2897 - Disposal of public authority property.

§  2897.  Disposal  of  public  authority property. 1. Supervision and  direction. Except as otherwise provided in this section, the contracting  officer designated by each public authority shall have  supervision  and  direction over the disposition of property of such public authority.    2.  Custody  and control. The custody and control of the property of a  public authority, pending its disposition,  and  the  disposal  of  such  property,  shall  be  performed  by  the  public authority in possession  thereof or by the commissioner of general services  when  so  authorized  under this section.    3.  Method  of  disposition.  Subject  to section twenty-eight hundred  ninety-six of this title, any public authority may dispose  of  property  for  not  less  than  the  fair  market  value of such property by sale,  exchange, or transfer, for cash, credit,  or  other  property,  with  or  without  warranty,  and  upon  such  other  terms  and conditions as the  contracting officer deems proper, and it may execute such documents  for  the  transfer of title or other interest in property and take such other  action as it deems necessary or proper to dispose of such property under  the provisions of this section. Provided, however, that  no  disposition  of real property, or any interest in real property, shall be made unless  an  appraisal  of  the  value  of  such  property  has  been  made by an  independent appraiser and included in the  record  of  the  transaction,  and,  provided further, that no disposition of any other property, which  because of its unique nature or the unique circumstances of the proposed  transaction is not readily valued by reference to an active  market  for  similar property, shall be made without a similar appraisal.    4.  Sales  by  the  commissioner of general services. When it shall be  deemed advantageous to the state, any public authority may enter into an  agreement with the commissioner of general  services  where  under  such  commissioner  may  dispose  of  property  of such public authority under  terms  and  conditions  agreed  to  by  the  public  authority  and  the  commissioner of general services. In disposing of any such property of a  public authority, the commissioner of general services shall be bound by  the  terms of this title and references to the contracting officer shall  be deemed to refer to such commissioner.    5. Validity of deed, bill of sale, lease, or other instrument. A deed,  bill of sale, lease, or other instrument executed by or on behalf of any  public authority, purporting to transfer title or any other interest  in  property  of  a  public  authority  under this title shall be conclusive  evidence of compliance with the provisions  of  this  title  insofar  as  concerns  title or other interest of any bona fide grantee or transferee  who has given valuable consideration for such title  or  other  interest  and  has  not  received  actual  or  constructive notice of lack of such  compliance prior to the closing.    6. Bids for disposal; advertising; procedure; disposal by negotiation;  explanatory statement. a. All disposals or  contracts  for  disposal  of  property  of  a  public  authority made or authorized by the contracting  officer shall be made after publicly  advertising  for  bids  except  as  provided in paragraph c of this subdivision.    b.  Whenever public advertising for bids is required under paragraph a  of this subdivision:    (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 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  state,  price  and  other  factors  considered;  provided,  that  all bids may be rejected when it is in the  public interest to do so.    c.  Disposals and contracts for disposal of property may be negotiated  or made by public auction without regard to paragraphs a and b  of  this  subdivision  but  subject  to  obtaining such competition as is feasible  under the circumstances, if:    (i) the personal property involved has  qualities  separate  from  the  utilitarian   purpose  of  such  property,  such  as  artistic  quality,  antiquity, historical significance, rarity, or other quality of  similar  effect,  that  would  tend  to  increase  its  value, or if the personal  property is to be sold in such quantity that, if  it  were  disposed  of  under paragraphs a and b of this subdivision, would adversely affect the  state  or  local market for such property, and the estimated fair market  value of such property and other satisfactory terms of disposal  can  be  obtained by negotiation;    (ii)  the  fair  market  value of the property does not exceed fifteen  thousand dollars;    (iii) bid prices after advertising therefor are not reasonable, either  as to all or some part of the property, or have not  been  independently  arrived at in open competition;    (iv)  the  disposal will be to the state or any political subdivision,  and  the  estimated  fair  market  value  of  the  property  and   other  satisfactory terms of disposal are obtained by negotiation; or    (v)  under  those circumstances permitted by subdivision seven of this  section; or    (vi) such action is otherwise authorized by law.    d. (i) An explanatory statement shall be prepared of the circumstances  of each disposal by negotiation of:    (A) any personal property which has an estimated fair market value  in  excess of fifteen thousand dollars;    (B)  any  real  property  that  has  an estimated fair market value in  excess of one hundred thousand dollars, except that  any  real  property  disposed  of  by  lease or exchange shall only be subject to clauses (C)  and (D) of this subparagraph;    (C) any real property disposed of by lease, if  the  estimated  annual  rent  over  the  term  of  the  lease  is  in excess of fifteen thousand  dollars;    (D) any real property or real and related personal  property  disposed  of  by  exchange,  regardless  of value, or any property any part of the  consideration for which is real property.    (ii) Each such statement shall be transmitted to the persons  entitled  to  receive  copies  of  the  report required under section twenty-eight  hundred ninety-six of this title not less than ninety days in advance of  such disposal, and a copy thereof shall be preserved in the files of the  public authority making such disposal.    7. Disposal of property for less than fair market value. a.  No  asset  owned,  leased  or otherwise in the control of a public authority may be  sold, leased, or otherwise alienated for less than its fair market value  except if:    (i) the transferee is a government or other  public  entity,  and  the  terms  and conditions of the transfer require that the ownership and use  of the asset will remain with the government or any other public entity;    (ii) the purpose of the transfer is within  the  purpose,  mission  or  governing statute of the public authority; or    (iii)  in  the event a public authority seeks to transfer an asset for  less than its fair market value to other  than  a  governmental  entity,  which  disposal  would  not  be consistent with the authority's mission,purpose or governing statutes,  such  authority  shall  provide  written  notification  thereof  to the governor, the speaker of the assembly, and  the temporary president of the senate, and such proposed transfer  shall  be  subject  to  denial  by  the  governor, the senate, or the assembly.  Denial by the governor shall take the form of a signed certification  by  the  governor.  Denial by either house of the legislature shall take the  form of a resolution by such house. The governor and each house  of  the  legislature  shall  take  any such action within sixty days of receiving  notification of such proposed transfer  during  the  months  of  January  through  June, provided that if the legislature receives notification of  a proposed transfer during the months  of  July  through  December,  the  legislature  may take any such action within sixty days of January first  of the following  year.  If  no  such  resolution  or  certification  is  performed  within  sixty  days  of  such  notification  of  the proposed  transfer to the governor, senate, and assembly, the public authority may  effectuate such transfer. Provided, however,  that  with  respect  to  a  below  market  transfer  by  a  local  authority  that is not within the  purpose, mission or governing statute of the  local  authority,  if  the  governing  statute  provides  for  the  approval of such transfer by the  executive and legislative branches of the political subdivision in which  such local authority resides, and the transfer is of  property  obtained  by  the  authority  from  that political subdivision, then such approval  shall be sufficient to permit the transfer.    b. In the event a below fair market value asset transfer is  proposed,  the  following  information  must be provided to the authority board and  the public:    (i) a full description of the asset;    (ii) an appraisal of the fair market value of the asset and any  other  information establishing the fair market value sought by the board;    (iii)  a  description of the purpose of the transfer, and a reasonable  statement of the kind and amount of the benefit to the public  resulting  from  the  transfer,  including  but  not  limited  to the kind, number,  location, wages or salaries of jobs created or preserved as required  by  the  transfer,  the  benefits,  if  any, to the communities in which the  asset is situated as are required by the transfer;    (iv) a statement of the value to be  received  compared  to  the  fair  market value;    (v)  the  names  of any private parties participating in the transfer,  and if different than the statement required  by  subparagraph  (iv)  of  this paragraph, a statement of the value to the private party; and    (vi)  the  names  of  other private parties who have made an offer for  such asset, the value offered, and the purpose for which the  asset  was  sought to be used.    c.  Before  approving  the disposal of any property for less than fair  market value, the board of an authority shall consider  the  information  described  in  paragraph  b  of  this  subdivision  and  make  a written  determination that there is no reasonable alternative  to  the  proposed  below-market  transfer  that  would  achieve  the  same  purpose of such  transfer.