Institutional Controls for Real Property Disposal Transactions

Kevin LegareRealty Specialist

General Services AdministrationRegion One, Boston MAkevin.legare@gsa.gov

617-565-5700

Federal Property and Administrative Services Act of 1949 Property Act

“The Property Act”

• Created GSA in June 1949

• Governs general applications on real property acquired to carry out Federal agency program missions

• Implements real property utilization and disposal framework

AIRPORTCORRECTIONAL

EDUCATIONHISTORIC

HOMELESSLAW ENFORCEMENT/

EMERGENCY MANAGEMENTPARK & RECREATION

PUBLIC HEALTHSELF HELP HOUSING

WILDLIFE CONSERVATION

Property Disposal ProcessFederal Property Act & Federal Management Regulations

40 USC 541 et seq. & 41 CFR 102-75

Excess Federal Transfer

Public BenefitConveyance

NegotiatedSale

PublicSale

AGENCY REPORTS

PROPERTYEXCESS TO GSA

FORDISPOSITION

DETERMINED SURPLUS

IF NOT TRANSFERREDTO ANOTHER

FEDERAL AGENCY

PROPERTY AVAILABLE

FOR CERTAIN PUBLIC USESUP TO 100%DISCOUNT

TO ELIGIBLEPUBLIC BODIES

FOR OTHERPUBLIC USES

FAIR MARKET VALUE

REQUIRED

OFFERED TO PUBLIC &

PRIVATE PARTIES BY AUCTION OR SEALED BID FAIR

MARKETVALUE REQUIRED

GSA and IC’s

• PRE-CERCLA – GSA routinely placed IC’s in deeds limiting reuse

• PBC’s – restrictions include “no public allowed” (wildlife) and a reversionary clause

• Negotiated sales – excess profits clause inserted in deeds for minimum 3 years

• Public sales – deed notice, buyer bewareIC’s were used to ensure the

“public purpose” use of the property

LUC’s = EC’s + IC’s

• Engineering Controls: Physical mechanisms for preventing exposure to contamination (caps placed on contaminated soil, fences, signage)

• Institutional Controls: Legal and administrative mechanisms designed to reduce exposure to contamination (deed restrictions, easements, notices) and run with the land

Institutional Controls

• Environmental – CERCLA– RCRA– CZMA– SDWA– NHPA– ESA– wetlands

• Non-Environmental – PBC’s– Mineral rights– FAA restriction– Renewable energy

credits– Escrow accounts– Excess profits clause

New Brunswick Laboratory SiteNew Brunswick, New Jersey

5.61 acres

New Brunswick Milestones

• 2004: Soils and groundwater RI submitted to NJDEP

• 2005: ROE to GSA

• 2006: NJDEP requests deed notice

• 2007: City interest falls through– GSA markets property for

public sale

• 2007: High bid via online sale - $1.125M– DOE records deed notice

• 2008: CNFA letter from NJDEP– Buyer resistance with

closing (storm pipe)

• 2009: Paid in full, deed transfer

IC = deed notice that runs with the landEC = soil cap

Wayne Interim Storage Superfund Site (WISS) Wayne, New Jersey

1990: Federal Facilities Agreement signed by DOE and EPA for radioactive materials buried on 6.5 acre WISS property

Principle contaminant: Thorium, with some radium, uranium and metals

2002: Restoration activities were completed

2006: Property conveyed through the Federal Lands to Parks Program to theCity of Wayne

Mill TailingsMonticello, Utah

• Only uranium mill owned & operated by US Government

• Conveyed as an Early Transfer PBC for park & recreation

• 2012: CERCLA 5 year review

Portion of permeable reactive barrier

Real Property Utilization and Disposal

http://www.propertydisposal.gsa.gov/

http://rc.gsa.gov/