Relevant Chapter 30B property disposition regulations

The following is a brief summary of some relevant provisions of 30B that the Committee should be considering at this time.  This is not a comprehensive analysis of 30B, but merely a guide of the provisions that are relevant at this stage of the RFP development process.

Step 1: Declare property available for disposition and identify reuse restrictions

Before the property can be sold or leased, regardless of its value, it must be declared available for disposition by the Board of Selectmen.  Any restrictions on reuse of the property must be specified as part of the declaration that the property is available for disposition.

Step 2: Determine the value of the property

The Committee must use practices customarily accepted as valid by appraisers or use the municipal assessment if it is current, but it does not have to be appraised.

Step 3: Develop the RFP

The RFP will provide interested parties with the information they need to decide whether they want the property and to submit a responsive proposal. The major components of a disposition RFP are:

• description of the property and interest in the property you plan to sell or lease (the “property description”) and any reuse restrictions,
• evaluation criteria,
• proposal submission requirements, and
• the contract terms and conditions.

Property description. The property description must be detailed enough for interested parties to understand what you are offering including the reuse restrictions.  The septic information should be included in this section.  If the Committee decides to restrict the reuse of the site to a preferred alternative developed by the planning consultant, that alternative should be appended to the RFP.  The notice must state the terms of the disposition, including whether it is a sale or lease.  If it is a lease, state its duration and whether utilities will be included in the lease price or must be paid separately by the lessee.

Evaluation criteria.  The RFP will include evaluation criteria that indicate how proposals will be selected from among the competing proposals.  The criteria includes:

• The criteria to evaluate responsiveness (whether the proposer agrees to meet the terms and the proposal contains all the required documents and forms properly completed) and responsibility (whether the proposer has the capability, integrity, and reliability to perform under the contract);
• Comparative criteria that will allow the Committee to look at the relative merits of the property proposals rather than just selecting the responsive and responsible proposal that offers the best price; and
• A method to evaluate prices.  For example, in a multi-year lease, the RFP should specify whether proposers may propose level monthly payments over the term, or if they may propose escalating rents for each year of the lease. If rent escalators may be proposed, the RFP should state how it will calculate the present value of the rental payments and include the formula in the RFP.  In either case, the RFP could provide a standard price form for all proposers to complete.

Contract terms and conditions. Any terms and conditions must be specified in the RFP and in the contract.  Chapter 30B places no limitations on the duration of real property contracts, but other laws may apply in your jurisdiction.

Leases.   The mandatory lease terms must be spelled out in the RFP including:

• name the parties to the lease and the responsible parties to receive any notices under the lease;
• incorporate by reference the proposal chosen, including a detailed description of the leased property;
• specify the duration of the lease, including any renewal, extension, or other options. If the lease will include a renewal option, you must specify how the rent will be determined for the renewal period; (You are not required to retain sole discretion to exercise options in real property agreements as you are for supplies and services contracts.)
• identify the payment terms, including when payments are due;
• spell out all of the responsibilities and obligations of the parties maintenance, cleaning, utilities, rubbish disposal, snow removal, liability and casualty insurance, etc.;
• specify that lease amendments must be in writing and signed by individuals authorized to contract on behalf of your local government;
• prohibit assignment or subletting without written approval;
• specify what constitutes cause to terminate the lease, what notice must be provided prior to termination, and what opportunity must be granted to correct any problem;
• prohibit any activity that would constitute a violation of the conflict of interest law (M.G.L. c. 268A);
• specify that the lease constitutes the entire agreement and that there are no agreements other than those incorporated therein; and
• require a certification of tax compliance by the lessee (M.G.L. c. 62C, §49A).

Purchases. If you are selling real property, the town counsel must draft any terms that will be required to be incorporated into the purchase and sale agreement.  The RFP must Include any mandatory purchase terms.  Require a certification of tax compliance by the purchaser (M.G.L. c. 62C, §49A).

Step 4: Advertise for proposals

The RFP must be advertised once a week for two consecutive weeks in a newspaper with circulation sufficient to inform the affected locality.  The last ad must run at least eight days before the bids are due.  An advertisement must also be published, at least 30 days before the opening of proposals, in the Central Register published by the Secretary of the Commonwealth.