STATEMENT TO

ASSEMBLY, No. 1724

with Senate Floor Amendments

(Proposed by Senator BENNETT)

ADOPTED: JUNE 16, 1997

      P.L.1991, c.88 authorized sale of the Red Bank Armory, consisting of 1.17 + acres and improvements located on Chestnut Street in Red Bank, on terms approved by the State House Commission at its January 31, 1989 meeting. The proposal approved by the commission at that time contemplated sale of the property to the City of Red Bank. However, the sale did not take place following enactment of the 1991 legislation.

      The bill repeals P.L.1991, c.88 in order to permit sale of the property on new terms and conditions. Additional statutory authorization for the sale was not considered necessary when the bill was introduced because the 1995-96 Annual Appropriations Act contained language which authorized the head of a principal department to sell real property having a value of $5 million or less. This provision was repeated in the 1996-97 Annual Appropriations Act. However, the Attorney General has advised the State Treasurer that this budget language is insufficient to override the permanent statute under which the sale of State property valued at more than $100,000 must be approved by a specific legislative enactment. Accordingly, it is necessary to amend the bill to authorize the sale of the Red Bank Armory on new terms and conditions. At its meeting on December 17, 1996, the commission authorized the sale of the armory for $500, 000 through either a direct sale or a public auction. These amendments provide that the sale shall be a direct sale to the municipality in which the property is situated upon terms and conditions approved by the State House Commission.