N.J. Admin. Code § 16:65-4.5

Current through Register Vol. 56, No. 23, December 2, 2024

Section 16:65-4.5 - Petitions for the approval of the sale or lease of property

(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.

N.J. Admin. Code § 16:65-4.5

Amended and recodified from 16:65-3.5 by 47 N.J.R. 1997(a), effective 8/3/2015