[[NOTE: Section headings and bold formatting have been provided to enhance readability.  They are not part of the original legislation.]]

 

Outside Section 548

to the FY04 Massachusetts State Budget

 

[[TERMINOLOGY]]

SECTION 548.. (a) For the purposes of this section, the following terms shall have the following meanings, unless the context clearly requires otherwise:

 

“Commissioner”, the commissioner of the department of capital assets management and maintenance.

 

“Real property”, as defined in section 39A of chapter 7 of the General Laws.

 

“State agency”, as defined in said section 39A(v) of said chapter 7.

 

“Surplus real property”, real property of the commonwealth

 

(i) previously determined to be surplus to current and foreseeable state needs pursuant to sections 40F or 40F1/2 of said chapter 7, but excluding real property for which there is an established local reuse plan; or

 

(ii) determined to be surplus to current and foreseeable state needs pursuant to this section. The term “surplus real property” shall not include property subject to Article 97 of the amendments to the constitution.

 

[[SALE AND 99 YEAR LEASING PERMITTED]]

(b) Notwithstanding sections 40E to 40F1/2, inclusive, and 40H of said chapter 7 of the General Laws, or any other general or special law to the contrary, the commissioner may sell, lease for a term not to exceed 99 years, transfer or otherwise dispose of surplus real property of the commonwealth, as specified in this section.

 

[[POSSIBLE STATE AGENCY USE]]

(c) In order to determine if specified real property is surplus to the current and foreseeable needs of the commonwealth, the commissioner shall provide a suitable written notice and inquiry to the several secretaries, with a date certain for any response. If no executive office responds in writing by the date so specified that an agency has a current or foreseeable need for the real property, the commissioner may declare the property as surplus and dispose of it in accordance with this section. Alternatively, if a written response is timely received specifying a current or foreseeable need for the real property, the commissioner shall, in consultation with the secretary of administration and finance and with those responding affirmatively, determine whether the real property shall (i) be made available for current use by a state agency, (ii) be retained on account of a foreseeable use by a state agency, or (iii) be declared surplus real property which may be disposed of pursuant to this section.

 

[[FORSEEABLE USES]]

(d) When real property is determined to be surplus to current state needs but not to foreseeable state needs, the commissioner shall take such necessary action to ensure that any disposition of the real property is temporary and maintains the commissioner’s ability to make such real property available to a state agency as needed.

 

[[NOTIFICATION]]

(e) If the commissioner determines that the real property is surplus, he shall (i) provide written notice, for each city or town in which the property is located, to the city manager in the case of a city under Plan E form of government, the mayor and city council in the case of all other cities, the chairman of the board of selectmen in the case of a town, the county commissioners, the regional planning agency and the members of the General Court;

 

[[RESTRICTIONS]]

(ii) declare it available for disposition and shall identify restrictions, if any, on its use and development necessary to comply with the policies and principles established by the commonwealth development coordinating council established in section 8B of chapter 6A of the General Laws and shall take into consideration other established state and local plans and policies;

 

[[PUBLIC HEARING]]

 (iii) conduct a public hearing in the locality in which the property is located to consider potential reuses and appropriate restrictions if the property parcels exceeds 2 acres or if the commissioner determines that a hearing should be held for a smaller parcel and shall provide reasonable public notice in advance of the hearing; and

 

[[ENFORCEMENT OF REUSE RESTRICTIONS]]

(iv) ensure that any deed, lease or other disposition agreement shall set forth all such reuse restrictions, provide for effective remedies on behalf of the commonwealth and provide, in the event of a failure to comply with the reuse restrictions by the grantee, lessee or other recipient, that title or such lesser interest as may have been conveyed, shall immediately revert to the commonwealth.

 

[[APPRAISAL]]

(f) The commissioner shall establish the value of surplus real property using customarily accepted appraisal methodologies. The value shall be calculated both for (i) the highest and best use of the property as may be encumbered, and (ii) subject to uses, restrictions and encumbrances defined by the commissioner. In no instance in which the commonwealth retains responsibility for maintaining the said property shall the terms provide for payment of less than the annual maintenance costs.

 

[[SALE]]

(g) The commissioner shall dispose of surplus real property utilizing appropriate competitive processes and procedures. Such competitive processes may include, but are not limited to, absolute auction, sealed bids and requests for price and development proposals.

 

At least 30 days before the date of an auction or the date on which bids or proposals or other offers to purchase or lease surplus real property are due, the commissioner shall place a notice in the central register published by the state secretary pursuant to section 20A of chapter 9 stating the availability of such property, the nature of the competitive process and other information deemed relevant, including the time and location of the auction, the submission of bids or proposals and the opening thereof.

 

(h) The commissioner shall place a notice in the central register identifying the individual or firm selected as party to such real property transaction, along with the amount of such transaction. If the commissioner accepts an amount below the value calculated under subsection (f), he shall include the justification therefore, specifying the difference between the calculated value and the price received.

 

(i) No agreement for the sale, lease, transfer or other disposition of surplus real property and no deed, executed by or on behalf of the commonwealth, shall be valid unless such agreement or deed contains the following certification, signed by the commissioner:

“The undersigned certifies under penalties of perjury that I have fully complied with section 545 of chapter___ of the acts of 2003 in connection with the property described herein.”

 

(j) No agreement for the sale, lease, transfer or other disposition of surplus real property shall be valid unless the purchaser or lessee has executed and filed with the commissioner the statement required by section 40J of chapter 7 of the General Laws.

 

(k) The grantee or lessee of any surplus real property shall be responsible for all costs including, but not limited to, appraisals, surveys, plans, recordings and any other expenses relating to the transfer, as shall be deemed necessary by the commissioner.

 

(l) This section shall not apply to the disposition of real property that is the subject of a special act having an effective date prior to that of this section.

 

[[SUNSET PROVISION]]

(m) The authority granted the commissioner hereunder shall cease as of June 30, 2005, however, the commissioner may complete any transaction for which agreements have been signed and delivered on or before that date.

 

[[DISTRIBUTION OF PROCEEDS]]

(n) The commissioner shall deposit $30 million of the proceeds realized from property dispositions pursuant to this section into the General Fund. Any proceeds in excess of that amount shall be deposited into the Commonwealth Stabilization Fund, established in section 2H of chapter 29 of the General Laws.