Federal Register #2026-21277

DOL exemption for IBEW Local 99 apprenticeship fund’s purchase of Cranston training facility

The Department of Labor notice permits an apprenticeship fund to purchase its training facility in Cranston, Rhode Island; it is not a solicitation for contractors or products. - Government buyer and office: U.S. Department of Labor (DOL), Employee Benefits Security Administration (EBSA), Office of Exemption Determinations. - Transaction: The International Brotherhood of Electrical Workers (IBEW) Local Union No. 99 Joint Apprenticeship Training Fund may purchase the one-story office building at 40 Western Industrial Drive, Cranston, Rhode Island, from Local Union 99 Realty Corporation, an entity controlled by IBEW Local 99. The Fund has leased the property for its apprenticeship training program. - Property and price: One building; purchase price is capped at the lesser of $1,610,000 or its updated appraised fair market value. - Named parties and advisors: IBEW Local Union No. 99 Joint Apprenticeship Training Fund; Local Union 99 Realty Corporation; Gallagher Fiduciary Advisors, LLC, the independent fiduciary; and Peter M. Scotti & Associates, the independent appraiser. No product OEMs are identified. - Key conditions: The transaction must be a one-time cash purchase. If financed, financing must come from an unrelated third-party bank and be approved in writing by the independent fiduciary. The transaction must be on arm’s-length terms and is subject to independent fiduciary oversight, an updated appraisal, limits on fees to parties in interest, and recordkeeping and reporting safeguards.

Description

The exemption permits the International Brotherhood of Electrical Workers Local Union No. 99 Joint Apprenticeship Training Fund to purchase improved real property at 40 Western Industrial Drive, Cranston, Rhode Island, from Local Union 99 Realty Corporation. The property is used by the Local #99 Joint Apprenticeship Training Committee Training Program, and the Fund has leased it since 2011. The Fund must pay the lesser of $1,610,000 or the property's fair market value established by an appraisal updated on the purchase date. The exemption is subject to specified conditions, including independent fiduciary review and requirements intended to protect the Fund and its participants and beneficiaries.

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