4. Procedure

This procedure describes the processes to be followed when surveys and appraisals are required for the disposal or acquisition of real property by the Corporation. Such processes include the process for determining if a survey or appraisal will be completed by internal or external resources; and the process for acquiring and completing such survey or appraisal. Typically, a survey, plot plan or property sketch will be completed prior to the appraisal.

If required by the proposed transaction, the DCE will recommend the need for: a) either an internal property sketch or an external survey; and b) an internal or external appraisal on the TRANSACTION ANALYSIS/RECOMMENDATION (TAR) form (TA-N99116) following SOP-TRANSACTION ANALYSIS PROCESS (900-1-02.1). Such recommendations will be made based upon proposed real property use and estimated value as outlined in Sections 4.1 and 4.2 below.

4.1. Determining Whether an Internal or External Survey is Required

4.1.1. Surveys, plot plans and/or property sketches or similar may be completed by authorized Corporation personnel or provided for the following types of transactions:

Leases of real property where the value of the underlying real property is estimated to be $10,000 or less and the DCE or OLM has determined an external survey is not required; and
Permits as needed.

4.1.2. The Corporation will utilize private sector surveyors to conduct external surveys for the following types of transaction:

All disposals of real property, except for leases of real property where the underlying value of the real property to be leased is estimated to be $10,000 or less and the DCE or OLM has determined an external survey is not required; and
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All acquisitions of real property, except for real property associated with office space leases.

4.2. Determining Whether an Internal or External Appraisal is Required

4.2.1. Authorized Corporation real estate personnel may conduct internal appraisals for the following types of transactions:

Acquisitions of real property where the value of the underlying real property is estimated to be $10,000 or less;
Disposals of real property where the value of the underlying real property is estimated to be $10,000 or less; or
Permits for which a fee rate schedule has not been established.

4.2.2. The Corporation will utilize private sector appraisers to conduct external appraisals for the following types of transactions:

Acquisitions of real property where the value of the underlying real property is estimated to be more than $10,000;
Disposals of real property where the value of the underlying real property is estimated to be more than $10,000; and
Disposals of real property, regardless of underlying value, which because of their unique nature are not subject to fair market pricing.

Note:When the value of the real property is estimated to be over $300,000, two external appraisals are required.

4.2.3. The Contracting Officer may approve use of a fee schedule based on market value for transactions in lieu of an appraisal.

4.3. The Survey Process

If a real property transaction, once approved per SOP – TRANSACTION ANALYSIS PROCESS (900-1-02.1), requires a property description (plot plan, property sketch, or external survey), Corporation staff are to proceed as follows:

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4.3.1. In those instances when an external survey is not required, the DCE will direct authorized Corporation staff to prepare property sketches, plot plans or similar property descriptions as needed and then go to Section 4.4 for appraisals.

4.3.2. When an external survey is required, the DCE will solicit fee quotations from licensed surveyors following the PROCEDURE FOR PROCESSING PROCUREMENTS (100-1-01). The REQUEST FOR SURVEY LETTER¹ will provide the surveyors contacted with a copy of the NYS CANAL CORPORATION SURVEY MAP AND DESCRIPTION PROCEDURE (TAP919)², location and description of property to be surveyed, a copy of the Blueline Map, Residency Map or other general mapping of the property to be surveyed a date for responding to the solicitation, and will require the surveyor to provide an estimated time frame for completing the survey from the date of notification to proceed and the price quote.

4.3.3. Once a surveyor has been selected, the DCE will notify OLM of the selected surveyor and cost of the survey.

4.3.4. OLM will send a COST LETTER³ notifying the applicant of the additional cost of the survey and requesting that payment of any amount above the initial survey and appraisal deposit be sent to Finance.

Note: Where the real property is disposed of via a competitive process, the awardee of the competitive process, if different from applicant, will ultimately be responsible for the survey and appraisal costs and applicant (if not the awardee) will be refunded such costs.

4.3.5. Upon receipt of funds for the additional costs of the survey, Finance will deposit the funds and notify OLM and the DCE that the survey can be started.

4.3.6. The DCE will contact the selected surveyor to have the survey completed.

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4.3.7. Upon receipt of the completed survey materials (Report of Survey, Map Delineation and Boundary Description), if in accordance with TAP-919, the DCE will forward a copy to the OLM for review by OLM and the Engineering Real Property Bureau. Based upon comments received from Headquarters’ review, the DCE will coordinate any modifications to the survey with the surveyor. Once any necessary modifications have been made, and the survey is accepted, the DCE will forward a copy of the survey to OLM and will begin the appraisal process as detailed in Section 4.4.

4.4. Developing the Appraisal Specifications and Costs

If a real property transaction, once approved per SOP – TRANSACTION ANALYSIS PROCESS (900-1-02.1), requires an appraisal, Corporation staff are to proceed as follows:

4.4.1. The DCE directs authorized Division real estate personnel to prepare a draft appraisal SPECIFICATIONS OF PROPOSED APPRAISAL ASSIGNMENT (SPAA)⁺ form (TA-N99119).

4.4.2. A SPAA is to be developed for internal and external appraisals. The purpose of the SPAA is to provide clear direction regarding the specific requirements and the desired deliverables. A well developed SPAA will help ensure receipt of an acceptable appraisal report. The Division real estate personnel will develop the draft SPAA for the appraisal, including information regarding the property and appraisal problem.

4.4.3. The Division real estate personnel will send a copy of the draft SPAA to the Bureau of Real Property Management (BRPM), along with a copy of the approved TAR and any supporting materials (e.g., maps, surveys, property descriptions, etc.). BRPM will review the SPAA and contact Division real estate personnel to discuss any questions/concerns. Upon approval of the SPAA by BRPM, BRPM will notify the Division real estate personnel to initiate the appraisal process. BRPM will copy OLM on the notification. For an internal appraisal, the process continues with Section 4.5.

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4.4.4. For an external appraisal, the Division real estate personnel will solicit fee quotations from qualified appraisers following the PROCEDURE FOR PROCESSING PROCUREMENTS (100-1-01). The REQUEST FOR APPRAISAL LETTER¹ will be sent to provide the contacted appraisers with the appraisal specifications, a date for responding to the solicitation, and will require the appraiser to provide an estimated time frame for completion of the appraisal from the date of a notification to proceed and the price quote.

4.4.5. Upon receipt of proposals, the Division real estate personnel will forward responses to the solicitations to BRPM, with a copy to OLM, for selection of an appraiser(s). BRPM will notify OLM of the selected appraiser(s) and appraisal cost(s). OLM will send a COST LETTER² notifying the applicant of the additional cost of the appraisal and requesting payment of any amount above the initial survey and appraisal deposit.

4.4.6. Upon receipt of the funds for the additional costs of the appraisal by Finance, Finance will notify OLM and BRPM that the appraisal can be started. Process continues with Section 4.6.

4.5. Conducting Internal Appraisals

4.5.1. Upon receipt of approval to proceed with an internal appraisal from BRPM, the Division real estate personnel will conduct the appraisal in accordance with the Uniform Standards and prepare an appraisal report.

4.5.2. Upon completion of the appraisal report, Division real estate personnel will forward the appraisal report to BRPM for review. BRPM will maintain the appraisal file.

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4.5.3. BRPM will review the appraisal report and if additional information or clarification is required, BRPM will contact the Division real estate personnel or others as needed. If a revision to the appraisal report is required, BRPM will return the report to Division along with suggested revisions. Once all issues/concerns have been resolved, BRPM will approve the appraisal report.

4.5.4. Once the appraisal report is approved, BRPM will send a copy of the final approved report to OLM and the Division real estate personnel for their files. An original approved appraisal report will be kept by BRPM.

4.5.5. OLM and DCE will continue to progress the transaction according to the appropriate SOP.

4.6. Conducting External Appraisals

4.6.1. Upon notification by Finance that the additional appraisal funds have been received, BRPM will develop the contract for appraisal services or use existing term agreements and obtain required signatures from selected appraiser(s). BRPM will obtain necessary Corporation approvals required by the PROCEDURE FOR PROCESSING PROCUREMENTS (100-1-01).

4.6.2. BRPM will notify the appraiser that the work on the appraisal can begin, and will forward to them a copy of the fully executed contract. BRPM will also inform the DCE and OLM that the appraiser has been notified and provides an estimated date for receipt of the appraisal report.

4.6.3. Upon receipt of the appraisal report, BRPM will forward a copy to Division real estate personnel. Division real estate personnel will review the report and provide comments back to BRPM. Copies of comments provided to BRPM will also be placed in the project file.

4.6.4. BRPM will coordinate the review of the appraisal and provide the appraiser with any questions or comments.

Note: If two external appraisals are required and they are materially different, BRPM in consultation with OLM will suggest a method to reconcile the differences. If the differences cannot be reconciled, a third party review will be contracted by BRPM to recommend the appraisal to be used or to reconcile the differences.

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4.6.5. Upon acceptance of the appraisal, BRPM will send a copy of the appraisal report, appraisal review and BRPM’s recommendation to the Division real estate personnel and OLM.

4.6.6. Upon receipt of the accepted appraisal report, OLM and DCE will progress transaction according to the appropriate SOP.

4.7. Surveying and Appraising Property in an Exchange of Properties

4.7.1. When a transaction involves an exchange of properties, a survey and an appraisal(s) must be completed for each property involved in the exchange.

4.7.2. Where the transaction involves an exchange of property and the value of each property is estimated to be less than $300,000, BRPM will have one survey and one appraisal prepared for each property (appraisals may be conducted by Division real estate personnel if the underlying value of each property is estimated to be less than $10,000).

4.7.3. Where either of the property values is estimated to be greater than $300,000, BRPM will have one survey and two external appraisals prepared for each property.

4.7.4. In order to proceed with an exchange of property, the appraisals must demonstrate that the property to be acquired is of at least equal value to the property to be exchanged.

4.8. Updating Appraisals

Prior to submittal of a proposed transaction to the Office of the State Comptroller (OSC) for approval, if an appraisal or BRPM property value recommendation is over one year old, BRPM will review the appraisal and/or recommendation to determine if an update is needed. If an update is not needed, BRPM will document the reasoning in the project file and in any subsequent submittals to OSC. If an update is needed, BRPM will coordinate the update.

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5. Complying with §139-j and §139-k of the State Finance Law (Lobbying Law)

Any contact (inquiry, etc.) made regarding a real property transaction following the TAR form approval for negotiated sales and subsequent to the first notice of a competitive process for disposal of such real property (solicitation, RFP, etc.) is subject to the Lobbying Law and must be recorded. See the Executive Instruction entitled INAPPROPRIATE LOBBYING INFLUENCE IN AUTHORITY/CORPORATION PROCUREMENTS.

6. Responsibilities

BRPM will review and approve appraisal specifications, appraisal reports and coordinate the distribution of appraisal reports. BRPM will coordinate external appraisals including contracting and arranging for external appraisal review when necessary.

The DCE will coordinate internal preparation of property sketches or plot plans and the external survey process.

Division real estate personnel will develop appraisal specifications letters, prepare internal property sketches and plans and internal appraisals, solicit fee quotations for external appraisals, and review external appraisals.

The Engineering Real Property Bureau will review external surveys.

Finance will receive and deposit survey and appraisal funds and notify applicable personnel upon receipt of the funds.

OLM will coordinate contacts with applicants during the survey and appraisal process.

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7. Flowchart