Current through Register Vol. 56, No. 18, September 16, 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 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 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.
