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Mt. Hood Facilities Management Plan — Appendix C

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Disposal of Government Owned Facility

There are several ways in which to dispose of a building/facility and below are some basic steps for the district to follow. It seems each site and/or structure will have its own set of issues and concerns, but if the responsible person uses this brief outline as a guide, and works closely with the Lands and Property Specialists, success should prevail in most all proposed actions. Some buildings will be very simple and quick to dispose of (2-6 months). Others may be very complex and require a few years to dispose of. The main thing is not to become frustrated, but follow through the processes. The steps one must work through are there for good reasons and if the district has concerns or questions about them, please spend some time with the specialists to gain better understanding of why these steps are important.

Disposing of structure(s) without land

If the structure has value and the objective is to sell and remove, contact the Property Specialist and explain what action the district wishes to take. The District has responsibility to address any hazardous materials concerns such as: lead paint, asbestos, etc., and if the structure is historic, get approval to take approved action. These guidelines are described in other sections in this facility plan.

Working with the Lands Specialist, establish the Fair Market Value (FMV) of the property. An example of this might be:

   
Get appraisal of buildings it sits w/o land let's say ..... $28,000
minus    
Cost of moving it a reasonable distance let's say ..... -$15,000
minus
Cost to rehab site let's say ..... -$5,000
equals
Net Fair Market Value (FMV) $8,000

If the net FMV is less then $50,000, the Forest Service has the authority to continue with disposing of the property.

In this example, the net FMV ($ 8,000) is below $50,000, so the Forest Service can continue. If the net FMV was over $50,000, the Forest Service would then coordinate the disposal with GSA. GSA would still require some district/forest time to coordinate the disposal. The Property Specialist will now take the lead with GSA.

Let's proceed with the example as shown: The net FMV is $ 8,000. The next step is to continue working with the Property Specialist and contracting to prepare a "Sale of Government Property" contract and solicit bids.

Now, let's say the bids are in and with a high bid of $10,000 for the structure. We can award the sale and have the structure removed. As part of the sale, the buyer would rehab the site if this was in fact part of the condition of sale. The building is now gone!!

What if the solicitation is put out for bids, and no one bids on it?! The unit can consider:

Again, all historical processes and documentation must be completed and all hazardous materials must be dealt with properly.

Disposing of structures with sale of land.

Start with contacting the Forest Property and Lands Specialists. Submit form SF-118 (Report of Excess Real Property) to declare the facility as excess. The district is required to attach documentation to the SF-118 addressing historical, hazmat, etc., issues.

From here, the Forest Lands Specialist, with some support form the district, proceeds with either a land exchange or sale of property. This process, when land is involved, can take 2-4 years to complete.

Selling of structures and allowing to stay on site.

This option is available if the district wishes to sell a structure and is willing to allow the owner to keep the structure on Forest Service land. This would require the district to go through the process " disposing of structure without land" as described above, and then issue a Special Use Permit to allow use of the land/site. This would involve coordinating with Forest Specialists in lands, property and special uses.

Another option to reduce Forest Service financial obligations towards facilities is to offer a prospectus for Special Use Permit for a permittee to maintain and operate the facility for a specific purpose. This is not always a free lunch as the Forest Service generally still has many "landlord" responsibilities.

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