MEMORANDUM To: Northport Renaissance File FROM: Jim Sledge DATE: January 13, 2000 RE: Sale of Property Acquired with ISTEA Grant Sometimes it helps to talk to the right person, As you recall, Stacy Glass referred us to Wes Elrod as our contact at the Federal Highway Administration to provide further insight on this issue. Tuesday I reached Mr. Elrod at 334-223- 7377. He was not particularly encouraging, but referred me to Dave Johannes, a right-of-way specialist with FHA, at 334 223-7378, as the person who would know the regulations and policies ‘on the subject. Today I spoke with Johannes. On listening to my review of the file, he immediately said that a sale of the property would be the best way to go, due to what he called “our new statute,” enacted about a year ago. He referred me to 23 U.S. Code Section 156, which reads: § 156. Proceeds from the sale or lease of real property. (a) Minimum charge. Subject to section 142(f), a State shall charge, at minimum, fair market value for the sale, use, lease, or lease renewal (other than for utility use and occupancy or for a transportation project eligible for assistance under this ttle) of real property acquired with Federal assistance made available from the Highway Trust Fund (other than the Mass Transit Account). (b) Exceptions. The Secretary may grant an exception to the requirement of subsection (a) for a social, environmental, or economic purpose. (©) Use of Federal share ofincome, The Federal share of net income from the revenues obtained by a State under subsection (a) shall be used by the State for projects eligible under this ttle. ‘After describing this statute, Johannes confirmed that the intent of the statute isto reduce the paperwork burden to the state and the local entities. It is no longer necessary that the proceeds of sale of property purchased with ISTEA grants be returned. Rather, the requirements are, first, that the sale be at fair market value established by appraisal, and, second, that the federal share of the proceeds be used for a transportation-enhancement eligible project. I asked if that meant we could use the federal share to extend the street-scaping or a similar project which the city might have, and he said yes.‘Northport Renaissance File January 13, 2000 Page 2 Johannes also forwarded the “Guidance” on this subject, the document telling FHA right-of- way people how to implement this statute. A copy is enclosed. Note the last paragraph, which begins, “. . . a credit to Federal funds, as outlined in 49 CFR 18.31 (c) and 23 CFR 713.307, is no longer required for real property disposals consummated on or after June 9, 1998, To be absolutely sure, I am forwarding a copy of the statute and guidance to Stacy Glass at ALDOT. Pending any final comment from him, I think we have good guidance on plans to develop the area per the grant. UShw sumncnWoRTamtueestapen stated