600 R.I. Code R. 600-RICR-00-00-1.7

Current through December 3, 2024

Section 600-RICR-00-00-1.7 - CONVEYANCE OF STATE-OWNED LAND OR OTHER REAL PROPERTY BY SALE OR GIFT

No agency shall convey any State-owned land or other real property until said conveyance is approved by the Committee.

1.7.1Valuation of Land

A. The agency shall perform a real estate valuation for property interests proposed to be conveyed in accordance with the following.

1. For all proposed conveyances, the agency shall obtain a real estate appraisal of the land or other real property interest to be disposed of by the State. The appraisal shall be prepared by an appraiser who is certified by the State in accordance with R.I. Gen. Laws § 5-20.7-1 et seq. Upon request by the Committee, the agency shall obtain an appraisal to be conducted by an appraiser who is not an employee of the agency.

2. Upon request by the agency, the Committee may waive or loosen the appraisal requirements if it is in the best interest of the State.

1.7.2Notice to the Commerce Corporation

To satisfy the requirements of R.I. Gen. Laws § 37-6-6, the agency shall give written notice to the Commerce Corporation of its intent to dispose of the property and shall afford the Commerce Corporation with not less than ten (10) days from the date of the notice to reply. The Commerce Corporation may provide the agency with a recommendation or it may request additional time to conduct a study and/or make a recommendation. If the Commerce Corporation fails to reply to the agency within ten days or other due date as determined by the agency, it shall constitute a waiver of the Commerce Corporation's opportunity to provide a recommendation on the proposed action. This notice provision shall not apply to proposed transfers of property between State agencies.

1.7.3Notice to State Agencies

For all developed property or for parcels of land that are buildable under the municipal zoning ordinance, the agency shall give written notice to State agencies of its intent to dispose of the subject property and shall afford those agencies the opportunity to state their interest in obtaining the property or to offer comments on its disposition. At a minimum, the notice shall be provided to a list of State agencies as approved and maintained by the Committee. Agencies shall be permitted thirty (30) days from the date of notice to make known their interest in the subject property.

1.7.4Open Space and Natural Resources Value Evaluation

The agency shall prepare an open space and natural resources values evaluation consistent with "Rules and Regulations Governing the Preservation and Protection of State Open Space" or other such rules as promulgated by the Department of Environmental Management in furtherance of the Preservation of State Open Space Act as set forth in R.I. Gen. Laws § 42-17.9-1 et seq.

1.7.5Evaluation of Consistency with the State Guide Plan

The agency shall consider the consistency of the proposed action with the State Guide Plan as established by R.I. Gen. Laws § 42-11-10(d). The agency shall give written notice and supporting materials to the Division of Planning requesting an evaluation and finding as to whether the proposed action is consistent with the State Guide Plan. The Division of Planning may provide the agency with the results of its evaluation or it may request additional time to complete an evaluation. If the Division of Planning fails to reply within ten (10) business days or other due date as determined by the agency, it shall constitute a waiver of the Division of Planning's opportunity to evaluate the proposed action. If an inconsistency is found, the Division may provide recommendations as to how the action could be modified to achieve consistency. The Division may also provide suggestions as to how the action could be modified to better achieve the goals and policies of the State Guide Plan.

1.7.6Evaluation of Consistency with the Municipal Comprehensive Plan

The agency shall give written notice of its proposed action to the city or town planner, or if no such position exists, to the chief executive officer in which the subject property is located and shall afford the municipality the opportunity to comment on the consistency of the proposed action with the municipality's comprehensive plan. The agency may combine this request with the notification required by §1.7.8(B) of this Part or it may submit a separate notice to the municipal planner or chief executive officer. The municipality may provide the agency with the results of its evaluation or it may request additional time to complete an evaluation. If the municipality fails to respond within thirty (30) days from the date of the mailing, it shall constitute a waiver of the municipality's opportunity to evaluate the proposed action.

1.7.7Preliminary Review

A. The agency shall request to come before the Committee for a preliminary review of a proposed action to convey State-owned land or real property by sale or gift.

B. An agency's request for a preliminary review must include the following records which shall be submitted to the Committee:

1. A written request for preliminary review;

2. An explanation of the purpose of the conveyance;

3. Aerial photographs, dimensional site maps, locus maps, and/or other documentation that clearly displays the size, location, and condition of the subject property;

4. Evidence that R.I. Gen. Laws § 37-2-45 has been satisfied;

5. Evidence that the Commerce Corporation was notified of the intent to dispose of the land or other real property and any response from the Commerce Corporation;

6. For developed property or for parcels of land that are buildable under the municipal zoning ordinance, evidence that the approved list of State agencies were notified of the agency's intent to dispose of the land or other real property and any responses received;

7. A copy of the open space and natural resources values evaluation as set forth in § 1.7.4 of this Part;

8. Evidence that the Division of Planning was requested to evaluate the proposed action for consistency with the State Guide Plan and any response received;

9. Evidence that the municipality in which the subject property is located was requested to evaluate the proposed action for consistency with the municipal comprehensive plan and any response received;

10. Any evidence of previous encroachment on the subject property for private use without prior authorization from the State.

11. Indication of the process that the agency intends to utilize to solicit an offer or proposal, and if the agency is seeking a non-competitive process, it must include a written explanation as to why it determined that it would be in the best interest and convenience of the public and the State to utilize a non-competitive process; and

12. Any other information and/or records requested by the Committee that are reasonably necessary for its review.

C. Following the satisfactory submission of all appropriate records and information, the Committee shall conduct a preliminary review of the proposed action and may provide the agency with substantive and/or procedural guidance for the completion of the leasing process.

1.7.8Notification to Prior Owner and Municipality for Property Acquired by Condemnation

A. If the land, space, or other real property proposed to be disposed of was taken by condemnation, the agency is responsible for satisfying the requirements of R.I. Gen. Laws § 37-7-3, including notice provisions. To satisfy the notice provisions, the following actions must be taken:

1. The agency shall give written notice by registered or certified mail to the person or persons, if living, in whom the title to the property was vested at the time of the taking of its intent to lease the property and offer the person or persons the same terms and conditions of the intended lease, subject to any conditions, stipulations, or restrictions as may be imposed by the Committee. The person or persons shall have thirty (30) days from the date of mailing to accept the offer or his or her or their right to lease the property shall be deemed waived.

2. The agency shall give written notice by registered or certified mail to the city or town clerk and to the chief executive officer of the municipality in which the property is located of its intent to lease the property and offer the municipality the same terms and conditions of the intended lease, subject to any conditions, stipulations, or restrictions as may be imposed by the Committee and subject to the first right held by the person or persons, if living, in whom the title to the property was vested at the time of the taking. The municipality shall have thirty (30) days from the date of mailing to accept the offer or its right to lease the property shall be deemed waived.

B. Certain properties may be restricted to or dedicated for a specific use or purpose by statute or as a condition of the funding used to acquire the property. The Committee recognizes that in these instances, the property is not available for general sale and therefore such properties are exempted from the requirements set forth by §1.7.8(A) of this Part.

1.7.9Public Auction

The Committee may authorize either an open bid auction or a sealed bid auction, depending on which method the Committee concludes is in the best interest of the public and the best interest of State government. Upon authorization, the agency shall arrange with the State Purchasing Agent for an auction in accordance with R.I. Gen. Laws § 37-7-1 et seq.

1.7.10Request for Proposals

A. The agency may seek to convey the property through a Request for Proposals (RFP) in all cases where the highest offer is not the sole or primary consideration used in determining a selection.

B. The agency shall consider the following in determining the appropriateness of an RFP:

1. Whether an RFP would be more likely than a public auction to result in development proposals that would best provide for the administration of State government, the advancement of commerce, and the protection and improvement of the health, welfare, and safety of the inhabitants of the State.

2. Whether an RFP would be a better method than a public auction to restrict the subject property to a specific use in accordance with the results of the evaluation conducted under § 1.7.7 of this Part. In such instances, RFP's shall require respondents to describe how they will satisfy the conditions of the specific required use as well as the amount offered for the property.

C. RFP's must conform to all purchasing rules of the Department of Administration and other terms as may be required by the Committee.

1.7.11Non-competitive Sales

A. To the extent consistent with the provisions of R.I. Gen. Laws § 37-7-5, the agency may seek to convey the property through a non-competitive sale if the agency determines that it would be in the best interest and convenience of the public and the State to do so.

B. The agency may seek to convey property through a non-competitive sale at fair market value to an abutting landowner if it determines that the subject property is deemed unbuildable either due to size or inability for access. If the land has more than one abutter, each abutter shall be contacted and offered the opportunity to purchase the land. If more than one abutter agrees to the fair market value of the land, its disposition shall be by means of a sealed bid auction.

C. The agency may seek to convey buildable property through a non-competitive sale at fair market value to any interested party upon the determination that:

1. Neither a public auction nor a RFP would likely result in multiple responses; or

2. The cost of preparing for an auction or issuing a RFP would be excessive in relation to the proposed sale; and

3. The public's confidence in the integrity of the conveyance process would not likely be eroded by a non-competitive sale.

1.7.12Additional Assessment for Encroachment

A. When there is reasonable evidence of previous encroachment by the acquiring party on State-owned property for private use, without prior authorization from the State, a one-time ten percent (10%) charge of the appraised value of the property may be assessed to the acquiring party, subject to §§1.7.12(B) and (C) of this Part.

B. The Committee shall have the discretion to reduce this amount, in whole or in part, in recognition of one or more of the following mitigating circumstances:

1. That the encroachment does not involve physical improvements such as construction of structures, signage, or paved parking;

2. That the encroachment has been in place for a limited period of time, and/or it is considered likely that the property owner now seeking acquisition was unaware of the encroachment onto State property;

3. That an encroachment onto a land abutting a State highway involves the maintenance of a landscaping amenity that would be considered an area improvement and one that relieves Department of Transportation staff of maintenance responsibilities; or

4. For other good cause.

C. The Committee shall have the discretion to increase this amount, in whole or in part, in situations where the encroachment on State-owned property is particularly egregious and/or has continued after the abutting owner had been instructed to discontinue use of such State-owned property for private purposes.

D. In no event shall a payment of or willingness or refusal to pay a one-time charge assessed by the Committee pursuant to this section be construed as to deprive the State or any aggrieved party of any legal remedy that may exist in law or in equity. Furthermore, in no event shall any payment of or willingness to pay a one-time charge assessed by the Committee pursuant to this section be construed as an admission of guilt.

1.7.13Request for Approval of Purchase and Sales Agreement

A. The agency shall request to come before the Committee for approval of a purchase and sales agreement. An agency's request for approval shall not be submitted to the Committee until the agency is satisfied that an acceptable purchase and sales agreement has been agreed to by the agency and the prospective buyer(s), and that all applicable conditions required by §§ 1.7.1 through 1.7.11 of this Part have been met.

B. An agency's request for approval of a purchase and sales agreement must include the following records which shall be submitted to the Committee:

1. A written request for approval of a purchase and sales agreement;

2. If the acquiring party was selected through an auction or RFP, the identity of the highest bidder or offeror and the winning bid amount;

3. For the conveyance of property that was acquired by condemnation, the results of the agency's notification to the prior owner(s) and the municipality in which the property is located;

4. The purchase and sales agreement of which the agency is seeking Committee approval;

5. A summary of the agency's valuation findings including appraisal results;

6. Any updates to the records submitted as part of the preliminary review;

7. Certificate of disclosure disclosing the information of the acquiring party(s);

8. Certificate of authority, if the acquiring party is a corporation, partnership, or other entity, showing that the person executing the purchase and sales agreement on behalf of the acquiring party is duly authorized to bind the entity; and

9. Any other information and/or records requested by the Committee that are reasonably necessary for its review.

C. Following the satisfactory submission of all appropriate records and information, the Committee shall review the proposed action. The Committee shall consider whether the proposed conveyance is consistent with the purposes of R.I. Gen. Laws § 42-17.9-1 et seq., and whether the agency has demonstrated that the proposed conveyance is advantageous to the public interest and is in the best interest of the State.

D. If the Committee votes to approve the proposed action, the agency may continue the process to convey the land or other real property interest in accordance with the terms and conditions of the purchase and sales agreement.

E. The agency may request in writing that the Committee allow the purchase and sales agreement and the legal document of conveyance to be considered for concurrent approval. Any such request must include an explanation supporting the request.

1.7.14Request for Approval to Convey Land or other Real Property

A. The agency shall request to come before the Committee for approval to convey land or other real property. An agency's request for approval shall not be submitted to the Committee until the agency is satisfied that all applicable conditions required by §§ 1.7.1 through 1.7.11 of this Part have been met.

B. An agency's request for approval must include the following records which shall be submitted to the Committee:

1. A written request for approval;

2. The legal conveyance document(s) of which the agency is seeking Committee approval;

3. Any updates to the records submitted in connection with the preliminary review or the Committee's approval of a purchase and sales agreement; and

4. Any other information and/or records requested by the Committee that are reasonably necessary for its review.

C. Following the satisfactory submission of all appropriate records and information, the Committee shall review the proposed action. The Committee shall consider whether the proposed conveyance is consistent with the purposes of R.I. Gen. Laws § 42-17.9-1 et seq., and whether the agency has demonstrated that the proposed conveyance is advantageous to the public interest and is in the best interest of the State.

D. If the Committee votes to approve the proposed action, the Committee will provide the agency with certification attesting to its approval.

E. In addition to the Committee's approval of the proposed action, the legal conveyance documents as executed by the agency and the acquiring party(s) must be approved as to substance by the Director of Administration and approved as to form by the Attorney General prior to becoming valid.

1.7.15Copy of Executed Conveyance Agreements

The agency shall provide the Executive Secretary with an electronic copy of the executed purchase and sale agreement and/or legal document of conveyance agreement within three (3) business days of execution.

600 R.I. Code R. 600-RICR-00-00-1.7