CHAPTER 96

FORMERLY

HOUSE BILL NO. 240

AS AMENDED BY HOUSE AMENDMENT NOS. 1 AND 2

AN ACT TO AMEND PART IX, TITLE 29 OF THE DELAWARE CODE RELATING TO DISPOSITION OF SURPLUS STATE REAL PROPERTY.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Part IX, Title 29 of the Delaware Code, by adding a new Chapter 94 to read as follows:

"CHAPTER 94. REAL PROPERTY DISPOSITION

§9401. Statement of purpose

This Chapter Is designed to provide a formal review procedure for the disposition of real property no longer needed by the State for public purposes.

§9402. Definitions

(a) 'Department' shall mean the Department of Administrative Services;

(b)' Real property' shall mean real property, either improved or unimproved, owned by the State, but shall not include property which has been acquired by the Department of Transportation to serve as rights of way for proposed highway construction projects;

(c) 'Secretary' shall mean the Secretary of the Department of Administrative Services;

(d) 'Surplus Real Property' shall mean real property no longer needed by the State for a public purpose.

§9403. Disposition of real property

No real property shall be sold, leased, transferred, or otherwise conveyed until a review of the proposed conveyance is completed In accordance with this Chapter and the property is deemed to be surplus real property.

§9404. State Surplus Real Property Commission

(a) A Commission on State Surplus Real Property is established and shall report in an advisory capacity to the Governor and to the General Assembly. It shall be comprised of the following members:

(1) The Speaker of the House of Representatives,

(2) The President Pro Tempore of the Senate.

(3) The Director of the Delaware Development Office.

(4) The Secretary of the Department of Transportation.

(5) The Secretary of the Department of Administrative Services.

(b) The Governor shall designate one member to serve as chairman of the Commission.

(c) The Commission shall be assisted by staff designated by the Secretary of the Department of Administrative Services and shall work in cooperation with all state and local agencies of government and with private organizations or individuals to secure all necessary and relevant information for its assignments.

§9405. Proprietary State Real Property; Report of Surplus; Sale or other Disposition

(a) On or before December 31 of each year each state agency shall make a review of all proprietary state real property over which it has Jurisdiction to determine what, if any, property is In excess of its reasonably foreseeable needs and report thereon in writing to the Surplus Real Property Commission.

(b) Jurisdiction of all real property reported as surplus shall be transferred to the Commission, when requested by the chairman thereof, for sale, lease or disposition under this section or as may be otherwise authorized by law.

(c) The Commission shall report to the Governor and to the Legislature annually, any real property declared surplus and make recommendations as to disposition of the property by sale or otherwise.

(d) Whenever any real property is reported as surplus pursuant to this section, the Commission shall determine whether or not the use of the real property is needed by any other state agency. if the Commission determines that the property is needed by any other state agency it shall transfer jurisdiction of the property to such other state agency upon such terms and conditions as it may deem to be for the best Interests of the State.

(e) If the Commission determines that use of the real property is not needed by any other state agency, it may recommend that the surplus property be retained by the State or that It be offered to a political subdivision of the State or to an interested private organization for an amount not less than 30% of the fair market value nor more than 75% of the fair market value. Any such recommended transfer shall be subject to the following conditions:

(1) The property shall be used for a public purpose;

(2) The property shall be developed or used according to plan within a time period not to exceed five years;

(3) The deed or other Instrument of transfer shall provide that the property shall revert to the State if the property is not developed within the stated period of time or if the property ceases to be used for public purposes;

(4) The Commission may recommend additional terms and conditions as it determines to be in the best interest of the State.

(f) if the Commission determines that the use of state surplus real property is not needed by any other state agency or by any other local governmental agency or by a private organization pursuant to the provisions of subsection (e) it may recommend that the surplus property be retained by the state or that the surplus property be sold to the highest bidder after advertising. Sales of state surplus property pursuant to this section shall be at not less than the full fair market value.

(g) The Commission shall report to the Governor and to the Legislature annually, with respect to any surplus real property approved and recommended for sale or other disposition under this section, giving the following information:

(1) A description or other precise identification of the surplus property.

(2) The name of the agency which reported the excess property and the date of said report.

(3) The present status or use of the property.

(4) An accurate appraisal of the fair market value of the surplus property.

(5) An estimate of the amount of state funds, if any, expended in acquiring, preserving, improving, restoring or reclaiming the property.

(1) A description of whether the property is needed by any other state agency or local governmental agency and, if not, a description of alternative highest and best uses of the property which the Commisson deems to be in the best interest of the State."

Approved July 6,1083.