Rule Rule 125-045-0235
Public Notices and Requests for Proposal for Terminal Disposition of State Real Property Interests to private individuals or entities


This rule applies to Terminal Disposition of State Real Property Interests after the Clearinghouse Process has concluded and no agreement has been reached between Transacting Agency and another State Agency.
(2) A Disposing Agency may dispose of the State Real Property Interest to any private individual or entity following an Appraisal, newspaper publication as described in this rule, and opportunity for public comment as provided in ORS 270.100 (Notice to department before sale of real property) (1)(c). Except as provided in ORS 273.825 (Purchase of lands by lessee or other person) for grazing lands, if the property has an appraised value exceeding $5,000, the property or equitable interest may not be sold to any private purchaser except after publishing notice calling for Proposals as described in this rule.
(3) Before entering a binding contract for Terminal Disposition of the State Real Property Interest, the Disposing Agency must publish notice of the proposed transaction not less than once a week for three successive weeks in at least one newspaper of general circulation in the county in which the State Real Property Interest is located. In addition, the Disposing Agency may provide notice on its website. The published notice must include the following:
(a) A general description of the State Real Property Interest, including a legal description, if any:
(b) The asking price; 
(c) Contact information for additional information concerning the State Real Property Interest and procedures to submit a Proposal; and  
(d) If not previously published, value is more than $100,000, and proposed acquiring entity is a Nonprofit Organization, Indian Tribe or Political Subdivision, all the values of the property to the people of this state must be considered and an invitation to submit public comment must be provided, as noted in ORS 270.105 (Procedures before terminal disposition of real property).
(e) A reservation of the right of the Disposing Agency or the Division to accept or reject any Proposal; and 
(f) Any other information the Disposing Agency elects to include. 
(4) The Division may post the current status of Surplus Real Property Interests available for Terminal Disposition and Long-Term Lease on its website.
(5) Any Proposal submitted in response to the published notice described in this rule must be in writing and signed by a person authorized to enter into a real estate transaction on behalf of the purchaser and be received by the close of the Proposal period. Proposer is expected to enter into a pre-purchase agreement or memorandum of understanding within 60 days of acceptance of Proposal.
(6) Each Proposal must clearly identify the amount offered for the purchase of the State Real Property Interest, and must include the following additional information:
(a) Any conditions upon the Proposer’s offer to acquire the State Real Property Interest;
(b) A detailed statement explaining the Proposer’s proposed use for the State Real Property Interest; and
(c) Any other information the Proposer believes is relevant to its Proposal.
(7) After the date and time for submitting Proposals has passed, the Disposing Agency must open all Proposals that have been timely delivered. Disposing Agency may request assistance from the Division in the evaluation of Proposals. The Disposing Agency must evaluate all responsive Proposals and consider all the values to this state as described in OAR 125-045-0214 (Transaction Process) to determine the Proposal most advantageous to the State. The determination of the most advantageous Proposal will be final and conclusive and is not subject to review by any court.
(8) The Disposing Agency, in its sole discretion, may reject any or all Proposals. 
(9) If the Disposing Agency does not reject all Proposals, the Disposing Agency must notify the apparent successful Proposer and negotiate to determine if the transfer can be consummated and a final agreement reached. If negotiations are unsuccessful, the Disposing Agency may:
(a) Notify the next highest ranking acceptable Proposal and must similarly attempt to negotiate the Terminal Disposition of the State Real Property Interest; and
(b) Continue the negotiation process until the Disposing Agency has exhausted the field of all Proposers; or
(c) Reject remaining Proposals.
(10) If all Proposals are rejected, the Disposing Agency may market and sell the Real Property Interest in any commercially-accepted manner the Disposing Agency deems appropriate, including but not limited to auction, direct negotiation with potential buyers, announcing a new RFQ or RFP process, or marketing through a real estate licensee. If the Disposing Agency ceases to actively market the Real Property Interest for a period of twelve (12) months or longer, the Disposing Agency must repeat the Transaction Process described in 125-045-0214 (Transaction Process) from the beginning.
Last accessed
Aug. 13, 2020