The Finance and Operations Committee approved a resolution authorizing the sale of the Eastcliff house and improvements to the University of Minnesota Foundation (UMF) for $2,200,000, with legal protections and leaseback terms to preserve the property’s role as the president’s official residence and an event space.

Executive Vice President Greg Goldman summarized the transaction: the sale price is $2.2 million, consistent with a 2022 appraisal. The deal structures a 40‑year ground lease of the land to UMF and a simultaneous 40‑year leaseback of the house to the University, with options for an additional 40 years on both. Goldman said the legal structure “guarantees that the property remains protected as the official residence of the President and a key university event space for the Foundation and for the University for decades to come.” He said UMF will be responsible for future capital expenditures and the sale proceeds will be deposited into a quasi‑endowment to help fund ongoing operating and maintenance expenses.

The proposal prompted debate among Regents about governance and stewardship. Regent Farnsworth said the timing and process left her “unable to support this today” and formally requested a roll call. Regent Gully similarly said she would “vote no on this,” citing concerns about transparency and oversight if the asset were moved out of direct Board control. By contrast, Regent Ruth Johnson — who noted experience on the University of Minnesota Foundation and the Eastcliff advisory board — said, “I think it's a fantastic deal and so I strongly support it.” Regent Verhalen outlined what the resolution does for the university, stating the agreement preserves university use and title protections while transferring capital responsibility to UMF and creating an account to fund maintenance, and he said those features supported his vote in favor.

The committee conducted a roll‑call vote. The resolution passed 9–2. The roll call recorded the following: Regent Bergstrom — yes; Regent Farnsworth — no; Regent Gully — no; Regent Hines (listed on the roll call transcript) — yes; Regent Huebsch — yes; Regent Ruth Johnson — yes; Regent Tad Johnson — yes; Regent Lugar — yes; Regent Mohammed — yes; Regent Verhalen — yes; Chair Wheeler — yes. Regent Turner was recorded absent. Goldman said the transaction will reduce future capital demands on the university budget while ensuring the property remains available for university and foundation events.

With the resolution approved, UMF will assume responsibility for capital investments on Eastcliff during the lease term and the university retains use of the residence through the leaseback; the quasi‑endowment will be used to support operations and maintenance.