Budget Amendment ID: FY2012-S3-116

GOV 116

STATE SURPLUS LAND

Messrs. Tarr, Hedlund and Knapik moved that the proposed new text be amended by inserting, after Section __, the following new Sections:-

"SECTION __. Section 40F of Chapter 7 is hereby amended by inserting, after the sixth paragraph, the following:-

In order to determine if specified real property is surplus to the current and foreseeable needs of the commonwealth, the commissioner shall provide a suitable written notice and inquiry to the several secretaries, with a date certain for any response. If no executive office responds in writing by the date so specified that an agency has a current or foreseeable need for the real property, then the commissioner may declare said property as surplus and dispose of same in accordance with this section. Alternatively, if a written response is timely received specifying a current or foreseeable need for the real property, the commissioner shall, in consultation with the secretary of administration and finance and with those responding affirmatively, determine whether the real property shall (a) be made available for current use by a state agency, (b) be retained on account of a foreseeable use by a state agency, or (c) be declared surplus real property which may be disposed of pursuant to this section.

When real property is determined to be surplus to current state needs but not to foreseeable state needs, the commissioner shall take such necessary action to ensure that any disposition of the real property is temporary and maintains the commissioner's ability to make such real property available to a state agency as needed.

If the commissioner determines that the real property is surplus, he shall declare it available for disposition and shall identify restrictions, if any, on its use and development necessary to comply with established state plans and policies. The commissioner shall provide written notice of his finding to the executive of the community in which the property is located and upon the determination of a date for a public hearing on the disposition of the surplus real property. The commissioner may conduct a public hearing to consider potential reuses and appropriate restrictions. He shall ensure that any deed, lease or other disposition agreement shall set forth all such reuse restrictions and shall provide for effective remedies on behalf of the commonwealth; provided however, in the event of a failure to comply with the said reuse restrictions by the grantee, lessee or other recipient, title or such lesser interest as may have been conveyed, shall immediately revert to the commonwealth.

The commissioner shall establish the value of surplus real property using customarily accepted appraisal methodologies. The value shall be calculated both for (1) the highest and best use of the property as may be encumbered, and (2) subject to uses, restrictions and encumbrances defined by the commissioner. In the event the commissioner receives three or more offers for such property in response to a competitive disposition process, the value may be determined based solely on such offers. In no instance in which the commonwealth retains responsibility for maintaining the said property shall the terms provide for payment of less than the annual maintenance costs.

The commissioner shall dispose of surplus real property utilizing such competitive processes and procedures, as he deems appropriate. Such competitive processes may include, but are not limited to, absolute auction, sealed bids, and requests for price and development proposals.

At least 30 days before the date of an auction or the date on which bids or proposals or other offers to purchase or lease surplus real property are due, the commissioner shall place a notice in the central register published by the state secretary pursuant to section 20A of chapter 9 stating the availability of such property, the nature of the competitive process and other information deemed relevant, including the time and location of the auction, the submission of bids or proposals, and the opening thereof.

The commissioner shall place a notice in the central register identifying the individual or firm selected as party to such real property transaction, along with the amount of such transaction. If the commissioner accepts an amount below the value calculated under subsection (f), he shall include the justification therefore specifying the difference between the calculated value and the price received.

No agreement for the sale, lease, transfer, or other disposition of surplus real property shall be valid unless the purchaser or lessee has executed and filed with the commissioner the statement required by section 40J of chapter 7.

The grantee or lessee of any surplus real property shall be responsible for all costs including but not limited to appraisals, surveys, plans, recordings and any other expenses relating to the said transfer, as shall be deemed necessary by the commissioner.

This section shall not apply to the disposition of real property that is the subject of a special act having an effective date prior to the enactment of this act.

SECTION __. Paragraphs seven to fifteen, inclusive, of section 40F of chapter 7, inclusive, are hereby repealed."