Untitled Texas Attorney General Opinion

July 30, 1975 The Honorable Jack K. Williams Opinion No. H- 655 President Texas A&M University Re: Whether ,a state university College Station, Texas 77843 can erect a building on land subject to a possibility of reverter. Dear Dr.. Williams: You have requested our opinion concerning the authority of the Texas A&M University System to erect a building on land subject to a possibility of reverter. The land involved in your request was deeded to the University from the United States of America on November 21, 1974. The deed contains four conditions subsequent which in essence are as follows: 1. The property will be used for educational purposes in accordance with the plan set out in the application. 2. The grantee can sell, lease, encumber and otherwise dispose of the property only as authorized in writing by the grantor. 3. Grantee must file annual reports aa to the operation and maintenance of the property. 4. Grantee will comply with all civil rights statutes and regulations pertaining to discrimination on grounds of race, color or national origin for so long as the property is used for a purpose for which federal financial aasiatance is provided. The breach of any of the above conditions can result in the reversion of the property to the grantor at the grantor’s option. The first three conditions expire after thirty years but no expiration date was set for the fourth condition although the fourth condition is inoperable if the facilities located on the land involved receive no federal financial assistance. p* 2877 The Honorable Jack K. Williams - page 2 Abrogation of t,hc: first three primary conditions may br obtained by certain payments to be made by grantee which alrlount to the current lair market value of the land as of the date of abrogation less a 3 l/3% credit for each year the grantee has complied with the conditions. Section 85. 23(a) of the Education Code, which is applicable to the Texas A&M University System, provides that the University’s Board of Directors: . . . may contract with persons, firms, or corporations for the purchase, acquisition, or construction of permanent improvements on or conveniently located with reference to the campus of any institution of the system; and may purchasc~, sell, or lease lands and other appurtenances for the construction of the permanent improvements. However, no liability shall be incurred by the State of Texas under this subsection. There are no express restrictions on the form of contract to be utili?.ed in the purchase of lands for the erection of permanent improvements. The Board is expressly authorized to erect buildings on leased land. Thus, in our opinion,this section would in this case permit permanent improve- ments to be erected on land owned subject to a possibility of reverter, for while a lease will usually contain a termination date, the land involved in your request will remain the property of the University so long as the conditions subsequent are not breached. Thus, the University may retain title to this property indefinitely. Accordingly, in our opinion, the Texas A&M Universiiy System is statutorily authorized to erect permanent improvements on this land. We do not consider the effect, if any, of Senate Bill 706, Acts 1975, 64th Leg., which relates to construction of physical plants at institutions of higher learn@ in the State of Texas. In addition, we are aware of no constitutional inhibitions to the erection of such permanent improvements. In the similar context of improvements on leased land, we have hrld that article 3, sec,tion 51 of t.he Texas Constitution and its associated provisions would not be violated if the expenditure: p. 2878 is for il propc’r public purpose and if the consideration or Ix:lll%tit to (.he public is adequai.cb. Attorney General Opinion I.(-403 (1974). Having determined this test to be satisfied we have upheld expenditures for improvements on leased land. Attorney General Opinions H-403 (1974), H-257 (1974). Since the pu.blic purpose and beneift are evident in the instant case, and since there is less possibility of dkestiture in this case than in those involved in our prior opinions, we believe the proposed expenditures wculd be clearly constitutiona\. SUMMARY The ‘Texas A&M University System may erect permanent improvcmrnts on certain land owned by the System subject to a possibility of revcrter. Very truly yours, DAVID M. KENDALL, First Assistant C. RO6F;lIT HEATH, Chai~rrnan Opinion Cornn~littee