Current through Register Vol. 56, No. 24, December 18, 2024
(a)
Prior Department approval is not required when the sale, conveyance, easement,
or lease is to the Federal government, the State, county, or municipality, or
any State agency or authority for the purpose of public use.
(b) The sale, conveyance, or lease of real
property or personal property located within the State of New Jersey, or the
granting of an easement, or like interest therein, which has been dedicated for
use by this chapter for a transportation utility, including an interstate or
freight railroad that has abandoned a line pursuant to the Surface
Transportation Board's regulatory procedures, shall have prior approval by the
Department. Determinations shall be issued within 90 days after receipt of the
completed petition for Department approval. The petition for Department
approval shall contain the following information:
1. A description of real property, showing
the location, by municipality and county, a metes and bounds or other adequate
description including, but not limited to, tax lot and block descriptions and
descriptions in prior deeds, and a description of personal property, including
sufficient information to identify the property;
2. Name of transferee or lessee, the
consideration or rental and method of payment thereof, and rights reserved by
the transferror or lessor;
3. A
copy of the written agreement if any. If there is no written agreement, the
petition shall so state;
4. A
certified copy of the resolution of the board of directors or other authority
authorizing the conveyance or lease;
5. The purpose for which the property was
originally acquired, the date of acquisition, the use made of the property for
transportation utility purposes, the date when the circumstances under which it
ceased to be useful for such purposes, the present use, the possible
prospective use by the buyer or tenant, and the identity of the official or
officials who determined that the property is not now or prospectively required
or useful for transportation utility purposes;
6. The basis of the price or rental as
determined by assessed valuation, appraisal, comparable sales, or other basis,
and whether the consideration is the best attainable. The best attainable
consideration is the fair market or comparable value as determined by the
utility. Appraisals, if any, shall be included;
7. Whether the consideration or rental is, or
is equivalent to, the fair market value or fair market rental value of the
property;
8. How the property was
marketed, and if bids were solicited, the names of bidders and the
consideration or rental offered;
9.
Whether the relationship between the parties is other than that of transferor
and transferee or lessor and lessee, and if so, describe the
relationship;
10. The cost of the
property as of the date of acquisition, and the cost and description of any
improvements made since acquisition;
11. The amount at which the property is now
carried on the utility's books;
12.
Copies of proposed journal entries to record the transaction when the
consideration is more than $ 50,000;
13. If the property is income producing,
include the carrying charges, taxes, and assessed valuation;
14. If the property is encumbered by a
mortgage, describe the terms of the mortgage, state the amount of the
obligation secured by the mortgage, and the time required to obtain a
discharge, satisfaction or release of the mortgage;
15. When the property to be sold or leased
involves the transfer of certificates, the petitioner shall comply with
N.J.A.C.
16:65-4.3, to the extent
applicable;
16. If an advertisement
is required by (c) below, include a copy of the advertisement and a proof of
publication;
17. Railroads shall
show the distance to the nearest railroad track or structure; and
18. If the property is a railroad and it is
sold for non-railroad use, the applicant must provide proof of
abandonment.
(c) A
sealed bid, in accordance with the requirements of (b)6 above, shall be
submitted by a prospective purchaser or lessee.
(d) A sealed bid shall be submitted by a
prospective purchaser or lessee.
(e) The following transactions may be
consummated without petition to the Department for approval, if the utility
gives written notice of the transaction to the Department, received not less
than 15 days prior to the effective date of the conveyance:
1. The sale of personal property having a net
book cost and sale price not in excess of $ 75,000 and which is no longer used
by or useful to the utility;
2. The
lease or permission to use or occupy real property or any interest therein
having a net book cost not in excess of $ 125,000 and a net rental not in
excess of $ 15,000 per annum; and
3. The sale or release of real property, or
any interest therein, not used by or useful to the utility and having a net
book cost and sale price not in excess of $ 125,000.
(f) Upon expiration of the notice period
pursuant to (d) above, and payment of the filing fee, the Director will certify
on a true copy of the notice to be furnished to the Department that the sale,
lease or release is deemed by the Department to be in the ordinary course of
business and within the provisions of
N.J.S.A. 48:3-7. Such notice shall contain, to the
extent applicable, the following:
1. Name of
transferee or lessee, the consideration or rental and method of payment of the
consideration or rental, and rights, if any, reserved by the transferror or
lessor;
2. A copy of the agreement
or lease and a map of the real property;
3. A statement that the proposed
consideration or rental represents the fair market value of the property to be
conveyed, or the fair rental value of the property to be leased, giving the
basis for the conclusion reached;
4. A statement of any relationship between
the parties, other than that of transferror and transferee, or lessor and
lessee, or a statement that there is no such other relationship, as the case
may be;
5. The amount at which the
property is carried on the utility's books;
6. A statement as to whether or not the
property is income producing and, if so, details as to whether the petitioner
pays all carrying charges, including taxes. The statement shall include the
assessed valuation of the property;
7. A statement, in the case of a proposed
sale, that the property is not used by or useful to the utility, and in the
case of a proposed lease, grant or permission, that the transaction will not
compromise the ability of the utility to render service;
8. A verification by a properly authorized
officer, partner or proprietor of the statements contained in the notice;
and
9. A blank space of three
inches shall be provided at the bottom of the first page of the notice for the
Department certification.
(g) The Department may, within the 15-day
notice period in (d) above, or at any time prior to the consummation of the
transaction, may require the filing of a petition for the approval of the sale,
lease, encumbrance or other disposition.
