OAR 141-067-0270
Methods for Conducting Land Sales
(1)
The director shall recommend to the State Land Board the method for conducting a land sale based upon the policies described in OAR 141-067-0155 (Policies) and as set forth in these rules.(2)
The following methods shall be used:(a)
Direct sale at Department Estimate of Value. This method is generally used for the sale of: Certain Trust and Non-Trust land transactions involving agencies of the federal government with powers of eminent domain.(b)
Direct sale at Department Estimate of Value with reversionary rights, existing leases or other reserved interests, limitations and encumbrances. This method is used principally for land sales to state agencies and political subdivisions and is aimed at assuring that the land will continue to be used for public purposes after it has been transferred.(c)
Direct sale to a qualified lessee, or if not applicable, to an adjacent landowner at a sale price based on a Department Estimate of Value.(d)
Sale to the highest bidder via oral or sealed bid auction or combination thereof; minimum bid or reserve price approved by the Director. This method is used for all classes of Trust and Non-Trust land except as otherwise described in these rules.(e)
Sale to the highest bidder via oral or sealed bid auction with an eligible lessee having the right to bid last to exceed the final high bid; minimum bid or reserve price established by the Director based on Department Estimate of Value. This method is used for qualified rangeland lessees as described in OAR 141-067-0230 (Sale Procedures for Rangelands/Common School Grazing Lands) or for those lessees with lease contract terms and conditions that clearly and explicitly provide this opportunity.(f)
Negotiated sale. This method allows the Department to negotiate or bargain for the highest sale price possible from among interested parties.(g)
Brokered Sale. This method allows for the Department to offer land through a State of Oregon licensed real estate broker at a fair market value and to negotiate the final sale price with a buyer through the broker. A brokerage fee may be paid to the Department’s broker or the buyer’s agent or both in accordance with generally accepted real estate practices. This method is used when local real estate market conditions indicate and the land being offered best fits disposal through a more traditional marketing approach.(3)
The Department reserves the right, but not the obligation, to offer all property to lessees, followed by adjacent landowners and others when the Director determines that doing so will provide the greatest benefit for the people of the state and not conflict with the Department’s constitutional and statutory obligations.(4)
The Director will report to the State Land Board the land sale method chosen for each sale and the reasons supporting the choice of sale method. The land sale method must be approved by the State Land Board.(5)
If the sale method selected involves an auction, the Department will establish the sale procedures to be followed including, but not limited to: the form and schedule for bid submittals; the amount of deposit required; the time and location of the bid openings and/or oral auction; the minimum bid or reserve price; preliminary terms and conditions of sale; payment options and any additional costs to be borne by the successful purchaser. The Department will fully disclose these procedures and all other pertinent information to the public as well as give ample advance public notice of the auction.
Source:
Rule 141-067-0270 — Methods for Conducting Land Sales, https://secure.sos.state.or.us/oard/view.action?ruleNumber=141-067-0270.