4.84.010 Policy and procedures for disposition of city-owned real property.
A. Policy. The city council declares that it is in the public interest for real property held by the city to be returned to the tax rolls, if it is not needed for some present or future municipal use and if it can be sold for a reasonable return. It is therefore the policy of the city to dispose of all real property in which the city holds a fee interest, where such property is surplus to its current or future needs, and where such disposition would afford the city a reasonable return from the transaction. For purposes of this chapter, “reasonable return” means sale at the market value as determined by the real estate review committee (the “committee”) (see BMC 4.84.020(A)). For purposes of this chapter, “surplus property” means both real property for which the city has no current or future need, as well as real property which, if disposed of, would be put to a higher or better use for the community at large.
B. Real Estate Review Committee. A real estate review committee is hereby established which shall advise the city council with respect to the disposal of real property owned by the city. The committee shall be composed of:
1. The finance director;
2. The city attorney or designee; and
3. The department head or administration representative most directly affected by the property transaction.
C. Surplus Property Declaration Process. Whether due to a specific request to purchase city owned real property or otherwise, real property owned by the city may be declared surplus by the city council after the following procedures have been completed:
1. The committee shall prepare a written report (the “report”), which may include any or all of the following information, as applicable, for each parcel under consideration (“subject parcel”):
a. Description of the subject parcel’s size and its general location;
b. Description of the circumstances under which the subject parcel was obtained;
c. Description of what funds were used to initially acquire the subject parcel;
d. Recommendation as to which fund the proceeds from its sale should be credited;
e. Description of what municipal use the subject parcel has been put to in the past, if any, and what use, if any, for which it might be held;
f. Recommendation as to whether the subject parcel should be disposed of or retained;
g. Appraised value of the subject parcel;
h. Whether further appraisal before sale is recommended and the type of appraisal required (see BMC 4.84.020(A)(2));
i. Whether the subject parcel is only usable by abutting owners or is of general marketability;
j. Whether special consideration ought to be given to some other public agency that has a use for the subject parcel;
k. Whether the subject parcel should be sold at auction, by sealed bid or by negotiation;
l. Whether the subject parcel should be designated for the special disposition process; and
m. Recommendation as to whether any special covenants or restrictions should be imposed in conjunction with sale of the subject parcel.
2. A public hearing shall be held to consider the surplus declaration of the subject parcel. Notice of said hearing shall be published in the city’s official newspaper and mailed to all property owners within 300 feet of the subject parcel not less than 10 days nor more than 25 days prior to the hearing.
D. Council Determinations. Following council’s review of the report, and conclusion of the public hearing, the council shall determine whether the subject parcel shall be declared surplus. Upon making a declaration of surplus, the council shall also make the following determinations:
1. Whether the subject parcel should be sold by sealed bid, at auction, or through negotiated sale, which may be completed through a request for proposals, a request for qualifications, multiple listing service or any other process;
2. Whether the subject parcel should be sold through the special disposition process;
3. Whether special covenants or restrictions should be imposed as a condition of the sale; and
4. Whether a further appraisal is necessary in setting the minimum acceptable price, in accordance with BMC 4.84.020(A).
E. Special Disposition. In cases where the public interest in a reasonable return is outweighed by the public benefit, due to factors such as (by way of illustration and not limitation) the unique character or development potential of a given property, the city council may designate such property for disposal by special disposition, including disposal at less than fair market value (without limitation) sale by any of the methods set forth herein. [Ord. 2016-07-021 § 1; Ord. 2009-01-002; Ord. 2003-11-072].