year lease.  But the trust also has an agreement to transfer title of the facility to UND in the future.  I believe it was after 30 years, although that might not be exactly right.

[82SiouxGuy]

Although located on the campus of the "University of North Dakota the arena and land itself is owned by The Engelstad Family Foundation and rented conditionally to UND each year for $1. This setup was created to give the Engelstad family control and final say regarding the facility."

Weird, that took like thirty seconds of searching.

I don't know where you found that, but it is incorrect.  Check the Grand Forks County web site and do a property search.  You will find that UND holds the title to that entire property, sometimes known as the Bronson property.  UND refused to sell the property to Engelstad, that's why it was set up on a 99 year lease.

[darell1976]

Although located on the campus of the "University of North Dakota the arena and land itself is owned by The Engelstad Family Foundation and rented conditionally to UND each year for $1. This setup was created to give the Engelstad family control and final say regarding the facility."

Weird, that took like thirty seconds of searching.

http://letsgodu.blogspot.com/2007/03/north-dakota-plays-in-rented-arena-from.html?m=1

This system was created when Ralph Engelstad announced his donation paying for the arena. The original agreement called for UND to take ownership of the facility on Sept. 30, 2030, although that handover could come sooner.

[82SiouxGuy]

http://www.co.grand-forks.nd.us/byprop44.htm?property=44313800001000

http://gfgis1.nd.gov/gfcimsv2/gfcimsv2.html?property=44310400003000

[snova4]

http://letsgodu.blogspot.com/2007/03/north-dakota-plays-in-rented-arena-from.html?m=1

Weird, that was not the way it came off at all on the tour.

[82SiouxGuy]

Weird, that was not the way it came off at all on the tour.

You usually have a part time employee giving those tours.  I wouldn't be surprised if they make some mistakes, or don't have all of the facts exactly right.

[jdub27]

 

Weird, that was not the way it came off at all on the tour.

 

 

I don't know where you found that, but it is incorrect.  Check the Grand Forks County web site and do a property search.  You will find that UND holds the title to that entire property, sometimes known as the Bronson property.  UND refused to sell the property to Engelstad, that's why it was set up on a 99 year lease.

 

I believe it was originally only a 30 year lease but everything else is correct (to my knowledge that part hasn't been modified).  UND maintains control of the underlying land but the building itself is owned under the non-profit UND Sports Facilities Inc.  There's so many misconceptions about the REA they should just put a FAQ up on their website. 

[82SiouxGuy]

 

 

 

 

 

I believe it was originally only a 30 year lease but everything else is correct (to my knowledge that part hasn't been modified).  UND maintains control of the underlying land but the building itself is owned under the non-profit UND Sports Facilities Inc.  There's so many misconceptions about the REA they should just put a FAQ up on their website. 

 

It may have been a 30 year lease.  I went with the 99 year lease since that's what snova had heard.  My guess is that REA is paying UND $1 per year for leasing the property.  REA then turns over profits from the building to UND Athletics above that.  I was pretty sure that the target was to turn the building over to UND after 30 years, but I believe there is flexibility written into that part of the contract.  The state of North Dakota wanted to be sure that UND wouldn't get stuck with a building losing money, so I would guess that there is a clause in the deed to make sure the building is still in the black when they are ready to turn over the keys.  It is also possible that there is a clause to give the title to UND before the end of the 30 years if that is the best option.  I agree about the misconceptions, they could probably fill a book.

[SiouxVolley]

The land that businesses and townhouses that sit on the Bronson property sit are on a 99 year leases, so resale values are not affected for generations. The REA was negotiated separately and is 30 years.