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Latest Cases & Developments
Date:
U.S. Department of Education DCL on Long-Term Debt Used for Property, Plant, and Equipment – Treatment of Non-bond and Bond indebtedness, and Treatment of Leases (Dec. 20, 2024)
The U.S. Department of Education Dear College Letter (DCL) on Long-Term Debt Used for Property, Plant, and Equipment – treatment of Non-bond and Bond Indebtedness, and Treatment of leases. The Letter supersedes the April 9, 2020 Electronic Announcement. The Letter includes several scenarios intended to clarify how property, plant, and equipment (PP&E) and non-bonding long-term debt are treated for the composite score calculation for nonprofit and proprietary institutions. Additionally, the Letter provides alternative options for the treatment of bond long-term debt, as well as information about pre- and post- implementation leases.
Topics:
Real Estate Transactions | Real Property, Facilities & Construction | Taxes & FinancesDate:
Perry Cnty. Bd. of Comm’rs v. Hocking Tech. Coll. (Ohio App. Sep. 26, 2023)
Opinion affirming dismissal. In 1993, the Perry County Board of Commissioners conveyed 25 acres of land to Hocking Technical College, executing a warranty deed with a reverter clause requiring the College to construct a facility for governmental offices and educational activities within four years. The College constructed a facility utilizing 25% of the land. In 2022, the College released a request for proposals (RFP) for 15 acres of the land, contemplating potential sale, lease, or other partnership, and the Board sued for quiet title and reversion of the unused portion of the land. In affirming dismissal of the Board’s complaint, the Court of Appeals of Ohio held that language of the deed was clear and unambiguous, that the College had satisfied the condition in the reverter when it built on the land, and that there was no additional condition that the College use all of the land. The Board also asserted that because it had conveyed the land to the College without statutorily required advertisements for the transfer of land in fee simple, the College is prohibited from transferring the land for private gain. The court held this question premature because the College did not sell the land in the RFP.
Topics:
Real Estate Transactions | Real Property, Facilities & Construction
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