Exhibit B
March 25, 2008
GUIDELINES
AND
PROCEDURES
FOR THE
DISPOSAL OF REAL PROPERTY
INDEX
Section Description
I. PURPOSE
II. DEFINITIONS
IV. DUTIES OF THE DIRECTOR OF REAL ESTATE
V. DISPOSITION OF REAL PROPERTY
VI. ANNUAL REPORTS BY AUTHORITY
VII. APPROVAL OF GUIDELINES BY THE AUTHORITY’S BOARD
VIII. REFERENCES
GUIDELINES AND PROCEDURES
FOR THE DISPOSAL OF REAL PROPERTY
I. PURPOSE
The purpose of these Guidelines and Procedures for the Disposal of Real Property (“Guidelines”), which comply with Title 5-A, Article 9 of the Public Authorities Law, is to establish the procedures which detail the Authority’s operative policy and instructions regarding the disposal of real property and designate a Contracting Officer who is responsible for the Authority’s compliance with, and enforcement of, such Guidelines.
II. DEFINITIONS
2.1 “Contracting Officer” shall mean the officer or employee of the Authority who shall be appointed by resolution of the Authority’s Trustees to be responsible for the disposition of real property. The “Contracting Officer” is hereby designated to be the Vice President - Procurement and Real Estate, or a designee so stated in writing.
2.2 For the purposes of these Guidelines, “Dispose” or “Disposal” shall mean transfer of title or any other beneficial interest in real property in accordance with these Guidelines.
2.3 For the purposes of these Guidelines, “Real Property” shall mean real property, including land, owned by the Authority, and any other interest in such real property, to the extent that such interest may be conveyed to another person or entity for any purpose, excluding an interest securing a loan or other financial obligation of another party.
2.4 For purposes of these Guidelines, the term “Relative” is defined in Section 5.11.1.
The Public Authorities Accountability Act of 2005 (“PAAA”) requires the Authority to establish policy guidelines to accomplish the following:
3.1 Maintain inventory controls and accountability systems for all Real Property under the Authority’s control.
3.2 Periodically inventory Authority Real Property to determine which Real Property shall be Disposed of.
3.3 Dispose of Authority Real Property interests in accordance with the PAAA.
3.4 Prepare annual reports of Real Property Disposal transactions.
IV. duties of the director of real estate4.1 The Director of Real Estate shall maintain adequate inventory controls and accountability systems for all Real Property under the Authority’s control.
4.2 The Director of Real Estate shall annually inventory Authority Real Property to determine which Authority Real Property shall be Disposed of and shall prepare a report identifying such Real Property for Disposal.
4.4 The Directory of Real Estate shall produce for publishing written reports of such Real Property as set forth in Section VI of these Guidelines.
4.5 The Director of Real Estate shall arrange for the transfer or Disposal of any Real Property identified for Disposal by the Authority in accordance with these
V. Disposition of Real Property5.1 The Authority may Dispose of Real Property for not less than the fair market value of such Real Property by sale, exchange, or transfer, for cash, credit or other property, without warranty, and upon such other terms and conditions as the Contracting Officer deems proper under the provisions of the PAAA and as implemented by these Guidelines. Fair market value of the Authority Real Property subject to Disposal shall be established by an independent appraiser. Such appraisal report shall be included in the record of the Real Property Disposal transaction.
5.2 Except as set forth in Section 5.3 of the Guidelines, any Disposal of Real Property with a fair market value in excess of fifteen thousand dollars ($15,000.00) shall only be made after publicly advertising for bids in accordance with the following:
(i) the advertisement for bids shall be made at such time prior to the
Disposal or contract, through such methods, and on such terms and conditions as shall permit full and free competition consistent with the value and nature of the Real Property;
(ii) all bids shall be publicly disclosed at the time and place stated
in the advertisement; and
(iii) the award shall be made with reasonable promptness by notice to the responsible bidder whose bid, conforming to the invitation for bids, will be most advantageous to the Authority, price and other factors considered; provided, that all bids may be rejected when it is in the public interest to do so.
5.3 The Disposal of Authority Real Property may be negotiated or made by public auction without regard to Section 5.2 but subject to obtaining such competition as is feasible under the circumstances, if:
(i) the fair market value of the Real Property does not exceed fifteen
thousand dollars ($15,000.00);
(ii) bid prices after advertising therefore are not reasonable, either
as to all or some part of the Real Property, or have not been independently arrived at in open competition;
(iii) the Disposal will be to the state or any political subdivision,
and the estimated fair market value of the Real Property and other satisfactory terms of Disposal are obtained by negotiation;
(iv) the Disposal is for an amount less than the estimated fair market
value of the Real Property, the terms of such Disposal are obtained by public auction or negotiation, the Disposal of the Real Property is intended to further the public health, safety or welfare or an economic development interest of the state or a political subdivision (to include but not limited to, the prevention or remediation of a substantial threat to public health or safety, the creation or retention of a substantial number of job opportunities, or the creation or retention of a substantial source of revenues, or where the Authority's enabling legislation permits), and the purpose and the terms of such Disposal are documented in writing and approved by the Authority’s Trustees; or
(v) such action is otherwise authorized by law.
5.4 An explanatory statement detailing the Disposal by negotiation of Authority Real Property subject to the PAAA as set forth in Section 5.3 shall be made for any Disposal of:
(i) Real Property with a fair market value in excess of one hundred thousand dollars ($100,000.00) except that Real Property Disposed of by lease or exchange shall only be subject to (ii) through (iv) of this Section 5.4;
(ii) Real Property leased for a term of five years or less, if the estimated fair annual rent exceeds one hundred thousand dollars ($100,000.00) for any of such years;
(iii) Real Property leased for a term of more than five years if total estimated rent over term is in excess of one hundred thousand dollars ($100,000.00); and
(iv) Any Real Property or real and related personal property Disposed of by exchange, regardless of value, or any property any part of the consideration is for Real Property:
5.5 Each explanatory statement prepared in accordance with Section 5.4 above shall be transmitted to the State Comptroller, the Director of the Budget, the Commissioner of General Services, and the State Legislature not less than 90 days in advance of such Disposal, and a copy shall be kept by the Authority.
5.6 In the Authority's discretion, when it shall be deemed advantageous to the Authority and the State, the Authority may enter into an agreement with the Office of the Commissioner of General Services (“OGS”) under which OGS may Dispose of the Authority’s Real Property under terms and conditions agreed to by the Authority and the OGS. In Disposing of any such Real Property of the Authority, the OGS shall be bound by the relevant provisions of the PAAA.
5.7 The Guidelines shall not apply to any transfers of jurisdiction by the Authority pursuant to Public Lands Law §3(4).
5.8 The Director of Real Estate shall provide all relevant documentation to the Environmental Division for the purposes of determining, if applicable, whether the Disposal of Real Property is in compliance with the State Environmental Quality Review Act, and for whether it adheres to the American Society of Testing and Material’s guidelines for Environmental Site Assessments, if applicable.
5.9 No Authority employee who is involved in the award of Authority grants or contracts, may ask any officer, director or employee of such current or prospective contractor or grantee to reveal: (a) the political party affiliation of the individual; (b) whether the individual or entity has made campaign contributions to any political party, elected official, or candidate for elective office; or (c) whether the individual voted for or against any political party, elected official or candidate for elective office.
5.10 No Authority employee may award or decline to award any grant or contract, or recommend, promise or threaten to do so because of a current or prospective grantee’s or contractor’s: (a) refusal to answer any inquiry prohibited by Section 5.9 above or (b) giving or withholding or neglecting to make any contribution of money, service or any other valuable thing for any political purpose
5.11 No Authority employee may take part in any contracting decision involving the payment of more than $1,000: (i) to a Relative; or (ii) to any entity in which a Relative owns or controls 10% or more of the stock of such entity (or 1% in the case of a corporation whose stock is regularly traded on anestablished securities exchange); or serves as an officer, director or partner of that entity. If a contracting matter arises relating to this Section 5.11, then the employee must advise his or her supervisor of the relationship, and must be recused from any and all discussions or decisions relating to the matter.
5.11.1 For purposes of this section 5.11, the term “Relative” shall mean any person living in the same household as the Authority employee or any person who is a direct descendant of the Authority employee’s grandparents or the spouse of such descendant.
5.12 Restrictions 5.9 through 5.11 above also apply to procurements which are governed by the Authority’s Procurement Guidelines.
VI. Annual Reports by Authority
6.1 The Director of Real Estate shall publish the following two separate reports in accordance with these Guidelines:
(i) Pursuant to Section 2800 of the Public Authorities Law, the Director of Real Estate shall furnish a report for incorporation in the Authority’s annual report which is distributed tothe Governor, the Senate Finance Committee, the Assembly Ways and Means Committee, and the State Comptroller. This report shall include: (a) a listing of all Authority Real Property having an estimated fair market value greater than fifteen thousand dollars ($15,000.00) that the Authority intends to Dispose of; (b) a listing of all Real Property having an estimated fair market value greater than fifteen thousand dollars ($15,000.00) intended for Disposal but still owned by the Authority at the end of the fiscal reporting period; and (c) a listing of all Real Property having an estimated fair market value greater than fifteen thousand dollars ($15,000.00) Disposed of during the fiscal reporting period including the name of the purchaser of the Real Property and the price paid for the Real Property.
(ii) Pursuant to Public Authorities Law § 2896(3)(a), the Director of Real Estate shall prepare for distribution to the State Comptroller, the Director of the Budget, the Commissioner of General Services, and the State Legislature, an annual report which shall consist of a list and full description of all Real Property Disposed of during such the fiscal reporting period. This annual report shall include the price received by the Authority and the name of the purchaser of the Real Property.
VII. Approval of Guidelines by the Authority's Board
7.1 The Guidelines shall be annually reviewed and approved by the Authority’s Trustees. On or before the thirty-first day of March in each year, the Authority shall file with the State Comptroller a copy of the most recently reviewed and approved Guidelines, including the name of the Authority’s designated Contracting Officer. At the time of filing such Guidelines with the State Comptroller, the Authority shall also post such Guidelines on its internet website.
VIII. REFERENCES8.1 Chapter 766 of the Laws of 20058.2 Public Lands Law §3 (4)8.3 Chapter 14 of the Laws of 2007