To approve a Resolution of the Board of Education of the Township of Brick, County of Ocean, Authorizing the sale of real property located at Block 867, Lot 6.01 at a Public Sale, as follows: Updated 08/08/19
WHEREAS, N.J.S.A. 18A:20-5 permits a board of education to sell real property, owned by it, which ceases to be suitable or convenient for the use for which it was acquired or which is no longer needed for school purposes; and
WHEREAS, pursuant to N.J.S.A. 18A:20-6, any real property sold by a board of education shall be sold at public sale, to the highest bidder, after advertisement of the sale in a newspaper published in the district at least once a week for two weeks prior to the sale; and
WHEREAS, pursuant to N.J.S.A. 18A:20-7 a board of education is permitted to fix the minimum price for which the real property may be sold with or without the reservation of the right, upon completion of the public sale, to accept or reject the highest bid made thereat; and
WHEREAS, pursuant to N.J.A.C. 6A:26-7.4, in order to sell real property, a board of education must make a written request to the Department of Education, Division of Administration and Finance (hereinafter “the Department”) and a copy of the request must also be provided to the Executive County Superintendent who shall make recommendations to the Department; and
WHEREAS, the Department shall either approve or disapprove of a board of education’s request and send a copy of its determination to the Executive County Superintendent; and
WHEREAS, the Brick Township Board of Education (hereinafter “the District”) is the owner of real property located at Block 867, Lot 6.01 (former Laurelton School described hereinafter as “the Property”) on the official tax map of the Township of Brick; and
WHEREAS, the Property fronts on Route 88 in the Township’s B-3 Highway Development Zone and contains a single story building located thereon; and
WHEREAS, an appraisal report prepared for the Property determined that the Property’s “as is” value is Six Hundred Twenty Thousand Dollars; and
WHEREAS, the use of the Property as a school has been and shall be abandoned and, therefore, the use of the Property as a school will no longer be a permitted use in the B-3 Zone; and
WHEREAS, the District, by Resolution dated March 14, 2019 (a copy of which is attached hereto as Exhibit A), determined that the Property was no longer suitable or convenient for the use that it was originally acquired and no longer needed for school purposes; and
WHEREAS, the District requested approval to sell the Property pursuant to N.J.A.C. 6A:26-7.4 and sent a copy of its request to the Interim Executive County Superintendent; and
WHEREAS, the Interim Executive County Superintendent, by correspondence dated July 9, 2019 recommended the approval of the request to sell the Property, (Exhibit B) and thereafter, the District received approval to sell the Property from the Department by correspondence dated July 9, 2019 (a copy of which is attached as Exhibit C); and
WHEREAS, the District has determined that it is in the best interest of the District to sell the Property at public sale, to the highest bidder, and that the District shall set a minimum price for the Property, with the reservation of the right to accept or reject the highest bid, as set forth below.
NOW THEREFORE, BE IT RESOLVED by the Board of Education of the Township of Brick, County of Ocean, State of New Jersey as follows:
Section 1
(a) The District hereby reaffirms, in accordance with the Resolution dated March 14, 2019, that the Property ceases to be suitable or convenient for the use for which it was acquired and is no longer needed for school purposes and, therefore, shall be sold in accordance with N.J.S.A. 18A:20-5 et seq.
(b) Auction and Property Review
(1) After advertisement in a newspaper published in the district at least once a week for two weeks prior, there shall be an open public sale at auction on September 4, 2019 at 11:00 am., at 101 Hendrickson Avenue, Brick, NJ 08724, where the Property shall be offered to the highest bidder pursuant to N.J.S.A. 18A:20-6. The minimum price and reservation price for all bids shall be Six Hundred Twenty Thousand dollars and the District reserves the right to accept or reject the highest bid made in accordance with N.J.S.A. 18A:20-7. Said auction shall be in accordance with the terms and conditions set forth in the remainder of this Resolution.
(2) On August 28, 2019 at 11:00 am, there shall be a pre-auction, on-site meeting at the Property. All prospective bidders are strongly encouraged to attend this meeting, at which time they shall be permitted to perform a visual inspection of the Property. All bidders must be accompanied by a District representative when viewing the Property. No testing will be permitted nor will questions be answered by the District and/or its representatives. The sole purpose of this meeting is to permit prospective bidders the opportunity to visually review the Property.
(c) The successful bidder shall be required to deposit ten percent (10%) of his or her bid with the District at the time of the auction. This deposit shall be made by certified check, money order or cash in an amount equal to at least ten percent (10%) of the accepted bid by the District for the sale of Property. The combined form of deposit must equal ten percent (10%) of the total sale price. All monies so received will be credited to the total sale price.
(d) Non-Refundable Deposit. The deposit made by the purchaser is non-refundable. The purchaser is not entitled to a refund of this deposit in any case and the risk of loss is on the purchaser.
(e) All bidders must appear in person at the auction and any person bidding on behalf of a corporation or limited liability company must either submit a copy of a resolution of the corporation/company or a letter on corporate stationery, signed by an officer of the corporation, authorizing the bidder to bid on the property on the corporation’s behalf. A person bidding on behalf of a partnership or using a trade name must submit a copy of the certificate of trade name and a letter of authorization from the other partners. No other bidder may submit a bid on behalf of another, except that a husband or wife may bid on behalf of both.
(f) The successful bidder shall be required to pay, at the time of closing of title, the cost of legal advertising of the sale of the Property which is the subject of this auction plus their proportionate cost of the transcript, if applicable.
(g) The successful bidder shall bear the cost of the recording of the deed and agrees that deeds shall be recorded on behalf of the purchaser by the District or by an attorney representing the successful bidder. The successful bidder, prior to closing of title, will not be permitted to assign his or her bid nor any right, title or interest in the property on which the bid was made.
(h) The successful bidder, at the conclusion of the bidding, shall execute an Agreement of Sale. The balance of the purchase price shall be paid at closing which shall occur not later than 60 days following the acceptance of the bid by the District. The purchaser shall be entitled to possession immediately following closing of title.
(i) The sale price, as may result from this auction sale, may not be used before any County Board of Taxation, State Tax Court or in any other court of this State to challenge the assessment with respect to the subject property nor may same be used as a comparable sale to challenge the assessment with regard to other properties.
(j) The Property herein sold is being sold “as is” subject to existing encumbrances, liens, easements, zoning ordinances, other restrictions of records, such facts as an accurate survey would reveal any present or future assessments for the construction of improvements benefiting said property. The District makes no representations as to the presence or absence of wetlands or any other environmental conditions of the Property and the purchaser assumes the risk of any such condition, all property being sold “as is”. A prospective purchaser shall have examined the Property or otherwise waived the right to examine the Property prior to submitting a bid to the District. The District does not make any representations, express or implied, that the Property is buildable or usable for any purpose whatsoever.
(k) All conveyances by the District shall be made by quitclaim deed.
(l) The District reserves the right to waive any and all defects and informalities in any proposal and to accept or reject the highest responsible and responsive bid deemed to be in the interest of the District. No bid shall be considered finally accepted until passage of a resolution by the District as set forth in Paragraph (m) hereof.
(m) The acceptable bid shall be confirmed by resolution of the District no later than the second regular meeting of the District following the date of such sale.
(n) The successful bidder agrees that:
(1) He or she shall indemnify and hold the District harmless from any claim whatsoever arising out of the District’s ownership interest including but not limited to environmental cleanup costs.
(2) Pay prorated real estate taxes for the balance of the current year, as of the date of closing.
(3) Abide by all appropriate zoning, subdivision, health and building regulations and codes and stipulations that this sale will not be used as grounds to support a challenge of the existing assessment of the subject property, nor shall the purchase price be used as a comparable sale to challenge assessments with regard to other properties.
(4) Failure to close title as agreed shall forfeit to the District any and all money deposited with the District.
(o) A failure by the purchaser to fully comply with the terms, conditions, requirements and regulations of sale as herein contained shall be considered, at the option of the District, as a material breach of the conditions of sale whereupon the District may declare said contract or purchase terminated and at an end. All monies paid on behalf of the purchase price, by way of deposit or otherwise, may be retained by the District as its liquidated damages and it may thereafter resell said property and/or pursue such other and further legal and/or equitable remedies as it may have. The defaulting purchaser shall continue to remain liable for all damages and losses sustained by the District by reason of any such default.
(p) The sale is made subject to all applicable laws and ordinances of the State of New Jersey.
Section 2
NOTICE. The District shall advertise copies of this Resolution and/or a substantially similar advertisement as required by N.J.S.A. 18A:20-6 and therefore shall advertise the open public sale at auction of the Property in a newspaper circulating in the District in which the Property is situated, by an insertion at least once a week during two weeks, the last publication to be not earlier than two weeks prior to such sale.
Section 3
AUTHORIZATION. The Board Secretary, Board Attorney, and such other officials as may be necessary are authorized to perform such ministerial actions as are necessary to effectuate the purposes of this Resolution including, but not limited to, preparing and executing a deed and all other necessary documents to convey the Property to the successful bidder, subsequent to the District adopting a resolution awarding the bid.
EXHIBIT A
EXHIBIT B
EXHIBIT C