[Federal Register Volume 61, Number 29 (Monday, February 12, 1996)]
[Proposed Rules]
[Pages 5356-5357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3007]



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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: Proposed rule.

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SUMMARY: The National Park Service (NPS) is proposing to revise 
portions of the regulations for conveyance of freehold and leasehold 
interests on lands administered by the NPS. The proposed rule would 
allow bids for freehold and 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 
proposed changes to the regulations address this issue and will correct 
the problem identified with the current regulations. With these 
proposed changes, the NPS will be able to convey freehold and leasehold 
interests on federally owned lands.
    The proposed revision 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 proposes to revise and amend 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 would result in forfeiture of $1,000 of the 
deposited bid amount and the property would be awarded to the next 
highest bidder.

DATES: Written comments will be accepted through April 12, 1996.

ADDRESSES: Comments should be addressed to: Superintendent, Cuyahoga 
Valley National Recreation Area, 15610 Vaughn Road, Brecksville, OH 
44141, Telephone (216) 546-5903.

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. They 
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 an 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 land.
    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.
    There was not a single bid received for the property on June 3rd. 
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 financial lending institution would approve this type of 
arrangement.
    The NPS is therefore proposing to amend this regulation. The NPS 
proposes that the sixth sentence of 36 CFR 17.5 be amended as follows: 
``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 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 also proposes to amend 36 CFR 17.6 by adding the following 
three (3) 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 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 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 herein.''
    The proposed changes will improve the existing regulations by 
permitting prospective bidders to participate without an outlay of a 
large sum of cash. The NPS anticipates that the amended regulation will 
facilitate ``sellback'' of historic structures that can be most 
effectively preserved through private ownership rather than public 
ownership. The historic and scenic values of the properties will be 
protected through deed restrictions.

Public Participation

    It is the policy of the Department of the Interior, whenever 
practicable, to afford the public an opportunity to participate in the 
rulemaking process. Accordingly, interested persons may submit written 
comments regarding this proposed rule to the address noted at the 
beginning of this rulemaking. The NPS will review comments and consider 
making changes to the final rule based upon an analysis of the 
comments.

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

Paperwork Reduction Act

    This proposed 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 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.). The economic effects of this rulemaking are 
local in nature and negligible in scope.
    The NPS has determined that this proposed 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 

[[Page 5357]]
of the area or causing physical damage to it;
    (b) Introduce incompatible uses that may 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 proposed rulemaking is 
categorically excluded from the procedural requirements of the National 
Environmental Policy Act (NEPA) by Departmental guidelines 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, it is proposed to amend 36 CFR 
Chapter I 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. 460l-22(a).

    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 shall result in the 
forfeiture of $1,000 of the bid deposit, unless the bidder has been 
released from said 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.
    Dated: December 21, 1995.
George T. Frampton, Jr.,
Assistant Secretary for Fish and Wildlife and Parks.
[FR Doc. 96-3007 Filed 2-9-96; 8:45 am]
BILLING CODE 4310-70-P