2.2-1156 - Sale or lease of surplus property and excess building space.
§ 2.2-1156. Sale or lease of surplus property and excess building space.
The Department shall identify real property assets that are surplus to thecurrent and reasonably anticipated future needs of the Commonwealth and maydispose of surplus assets as provided in this section, except when adepartment, agency or institution notifies the Department of a need forproperty which has been declared surplus, and the Department finds thatstated need to be valid and best satisfied by the use of the property.
A. After it determines the property to be surplus to the needs of theCommonwealth and that such property should be sold, the Department shallrequest the written opinion of the Secretary of Natural Resources as towhether the property is a significant component of the Commonwealth's naturalor historic resources, and if so how those resources should be protected inthe sale of the property. The Secretary of Natural Resources shall providethis review within 15 business days of receipt of full information from theDepartment. Within 120 days of receipt of the Secretary's review, theDepartment shall, with the prior written approval of the Governor, proceed tosell the property.
B. The sale shall be by public auction, or sealed bids, or by marketingthrough one or more real estate brokers licensed by the Commonwealth. Noticeof the date, time and place of sale, if by public auction or sealed bidsshall be given by advertisement in at least two newspapers published andhaving general circulation in the Commonwealth, at least one of which shallhave general circulation in the county or city in which the property to besold is located. At least thirty days shall elapse between publication of thenotice and the auction or the date on which sealed bids will be opened.
C. 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 $250,000, 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.
D. The Department may reject any and all bids or offers when, in the opinionof the Department, the price is inadequate in relation to the value of theproperty, the proposed terms are unacceptable, or if a need has been foundfor the property.
E. In lieu of the sale of any such property, or in the event the Departmentdetermines there is space within a building owned by the Commonwealth or anyspace leased by the Commonwealth in excess of current and reasonablyanticipated needs, the Department may, with the approval of the Governor,lease or sublease such property or space to any responsible person, firm orcorporation on such terms as shall be approved by the Governor; provided,however the authority herein to sublease space leased by the Commonwealthshall be subject to the terms of the original lease. The provisions of thissection requiring disposition of property through the medium of sealed bids,public auction, or marketing through licensed real estate brokers shall notapply to any lease thereof, although such procedures may be followed in thediscretion of the Department.
F. The deed, lease, or sublease conveying the property or excess space shallbe executed in the name of the Commonwealth and shall be in a form approvedby the Attorney General. Notwithstanding any law to the contrary andnotwithstanding how title to the property was acquired, the deed or lease maybe executed on behalf of the Commonwealth by the Director of the Departmentor his designee, and such action shall not create a cloud on the title to theproperty. The terms of the sale, lease, or sublease shall be subject to thewritten approval of the Governor.
G. 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.
H. 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. Notwithstanding the foregoing, income from leasesor subleases above the cost of the transaction shall first be applied to rentunder the original lease and to the cost of maintenance and operation of theproperty. The remaining funds shall be distributed as provided herein.
I. 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;2009, c. 612.)