Institutional Controls for Real Property Disposal Transactions

1. Federal Property and Administrative Services Act of 1949 Property Act Institutional Controls for Real Property Disposal Transactions Kevin Legare Realty Specialist General Services Administration Region One, Boston MA kevin.legare@gsa.gov 617-565-5700

2. “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

3. Property Disposal ProcessFederal Property Act & Federal Management Regulations40 USC 541 et seq. & 41 CFR 102-75 Public BenefitConveyance PublicSale Federal Transfer NegotiatedSale Excess OFFERED TO PUBLIC & PRIVATE PARTIES BY AUCTION OR SEALED BID FAIR MARKETVALUE REQUIRED TO ELIGIBLEPUBLIC BODIES FOR OTHERPUBLIC USES FAIR MARKET VALUE REQUIRED PROPERTY AVAILABLEFOR CERTAIN PUBLIC USESUP TO 100%DISCOUNT AGENCY REPORTS PROPERTYEXCESS TO GSA FORDISPOSITION DETERMINED SURPLUS IF NOT TRANSFERREDTO ANOTHERFEDERAL AGENCY AIRPORTCORRECTIONALEDUCATIONHISTORICHOMELESSLAW ENFORCEMENT/EMERGENCY MANAGEMENTPARK & RECREATIONPUBLIC HEALTHSELF HELP HOUSINGWILDLIFE CONSERVATION

4. 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 beware IC’s were used to ensure the “public purpose” use of the property

5. 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

6. 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

9. New Brunswick Laboratory Site New Brunswick, New Jersey 5.61 acres

10. 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 land EC = soil cap

11. 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 the City of Wayne

12. 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

14. Real Property Utilization and Disposal http://www.propertydisposal.gsa.gov/ http://rc.gsa.gov/