Chapter 06. Sale or Lease of Real Property
Regulation .01 General.LinkCopy Citation
The Authority may sell or lease real property and interests in real property.
Regulation .02 Definition.LinkCopy Citation
A.
In this chapter, the following term has the meaning indicated.
B.
Term Defined. “Project” means the market, the park, and other food or agriculturally related real estate developments undertaken by the Authority to further the Authority's purposes, including any ancillary or appurtenant facilities.
Regulation .03 Market Value.LinkCopy Citation
A.
Sales. Real property or interest in real property may not be sold by the Authority unless the purchaser pays an amount at least equal to the full appraised value of the real property or interest in real property as determined by the Authority.
B.
Leases. Real property or interest in real property may not be leased by the Authority to any lessee unless the lessee pays an amount equal to the reasonable rental value of the real property or interest in real property as determined by the Authority.
Regulation .04 Evaluation of Prospective Tenant or Purchaser.LinkCopy Citation
A.
The Authority may require a potential tenant or purchaser of an interest in real property to provide the Authority with information relating to the potential tenant or purchaser's experience and financial stability, including but not limited to, audited financial statements, bank statements, and tax returns.
B.
If two or more potential tenants or purchasers seek a particular property which the Authority has available for sale or lease, the Authority may evaluate and determine, in its sole discretion, which transaction will be in the best interest of the Authority, taking into account such factors as:
(1)
Which potential tenant or purchaser will afford the greatest opportunity for success;
(2)
Which potential tenant or purchaser will have the greatest positive effect on a project of the Authority;
(3)
The nature of the product or service the potential tenant or purchaser intends to provide;
(4)
The economic return to the Authority; or
(5)
Other matters the Authority considers relevant in carrying out its purposes.
Regulation .05 Development Plans and Restrictive Covenants.LinkCopy Citation
A.
The Authority may adopt development plans which designate parcels of real property to be developed for particular uses, and may revise the plans from time to time.
B.
The Authority may restrict interests in real property that it conveys and may do all things necessary and convenient to carry out the powers expressly granted by the Act.
Regulation .06 No Brokerage Fees.LinkCopy Citation
The Authority may not be required to pay real estate commission costs, or any other similar brokerage fees in connection with its conveyance of real property or interests in real property.
Regulation .07 Authorization of Executive Director Regarding Sales and Leases.LinkCopy Citation
A.
The Executive Director, in relation to the conveyance of interests in real property, may:
(1)
Initiate or receive offers;
(2)
Obtain and evaluate relevant information;
(3)
Conduct negotiations; and
(4)
Make recommendations to the Board of Directors.
B.
Upon approval of a sale or lease as set forth in Regulation .08 of this chapter, the Executive Director shall have the power to execute, on behalf of the Authority, all documents necessary or convenient relating to the approved transaction.
C.
The Executive Director is authorized to exercise remedies for default under agreements that have been approved in accordance with Regulation .08 of this chapter.
Regulation .08 Approvals.LinkCopy Citation
A proposed sale or lease of real property shall be submitted for approval to the Board of Directors. If approved by the Board of Directors, it shall be submitted for approval to the State Board of Public Works.
Chapter annotations
Authority: Article 41, §§13-101—13-121, Annotated Code of Maryland
History: Effective date: March 16, 1992 (19:5 Md. R. 578)