Source: https://www.rcfp.org/open-government-sections/o-real-estate-negotiations/
Timestamp: 2019-04-24 12:23:17+00:00

Document:
Real estate negotiations will generally fall within AS 44.62.310(c)(2) while they are ongoing, assuming that immediate public knowledge of such negotiations "would clearly have an adverse effect on the finances of the government unit."
Any “[d]iscussions or consultations with designated representatives of the public body in order to consider its position and instruct its representatives regarding negotiations for the purchase, sale or lease of real property” may occur in closed executive sessions. A.R.S. § 38-431.03(A)(7). Although it cannot select the construction site in a closed session, a public body may “discuss its position in executive session before it actually commences negotiating with a land owner or purchaser.” Tanque Verde Unified Sch. Dist. v. Bernini, 206 Ariz. 200, 208, 76 P.3d 874, 882 (2003).
The actual negotiations may or may not be conducted in public meetings, depending on the entity negotiating on behalf of the public body (i.e., multimember special committee versus single-person attorney or representative).
When the General Assembly was debating the FOIA in 1967, an amendment was offered in the House to permit executive sessions for negotiations involving the purchase of real estate. The House initially agreed to the amendment but subsequently changed its mind and expunged the vote. Ark. Legis. Digest, 66th General Assembly, at 87, 91 (1967). During the 2001 legislative session, a bill to permit closed meetings for discussing “the purchase, sale or lease of real property” died in committee. See S.B. 589, 83d General Assembly (May 14, 2001); see also Harris v. City of Ft. Smith, 359 Ark. 355, 197 S.W.3d 461 (2004).
Closed under both Acts. A body may hold a closed session with its negotiator prior to the purchase, sale, exchange or lease of real property by or for the body to grant authority or give instructions to its negotiator regarding the price and terms of payment. Prior to the closed session, the body must identify its negotiator, the real property, and the persons with whom its negotiators must negotiate. Cal. Gov't Code §§ 11126(c)(7) (Bagley-Keene Act); 54956.8 (Brown Act).
Under the Brown Act, the legislative body shall report any action taken in closed session regarding approval of a final agreement on the sale, purchase, exchange or lease of real property. Cal. Gov't Code § 54957.1(a)(1). The body shall make a report during the public meeting in which the closed session is held, and shall disclose the substance of the agreement. Cal. Gov't Code § 54957.1(a)(1).
Closed. A public body may by two-thirds vote go into executive session to consider purchase of property for public use or sale of public property, if disclosure of information would give an unfair advantage to any person whose interest is adverse to the public interest. Colo. Rev. Stat. §§ 24-6-402(3)(a)(I) (state) and 24-6-402(4)(a) (local).
Meetings involving real estate negotiations are closed. 29 Del. C. § 10004(b)(2).
A meeting, or portion of a meeting, may be closed to discuss, establish, or instruct the public body's staff or negotiating agents concerning the position to be taken in negotiating the price and other material terms of a contract, including an employment contract, if an open meeting would adversely affect the bargaining position or negotiating strategy of the public body. D.C. Code Ann. § 2-575(b)(2).
Enter into an option to purchase, dispose of, or lease real estate subject to approval in subsequent public vote.
O.C.G.A. § 50-14-3(b)(1)(B)-(E). But no vote in executive session to acquire, dispose of, or lease real estate shall be binding on an agency until a subsequent vote is taken in an open meeting where the identity of the property and the terms of the acquisition, disposal, or lease are disclosed before the vote. § 50-14-3(b).
Negotiations to acquire public property may be closed. Haw. Rev. Stat. § 92-5(a)(3).
Deliberations concerning acquisition of an interest in real property that is not owned by a public agency can properly take place in executive session. Idaho Code § 74-206(1)(c).
Closed under 5 ILCS 120/2.
Executive sessions are permitted for strategy discussions about with respect to the purchase or lease of real property up to the time a contract or option to purchase or lease is executed by the parties. Ind. Code § 5-14-1.5-6.1(b)(2)(D). An executive session is not permitted if competitive or bargaining adversaries are included in the meeting. Ind. Code § 5-14-1.5-6.1(b).
Only where premature disclosure could be reasonably expected to increase the price the governmental body would have to pay for that property or reduce the price the governmental body would receive for that property. Iowa Code § 21.5(1)(j).
Preliminary discussions relating to acquisitions of public land may be closed to public. K.S.A. 75-4319(b)(6); Kan. Att’y Gen. Op.s 1987-91; 1975-203. Discussion relating to the sale of public land are open to the public. 1987-91. A private corporation supporting "the well-planned development of land along Kansas Highway 10" is not a public agency within the meaning of KOMA due to the lack of governmental control and influence. 1994-42.
"Deliberations on the future acquisition or sale of real property by a public agency, but only when publicity would be likely to affect the value of a specific piece of property to be acquired for public use or sold by a public agency," may be closed. Ky. Rev. Stat. 61.810(1)(b); see Bd. of Comm'rs of Danville v. Advocate Communs., 527 S.W.3d 803, 806 (Ky. 2017) (“Significantly, this section exempts ‘deliberation,’ as opposed to ‘action taken.’”).
Discussion of the acquisition or disposition of publicly owned property may be held in executive session only if such discussion would prejudice the bargaining position of the agency or body; the negotiation itself may not. 1 M.R.S.A. § 405(6)(C).
Meetings that relate to the acquisition of real property may be closed. § 3-305(b)(3). The Act also allows a body to close a meeting to "discuss, before a contract is awarded or bids are opened, a matter directly related to a negotiating strategy or the contents of a bid or proposal, if public discussion or disclosure would adversely impact the ability of the public body to participate in the competitive bidding or proposal process." § 3-305(b)(14).
A public body may meet in closed session "[t]o consider the purchase or lease of real property up to the time an option to purchase or lease that real property is obtained." Mich. Comp. Laws Ann. § 15.268(d).
No right of privacy is involved in real estate negotiations, so the meetings must be open even if the open session may cause the entity some economic disadvantage.
Negotiations for purchase of land need not be conducted at an open meeting, but deliberations of public body as to whether an offer to purchase real estate should be made should take place in an open meeting. Pokorny v. City of Schuyler, supra.
"Consideration of the acquisition, sale, or lease of real or personal property which, if discussed in public, would likely benefit a party or parties whose interests are adverse to those of the general community," may be conducted in nonpublic session. RSA 91-A:3,II(d). This provision should be limited to cases where disclosure of discussions would prevent or frustrate consummation of the proposed transaction, or inflate its cost to the public.
All discussions, including negotiations, involving the purchase, lease or acquisition of real property with public funds may be conducted in closed session. N.J.S.A. 10:4-12b(5).
May be closed pursuant to NMSA 1978 § 10-15-1(H)(6) and (8).
The Open Meetings Law, in G.S. § 143-318.11(a)(5), permits a public body to meet in closed session to establish price or other material terms of a real estate contract. Once negotiations are completed, final authorization to purchase or lease property must be given at an open meeting. There is no authorization for discussing the disposition of property in closed session. In an Attorney General opinion released less than a month after the 1994 amendments to the Open Meetings Law, the Attorney General’s office took the position that “a public body may not lawfully reserve for closed session discussions and instructions to staff about material terms of a property purchase contract unless the public body intends, in good faith, to negotiate over such terms.” October 17, 1994, 1994 WL 1026170 (N.C.A.G.).
Following the 1994 Attorney General opinion, the Winston-Salem Journal brought two lawsuits challenging government bodies from withholding information that should have been public, and the trial courts rendered different rulings. In Piedmont Pub. Co. v. Surry Co., 24 Media L. Rep. (BNA) 1371 (N.C. Sup. Ct. 1995), the Surry County Commission authorized in closed session the purchase of option contracts on five parcels of property. The court found, “There was no requirement for the board to hold a closed session with regard to the location of the parcels described in the proposed option contracts, the names of the owners, or the intended use or uses of the properties, as Defendants have failed to make any showing of a need or desire to establish, or to instruct staff concerning, any negotiating position to be taken upon these aspects of the proposed option contracts.” In Piedmont Pub. Co. v. Kernersville Board of Aldermen, Case No. 95 CVS 5884 (Forsyth Co. Sup. Ct., 1996), the court reached the opposite result, finding that the public body had an interest in keeping confidential essentially all information about the proposed transaction until the culmination of the purchase.
A governing body may hold an executive session to discuss negotiating strategy or provide negotiating instructions to its attorney or other negotiator regarding litigation, adversarial administrative proceedings, or contracts, which are currently being negotiated or for which negotiation is reasonably likely to occur in the immediate future. N.D.C.C. 44-04-19.1(9). The executive session may be held only when an open meeting would have an adverse fiscal effect on the bargaining or litigating position of the public entity. N.D.C.C. 44-04-19.1(9).
· The purchase of property for public purposes if premature disclosure of information would give an unfair competitive or bargaining advantage to a person whose personal, private interest is adverse to the general public interest. Ohio Rev. Code § 121.22(G)(2).
· The sale of property at competitive bidding if premature disclosure of information would give an unfair competitive or bargaining advantage to a person whose personal, private interest is adverse to the general public interest. Ohio Rev. Code § 121.22(G)(2).
Public bodies may discuss the purchase or appraisal of real property. 25 O.S. § 307.B.3. An executive session is limited to the members of the public body, its attorney and staff. No landowner, broker, developer or any other person who may profit directly or indirectly from the proposed transaction may be present or participate in the executive session. 25 O.S. § 307.D.
Negotiations concerning real property transactions may involve exempt public records and therefore could be conducted in an executive session, under ORS 192.660(1)(f).
Exemption (5) excludes discussions or considerations related to the acquisition, lease or disposition of a public property, but only where advanced public information would be detrimental to the public. R.I. Gen. Laws § 42-46-5(a)(5).
Discussion of negotiations incident to the sale or purchase of property may be held in executive session. The argument can be made that the public body can only discuss its negotiating position in a session closed to the public, but if it wants to negotiate as a body it must do so in public. S.C. Code Ann. § 30-4-70(a)(2).
Closed in cases of state-owned businesses, but it is uncertain whether this applies to agencies in general. SDCL §1-25-2(5).
State board of equalization meetings are subject to the Act. Op. Att'y Gen. No. 85-105 (April 8, 1985); however, T.C.A. § 10-7-504(a)(6) makes confidential state agency records containing opinions of value of real and personal property intended to be acquired for public purposes prior to final acquisition.
Section 551.072 provides that meetings may be closed regarding “the purchase, exchange, lease, or value of real property if deliberations in an open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third person.” The exemption was created to keep a governmental entity from having to “‘telegraph its punch’ in an open meeting to the detriment of the taxpayers, not to use it as a blank check to cut a deal in private, devoid of public input or debate..” Finlan, 888 F. Supp. at 787. Under this exemption, members of a governmental body “‘may consult with their employees in private, but may not consult with other third parties in private.’” Id. (quoting Tex. Att’y Gen. Op. No. DM-191 (1992)). Thus, “[w]hen third parties are allowed into closed meetings where they can observe [the governmental body’s] deliberations, the privilege is waived so that the public cannot be legitimately shut out.” Id.
Strategy sessions relating to the purchase, exchange, lease, or sale of real property are exempt from the Open Meetings Act under certain conditions. Utah Code § 52-4-205(1)(d).
Closed if meeting concerns the negotiating or security of real estate purchase or lease options for a public body. 1 V.S.A. § 313(a)(2).
Discussion of the acquisition of real property for public purpose, or of the disposition of publicly held property may be closed, where open discussion would adversely affect bargaining position on negotiating strategy of public body. Va. Code Ann. § 2.2-3711.A.3.
An agency may close a meeting of the governing body to consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding consideration likely would increase the price. Similarly, a public agency may close a meeting of the governing body to consider the minimum price at which real estate will be offered for sale or lease when public knowledge regarding the considerations likely would lower the price. See RCW 42.30.110(1)(b) and (c).
"Matters involving or affecting the purchase, sale or lease of property" may be discussed in executive session. W. Va. Code § 6-9A-4(9).
A governing body of an agency may hold closed executive sessions regarding real estate purchases if the governing body determines that publicity might cause a price increase of the real estate in question. Wyo. Stat. § 16-4-405(a)(vii) (1977, Rev. 1982). In 2015, the Wyoming Supreme Court ruled that an executive session held by a school regarding the potential for building a community recreation center at the local high school did not fall within provision allowing for executive sessions when discussing purchase of real estate or the selection of a site for a government facility when disclosure would likely cause an increase in price. Sheridan Newspapers, Inc. V. Sheridan County School District #2, 2015 Wy 70. The Court ordered executive session minutes from the improper meetings released. The court also required requiring governmental entities to follow W.R.C.P. 26(b)(5) when asserting a privilege by describing the nature of the privileged communication that, without revealing the privileged information, will enable the other party to assess the applicability of the privilege. It also ruled that the “deliberative process privilege” adopted pursuant to the Wyoming Public Records Act did not apply to the Public Meetings Act.

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