INTRODUCTION

This brochure will explain a portion of the services available through the Property Management Section. The Property Management Section is part of the Office of Right-of-Way, which is in the Highway Division of the Iowa Department of Transportation.

In this brochure, we have identified four basic areas of service that many members of the public regularly utilize.

• Sales of state-owned improvements (houses, buildings, etc.)
• Leasing of state-owned real estate
• Assistance provided to local governments
• Records

This brochure is designed to provide general information. The Property Management staff looks forward to answering more specific and/or technical questions. For further information, please contact:

DISPOSAL OF STATE-OWNED ASSETS

After real estate is acquired for highway purposes, the DOT is often in a position to dispose of some of the acquired assets. Sales may be classified in two basic groups:

• Improvements that must be removed.
• Land (with or without improvements).

A brief discussion about both types will be provided, along with often asked questions and answers.

Improvements that must be removed

When the DOT acquires land for a highway project, improvements are often purchased with the necessary land. We attempt to sell these improvements when practical.

All types of improvements throughout the state are regularly sold on the condition that they must be moved. For example:

• Houses
• Grain bins
• Farm buildings
• Commercial metal buildings
• Garages
• Sheds
• Satellite dishes
• LP tanks
• Decorative fences

The list of items can go on and on. If practical, the Property Management Section attempts to sell all items acquired.

The Environmental Protection Agency (EPA) has developed regulations concerning the sale of residential improvements constructed prior to 1978. These homes may be affected by lead-based paint. The DOT complies with EPA regulations concerning the sale of residential dwellings.

For brochures and information regarding lead-based paint and residential properties, please contact the Property Management Section.

Land

(with or without improvements)

After completion of highway projects, the Property Management Section disposes of land no longer required for highway purposes. The DOT disposes of all different types of land. Tracts may be very small or fairly large. Residential, commercial, industrial and agricultural tracts are sold. Some tracts of land are vacant, while other tracts may have improvements.

Two sections of the Code of Iowa specify how public lands are to be disposed. Those sections are 306.23 and 6B.56, Code of Iowa.

In most cases involving the DOT, present Iowa law provides that when public properties are to be disposed of, the owner(s) of the land at the time of acquisition, and the present owner(s) of the adjacent property from which the tract was originally acquired, will be given the first opportunity to make offers. These parties have 60 days after notification by the DOT to make offers. Offers that equal or exceed the market value of the property will be given preference.

Should the DOT not receive an offer equal to or higher than market value, the DOT may proceed with disposal through other means.

Sales

Sales are generally handled through a sealed bid process. Notices of sales and the dates bids are due are usually published in local newspapers. The Property Management Section also provides notices of sales to interested parties.

Properties and improvements to be sold may also be identified by "For Sale" signs placed prominently on the properties. These signs provide the telephone number for the Ames office for your convenience.

Prior to the sale, property managers typically hold an "Open House" so that any interested individual may inspect the property.

Bids must be submitted on DOT bid proposal forms and received by the Property Management Section prior to the published deadline.

The bids are publicly opened at the advertised time. The highest acceptable bid is submitted for approval. The DOT reserves the right to accept or reject all bids.

When items such as houses and other buildings sold by the DOT must be moved,the DOT generally requires a performance deposit (bond). The amount of money required is stated in the bid proposal packet. The successful bidder provides the performance deposit to the DOT in the form of a cashier's check, certified check, or money order. After the terms of the bid proposal are fulfilled, the performance deposit is returned to the purchaser.

DISPOSAL OF STATE-OWNED ASSETS

Answer:

The DOT maintains a mailing list of prospective bidders and others who express interest. When items are to be sold, the DOT sends out notices to those on the mailing list.

How do I get on the mailing list and is there a cost?

Answer:

The mailing list service is free to the public. To be placed on the mailing list, simply call 515-239-1300 during regular office hours or send to the address on page 1 your request in writing.

What forms of payment does the DOT accept?

Answer:

The DOT will accept the following forms of payments:
• Certified checks
• Official bank checks
• Cashier's checks
• Money orders

The DOT cannot accept:

• Credit cards
• Cash
• Personal checks

Explain the performance deposit. Does the DOT deposit the funds? Do I get these funds back?

Answer:

The DOT will deposit the performance deposit. Once all the terms of the agreement have been fulfilled, the performance deposit is refunded. However, should the buyer not fulfill the terms of the sale, the DOT may retain a portion or all of the performance deposit.

How do I know how much of my bid is required when the bids are opened, and how much the performance deposit will be?

Answer:

The bid proposal packet will explain both requirements. However, should you have any questions, please call and staff will be happy to answer your questions.

What if I do not use your bid form or do not fill the bid form out correctly?

Answer:

Bids not submitted on the proper forms and correctly completed are generally rejected.

As long as I mail the bid to the DOT prior to the opening date, will my bid be considered?

Answer:

For bids to be considered, the Property Management Section must RECEIVE the bids prior to the bid deadline. Any bids received after the deadline cannot be considered as part of the sale.

Can I hand deliver my bid and watch the bid opening?

Answer:

Yes, but all bids must be delivered before the sale deadline. All members of the public are encouraged to attend the bid openings.

Where do you hold the bid openings?

Answer:

The bid openings are generally held at the DOT headquarters located in Ames. Please call the Property Management Section for the exact location of the bid opening for a specific sale and directions on how to find the location.

How often do you have sales?

Answer:

The Property Management Section usually has a sale every month. Some months the DOT may have more than one sale.

Can I buy trees and shrubs from the DOT?

Answer:

We receive many requests for trees, shrubs and landscaping. Unfortunately, the DOT cannot dispose of these items. In order to dispose of these items, the DOT would be required to have the items certified as disease-free. Costs of implementing these requirements, as well as staffing limitations, reduces the practicality of these types of sales.

The DOT often utilizes landscaping that has been acquired for other official DOT uses.

Where does the money the DOT receives from the sale go?

Answer:

The proceeds of all sales are deposited in the road fund and used for other highway projects.

LEASING STATE PROPERTY

The DOT leases properties that are being held in anticipation of a future highway purpose, or for future disposal.

The Property Management Section leases several different types of properties. A few of the types of properties leased include:

• Agriculture (row crop, pasture, etc.)
• Residential housing
• Commercial buildings
• Parking lots

Leases are entered into on forms prepared by the DOT. Laws or regulations mandate some of the lease terms; however, some of the terms may be negotiable.

The DOT leases properties throughout the state of Iowa. If you are interested in a specific type of property, please call for further information.

Residential properties that were built prior to 1978 also are regulated concerning lead-based paint. Applicable information will be provided to all prospective tenants prior to leasing these properties.

LEASING STATE PROPERTY

How does the DOT determine lease rates?

Answer:

To protect the public's assets, the Property Management Section attempts to obtain rental rates appropriate for the area (market rent). However, market rent may take many forms.

The Property Management Section looks forward to discussing individual situations with you.

How long are the leases?

Answer:

Properties being leased are being held in anticipation of a future use. With this in mind, the DOT must have the ability to cancel all leases relatively quickly to protect the public's anticipated project use. Generally all leases have a 30-day cancellation clause even though some properties may be held for a longer period of time.

What forms of payment for rent will the DOT accept?

Answer:

The DOT will accept the following forms of payments:

• Certified checks
• Official bank checks
• Cashier's checks
• Money orders

The DOT cannot accept:

• Credit cards
• Cash
• Personal checks

Does the DOT require damage deposits?

Answer:

Yes, when leasing buildings and/or improvements the DOT requires damage deposits. The deposits are returned at the end of the lease, provided the tenant fulfills the terms of the lease.

The DOT may require the tenant to maintain liability insurance on some types of properties.

Where does the money the DOT receives from rent go?

Answer:

The proceeds of all leases are deposited in the road fund and used for other highway projects.

Who is eligible to lease DOT properties?

Answer:

Anyone over 18 that is not employed by the DOT is eligible to lease DOT properties.

LOCAL PUBLIC AGENCIES

The local public agency coordinators are located within the Property Management Section. These individuals provide assistance and advice to local governments involved in acquiring land for public projects.

The local public agency coordinators strive to ensure that local projects remain eligible for state and federal funding. The coordinators also assist local governments to ensure that laws and regulations are adhered to and the members of the public affected are treated fairly.

Local government officials may reach the coordinators through the Property Management Section at 515-239-1300.

LOCAL PUBLIC AGENCIES

Do the local public agency coordinators do the actual work for the local governments?

Answer:

On occasion a local government will need special services that are difficult to obtain. In those cases the local government may contract with the coordinators through an inter-governmental agreement. Usually the coordinators limit their activities to assistance and providing information.

Can I call the coordinators when I am affected by a local project?

Answer:

Local governments are responsible for their projects. Generally calls will be referred to the responsible local officials.

RECORDS

The Property Management Section also maintains records for the Office of Right-of-Way and other areas of the DOT. This record center maintains all conveyances involving state-owned highway right-of-way.

RECORDS

Does this record center have all the records concerning my property?

Answer:

No. This record center only maintains records concerning right-of-way on state and federal roadways.

I think the state of Iowa owns a small tract of land that abuts my property, but I'm not sure. Is this record center the place for me to start my search?

Answer:

The most convenient place to start your search is probably your local county courthouse. But, if you supply the pertinent legal descriptions, staff can start a search in the Property Management Record Center.

Can I call the Record Center?

Answer:

Of course! The telephone number is 515-239-1539 and fax is 515-233-7859.