Committee approves change to appraisal requirement for ARDOT surplus right-of-way sales

Representative Burks presented House Bill 1486 to the House Transportation Committee, saying the measure would standardize market-value determinations for surplus property held by the Arkansas Department of Transportation.

"Back in 2021, [the law] deals with right of way property, when they have surplus right of way property, the law still required 3 appraisals. We didn't get that changed back then, so we're just changing that down to 2," said Representative Burks. He described the change as intended to simplify the process for surplus right-of-way property while retaining safeguards.

Committee members asked how the surplus-sales process currently works and whether an appraiser who values a property could subsequently bid to buy it. Kevin White, division head for right of way at ARDOT, explained the agency generally does not actively market surplus parcels: "It's an interested buyer that comes to us wanting to buy it... Usually we ask them to obtain the appraisal of the property, whether it be 2 or 3, depending on the type of release it's going to be. And they provide that to us. It sets the market value and the sale is executed from there." White said ARDOT can use several sale methods, including auction, if there are multiple interested buyers.

Michelle Davenport, ARDOT chief counsel, described statutory notice and commission review requirements. "There is a 21 day notification on our website. There is also a one-time notification in a newspaper, either in the county that the property is located, ideally, or in the statewide paper if they don't have a newspaper in that county," she said. Davenport added that ARDOT brings surplus-property sales before its commission for approval before release of right of way and that appraisals and reviews are included in commission materials. She also said ARDOT follows a review practice consistent with the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act by having appraisals reviewed by another appraiser.

Committee members who questioned potential conflicts said a second appraisal helps guard against underbidding or conflicts of interest. One member requested clear public-notice timelines; ARDOT counsel confirmed notice steps, commission approval, and that previous owners are notified as part of the process.

After discussion the committee voted to pass House Bill 1486 by voice vote. The transcript records a motion to pass and the chair's announcement "congratulations. Your bill passes." The record does not include a roll-call tally or a named mover and seconder.

Ending: The transcript indicates the committee will continue meeting weekly on Tuesdays and adjourned with no further business on the docket.