ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1724

STATE OF NEW JERSEY

DATED: MARCH 25, 1996

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 1724.

      Assembly Bill No 1724 permits the public sale of the Red Bank Armory to the highest bidder by repealing P.L.1991, c.88, which authorizes the sale of the armory to the City of Red Bank.

      The armory property consists of about 1.17 acres and improvements on Chestnut Street in Red Bank. P.L.1991, c.88 authorized the sale of the armory on terms approved by the State House Commission at its January 31, 1989 meeting. The proposal approved by the commission contemplated sale of the property to the City of Red Bank. However, the city has since decided not to purchase the armory. Repeal of P.L.1991, c.88, permits a public sale of this property to the highest bidder.

       Additional statutory authorization of the new proposed sale is not necessary because the annual appropriations act for State fiscal year 1996 (P.L.1995, c.164) authorizes the head of a principal department to sell real property held by the department having a value of $5 million or less with the approval of the State Treasurer and the Director of the Division of Budget and Accounting.

FISCAL IMPACT:

      This bill will allow the sale of surplus State property which otherwise would not be salable. The original proposal for sale to the City of Red Bank contemplated a property value of approximately $1 million. The estimated current fair market value of the property at a sale to a private party is approximately $600,000, reflecting the deflation of real estate values since 1989.