This chapter is promulgated by the board of natural resources pursuant to the authority of chapter 79.66 RCW to establish procedures for the department of natural resources management of state-owned urban lands. These regulations are designed to establish practical procedures to achieve the best possible return to the designated trust beneficiary consistent with any other obligations imposed on such lands by law.

The department shall, at intervals not greater than once every two years, identify trust lands expected to convert to commercial, residential, or industrial uses within the next ten years as provided in RCW 79.66.010. The board shall designate such trust lands as urban land if deemed suitable.

(1) The department, in addition to the economic evaluation required by RCW 79.01.095, shall periodically evaluate urban lands to determine the appropriate management prescription for each parcel.

(2) The department shall, as a part of its periodic evaluation, review the appropriate uses of urban lands with local governments in accordance with RCW 79.01.784.

(3) Where urban land is to be exchanged or sold, other than by public auction, the department shall have the value determined by a qualified appraiser. All appraisals shall be sent to the board at least ten days in advance of any board action on such exchange or sale.

(4) The department shall annually report to the board on its major activities and accomplishments in the past year and its plans for the ensuing year.

The department may, upon approval of the board, market lands not sold at public auction in accordance with RCW 79.01.612. Such property may not be offered at less than the appraised price approved by the board. The department shall select the marketing proposal that demonstrates likelihood of successful marketing at the lowest cost. The department shall report completed sales to the board.

The technical advisory committee authorized by RCW 79.66.010 shall provide professional advice and counsel to the board regarding land bank sales, purchases, and exchanges involving urban property.