2006 Code of Virginia § 2.2-1156 - Sale or lease of surplus property

2.2-1156. Sale or lease of surplus property.

Except when a department, agency or institution notifies the Department of aneed for property which has been declared surplus, and the Department findsthat stated need to be valid and best satisfied by the use of the property,the Department may dispose of the property as provided in this section.

A. After it determines the property to be surplus to the needs of theCommonwealth, the Department shall request the written opinion of theSecretary of Natural Resources as to whether the property to be sold is asignificant component of the Commonwealth's natural or historic resources,and if so how those resources should be protected in the sale of theproperty. The Secretary of Natural Resources shall provide this review within15 business days of receipt of full information from the Department. Within120 days of receipt of the Secretary's review, the Department shall, with theprior written approval of the Governor, proceed to sell the property. Thesale shall be by public auction, or sealed bids, or by marketing through oneor more real estate brokers licensed by the Commonwealth. Notice of the date,time and place of sale, if by public auction or sealed bids shall be given byadvertisement in at least two newspapers published and having generalcirculation in the Commonwealth, at least one of which shall have generalcirculation in the county or city in which the property to be sold islocated. At least thirty days shall elapse between publication of the noticeand the auction or the date on which sealed bids will be opened.

In instances where the appraised value of property proposed to be sold isdetermined to be a nominal amount or an amount insufficient to warrantstatewide advertisement, but in no event in excess of $50,000, the notice ofsale may be placed in only one newspaper having general circulation in thecounty or city in which the property to be sold is located.

B. The Department shall have the right to reject any and all bids or offerswhen, in the opinion of the Department, the price is inadequate in relationto the value of the property or if a need has been found for the property. Ifthe Department deems the bid or offer fair and adequate in relation to thevalue of the property, and if no other need for the property has been found,the Department shall recommend acceptance of the bid or offer to the Governorfor approval. In lieu of the sale of any such property, the Department may,with the approval of the Governor, lease it to any responsible person, firmor corporation on such terms as are fair and adequate in relation to thevalue of the property. The provisions of this section requiring dispositionof property through the medium of sealed bids, public auction, or marketingthrough licensed real estate brokers shall not apply to any lease thereof,although such procedures may be followed in the discretion of the Department.The deed or lease to the property shall be executed in the name of theCommonwealth and shall be in a form approved by the Attorney General.Notwithstanding any law to the contrary and notwithstanding how title to theproperty was acquired, the deed or lease may be executed on behalf of theCommonwealth by the Director of the Department or his designee, and suchaction shall not create a cloud on the title to the property. The terms ofthe sale or lease shall be subject to the written approval of the Governor.

C. An exception to sale by sealed bids, public auction, or listing theproperty with a licensed real estate broker may be granted by the Governor ifthe property is landlocked and inaccessible from a public road or highway. Insuch cases, the Department shall notify all adjacent landowners of theCommonwealth's desire to dispose of the property. After the notice has beengiven, the Department may begin negotiations for the sale of the propertywith each interested adjacent landowner. The Department, with the approval ofthe Governor, may accept any offer which it deems to be fair and adequateconsideration for the property. In all cases, the offer shall be the bestoffer made by any adjacent landowner. The terms of all negotiations shall bepublic information.

D. Fifty percent of the proceeds from all sales or leases, or from theconveyance of any interest in property under the provisions of this article,above the costs of the transaction, which costs shall include fees orcommissions, if any, negotiated with and paid to auctioneers or real estatebrokers, shall be paid, subject to any contrary provisions of law, into theConservation Resources Fund, so long as the sales or leases pertain togeneral fund agencies or the property involved was originally acquiredthrough the general fund, except as provided in Chapter 180 of the Acts ofAssembly of 1966. The remaining 50 percent of proceeds involving general fundsales or leases, less a pro rata share of any costs of the transactions,shall be deposited in the general fund of the state treasury. The Departmentof Planning and Budget shall develop guidelines which allow, with theapproval of the Governor, any portion of the deposit in the general fund tobe credited to the agency, department or institution having control of theproperty at the time it was determined surplus to the Commonwealth's needs.Any amounts so credited to an agency, department or institution may be used,upon appropriation, to supplement maintenance reserve funds or capitalproject appropriations, or for the acquisition, construction or improvementof real property or facilities. Net proceeds from sales or leases of specialfund agency properties or property acquired through a gift for a specificpurpose shall be retained by the agency or used in accordance with theoriginal terms of the gift.

E. When the Department deems it to be in the best interests of theCommonwealth, it may, with the approval of the Governor, authorize thedepartment, institution or agency in possession or control of the property todispose of surplus property in accordance with the procedures set forth inthis section.

(1968, c. 717, 2.1-106.7; 1970, c. 202; 1972, c. 763; 1977, c. 672, 2.1-512; 1978, c. 545; 1981, c. 104; 1984, c. 641; 1989, c. 687; 1991, c.679; 1995, c. 399; 1998, c. 466; 2001, c. 844; 2002, c. 281; 2004, c. 997.)

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