[Federal Register Volume 61, Number 109 (Wednesday, June 5, 1996)]
[Rules and Regulations]
[Pages 28506-28508]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14104]



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DEPARTMENT OF THE INTERIOR
36 CFR Part 17

RIN 1024-AC27


Conveyance of Freehold and Leasehold Interests

AGENCY: National Park Service, Interior.

ACTION: Final rule.

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SUMMARY: The National Park Service (NPS) is revising portions of the 
regulations for conveyance of freehold and leasehold interests on lands 
administered by the NPS. The final rule will allow bids for freehold 
and

[[Page 28507]]

leasehold interests on lands to be accompanied by earnest money 
equivalent to 2 percent of the appraised value or $2,500, whichever is 
greater, with the balance of the bid due within 45 days of the award. 
The NPS has experienced problems selling parcels of real estate under 
the current regulations, which require that bids be accompanied by 
certified checks, post office money orders, bank drafts or cashier's 
checks for the full amount of the bids. The changes to the regulations 
address this issue and will correct the problem identified with the 
previous regulations. With these changes, the NPS will be able to 
convey freehold and leasehold interests on federally owned lands.
    This final rule also provides for a time frame for submitting the 
balance of the bid and describes what occurs if the successful bidder 
is unable to obtain the necessary financing in the case of a freehold 
interest. The NPS is revising and amending the current regulations on 
action at close of bidding, by allowing 45 days from the time of bid 
award to submit the balance due. Failure to submit the full bid price 
within 45 days will result in forfeiture of $1,000 of the deposited bid 
amount and the property will be awarded to the next highest bid.

EFFECTIVE DATE: This rule becomes final on July 5, 1996.

FOR FURTHER INFORMATION CONTACT: Jeff Winstel, Historian, Cuyahoga 
Valley National Recreation Area, 15160 Vaughn Road, Brecksville, OH 
44114. Telephone (216) 546-5975.

SUPPLEMENTARY INFORMATION:

Background

    The current NPS regulations regarding conveyance of freehold and 
leasehold interests on land are codified in 36 CFR part 17 and 
authorize sale of Federal real property acquired from non-Federal 
sources.
    On June 3, 1993, Cuyahoga Valley National Recreation Area, a unit 
of the National Park System, held a bid opening for the purpose of 
selling 1.13 acres of improved Federally owned land. Improvements 
included a historic three-bedroom residence, a detached single car 
garage and two small sheds. Historic preservation deed restrictions 
were placed on the structures and scenic deed restrictions were placed 
on the property.
    The property was marketed extensively. It was listed in the Federal 
Register, advertised in a local paper for five consecutive weeks, 
marketed with a local realtor, listed in the Multiple Listing Service, 
advertised on local television channels and open houses were held on 
four days. There was considerable interest in the property with 180 
prospective buyers attending the open houses and private showings. 
Interviews with park officials by news media reporters regarding the 
property appeared on local TV stations and in local newspapers.
    When the property was open for bid on June 3, 1993, not a single 
bid was received. This lack of response was a concern and inquiries 
were made of 50 people who had attended the open houses and expressed a 
sincere interest in buying the property. The major reason given for not 
bidding was the requirement that the full amount of the bid be enclosed 
with the bid. No lending institution would approve this type of 
arrangement.
    The NPS is therefore revising this regulation. The NPS is amending 
the sixth sentence of 36 CFR 17.5 as follows: ``Bid must be accompanied 
by certified checks, post office money orders, bank drafts or cashier's 
checks made payable to the United States of America for 2 percent of 
the fair market value or $2,500, whichever is greater, in the case of a 
freehold interest or for the amount of the first year's rent in the 
case of a leasehold interest.''
    The NPS is also amending 36 CFR 17.6 by adding the following two 
sentences to the end of the section: ``In the case of a freehold 
interest the high bidder must submit the balance of the bid within 45 
days of the bid award in the form of certified check, post office money 
order, bank draft or cashier's check made payable to the United States 
of America. Failure to submit the full balance within 45 days will 
result in forfeiture of $1,000 of the bid deposit, unless the bidder 
has been released from the bid or an extension has been granted by the 
authorized officer, and the property will be awarded to the next 
highest bidder upon fulfillment of the requirements of this section.''
    These changes will improve the existing regulations by permitting 
prospective bidders to participate without an outlay of a large sum of 
cash. This amendment will also facilitate the ``sellback'' of historic 
structures to the private sector and place real property on the local 
tax rolls. The historic and scenic values of the properties will be 
protected through deed restrictions.
    On February 12, 1996, the NPS published the proposed regulation 
that will amend these regulations for conveyance of freehold and 
leasehold interests on lands administered by the NPS (61 FR 5356). The 
comment period closed on April 12, 1996. No comments were received 
during the public comment period. This rule becomes final 30 days after 
publication in the Federal Register.

    Drafting Information. The primary author of this regulation is 
John P. Debo, Jr., Superintendent, Cuyahoga Valley National 
Recreation Area.

Paperwork Reduction Act

    This final rule does not contain collections of information 
requiring approval by the Office of Management and Budget under the 
Paperwork Reduction Act of 1995.

Compliance With Other Laws

    This final rule was not subject to Office of Management and Budget 
review under Executive Order 12866. The Department of the Interior 
determined that this document will not have a significant economic 
effect on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.). In fact, this rulemaking will 
lessen the economic burden on prospective bidders by not requiring the 
full amount of the bid at the time of the bid.
    The NPS has determined that this rulemaking will not have a 
significant effect on the quality of the human environment, health and 
safety because it is not expected to:
    (a) Increase public use to the extent of compromising the nature 
and character of the area or causing physical damage to it;
    (b) Introduce non-compatible uses which might compromise the nature 
and characteristics of the area, or cause physical damage to it;
    (c) Conflict with adjacent ownerships or land uses; or
    (d) Cause a nuisance to adjacent owners or occupants.
    Based on this determination, this rulemaking is categorically 
excluded from the procedural requirements of the National Environmental 
Policy Act (NEPA) by Departmental regulations in 516 DM 6, (49 FR 
21438). As such, neither an Environmental Assessment (EA) nor an 
Environmental Impact Statement (EIS) has been prepared.

List of Subjects in 36 CFR Part 17

    National parks, Reporting and recordkeeping requirements.

    In consideration of the foregoing, 36 CFR Chapter I is amended as 
follows:

PART 17--CONVEYANCE OF FREEHOLD AND LEASEHOLD INTERESTS ON LANDS OF 
THE NATIONAL PARK SYSTEM

    1. The authority citation for Part 17 continues to read as follows:

    Authority: Sec 5(a) of the Act of July 15, 1968, 82 Stat. 354, 
16 U.S.C. 4601-22(a).


[[Page 28508]]


    2. Section 17.5 is amended by revising the sixth sentence to read 
as follows:


Sec. 17.5  Bids.

    * * * Bids must be accompanied by certified checks, post office 
money orders, bank drafts, or cashier's checks made payable to the 
United States of America for 2 percent of the amount of the fair market 
value or $2,500, whichever is greater, in the case of a freehold 
interest or for the amount of the first year's rent in the case of a 
leasehold interest. * * *
    3. Section 17.6 is amended by adding two sentences to the end of 
the section, to read as follows:


Sec. 17.6  Action at close of bidding.

    * * * In the case of a freehold interest, the high bidder must 
submit the balance of the bid within 45 days of the bid award in the 
form of a certified check, post office money order, bank draft, or 
cashier's check, made payable to the United States of America. Failure 
to submit the full balance within 45 days will result in the forfeiture 
of $1,000 of bid deposit, unless the bidder has been released from the 
bid or an extension has been granted by the authorized officer, and the 
property will be awarded to the next highest bidder upon fulfillment of 
the requirements of this section.

    Date: May 19, 1996.
George T. Frampton, Jr.,
Assistant Secretary for Fish and Wildlife and Parks.
[FR Doc. 96-14104 Filed 6-4-96; 8:45 am]
BILLING CODE 4310-70-P