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DEPARTMENT OF ADMINISTRATIVE SERVICES
DIVISION 45
DISPOSITION AND ACQUISITION OF REAL PROPERTY INTERESTS
125-045-0200
Purpose
These rules are adopted under the authority of ORS 184.340, 270.015 and 270.100 and establish the procedures that must be followed by Agencies to acquire and to sell, transfer, exchange or otherwise dispose of interests in real property. These rules also establish procedures for the operation of the Public Lands Advisory Committee (PLAC); collection of funds for the support of the Statewide Lands Inventory Program and PLAC; and the management and operation of the Statewide Lands Inventory Program.
Stat. Auth.: ORS 184.340, 270.015 & 270.100
Stats. Implemented: ORS 244.010 & 270.010
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06
125-045-0205
Definitions
The following definitions apply to the rules in this Division 045:
(1) "Acquiring Agency" means an Agency that proposes to acquire a Real Property Interest and is not an Exempt Acquiring Agency.
(2) "Acquisition" means obtaining rights of ownership in a Real Property Interest by an Agency through a purchase, exchange, conveyance or other transfer of that Real Property Interest.
(3) "Administrator" means the Administrator of the Department's Facilities Division.
(4) "Agency" means any board, commission, department or agency of the State of Oregon, whose costs are paid from funds held in the State Treasury and that are authorized to acquire or dispose of Real Property Interests.
(5) "Appraisal" means a written report by a licensed and experienced real estate appraiser estimating the fair market value of a Real Property Interest prepared in accordance with OAR 125-045-0215.
(6) "Appraised Fair Market Value" means the fair market value of a Real Property Interest as determined by an Appraisal.
(7) “Clearing House Process” means the notification process whereby agencies notify the Department of terminal dispositions or acquisitions of State Real Property Interests and Department notifies other state agencies and political subdivisions under OAR 125-045-0220 and 125-045-0225.
(8) "Department" means the Oregon Department of Administrative Services.
(9) "Directed Appraisal" means a written report by a licensed and experienced real estate appraiser estimating the fair market value of a Real Property Interest with restrictions or for a particular use, zone or conditional use in accordance with OAR 125-045-0215.
(10) "Director" means the Director of the Department.
(11) "Disposing Agency" means an Agency that proposes to dispose of a Real Property Interest.
(12) "Division" means the Facilities Division of the Department.
(13) "Exempt Acquiring Agency" means an Agency that is not required by law to report to the Department its intentions to acquire a Real Property Interest. At the time of the adoption of these rules the Exempt Acquiring Agencies are:
(a) The Department of Transportation, if acquiring a highway right of way;
(b) The Oregon University System, if acquiring real property within the approved projected campus boundaries of institutions subject to its authority; and
(c) The Parks and Recreation Department, if acquiring park properties.
(14) "Exempt Disposing Agency" means an Agency that is exempt by law from the requirement that it obtain Department approval prior to the Terminal Disposition of a Real Property Interest, unless the Terminal Disposition will be for less than the Appraised Fair Market Value. At the time of the adoption of these rules, the Exempt Disposing Agencies are:
(a) The Department of Fish and Wildlife;
(b) The Department of Forestry, if disposing of State forestlands;
(c) The Department of State Lands;
(d) The Department of Transportation;
(e) The Oregon University System;
(f) The Parks and Recreation Department; and
(g) Any legislative or judicial branch of the State.
(15) "Governing Body" means a board or commission with constitutional or statutory governing authority to approve the Acquisition or Terminal Disposition of a Real Property Interest. The term "Governing Body" includes but is not limited to the following bodies:
(a) The Oregon Board of Forestry;
(b) The Oregon Board of Higher Education;
(c) The Oregon Fish and Wildlife Commission;
(d) The Oregon Parks and Recreation Commission;
(e) The Oregon Transportation Commission; and
(f) The State Land Board.
(16) "Improvements" means any and all structures on or attachments to Real Property Interests but excluding public improvements as defined in ORS 279A.010.
(17) "In Reserve" as used in the Statewide Lands Inventory means an Agency-owned Real Property Interest that is not currently being used by the Agency, but that the Agency intends to use to fulfill an anticipated future requirement, need or benefit related to the mission of the Agency.
(18) "In Use" as used in the Statewide Lands Inventory means a State Real Property Interest that is actively being used to serve the mission of the Agency.
(19) "Long Term Lease" means any lease, which the State does not have the right of termination for convenience, to another Agency, Political Subdivision, private or public party, having a term, including options of twenty years or more.
(20) "Office Quarters" means office space, office buildings and associated services, storage and parking facilities for Agencies. Office space may include factory-built modular or portable units but excludes stand alone storages and parking facilities.
(21) "Political Subdivision" means a local governmental unit, including a county, city, town, port, dock, commission or district, that exists under the laws of Oregon and that has the power to levy taxes.
(22) "Property Restrictions" means any restrictions placed on a Real Property Interest or on the sale proceeds from the Terminal Disposition of the Real Property Interest including deed reversion clauses or constitutional or statutory requirements to deposit all or a portion of the sale proceeds into specified funds other than the general fund.
(23) "Proposal" means a written offer to purchase a State Real Property Interest submitted in response to a Request for Proposals.
(24) "Proposer" means an individual or entity that submits a Proposal in response to a Request for Proposals.
(25) "Public Lands Advisory Committee" (PLAC) means the advisory committee established under ORS 270.120.
(26) "Real Property Interest" means any legal or equitable interest in land, or an option to acquire, or a leasehold interest with a term, including options to renew or extension provisions that contemplate a total period of occupancy of more than 20 years, together with all Improvements. For the purposes of these rules, a Real Property Interest does not include:
(a) An Office Quarters lease, regardless of the term;
(b) An easement, unless the easement has an Appraised Fair Market Value of $100,000 or greater; or
(c) Mineral or geothermal resources, as defined in ORS 273.755, the sale or other disposition of which is governed by ORS 273.775 to 273.790 or other provisions of law governing these resources.
(27) "Request for Proposals" means a solicitation of offers to acquire a State Real Property Interest made pursuant to OAR 125-045-0235.
(28) "Right of First Refusal" means a conditional privilege that the Disposing Agency, in the exercise of its discretion, may grant to a qualified Proposer by OAR 125-045-0230 to match the best Proposal for the purchase of a State Real Property Interest.
(29) "State" means the State of Oregon.
(30) "State Real Property Interest" means any Real Property Interest that is owned in the name of the State of Oregon.
(31) "Statewide Lands Inventory" means the inventory of State Real Property Interests maintained by the Department on a computer database.
(32) "Surplus" as used in the Statewide Lands Inventory means a State Real Property Interest that is not currently used or is not needed or desirable to support a future need, use or function of the Agency.
(33) "Terminal Disposition" means the alienation of a State Real Property Interest through a sale, exchange, conveyance, donation, lease or other transfer of that interest.
Stat. Auth.: ORS 270.015(2) & 270.100(1)(d)
Stats. Implemented: ORS 244.010, 270.010, 270.100, 270.105, 270.110, 270.120, 270.130 & 270.135
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06; DAS 8-2009, f. & cert. ef. 7-21-09
125-045-0210
Alternative Rules for Acquisitions and Terminal Dispositions by State Agencies
(1) These rules apply to all Agencies seeking the Acquisition or Terminal Disposition of a Real Property Interest, with the exception of:
(a) The Department of Veterans' Affairs in any transaction for the acquisition or sale, or both, by the Director of Veterans' Affairs of a home or farm under ORS 88.720, 273.388, 406.050, 407.135, 407.145, 407.375 and 407.377; and
(b) Any other Agency subject to constitutional or statutory authority that supersede all or some of these rules.
(2) Any Agency subject to a Governing Body may adopt rules for the Acquisition and Terminal Disposition of Real Property Interests. Rules adopted by an Agency will not supersede these rules, however, unless the Agency's rules have been certified by the Division pursuant to this rule.
(3) If an Agency believes that it is exempt from all or a part of these rules due to superseding constitutional or statutory authority, the Agency shall, at least 30 days prior to the Acquisition or Terminal Disposition, provide notice to the Division. The notice shall include the following information:
(a) The specific requirements of these rules from which the Agency claims to be exempt;
(b) The constitutional or statutory authority that the Agency believes supersedes these rule(s); and
(c) Identification of the Agency's rules and the date they were filed with the Secretary of State.
(4) The Division shall determine whether the Agency's rules are consistent with ORS 270.005 to 270.140. If the Agency's rules are determined to be consistent, the Division shall certify the Agency's rules and shall notify the Agency that it may use Agency rules in lieu of these rules.
(5) Upon obtaining certification by the Division and after obtaining approval by the Agency's Governing Body, the Agency may acquire and dispose of Real Property Interests in accordance with its certified rules.
(6) The Division will maintain a master file of all Agencies whose rules are certified exempt from all or a part of these rules. This master file will include the Agency's request for exempt certification, identification of the filed rules that the Agency will be using and a copy of the Division's written determination.
(7) Once certified exempt, an Agency may not use amended rules filed for the Acquisition and Terminal Disposition of Real Property Interests in lieu of these rules until the Agency's restructured rules have again been certified exempt by the Division.
(8) Notwithstanding OAR 125-045-0210, the Division may, upon 30 days prior notice to the Agency, withdraw its certification of an Agency's rules as a result of a reexamination Department rules, policies and certifications or an Agency's compliance with its certified rules. In such event, the Agency shall thereafter comply with 125-045-0210 through 125-045-0245 until new or revised rules have been certified by the Division.
Stat. Auth.: ORS 270.100(1)(d)
Stats. Implemented: ORS 270.015, 270.100, 270.105 & 270.110
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06; DAS 10-2009, f. & cert. ef. 11-19-09
125-045-0215
Appraisal and Determination of Value of Real Property Interests
(1) Prior to Acquisition from or Terminal Disposition to a party other than an Agency of a Real Property Interest, the Acquiring or Disposing Agency shall obtain an Appraisal of the Real Property Interest.
(2) For dispositions and acquisitions with an estimated fair market value of less than $100,000, a letter of opinion from a licensed real estate professional constitutes an Appraisal.
(3) If the estimated fair market value of the Real Property Interest is $100,000 or greater, the Administrator:
(a) Shall either select or approve the selection of an appraiser by the Disposing Agency;
(b) Must approve of the form and substance of the written Appraisal and the final determination of Appraised Fair Market Value by the appraiser; and
(c) May require that more than one Appraisal be obtained to establish the Appraised Fair Market Value.
(4) Upon written request by an Agency, the Administrator may preapprove the Agency's appraisal process provided the process is consistent with this rule.
(5) Upon written request by an Agency, the Administrator may preapprove the Agency's use of a directed appraisal for a particular use.
(6) Except for transfers from one Agency to another, an Agency shall not sell or dispose of any State Real Property Interest for less than its Appraised Fair Market Value without complying with OAR 125-045-0245.
(7) Prior to Terminal Disposition of a State Real Property Interest to other than an Agency, and regardless of the Appraised Fair Market Value of the State Real Property Interest, the Disposing Agency shall consider all the values of the State Real Property Interest to the people of the State, including values for fish and wildlife habitat and public access to other real property. If the Appraised Fair Market Price of the State Real Property Interest is greater than $100,000, the public will be invited to comment on the value of the State Real Property Interest. The Agency will solicit public comment in the manner defined in OAR 125-045-0235 or in a method the Division approves.
Stat. Auth.: ORS 270.015(2) & 270.100(1)(d)
Stats. Implemented: ORS 270.100 & 270.105
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06; DAS 10-2009, f. & cert. ef. 11-19-09
125-045-0220
Acquisition of Real Property Interests
(1) Except for Exempt Acquiring Agencies, before an Agency offers to acquire a Real Property Interest, it shall first declare to the Division in writing its intent to acquire the Interest. The written declaration must include the following information:
(a) A detailed description of the Real Property Interest sought to be acquired, including its approximate size in square feet or acreage;
(b) Any particular requirements of the Agency that the Interest must satisfy;
(c) A description of the general or specific location where the Agency desires to acquire the Real Property Interest, including a map if possible;
(d) The reason for the Acquisition;
(e) A completed notice using a from provided by the Division; and
(f) Any other information the Division may request.
(2) After receiving the declaration described in this rule and before an Acquiring Agency other than an Exempt Acquiring Agency may unconditionally offer to acquire any Real Property Interest, the Division shall provide written notice of the intended Acquisition to all other Agencies authorized by statute to own State Real Property Interests. In addition to any other information the Administrator or Agency determines is desirable, written notice must include the following:
(a) The information provided by the Acquiring Agency defined in OAR 125-045-0220(1);
(b) A request that the Agency give the Division written notice if the Agency controls a State Real Property Interest that the Agency no longer needs and the State Real Property Interest may match the needs of the Acquiring Agency;
(c) The deadline for the Agency to respond to the Division, which may not be less than 30 days from the date of the Division's notice, unless the Administrator determines that a shorter period is in the State's interest; and
(d) Any other information the Acquiring Agency and the Division elect to include in the notice.
(3) The Division may dispense with notice to Agencies if the Administrator adopts written findings that in the reasoned judgment of the Division, it is unlikely that a State Real Property Interest could satisfy the Acquiring Agency's needs and that as a result, notice would be a futile act.
(4) If an Agency responds timely to the written notice described in this rule, the Agency shall thereafter negotiate with the Acquiring Agency for a sale or transfer of the Agency's State Real Property Interest. The Acquiring Agency may not reject, without Division approval, a bona fide offer by another Agency to transfer to the Acquiring Agency a State Real Property Interest that satisfies the Acquiring Agency's acquisition criteria.
(5) The Acquiring Agency may proceed with an Acquisition of a Real Property Interest from a source other than an Agency after satisfying the requirements of OAR 125-045-0215 and this rule, provided the Acquisition is consistent with other applicable provisions of law.
Stat. Auth.: ORS 270.015(2) & 270.100(1)(d)
Stats. Implemented:
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06
125-045-0225
Terminal Disposition of State Real Property Interests (Notices to Department, State Agencies and Political Subdivisions – Clearing House Process)
(1) Prior to the Terminal Disposition by an Agency of a State Real Property Interest, the Agency shall first declare in writing to the Division its intent to dispose of the Interest. The written declaration must include the following:
(a) A detailed description of the State Real Property Interest to be transferred, including its approximate size in square feet or acreage and its legal description;
(b) A map showing the location of the State Real Property Interest;
(c) An explanation of the reason for disposal;
(d) A completed notice using a form provided by the Division; and
(e) Any other information the Division may request.
(2) To ensure that the Terminal Disposition best serves the interests of the State and the Disposing Agency, the Disposing Agency is encouraged to create a disposition strategy for the property. The Disposing Agency's disposition strategy should consider:
(a) The highest and best use of the Real Property Interest, consistent with the local planning goals;
(b) How the Real Property Interest might be marketed most effectively, given the nature of the Interest and likely potential purchasers; and
(c) How the economic return to the State might be maximized.
(3) After receipt of a declaration to dispose of a State Real Property Interest, and before a Disposing Agency may unconditionally offer to dispose of the State Real Property Interest, the Division shall provide notice of the intended Terminal Disposition to all Agencies authorized by law to acquire Real Property Interests. Written notice to agencies must include the following:
(a) A request that any Agency with an interest in acquiring the State Real Property Interest notify the Division in writing of its interest;
(b) The information required to be provided under OAR 125-045-0225(1);
(c) The deadline for the Agency to provide written notice to the Division of its interest in acquiring the State Real Property Interest, which may not be less than 30 days from the date the Division issues the notice, unless the Administrator determines that a shorter period is in the State's interest; and
(d) Any other information the Division or the Disposing Agency elects to include in the notice.
(4) Notification by the Clearing House Process, will be given to agencies by at least one of the following methods:
(a) Mailed notice;
(b) Electronic mail notice;
(c) Posting notice of the intended Terminal Disposition on the Division’s website; or
(d) Newspaper publication meeting the requirements defined in OAR 125-045-0235(3).
(5) The Division may dispense with notice to Agencies if the Administrator adopts written findings that in the reasoned judgment of the Division it is unlikely that transfer of the State Real Property Interest to another Agency could satisfy the Disposing Agency's needs and that as a result, notice would be a futile act.
(6) If one or more Agencies responds timely to the written notice described in this rule, the responding Agency or Agencies shall negotiate with the Disposing Agency to determine if a sale, assignment, lease or other transfer can be completed. The Disposing Agency may not reject another Agency's bona fide offer to acquire the State Real Property Interest without Division approval.
(7) If two or more Agencies make bona fide offers to acquire the State Real Property Interest, the Disposing Agency shall determine, in its reasonable discretion, which, if any, offer is most advantageous to the State and the Disposing Agency. Prior to making this determination, the Division may solicit the advice of the PLAC. A Disposing Agency need not use a competitive bidding process in connection with the Terminal Disposition of a State Real Property Interest to another Agency.
(8) Before a Disposing Agency may dispose of a State Real Property Interest to other than another Agency, the Division shall provide notice of the intended Terminal Disposition to Political Subdivisions. Written notice will be given to each city, county, and school district within whose boundaries the State Real Property Interest is located. Notification by the Clearing House Process, will be given to all other Political Subdivisions by at least one of the following methods:
(a) Mailed notice;
(b) Electronic mail notice;
(c) Posting notice of the intended Terminal Disposition on the Division's website; or
(d) Newspaper publication meeting the requirements defined in OAR 125-045-0235(3).
(9) The Division may provide notice to Political Subdivisions at the same time as it provides notice to Agencies. The Division may dispense with notice to Political Subdivisions if the Administrator adopts written findings that in its reasoned judgment it is unlikely that transfer of the State Real Property Interest to a Political Subdivisions could satisfy the Disposing Agency's needs and that as a result, notice would be a futile act.
(10) All notices to Political Subdivisions must include the following:
(a) A request that any Political Subdivision with an interest in acquiring the State Real Property Interest notify the Division in writing of its interest;
(b) The information required to be provided under OAR 125-045-0225(1);
(c) The deadline for the Political Subdivision to provide written notice to the Division of its interest in acquiring the State Real Property Interest, which may not be less than 30 days from the date of the Division's notice unless the Administrator determines that a shorter period is in the State's interest;
(d) A reservation of the right of the Disposing Agency to reject any offers;
(e) Notice that a Political Subdivision's right to acquire the State Real Property Interest is subject and subordinate to the right of Agencies to acquire the State Real Property Interest (required only if notice to Political Subdivisions is made concurrently with notice to Agencies); and
(f) Any other information the Division or the Disposing Agency elects to include in the notice.
(11) If no Agency indicates an interest in acquiring the State Real Property Interest, or if a sale or other transfer to another Agency cannot be finalized, any Political Subdivision that has made a timely response to the notice may negotiate with the Disposing Agency to determine if a sale or other transfer can be completed.
(12) The Disposing Agency shall consider any bona fide offer submitted by a Political Subdivision but shall not be obliged to sell or otherwise transfer the State Real Property Interest to the Political Subdivision.
(13) No Terminal Disposition of a State Real Property Interest to a Political Subdivision for less than the Appraised Fair Market Value may occur without the written approval of the Administrator or Director in accordance with OAR 125-045-0245.
(14) If two or more Political Subdivisions make bona fide offers to acquire the State Real Property Interest, the Disposing Agency shall determine, in its reasonable discretion, which, if any, offer is acceptable to the State.
(15) The Disposing Agency may place any conditions on the transfer of a State Real Property Interest to a Political Subdivision it deems advisable, including but not limited to requirements that:
(a) Any State Real Property Interest sold or transferred to a Political Subdivision be subject to a deed restriction that the property be used solely for a public purpose or benefit; and
(b) Such State Real Property Interest not be resold to a private purchaser without the consent of the State.
(16) The Disposing Agency need not use a competitive bidding process in connection with the Terminal Disposition of a State Real Property Interest to a Political Subdivision.
Stat. Auth.: ORS 270.015(2), 270.100(1)
Stat. Implemented: ORS 270.100, 270.120
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06; DAS 8-2009, f. & cert. ef. 7-21-09; DAS 10-2009, f. & cert. ef. 11-19-09
125-045-0230
Right of First Refusal Determination
(1) The State of Oregon may offer a Right of First Refusal to the parties described in ORS 270.010(2) in the unlikely event the grant of such a right is consistent with applicable trust responsibilities.
(2) Prior to proceeding with the public notice and solicitation procedures described in this rule, the Disposing Agency shall determine, with the advice of the Division, whether any party is entitled to a Right of First Refusal. The Disposing Agency's determination is final and conclusive.
(3) If a Right of First Refusal is granted, the Disposing Agency shall attempt to locate and notify each party or parties granted the Right.
(4) The Disposing Agency may place any conditions on the Right of First Refusal that it elects, provided that any conditions are reviewed and approved by the Attorney General's Office. In addition, unless waived by the Agency in its notice, no Right of First Refusal may be exercised unless the holder of the Right submits a timely and responsive offer to acquire the State Real Property Interest for an amount not less than the minimum asking price.
(5) If more than one Right of First Refusal is granted, the holder of the Right that submits the highest offer shall be given the first opportunity to acquire the Real Property Interest. If there is a tie between high bidders, the first to file its offer shall be given the first opportunity. Once a party exercises a Right of First Refusal, all other Rights of First Refusal are extinguished.
(6) A grant of a Right of First Refusal may be withdrawn if the Disposing Agency discovers facts and circumstances that lead it to conclude that offering the right is not in the best interest of the state.
Stat. Auth.: ORS 270.015(2), 270.100(1)(d)
Stats. Implemented: ORS 270.010, 270.110, 270.135, 270.140
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06
125-045-0235
Terminal Dispositions of State Real Property Interests (Offers to Other Individuals or Entities)
(1) This rule applies to sales and leases
of State Real Property Interests only.
(2) If a Disposing Agency
does not sell or transfer a State Real Property Interest to either an Agency or
a Political Subdivision or to a party that has been granted a Right of First Refusal,
then the Disposing Agency may dispose of the State Real Property Interest to any
other party subject to the rules and procedures described in this rule.
(3) The Disposing Agency
shall publish notice of the proposed Terminal Disposition of the State Real Property
Interest. The notice must be published not less than once a week for three successive
weeks in one or more newspapers of general circulation in the county or counties
in which the State Real Property Interest is located. In addition, the Disposing
Agency may provide notice on its website. The published notice must include the
following:
(a) A general description
of the State Real Property Interest, including a legal description, if any;
(b) The asking price;
(c) The name and address
of the person to contact to obtain any additional information concerning the State
Real Property Interest;
(d) A Request for Proposals,
including the address to which the Proposal must be delivered and the date and time
the Proposal is due, which may not be less than 30 days from the date of the first
notice;
(e) If applicable, a notice
that the Terminal Disposition of the State Real Property Interest may be subject
to a Right of First Refusal;
(f) If not previously published,
an invitation for public comment on the State Real Property Interest values defined
in OAR 125 045-0215(7) if the Appraised Fair Market Value is more than $100,000;
(g) A reservation of the
right of the Disposing Agency or the Division to accept or reject any Proposal;
and
(h) Any other information
the Disposing Agency elects to include.
(4) The Disposing Agency
may use a multi-stage process, which may include, but need not be limited to, a
Solicitation of Interest (SOI), a Request for Qualifications (RFQ), a Request for
Proposals (RFP), a straight offer to purchase, or a combination of these. These
documents must describe the process by which the Disposing Agency shall market the
property, and may direct interested parties to the Disposing Agency's website for
information.
(5) The Division may post
the current status of Surplus State Real Property Interests available for Terminal
Disposition on its website.
(6) All Proposals submitted
in response to the published notice described in this rule must be in writing and
signed by a person authorized to enter into a real estate transaction on behalf
of the purchaser and be received by the close of the proposal period. A proposing
entity is expected to enter into a Pre-purchase Agreement or Memorandum of Understanding
within 60 days of acceptance of proposal.
(7) Each Proposal must clearly
identify the amount offered for the purchase of the State Real Property Interest,
and must include the following additional information:
(a) Any conditions upon the
Proposer's offer to acquire the State Real Property Interest;
(b) A detailed statement
explaining the Proposer's proposed use for the State Real Property Interest; and
(c) Any other information
the Proposer believes is relevant to its Proposal.
(8) After the date and time
for submitting Proposals has passed, the Disposing Agency shall open all Proposals
that have been timely delivered. The Disposing Agency shall evaluate all responsive
Proposals to determine the Proposal most advantageous to the State. The determination
of the most advantageous Proposal will be final and conclusive and is not subject
to review by any court.
(9) The Disposing Agency
shall notify the apparent successful Proposer and shall negotiate to determine if
the transfer can be consummated and a final agreement reached. If negotiations are
unsuccessful, the Disposing Agency may:
(a) Notify the next highest
ranking acceptable Proposal and shall similarly attempt to negotiate the Terminal
Disposition of the State Real Property Interest; and
(b) Continue the negotiation
process until the Disposing Agency has exhausted the field of all Proposers; or
(c) Reject remaining Proposals.
(10) If the Disposing Agency
and a Proposer reach a final agreement on the Terminal Disposition of the State
Real Property Interest and this agreement, where required, is approved by the Attorney
General pursuant to ORS 291.047, the Disposing Agency must transfer the State Real
Property Interest to the successful Proposer in accordance with the terms of the
agreement.
(11) The Disposing Agency,
in its sole discretion, may reject any or all Proposals.
(12) If all Proposals are
rejected, the Disposing Agency may market and sell the Real Property Interest in
any manner the Disposing Agency deems appropriate, including but not limited to
auction, direct negotiation with potential buyers, announcing a new RFQ or RFP process,
and acting through a real estate licensee, provided that:
(a) If required by ORS 291.047,
any resulting agreement of sale must be approved by the Attorney General;
(b) If no agreement of sale
is executed within 18 months of the publication of the first public notice of sale
described in this rule, no agreement of sale may be accepted without again first
publishing a public notice of sale and complying with the provisions of this rule;
and
(c) The Disposing Agency
shall publish the process selected in this subsection on its website.
Stat. Auth.: ORS 270.015(2), 270.100(1)(d)
Stats. Implemented: ORS 270.010,
270.110, 270.130, 270.135, 270.140
Hist.: DAS 4-2006, f. 5-12-06,
cert. ef. 6-1-06; DAS 2-2009(Temp), f. & cert. ef. 1-23-09 thru 7-17-09; DAS
8-2009, f. & cert. ef. 7-21-09; DAS 5-2013, f. 12-24-13, cert. ef. 1-1-14
125-045-0240
Transfer of Property with Deed Restrictions
If the State's title to a State Real Property Interest is limited, qualified or restricted, whether by dedication or otherwise, to use as a burial ground, cemetery, or for the purpose of interring the remains of deceased persons, the Disposing Agency shall follow the procedures defined in ORS 270.110(2) prior to transfer of the State Real Property Interest.
Stat. Auth.: ORS 270.015(2)
Stats. Implemented: ORS 270.110
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06
125-045-0245
Department Approval
(1) Prior to any Terminal Disposition of a State Real Property Interest at or above the Appraised Fair Market Value, all Disposing Agencies, other than Exempt Disposing Agencies, shall obtain the written consent of:
(a) The Administrator if the Appraised Fair Market Value is less than $1,000,000; or
(b) The Director if the Appraised Fair Market Value is $1,000,000 or more.
(2) Prior to any Terminal Disposition of a State Real Property Interest for less than the Appraised Fair Market Value, all Disposing Agencies, including Exempt Disposing Agencies, shall obtain the written consent of:
(a) The Administrator if the Appraised Fair Market Value is less than $1,000,000; or
(b) The Director if:
(A) The Appraised Fair Market Value is $500,000 or greater and the Real Property Interest is proposed to be transferred for 80% or less of the Appraised Fair Market Value; or
(B) The Appraised Fair Market Value is $1,000,000 or more.
(3) Notwithstanding OAR 125-045-0245(2), a Disposing Agency need not obtain the consent of the Administrator or Director, as the case may be, prior to the Terminal Disposition of a State Real Property Interest for less than the Appraised Fair Market Value if the Governing Body of the Disposing Agency has expressly approved the Terminal Disposition for less than the Appraised Fair Market Value.
(4) An Agency disposing of a State Real Property Interest pursuant to OAR 125-045-0245(3) shall provide the following information to the Administrator within 30 days following Terminal Disposition:
(a) The identify of the State Real Property Interest disposed of;
(b) The Appraised Fair Market Value of the Interest;
(c) The value received for the Interest; and
(d) Any other information requested by the Administrator.
Stat. Auth.: ORS 270.100(1)(d)
Stats. Implemented: ORS 270.100
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06
125-045-0250
Public Lands Advisory Committee
(1) In exercising its real property management and transaction functions under ORS 184.634, 270.005 to 270.015, 270.100 to 270.190, 273.416, 273.426 to 273.436 and 273.551, the Department shall receive advice from the Public Lands Advisory Committee (PLAC).
(2) The PLAC shall consist of two members of the Legislative Assembly, two persons who serve in the executive branch of state government, one real estate agent licensed under ORS 696.020, one qualified land use planner, and one person qualified as a real estate management expert. Members of the PLAC shall appoint the Chair of the Committee.
(3) The PLAC shall meet quarterly or as often as the majority of its members determine. The Department may request that the PLAC meet for the purpose of considering real property transactions, evaluate reports to the legislature, or to review Agency reports on the status of the Statewide Lands Inventory.
(4) The PLAC may request that the Department and other Agencies controlling State Real Property Interests update the PLAC on their individual land inventories and processes for evaluating whether property is needed to support an Agency's mission.
(5) PLAC meetings shall be held in Salem. The Division, unless otherwise arranged by PLAC, will determine the meeting location. The Division shall:
(a) Schedule and announce meeting dates and times;
(b) Prepare and distribute meeting agendas;
(c) Arrange times for Agency presentations; review and edit Agency material prior to meetings;
(d) Coordinate with Agencies in response to information requests from PLAC; and
(e) Prepare and distribute meeting minutes.
(6) The PLAC is advisory to the Department and is not a governing body as defined by ORS 192.610. Meetings of the PLAC shall be treated as public meetings and shall follow the notification and other procedures described in the Attorneys General Public Records and Meetings Manual.
(7) The PLAC shall not make a recommendation on a transaction or other documents reviewed without a majority of its members present. If a duly scheduled and noticed meeting does not have a majority of the members present, those present will be considered to be a subcommittee of the PLAC. The subcommittee shall report its findings and recommendations to the next scheduled PLAC meeting when a majority is present and formal action may be taken at that time.
(8) Members of the PLAC who are not members of the Legislative Assembly are entitled to compensation under ORS 292.495. Members of the PLAC who are members of the Legislative Assembly shall be paid compensation and shall be reimbursed for expenses as provided in ORS 171.072, payable from funds appropriated to the Legislative Assembly. Expenses of the PLAC shall be paid from Department funds that shall be recovered from Agencies pursuant to OAR 125-045-0270.
(9) The PLAC may hold meetings or portions of meetings in non-public Executive Session to discuss specific, confidential deal points and negotiation strategies for particular property transactions.
Stat. Auth.: ORS 270.015(2), 270.100(1)(d)
Stats. Implemented:
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06
125-045-0255
Procedure for Submitting Property Transactions and Inventory Information for PLAC Review
(1) The PLAC shall advise the Department on all Acquisitions and Terminal Dispositions valued at $100,000 or more. The Division and the Agency shall consider, but are not required to follow, the advice of the PLAC.
(2) Prior to each PLAC meeting, the Division shall provide reports to each member of the PLAC containing key information on each Acquisition and Terminal Disposition to be reviewed by the PLAC, including:
(a) A brief summary of the proposed transaction;
(b) The reason for the PLAC review;
(c) Background summary information and a list of topics for consideration; and
(d) Any supporting documents, maps or photos.
(3) The PLAC may request information from Agencies controlling State Real Property Interests related to Agency land inventories and the Agency's processes for identifying, acquiring and disposing of excess real property.
(a) If a request for Agency information is made, prior to submission, the Division will schedule a meeting with the Agency to collect and review the documentation.
(b) At the conclusion of its evaluation, the Division will copy and distribute the documentation to the PLAC members at least two weeks in advance of the PLAC scheduled meeting.
(4) The Division shall prepare draft meeting minutes after every PLAC meeting and distribute them to PLAC members for review and comment. The Division shall revise the minutes following receipt of comments from the PLAC and shall distribute revised minutes to the PLAC for approval at the beginning of the next scheduled PLAC meeting.
(5) By November 1st of each even numbered year, the Division shall prepare a summary report of the Statewide Lands Inventory Program, available Surplus State Real Property Interests, and State Real Property Interests sold during the current biennium for the PLAC to review. By January 1st of every odd numbered year, the Division, with PLAC oversight, shall also prepare a summary report for Legislative review.
Stat. Auth.: ORS 270.015(2), 270.100(1)(d)
Stats. Implemented:
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06
125-045-0260
Procedure for PLAC Review
(1) The PLAC shall receive written material for its review at least two weeks in advance of a scheduled PLAC meeting. In addition, the Department or the Agency will make a brief presentation during the meeting on specific agenda items.
(2) Following each presentation, the PLAC may ask questions and discuss issues with other PLAC members as needed.
(3) At the end of the discussion, the PLAC Chair shall ask members for advice or recommendations. The PLAC may pose further questions to the Department or Agency, may comment on the proposed transaction or agenda item, or may determine additional information is required and postpone comment.
Stat. Auth.: ORS 270.015(2) & 270.100(1)(d)
Stats. Implemented:
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06
125-045-0265
Statewide Inventory and Property Management
(1) The Division shall maintain a computer Statewide Lands Inventory database. This database will catalog the size, location, current use and value of all State Real Property Interests, as well as, identify Surplus State Real Property Interests. The Division will use this data to respond to questions from the public, Agencies, the Legislature and executive branch concerning Statewide Lands.
(2) The Division shall work with Agencies to establish appropriate categories of real property for cataloguing State Real Property Interests. Agencies shall cooperate with the Division by providing State Real Property Interests' data, which is accurate, up-to-date and complete. The Statewide Lands Inventory categories shall include information on location, size, current use, value, and whether the Real Property Interest is in operational use, reserve, or surplus. Value may be shown as a range within a list of categories: Forest $80-$180/acre; Range Land $50-$150/acre; Commercial Office Land (Urban) $2-$5/per square foot. Agencies shall identify whether the State Real Property Interest is within an urban growth boundary and, if the Real Property Interest is declared Surplus and sold, whether there are restrictions on the use of proceeds.
(3) To the extent reasonably possible, the Division shall identify Real Property Interests in the Statewide Lands Inventory by:
(a) The property identification numbers or characters used by the controlling Agency, and
(b) The property identifiers assigned by the county assessor, including applicable tax map lot numbers, street addresses, GIS coordinates, latitude and longitude, section, township and range information.
(4) The Division shall post a quarterly report on the Department's website listing, by Agency, all State Real Property Interests currently for sale. The Division shall forward questions that it receives relating to specific State Real Property Interests to the appropriate Agency for response.
(5) In order to process Acquisitions and Terminal Dispositions of State Real Property Interests, as defined in OAR 125-045-0220 and 125-045-0225, Agencies controlling State Real Property Interests shall provide the Department property status information.
(6) On or before October 1st of each even numbered year, all Agencies controlling State Real Property Interests shall submit a revised and updated inventory of any Surplus State Real Property Interests that it controls to the Division. The inventory shall list separately any Surplus State Real Property Interest located within an urban growth boundary. Each Agency that controls a State Real Property Interest shall also provide to the Division an interactive link to the Agency's lands database to allow real time updates.
Stat. Auth.: ORS 270.015(2) & 270.100(1)(d)
Stats. Implemented:
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06
125-045-0270
Statewide Lands Inventory Program Costs
(1) The Division shall project the biennial cost of the Statewide Lands Inventory. After deducting reserves for long-term program upgrades and improvements, any fund balance remaining from the previous biennium will be subtracted from the projected biennial cost. The final projected biennial cost will then be apportioned to Agencies as described in this rule.
(2) To contribute to the cost of maintaining the Inventory, the Division shall charge each Agency that controls a State Real Property Interest an annual maintenance fee equal to the Agency's proportionate share of the total annual cost incurred by the Division. Each Agency's proportionate share of the maintenance fee will be calculated by dividing:
(a) The number of State Real Property Interests in the Inventory that are controlled by the Agency; by
(b) The total number of all State Real Property Interests listed in the Inventory as of June 30 each year.
(3) Maintenance fees will be billed annually in advance, on or before June 30 of each year. Maintenance fees are payable within 30 calendar days of the date of billing. Late payments will incur a late fee charge of 8% per annum of the amount due, with interest accruing from June 30.
(4) The Division may, at its discretion, waive an Agency's maintenance fee for any one year when the Division determines that the cost of collection may exceed the amount of the annual fee, or otherwise represents a cost inefficiency to the Division. Any fee so waived may be apportioned among the remaining Agencies for that year.
(5) Payments received by the Division under this rule are continuously appropriated to the Division to reimburse it for the costs incurred by the Division in maintaining the Statewide Lands Inventory Program.
Stat. Auth.: ORS 270.100, 270.180(3) & 270.180(4), 270.180(5)
Stats. Implemented:
Hist.: DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06
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