Land Disposition

(1) Each parcel to be sold or otherwise disposed of by the urban renewal agency shall have an independent disposition appraisal. If deemed necessary, the Department may require an additional disposition appraisal. In cases where the cost of the appraisal will exceed the estimated value of the parcel, the Department may waive the disposition appraisal. Prior to disposition of any parcel, the urban renewal agency shall file or record the Urban Renewal Plan or an appropriate declaration of restrictions with the appropriate registry of deeds or division of the land court. The urban renewal agency shall determine the disposition price for each parcel as follows: (a) The disposition price shall be no less than the fair market value of the land for the use specified in the Urban Renewal Plan, as determined by the disposition appraisal; (b) The disposition appraisal shall reflect both the advantages created by the project and the requirements and limitations on land uses to be imposed on the redeveloper by the Urban Renewal Plan; (c) Disposition of project land may be made by long-term lease. The urban renewal agency shall obtain an opinion from licensed appraiser(s) of the fair market value of the parcel to be leased, the then current rate of rent at which similar long-term land leases are made, and an acceptable annual rent for the property to be leased; (d) In instances where the urban renewal agency has demonstrated that a significant public purpose will be served by disposing of the parcel at less than the fair market value, the Department may approve such a disposition at less than fair market value. (2) With its request for disposition approval, the urban renewal agency shall submit to the Department the following: (a) Identification of the proposed redeveloper. (b) Evidence that the urban renewal agency has determined the redeveloper possesses significant qualifications and financial resources to acquire and develop the land in accordance with the Urban Renewal Plan. The urban renewal agency shall not enter into a land disposition agreement until this determination has been made. (c) The land disposition agreement (LDA) is an instrument describing the terms of such sale or lease. The LDA for each parcel shall insure that the redeveloper conforms to and carries out the requirements of the Urban Renewal Plan and that the interests of the project are safeguarded. The time permitted for the performance of each obligation of the redeveloper shall be specified. (3) The Department must approve the disposition price and the LDA. (4) Members of the governing body of the urban renewal agency or municipality and employees of the urban renewal agency or municipality, who, acting in their official capacity, exercise or may exercise responsibility concerning the project, are ineligible to be redevelopers. (5) The Department may waive disposition requirements under 760 CMR 12.05 if the transfer of property is between the urban renewal agency and the municipality.