Section 1500.10  Sale of Surplus Property

 

Illinois National Guard armories and lands which are obsolete, inadequate, unusable or no longer required for Illinois National Guard purposes and which are not transferred or exchanged to any State or Federal agency, may be sold at fair market value (Ill. Rev. Stat. 1984 Supp., ch. 129, pars. 220.22-2 and 220.22-5). The Adjutant General will make these determinations considering:

 

a)         Standards for armories enumerated by the National Guard Bureau ("Installations and Facilities Construction Standards," National Guard Regulation 415-10, October 26, 1984 and "Construction Standards," Pamphlet No. 415-11, August 31, 1984.)  This rule will not include any later amendments or editions.

 

b)         Whether the armory or land provides adequate housing, storage, and training for the unit or units it supports.

 

c)         Whether the armory or land requires excessive maintenance and operating expenses.

 

d)         Whether the armory or land provides the minimum essential requirements for a National Guard unit.

 

Section 1500.20  Determination of Fair Market Value

 

The Adjutant General shall be the final authority in determining fair market value of the property in question.  In making this determination, the following indicators of fair market value will be considered:

 

a)         Appraisals made by certified real estate appraisers.  The Director of Facilities, Department of Military Affairs of Illinois, will make an initial valuation of the property using the indicators stated in subsections (b) through (e) below.

 

1)         For property valued by the Director of Facilities at $5000.00 or less, an appraisal is not required.

 

2)         For property valued by the Director of Facilities at more than $5000.00 but less than $50,000.00, one appraisal is required by a certified appraiser who resides in the county in which the property is located.

 

3)         For property valued by the Director of Facilities at $50,000.00 or more, two appraisals are required by certified appraisers, one of whom must reside in the county in which the property is located.

 

b)         The type, nature, and condition of the property involved;

 

c)         Bona fide offers to purchase by willing buyers;

 

d)         Uses to which the land is adapted and might in reason be applied, considering zoning laws, whether the area is commercial or residential, transportation access, existing property tax values, certified real estate appraisal reports, and whether demolition will be required to make the land suitable for commercial use. When demolition is required, the cost of demolition will be deducted from the total value of the property by the appraiser before determining the fair market value of the property; and

 

e)         Bona fide sales which have been consummated for assets of like type, quality, and quantity will be considered when such information is available.

 

Section 1500.30  Consideration of Bids

 

a)         In considering bids, the Department of Military Affairs shall consider the following factors:

 

1)         The purchase price offered;

 

2)         The terms or conditions of the bid; and

 

3)         The financial responsibility of the bidder – his capability to complete the purchase according to the stated terms and conditions.  The Department will consider past experience with the bidder, if any, evidence that the bidder has adequate financial resources, and his capability to supply the purchase money at the time specified.

 

b)         The Adjutant General shall determine whether a bid is acceptable to the Department of Military Affairs considering the above factors.

 

Section 1500.40  Advertisement for Bids

 

The Department of Military Affairs will publish an advertisement for bids on the property in the Official State Newspaper and at least one county paper of general circulation.  The advertisement for bids shall run in each paper not less than three (3) times, the first and last of which publications shall be at least ten (10) days apart.  The advertisement for bids will briefly describe the property, state the procedure for submitting bids, and state the day, date, hour, and place when and where bids will be opened.  Invitations for bids will also be sent by letter to local governmental bodies or such other parties considered by the Director of Facilities to be prospective bidders.

 

Section 1500.50  Right to Reject Bids

 

The Department of Military Affairs reserves the right to reject any and all bids in order to obtain more evidence of fair market value or if none of the bidders are financially responsible.  When all bids are rejected, a re-advertisement for bids shall be published in the same manner as the original advertisement.  Additional appraisals may be obtained as a further indicator of fair market value.  Additional appraisals would be obtained if there is a great variance between original appraisals and bids received.  Additional appraisals would not be obtained if appraisals appear accurate and it is believed additional advertising may bring new bidders.  The Adjutant General will consider bids received during the initial bid procedure as indicators of fair market value when evaluating the new bids.

 

Section 1500.60  Notification to Successful Bidder and Deposit

 

Upon completion of the bid opening, the successful bidder will be notified by certified mail.  The successful bidder will have 72 hours from receipt of the notification to give the Department of Military Affairs cash, a certified or cashiers check, or a money order in an amount equal to 10% of the bid price.  This 10% deposit will be applied to reduce the purchase price at time of closing.  If the bidder is unable to complete the purchase according to the stated terms and conditions of the bid, the 10% deposit will be forfeited to the Department of Military Affairs as liquidated damages.  The property will then be re-advertised.

 

Section 1500.70  Full Payment and Interest

 

Full payment is required not later than sixty (60) days from the bid opening or on the date and terms specified in the advertisement for bids or as proposed in the bid of the successful bidder.  If payment is delayed beyond the due date as established above, the balance shall bear interest at the most recent State bond sale rate.

 

Section 1500.80  Approval of Governor

 

All sales are subject to the written approval of the Governor.  However, where the sale price of the armory exceeds 3.5 million dollars and the armory is located in any county with a population of 1 million or more, the authorization of the General Assembly will be required for the sale of such armory (Ill. Rev. Stat. 1984 Supp., ch. 129, par. 220.22-2). Such approval will be obtained after the successful bidder has submitted the 10% deposit to the Department of Military Affairs.  If the Governor or General Assembly disapproves the sale, the bidder's deposit will be returned and the property will then be re-advertised.

 

Section 1500.90  Conveyances by Quitclaim Deed

 

All conveyances will be by quitclaim deed and subject only to:

 

a)         Restrictive covenants heretofore of record;

 

b)         Mineral exceptions and reservations heretofore of record;

 

c)         Easements heretofore of record, or visible;

 

d)         Acts done or permitted to be done by Buyer;

 

e)         Zoning laws and ordinances; and

 

f)         Rights of parties in possession.