WASHINGTON (CN) – The Defense Department is no longer required to seek fair market value in job creation for property exchanges at decommissioned military bases, and so no longer will need appraisals or an analysis of the highest and best use of the property.
The department may accept in-kind offers and back-end funding in which it will receive no money until developers succeed in generating income from the closed bases.
The Base Closure and Realignment Act created real estate conveyances to give local economic development authorities the opportunity make use of land and facilities no longer needed by the military after the end of the cold war and the subsequent down-sizing and reorganization of the armed services. The process is commonly called base realignment and closure.
Under the act the department was required to seek fair market value for the land and facilities conveyed under the act. As a result, appraisals of the property to be conveyed will no longer be required before deals are considered nor will the agency have to conduct a highest and best use analysis of the property.
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