N.J. Admin. Code § 19:35-5.11

Current through Register Vol. 57, No. 1, January 6, 2025

Section 19:35-5.11 - Offer to purchase process for surplus real property: exclusive negotiating period within the offer to purchase process

(a) Upon the request of an offeror, the SDA staff may, in its sole discretion, agree not to negotiate with any other offeror with respect to the surplus real property that is the subject of the solicitation of offers to purchase, and enter into an exclusive negotiation agreement.

(b) Under an exclusive negotiation agreement, the SDA and such offeror each agree to negotiate the terms of the disposition of the surplus real property exclusively with the other.

(c) The right of the SDA to enter into an exclusive negotiation agreement is subject to the following conditions:

1. The time for submitting offers to purchase has expired;

2. Notice of such election to enter into an exclusive negotiation period with an offeror must be given to all parties submitting an offer;

3. The SDA has made a determination that there is a reasonable likelihood that the exclusive negotiating period will lead to an offer to purchase that will be acceptable to the SDA and in the best interests of the school construction program;

4. Subject to extensions as indicated at (d) below, a duration is set for the exclusive negotiating period that shall not exceed 30 days;

5. The offeror shall make an additional deposit of 10 percent of the purchase price; and

6. The offeror agrees in writing to negotiate exclusively with the SDA during the exclusive negotiating period and to terminate negotiations and discussions with other parties that seek to sell or lease competing property.

(d) The SDA may extend an exclusive negotiating period for one additional period of up to 30 days upon such terms and conditions as it determines to be in the best interest of the school construction program, price, and other factors considered.

(e) Upon the conclusion of negotiations under an exclusive negotiation agreement, the SDA staff shall submit a recommendation to the Board, as to whether or not to accept the resultant negotiated offer to purchase. Such recommendation shall detail the basis upon which the recommendation was determined to be in the best interest of the SDA and the school construction program and shall identify the material terms of the competing offers that will be rejected by the issuance of a Notice of Award.

N.J. Admin. Code § 19:35-5.11

Adopted by 54 N.J.R. 647(a), effective 4/4/2022