U.S. General Services Administration

Office of Real Property Utilization & Disposal

Utilization & Disposal of Real Property 102: Screening, Public Benefit Conveyances, Invitation for Bids, & Public Sale Process

Utilization & Disposal of Real Property 102: Screening, Public Benefit Conveyances, Invitation for Bids, & Public Sale Process

Joseph CrenshawRealty SpecialistSoutheast Sunbelt Region

May 3 & 7, 2010

Joseph CrenshawRealty SpecialistSoutheast Sunbelt Region

May 3 & 7, 2010

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Utilization and Donation (Public Benefit) Program

Disposal is more than public sales: Federal Transfers Public Benefit Conveyances

– homeless conveyances – historic monument– park and recreational use– education– law enforcement– negotiated sales– And others…

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Federal Screening Notice

Executed electronically to land holding agencies’ designated contact (BIA and other agencies may receive hard copies).

If there is federal interest in acquiring the excess property, transfer is completed by letter (U.S. to U.S.).

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Federal Transfers

The Property is excess to the needs of the landholding agency

Screened for interest among other federal agencies (Federal Screening Notice)

GSA Form 1334 submitted by the requesting agency

Generally transferred at full fair market value May be transferred at no cost with OMB approval

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Negotiated Sales

Public Purpose/Benefit must be served

Grantee must be a Public Body (e.g., City, Town, Village; a municipality)

FMV is received and based on appraisal

Congressional Oversight Review for negotiated sales over $100,000

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PBC: Parks and Recreation

Eligibility: Public body Sponsoring Agency: U.S. Dept. of the Interior

National Park Service Discount: Up to 100% Use Restriction: Park or recreation use Time Restriction: Perpetuity Compliance: National Park Service

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Park & Recreation PBC Grandview Access Boat Ramp

8.91 acres to the Town of Grandview, IN

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PBC: Education

Eligibility: Public body or tax supported educational institution

Sponsoring Agency: U.S. Dept. of Education

Discount: Up to 100% Use Restriction: Based upon

approved plan for educational use Time Restriction: 30 years Compliance: U.S. Dept. of Education

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PBC: Historic Monument

Eligibility: Public body Sponsoring Agency: GSA Discount: 100% Use Restriction: All profits to be used for

preservation Time Restriction: Perpetuity Compliance: As specified in deed, coordinate with

the state historic preservation officer

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McKinney Vento Act

Gives priority consideration to use for facilities to assist the homeless.

HHS approves or denies applications in this regard.

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Disposal Authorities

Property Act (40 U.S.C.) GSA conducts public sale after screening processes completed and no expressions of interest received.

Acting as agent utilizing Holding Agency Specific Authority (e.g., BRAC, Forest Service, etc.) under the economy act (31 U.S.C. 1535)

National Historic Lighthouse Preservation Act of 2000 (16 U.S.C.)

Special Legislation (e.g. Omnibus Maritime Coast Guard Improvements Act of 2002 PL 107-295, 14 USC 685)

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National Historic Lighthouse Preservation Act, 2000 (NHLPA)

Authorizes GSA to dispose of U.S. Coast Guard Lighthouses at no cost through a competitive application process.

National Park Service (NPS) approves the application.

The Lighthouses are transferred at no cost for Park & Recreational, Historic, and Educational uses. Applicants must be an eligible entity to apply.

GSA may sell Lighthouses via on-line auction or other means to the public for market value if no eligible entity applies or is approved by NPS.

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North Breakwater Ludington Lighthouse transferred to the City of Ludington, MI

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“Big Red” Lighthouse, Ottawa County, Michigan (pending transfer to the

Holland Harbor Lighthouse Commission)

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Property Act Sales…

Rotterdam, NYFormer Army Housing

Duplex

Sold via On-line auction for the Army www.auctionrp.com

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Property Act Sales…

Former GSA property, Thaddeus J. Dulski Federal Office Building located in Buffalo, NY

Part of marketing materials, dedicated website- www.111huron.com

Sold via on-line auction- www.auctionrp.com

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Economy Act Sales…

U.S. Forest Service properties in northern Minnesota

Sold via combination of sealed bid and on-line auction

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Former Ranger Station in Sedona, AZ -21 acres Sold via on-line auction for the

Bureau of Reclamation Region 9, San Francisco

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Information included in the Report of Excess

Legal Description Title Information Jurisdiction NEPA Compliance Floodplain/Wetlands/Endangered Species Hazardous Substance Activity Tenant Requirements Protection / Maintenance

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Surplus Determination Notice

States that there is no further Federal need for the property.

Copies are sent to sponsoring Federal agencies for informational purposes regarding their respective Public Benefit Conveyance programs.

Highest and Best use analysis helps determine which Public Benefit Program suits the property.

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Sale Process

Identify sale property Develop and Execute Marketing Plan Provide due diligence material and timeframe Conduct sale Award and close transaction

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Identification of Sale Property

Legal description

Land and buildings (acreage, quantity, condition, historic qualities)

Environmental condition (asbestos, lead-based paint, PCBs, etc.)

Highest and Best Use/Market Value Appraisal

Helpful for marketing strategy, parcelization and establishing auction terms such as registration deposit and opening bid.

Appraisal NOT made available to bidders

Establishes an acceptable offer

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Marketing Plan Components

Invitation for Bid: Document containing all terms and conditions of sale and becomes the contract once Government accepts the offer.

Property signage Open houses Advertising

Newspaper/magazine advertisements Internet: GSA websites and other web advertising (e.g.

CoStar, Loopnet) Real estate trade journals Press releases

Estimated Cost: Based on property and budget; only actual costs are reimbursed.

Timeline: Usually 170 days from start to award

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Due Diligence

Allow prospective bidders access to all available Government data for property and reasonable time to examine, review zoning, and arrange financing Sales are “as is” with no contingencies

Type of documents made available: Environmental Building plans, utility drawings, etc. Title: Easements, acquisition documents

Usually provide 30 days from Invitation of Bids release to auction start date

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Public Sales

Sealed Bid Sale

Public Auction

Online Auction: www.auctionrp.com

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Sealed Bid Sale

Ideal for small group of highly interested bidders and/or specialized property

Eliminates need for internet in rural areas

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Public Auction

Creates excitement Forces action Duration can be controlled Works best with a high

amount of local interest

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www.auctionrp.com

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On-line Bidding Process www.auctionrp.com

Users register on-line at www.auctionrp.com by creating a new account (email address, user ID, & password)

Users fax in or mail in registration forms to GSA and send in their registration deposit

Users must certify that they have read the following: bid package, special terms of sale, and general terms of sale

GSA then activates the user’s account allowing for on-line bidding to begin

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Recent Public Sales…

Greater Southwest Zonal Disposal Office

Ft. Worth, TX

USAF Space Command Missile Sites

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Recent Public Sales…

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Recent Sale for the Army…Point Stratford,+/- 78 acre brownfield redevelopment in Fairfield County, CT (www.auctionrp.com)

Development site opportunity in one of the most significant waterfront assets in CT

Near the confluence of the Housatonic River & Long Island Sound, riparian rights along the entire waterfront

1.72 million square feet, 3 main buildings with nearly 50 outbuildings

Prior use: Aircraft & Engine Testing, Assembly, and Manufacturing (1929-1995)

www.pointstratford.com

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Some Recent Sales

Council Bluffs, Iowa Federal Building

White Sulphur Springs, Montana Ranger House

Air Force Fuel Storage Facility,

Cincinnati, OH

Seattle INS Federal Building

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GSA Property Disposal websites

www.propertydisposal.gsa.gov

www.auctionrp.com

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GSA Regional Points of ContactNew England Region Boston, MA (617) 565-5700Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Puerto Rico, Vermont, U.S. Virgin Islands

Southeast Sunbelt Region Atlanta, GA (404) 331-5133Alabama, Delaware, Florida, Georgia, Kentucky, Maryland, Mississippi, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia

Great Lakes Region Chicago, IL (312) 353-6045Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin

Greater Southwest Region Ft. Worth, TX (817) 978-2331Arkansas, Colorado, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, Utah, Wyoming

Pacific Rim Region San Francisco, CA (888) 472-5263Arizona, California, Guam, Hawaii, Nevada

Northwest Arctic Region Auburn, WA (253) 931-7547Alaska, Idaho, Oregon, Washington

National Capital Region Washington, DC (202) 205-2127District of Columbia, Metropolitan DC Area (parts of Maryland and Virginia)