Utah Admin. Code R907-80-10 - Negotiated Sales, Justifications, Procedures, and Public Notice

(1) The department may dispose of surplus land by negotiated sale when the director determines such a sale is in the public interest of the state and the department, as set forth in Subsection R907-80-10(1)(e). The department may sell surplus land or other property by negotiated sale if:

(a) the buyer is a Utah public entity, and the property is being transferred for a public use, said public use to be established through one of the following methods:

(i) by a written finding presented to the department by the public entity's chief executive that the property will be used for a road, other transportation or transit facility, including bicycle paths and sidewalks, a transportation reinvestment zone created pursuant to Section 11-13-227, a public building or grounds, or a public park; or

(ii) by resolution declaring the proposed use of the land qualifies as a valid public use, said resolution to be approved by a public vote by the public entity's governing body at an open meeting after notice to at least adjoining landowners who shall have the opportunity to comment on the proposed public use prior to the public vote;

(b) the buyer of the surplus land also owns adjoining land, but only if the department determines that competition for the purchase of the surplus land is not likely;

(c) the surplus land comprises an easement, and said easement is being released to the owner of the fee simple estate that is subject to the easement;

(d) the surplus land is being transferred to a public utility, as defined in Section 72-6-116, to provide utility services to the public; or

(e) the director, where any designee of the executive director of the department may only be a deputy director of the department determines a negotiated sale is in the public interest of the state and the department after considering at least the following factors:

(1) the needs of the department for proceeds from surplus sales;

(2) the likelihood of competition to purchase the parcel if sold through public means;

(3) any additional costs to the department associated with a sale by other means;

(4) the price to be paid by the buyer;

(5) whether there are any public benefits expected from a negotiated sale that could not be achieved by a public sale; and

(6) any other factor the director determines is relevant to a public interest determination.

(f) Any negotiated sale carried out pursuant to this Rule must be for an established minimum acceptable selling price, unless the land is to be sold to a public entity for a road or park, in which case it may be sold for a lesser amount or at no cost if a clause is placed into the deed that specifies title will revert to the department if the property ceases to be used for the purpose stated in the deed.

(2) The department may list, or contract with an agent or broker to list for sale a property or property interest on a commercial listing service if the director determines doing so is in the best interest of the state. The department will utilize a standard procurement process to select an agent or broker.

(3) In the event a party submits a competing offer or offers to purchase the property from the department, the department must evaluate the offer or offers and accept the offer that best serves the interests of the state and the department after consideration of the factors identified in Subsection (1)(e). If the department receives multiple offers, the director may determine that the best interests of the state and the department require the department to request best and final offers from offerors. A written justification statement that articulates the reasoning used to determine the offer that best serves the interests of the state and the department must be a part of negotiated sales files.

(4) The department may require a buyer of surplus land purchased through a negotiated sale to reimburse the department for costs incurred in preparing the parcel for sale. These costs may include costs for advertising, appraisal, environmental assessments, and a sale processing charge.

Notes

Utah Admin. Code R907-80-10

Adopted by Utah State Bulletin Number 2017-12, effective 5/22/2017 Amended by Utah State Bulletin Number 2018-11, effective 5/9/2018 Amended by Utah State Bulletin Number 2020-24, effective 12/1/2020