R97-22 AUTHORIZING EXECUTION OF STATE / FEDERAL CAPITAL ASSISTANCE GRANT AGREEMENT

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, . „ , , t � • l (1) Federal and/or State Interest in Pro�y. Unless otherwise approved by the Government, the Grantee agrees to remit to the Government the Government interest in the fair market value of any of the Project Facilities whose unit value exceeds $5,000. The amount of that interest shall be determined on the basis of the ratio of the assistance awarded by the Government for the Project to the actual cost of the Project. (2) Fair Market Value. The following requirements apply to the calculation of fair market value: a) Proj�ect Facilities. Unless otherwise approved in writing by the Department, the fair market value of the Project Facilities will be the value at the time immediately before the occurrence that prompted the withdrawal of the Project Facilities from transit use. The fair market value shall be calculated by the greater of the following: (1) appraised value, (2) on a straight line depreciation of the Project Facilities, based on a useful life approved by the Department irrespective of the reason for withdrawal of Project Facilities from transit use, or (3) the actual proceeds from the public sale of such property, whichever method is approved by the Department. Any appraiser employed for such purposes shall be subject to the prior approval of the Department. The fair market value of Project Facilities lost or damaged by casualty or fire will be calculated on the basis of the condition of the Project Facilities immediately before the casualty or fire, irrespective of the extent of insurance coverage. b) Exceptional Circumstances. The Government, however, reserves the right to require another method of valuation to be used if determined to be in the best interest of the Government. In unusual circumstances, the Grantee may request that another reasonable method of determining fair market value be used, including but not limited to accelerated depreciation, comparable sales, or estimated market values. In determining whether to approve an alternate method, the Government may consider any action taken, omission made, or unfortunate occurrence suffered by the Grantee with respect to the preservation or conservation of the value of the Project Facilities that, for any reason, have been withdrawn from service. E. Misused or Damaged Pro�ertv. If any damage to Project Facilities results from abuse or misuse that has taken place with the Grantee's knowledge and consent, the Grantee agrees that the Government may require the Grantee to restore the Project Facilities to their original condition or refund the fair market value of the Government interest in the Project Facilities. F. Obligations After PrQject Close-out. A Grantee that is a governmental entity agrees that project close-out will not alter its property management obligations set forth in this Section and 49 CFR 18.31 and 18.32. G. Encumbrance of Project Proqertv. Unless expressly authorized in writing by the Government, the Grantee agrees to refrain from: (1) Executing any transfer of title, lease, lien, pledge, mortgage, encumbrance, contract, grant anticipation note, alienation, or other obligation that in any way would affect the Government interest in any Project Facilities; or (2) Obligating itself in any manner to any third party with respect to Project Facilities. State/Federal Capita!Grant page 9