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Department of the Treasury

NO: 95-22-GSA







Division of Property

Policy and Pertinent Changes

1. The acquisition of all real property (other than by the
Departments of Environmental Protection, Education, Military and
Veteran's Affairs, or State Colleges, the Hackensack Meadowlands
Development Commission or independent authorities properties or
the Department of Transportation) will be coordinated by the
Division of Property Management ( the Division), General Services
Administration (GSA), Department of the Treasury (Treasury) in
accordance with the Statewide Master Plan.

2. Departments or agencies wishing to acquire real property
must receive approval from the Office of Management and Budget
(OMB), Department of the Treasury, and evidence of funding must
be received by the Division before any formal action to acquire
property can be taken.

Acquisition Procedure

Acquisition of State real property will proceed through the
following steps:

1. Site Search

a) When a department or agency desires to investigate the
availability of real property on a State wide basis, it will
notify the Division by letter to search for a suitable site
detailing such pertinent information as size of parcel, type of
facility to be constructed, available funding etc. The Division
will check its inventory of State property and property currently
under lease and, if no suitable property is available, search for
a site in the private sector through advertisements and
canvassing. In no case will the
department or agency contact realtors, brokers, or
principals to negotiate purchase. When the Division
has identified a site, the department or agency will
investigate the site and report to the Division whether
the site meets its programmatic needs.

2. Site Acquisition

a) If the site is suitable to the department or agency, the
department or agency will complete and forward a Form RPR-1 to
the Division from the department or agency head requesting that
the action be initiated. The Division will then circulate copies
of the RPR-1 to all department or agency land review officers for
review and comment within thirty (30) days. The Division will
request DEP review to ascertain whether there are any
environmental issues relating to the site.

b) If issues, problems, or potential conflicts surface during
the thirty (30) day review and comment period, the Division will
conduct a meeting of interested parties to resolve such matters.

3. The Division will develop a fair market value for the real
property by arranging for a full narrative appraisal from a NJ
State certified Real Estate Appraiser. This appraisal will be
reviewed internally by Division staff and will be the basis for
all negotiations. The owner shall be afforded the opportunity to
accompany the appraiser during inspection of the property.

4. It is the responsibility of the department or agency to
obtain any local approvals that may be necessary and to notify
the Division of receipt of such approvals. In general, the
department or agency should discuss the project with local
officials prior to the execution of a formal contract of sale.

5. Title searches and title insurance will be arranged by the
Division to insure that the State will receive clear title to the

6. The Division will arrange for a licensed land surveyor to
prepare a legal metes and bounds description and site survey to
fully describe the property. The survey will be certified to the
State of New Jersey.

7. The Division will arrange for all necessary inspections
including fire marshal, engineering/architectural, soil test
borings, termite, toxic waste investigations, radon inspections,
etc., that may be required to determine if the property is
suitable for its intended purpose.

8. All negotiations with realtors, brokers or principals will
be conducted by the Division. The Division shall keep the
department or agency advised of the status of all such
negotiations. In the event negotiations are successful, a
contract of sale will be drawn up. The requesting department or
agency will review the contract of sale and approve the terms and
conditions in writing to the Division. The approved contract of
sale will be signed by the seller and executed on behalf of the
department or agency by the Treasurer and GSA Administrator.
Title will be acquired in the name of the State of New Jersey,
Department of the Treasury and will be assigned to the department
or agency for administration and maintenance.

9. In general, negotiations will be either "friendly" (willing
buyer and willing seller), or adversarial.

a) The Division will attempt to reach agreement to purchase
real property through a willing seller transaction. If this
approach is found to be impossible, and the department or agency
still wishes to proceed with the acquisition, then step 9b will
be followed provided the department or agency has power to
condemn property.

b) In accordance with N.J.S.A 20:3-6, the Division will
transmit via Certified Mail offering letters to the owner of the
property setting forth the property and interest therein to be
acquired, the compensation to be paid (in no event less than the
approved appraisal of the fair market value of the property) and
a reasonable disclosure of the manner in which the amount of such
offered compensation was calculated.

c) If, following the Division's attempt to negotiate a
purchase, the owner does not respond to the Division's final
offer within 14 days, the Division will request that the Office
of the Attorney General to initiate a condemnation action to
acquire the property.

d) In the event relocation assistance is required, the
acquiring agency will bear the cost of assistance necessary to
relocate persons or businesses and any other costs incurred in
the condemnation of the property.

10. The Office of the Attorney General will take all legal steps
necessary to convey title to the State. In the case of non-
adversary acquisition, the Division will assemble a package
including the fully executed contract together with surveys,
title reports and other pertinent information and transmit it to
the Office of the Attorney General which will complete legal
requirements necessary to close title.

a) Formal closing will take place in the Office of the Attorney
General to transfer title, make payment, and make necessary
adjustments for taxes, utility payments, etc. In general,
closing will be scheduled within sixty (60) days following the
execution of the contract of sale. The Office of the Attorney
General will arrange to have the deed recorded with the
department or agency paying any recording fees. The Office will
also notify local tax assessors of the change in ownership.

b) In the case of a condemnation proceeding, the Office of the
Attorney General will file the necessary complaint, declaration
of taking, and post the fair market value of the property with
the Clerk of the Superior Court. The department or agency must
be aware that the current approved appraised value of the
property must be posted with the Court, and if the court awards a
greater compensation, the department or agency must bear such
additional cost along with any other cost assessed by the county,
i.e., interest, relocation charges, etc.

11. Following filing of the declaration of taking, the Division
will notify the Bureau of Risk Management to provide adequate
insurance coverage.

12. The Division will maintain its inventory files of State
lands and buildings by adding the property to its records and
maps following closing. The deed will be microfilmed by the
Division and the original transmitted to the State Archives.

13. All necessary expenses including surveys, appraisals,
advertising, and other costs connected with property acquisition
will be borne by the department or agency acquiring the property.

This Circular Letter is effective on the date hereof.

George M. Gross, Jr., Administrator
General Services Administration

Elizabeth L. Pugh, Director
Office of Management and Budget

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