                                 CODE OF VIRGINIA

SALE OR LEASE OF SURPLUS PROPERTY AND EXCESS BUILDING SPACE (§ 2.2-1156)

A. The Department shall identify real property assets that are surplus to the
current and reasonably anticipated future needs of the Commonwealth and may
dispose of surplus assets as provided in this section, except when a department,
agency or institution notifies the Department of a need for property that has
been declared surplus, and the Department finds that stated need to be valid and
best satisfied by the use of the property.

B. After it determines the property to be surplus to the needs of the
Commonwealth and that such property should be sold, the Department shall request
the written opinion of the Secretary of Natural and Historic Resources as to
whether the property is a significant component of the Commonwealth&#8217;s
natural or historic resources, and if so how those resources should be protected
in the sale of the property. The Secretary of Natural and Historic Resources
shall provide this review within 15 business days of receipt of full information
from the Department.

C. Upon receipt of the Secretary&#8217;s review under subsection B and prior to
offering the surplus property for sale to the public, the Department shall
notify the chief administrative officer of the locality within which the
property is located as well as any economic development entity for such locality
of the pending disposition of such property. The chief administrative officer or
local economic development entity shall have up to 180 days from the date of
such notification to submit a proposal to the Department for the use by the
locality or the local economic development entity of such property in
conjunction with a bona fide economic development activity. The Department shall
review such proposal, and if the Department determines that such proposal is
viable and could benefit the Commonwealth, the Department may negotiate with the
chief administrative officer or the local economic development entity for the
sale of such property to the locality or economic development entity. If no
agreement is reached between the Department and the chief administrative officer
or the local economic development entity for the sale of the property, or if no
proposal for the use of the property is submitted to the Department by the chief
administrative officer or the local economic development entity within 180 days
of notification of the pending disposition of the property, the Department, with
the prior, written approval of the Governor, may proceed to dispose of the
property as provided in this section.

D. If the surplus property is not disposed of pursuant to subsection C, the sale
shall be by public auction, or sealed bids, or by marketing through one or more
real estate brokers licensed by the Commonwealth. Notice of the date, time and
place of sale, if by public auction or sealed bids shall be given by
advertisement in at least one newspaper published and having general circulation
in the county or city in which the property to be sold is located and be posted
on the Department&#8217;s website. At least 30 days shall elapse between
publication of the notice and the auction or the date on which sealed bids will
be opened.

E. The Department may reject any and all bids or offers when, in the opinion of
the Department, the price is inadequate in relation to the value of the
property, the proposed terms are unacceptable, or if a need has been found for
the property.

F. In lieu of the sale of any such property, or in the event the Department
determines there is space within a building owned by the Commonwealth or any
space leased by the Commonwealth in excess of current and reasonably anticipated
needs, the Department may, with the approval of the Governor, lease or sublease
such property or space to any responsible person, firm or corporation on such
terms as shall be approved by the Governor, provided, however, that the
authority herein to sublease space leased by the Commonwealth shall be subject
to the terms of the original lease. The Department may with the approval of the
Governor permit charitable organizations exempt from taxation under &#xA7;
501(c)(3) of the Internal Revenue Code that provide addiction recovery services
to lease or sublease such property or space at cost and on such terms as shall
be approved by the Governor, provided such use is deemed appropriate.
			The Department shall post reports from the Commonwealth&#8217;s statewide
electronic procurement system, known as eVA, on the Department&#8217;s website.
The report shall include, at a minimum, current leasing opportunities and sales
of surplus real property posted on the eVA&#8217;s Virginia Business
Opportunities website. Such reports shall also be made available by electronic
subscription. The provisions of this section requiring disposition of property
through the medium of sealed bids, public auction, or marketing through licensed
real estate brokers shall not apply to any lease thereof, although such
procedures may be followed in the discretion of the Department.

G. The deed, lease, or sublease conveying the property or excess space shall be
executed in the name of the Commonwealth and shall be in a form approved by the
Attorney General. Notwithstanding any law to the contrary and notwithstanding
how title to the property was acquired, the deed or lease may be executed on
behalf of the Commonwealth by the Director of the Department or his designee,
and such action shall not create a cloud on the title to the property.
			In the event that the Department determines that a boundary line of a surplus
property requires adjustment, the Department may work with the adjacent
landowner to adjust the boundary line and to transfer property to, or acquire
property from, such adjacent landowner. In the event the Department determines
that granting or accepting an easement over surplus property or the property of
the adjacent landowner would facilitate the transfer of the surplus property,
the Department may enter into any such easement on behalf of the department,
agency, or institution in possession or control of the property, provided,
however, that any such easement shall be in a form approved by the Attorney
General and subject to the written approval of the Governor. The terms of the
sale, lease, or sublease shall be subject to the written approval of the
Governor.

H. An exception to sale by sealed bids, public auction, or listing the property
with a licensed real estate broker may be granted by the Governor if the
property is landlocked and inaccessible from a public road or highway. In such
cases, the Department shall notify all adjacent landowners of the
Commonwealth&#8217;s desire to dispose of the property. After the notice has
been given, the Department may begin negotiations for the sale of the property
with each interested adjacent landowner. The Department, with the approval of
the Governor, may accept any offer that it deems to be fair and adequate
consideration for the property. In all cases, the offer shall be the best offer
made by any adjacent landowner. The terms of all negotiations shall be public
information.

I. Subject to any law to the contrary, 50 percent of the proceeds from all sales
or leases, or from the conveyance of any interest in property under the
provisions of this article, above the costs of the transaction, which costs
shall include fees or commissions, if any, negotiated with and paid to
auctioneers or real estate brokers, shall be paid into the State Park
Acquisition and Development Fund, so long as the sales or leases pertain to
general fund agencies or the property involved was originally acquired through
the general fund, except as provided in Chapter 180 of the Acts of Assembly of
1966. The remaining 50 percent of proceeds involving general fund sales or
leases, less a pro rata share of any costs of the transactions, shall be
deposited in the general fund of the state treasury. The Department of Planning
and Budget shall develop guidelines that allow, with the approval of the
Governor, any portion of the deposit in the general fund to be credited to the
agency, department or institution having control of the property at the time it
was determined surplus to the Commonwealth&#8217;s needs. Any amounts so
credited to an agency, department or institution may be used, upon
appropriation, to supplement maintenance reserve funds or capital project
appropriations, or for the acquisition, construction or improvement of real
property or facilities. Net proceeds from sales or leases of special fund agency
properties or property acquired through a gift for a specific purpose shall be
retained by the agency or used in accordance with the original terms of the
gift. Notwithstanding the foregoing, income from leases or subleases above the
cost of the transaction shall first be applied to rent under the original lease
and to the cost of maintenance and operation of the property. The remaining
funds shall be distributed as provided herein.

J. When the Department deems it to be in the best interests of the Commonwealth,
it may, with the approval of the Governor, authorize the department, institution
or agency in possession or control of the property to dispose of surplus
property in accordance with the procedures set forth in this section.

HISTORY: 1968, c. 717, § 2.1-106.7; 1970, c. 202; 1972, c. 763; 1977, c. 672,
§ 2.1-512; 1978, c. 545; 1981, c. 104; 1984, c. 641; 1989, c. 687; 1991, c.
679; 1995, c. 399; 1998, c. 466; 2001, c. 844; 2002, c. 281; 2004, c. 997; 2009,
c. 612; 2011, cc. 659, 675; 2016, c. 291; 2018, c. 825; 2019, cc. 659, 660;
2021, Sp. Sess. I, c. 401; 2022, c. 761.