Before ODOT can market a property for sale, we must first declare it as surplus.
The surplus disposition process involves five phases and can take up to a year or more. Refer to our Right of Way Manual for the full process.
- Initial research and vetting by ODOT property management staff.
- Formal surplus property review and approval or denial.
- Federal Highway Administration review (if required) and Oregon Department of Administrative Services clearinghouse process.
- Appraisal and marketing.
- Sale and escrow.
Phase 1: Initial research and vetting by ODOT property management staff
Timing: 30-60 days, approximately.
During this phase, the property agent will conduct due diligence to determine the potential property value versus the cost and time involved to put the property up for sale. The property agent packages the research and submits it to region staff for review. Representatives from each of ODOT's engineering disciplines review the proposal, recommending whether or not to surplus the property.
Phase 2: Formal surplus property review and approval or denial
Timing: Up to 30 days.
The region manager reviews the proposal and recommendations, and approves or denies the property for surplus disposition.
Once the property is approved for surplus disposition, the authorization is good for three years. If the authorization expires and is not renewed, the property reverts back to “excess” status and returns to the excess land inventory.
If a property has a prospective buyer and is currently in negotiations, the property agent will process the surplus authorization renewal and continue with negotiations.
Phase 3: FHWA review and DAS clearinghouse process
Timing: 60-90 days.
During this phase, we contact the original owner of the land, if possible, for first right of refusal, and contact the local planning agency for a statement of conformance.
If required, we obtain FHWA approval. We route the surplus property through the Oregon Department of Administrative Services' clearinghouse process, which provides notification to state agencies, other public agencies and tribal governments the property is available for sale.
The following entities can purchase the property (after other state agencies, and prior to Phase 4), on the condition that they develop the property for affordable housing: Tribal governments, political subdivisions and non-profit organizations. The property may not be sold to any private person until we have determined whether acquiring the real property would be advantageous to any of these entities.
Phase 4: Appraisal and marketing
Timing: 90-180 days.
ODOT orders a formal property appraisal to determine the fair market value. The property agent begins marketing the property.
The timing for this process phase can vary, depending on availability of appraisers and the market for buyers.
Phase 5: Sale and escrow
Timing: 90-180 days.
Once a buyer has been found, a purchase contract is executed, and the property is sold.
The timing of this process phase varies depending on the complexity of the sale.
The Right of Way Manual does not include a section on this phase of the process.