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 Joseph Crenshaw Realty Specialist Southeast Sunbelt Region May 3 & 7, 2010

2 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…

3 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.).

4 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

5 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

6 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

7 Park & Recreation PBC Grandview Access Boat Ramp 8.91 acres to the Town of Grandview, IN

8 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

9 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

10 McKinney Vento Act  Gives priority consideration to use for facilities to assist the homeless.  HHS approves or denies applications in this regard.

11 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 , 14 USC 685)

12 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.

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

14 “Big Red” Lighthouse, Ottawa County, Michigan (pending transfer to the Holland Harbor Lighthouse Commission)

15 Property Act Sales… Rotterdam, NY Former Army Housing Duplex Sold via On-line auction for the Army

16 Property Act Sales…  Former GSA property, Thaddeus J. Dulski Federal Office Building located in Buffalo, NY  Part of marketing materials, dedicated website-  Sold via on-line auction-

17 Economy Act Sales…  U.S. Forest Service properties in northern Minnesota  Sold via combination of sealed bid and on-line auction

18 Former Ranger Station in Sedona, AZ -21 acres Sold via on-line auction for the Bureau of Reclamation Region 9, San Francisco

19 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

20 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.

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

22 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

23 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

24 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

25 Public Sales  Sealed Bid Sale  Public Auction  Online Auction:

26 Sealed Bid Sale  Ideal for small group of highly interested bidders and/or specialized property  Eliminates need for internet in rural areas

27 Public Auction  Creates excitement  Forces action  Duration can be controlled  Works best with a high amount of local interest

28

29 On-line Bidding Process  Users register on-line at by creating a new account ( 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

30 Recent Public Sales…  Greater Southwest Zonal Disposal Office Ft. Worth, TX  USAF Space Command Missile Sites

31 Recent Public Sales…

32 Recent Sale for the Army…Point Stratford, +/- 78 acre brownfield redevelopment in Fairfield County, CT (  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 ( ) 

33 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

34 GSA Property Disposal websites 

35 GSA Regional Points of Contact New England Region Boston, MA (617) Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Puerto Rico, Vermont, U.S. Virgin Islands Southeast Sunbelt Region Atlanta, GA (404) Alabama, Delaware, Florida, Georgia, Kentucky, Maryland, Mississippi, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia Great Lakes Region Chicago, IL (312) Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin Greater Southwest Region Ft. Worth, TX (817) Arkansas, Colorado, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, Utah, Wyoming Pacific Rim Region San Francisco, CA (888) Arizona, California, Guam, Hawaii, Nevada Northwest Arctic Region Auburn, WA (253) Alaska, Idaho, Oregon, Washington National Capital Region Washington, DC (202) District of Columbia, Metropolitan DC Area (parts of Maryland and Virginia)