Citation Numbers: 65 Op. Att'y Gen. 85
Judges: BRONSON C. La FOLLETTE, Attorney General
Filed Date: 5/26/1976
Status: Precedential
Modified Date: 7/6/2016
GEORGE H. AUSTIN, Executive Director Investment Board
You have asked whether the State of Wisconsin Investment Board has the authority to disburse funds to a private membership association to finance street improvements which may or may not directly benefit property owned by the board. Mitchell Street Improvement Association is implementing the improvements on a portion of Mitchell Street in the City of Milwaukee where the board owns property. These improvements, mini-malls, landscaping, widened sidewalks, etc., are to be financed one-half by the City of Milwaukee and one-half by property owners in the area who contribute voluntarily.
The answer depends upon whether the improvement will directly benefit the board's property. *Page 86
As an administrative agency of the State of Wisconsin, the board has only those powers expressly granted or reasonably implied in the statutes under which it proceeds. State ex rel.Farrell v. Schubert (1971),
On the other hand, it is stated in sec.
". . . manage, operate, lease, exchange, sell and convey . . . any real property acquired by said board . . . ."
A manager is defined in Webster's Seventh New CollegiateDictionary, p. 513, as one who "conducts business or household affairs with economy and care." Real estate management specifically has been defined broadly as "the entire responsibility for directing, supervising, overseeing, administering, and controlling the property . . ." In reBrennan's Will (1929),
At the least the term "manage" implies activity that goes beyond the mere maintenance or upkeep of real property. In my opinion, it includes the power to take whatever actions seem best suited to preserving the property or enhancing its value. Disbursing funds to a private association for street improvements which will increase the value of investment property is a proper action for a prudent manager to take
In sum, the board must determine initially whether the disbursement of funds will be of direct benefit to property which it owns. If the determination is affirmative, then the board may *Page 87 authorize such disbursement in its character as manager of the property.
BCL:WMS