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HomeMy WebLinkAbout4475 ORDINANCE NO. AN ORDINANCE establishing procedures for processing real property transactions including sale of surplus property and acquisition of property for municipal purposes; and repealing Administrative Policy 1-6. WHEREAS, the City intends, through this ordinance, to set uniform policy for the fair and equitable treatment of persons and owners affected by municipal programs of property sale and acquisition, and to promote public confidence in its real property practices; now therefore THE CITY OF BREMERTON DOES HEREBY ORDAIN: Section 1. Repeal. Administrative Policy 1-6 is repealed in its entirety. Section 2. New Chapter. A new chapter, 2.78 REAL PROPERTY TRANSACTIONS, is hereby added to the Bremerton Municipal Code to read as follows: 2.78.020 SURPLUS PROPERTY - POLICY. It is not in the public interest for property held by the City to remain off the tax rolls if it can be sold for a reasonable value and it is not needed for some present or future municipal use. It is therefore the policy of the City of Bremerton to dispose of all real property the City holds by sale or lease when such property is declared to be surplus to its current or future needs and where such disposition would be expected to afford the City a reasonable return. 2.78.020 DECLARATION OF SURPLUS. (a) Annual Review. Annually in July, the Administrative Services Director shall review all the City's current real estate holdings to determine which parcels not actively used by the city or included as park lands under BMC 13.02.020, if any, should be declared surplus to the City' s needs and what parcels, if any, currently designated as surplus should be redesignated. A preliminary report shall be circulated to all department heads for comment and shall SURPLUS.IRS - Disk 2 - 7/13/94 I contain or solicit the following information: 1. A description of the parcel, size, and its general location. 2. A description of the circumstances under which the parcel was obtained and to which fund the proceeds from the sale would be credited. 3. A description of what municipal use such property has been put to in the past, if any, and what use it might be held for. 4. A statement as to whether the parcel is only useable by abutting owners or is of general marketability. 5. An estimate of its current market value and a recommendation as to whether any special covenants or restriction should be imposed in conjunction with its sale. 6. Whether special consideration ought to be given to some other public agency that has a use for the parcel. 7. A recommendation as to whether such parcel should be retained or surplused. 8. Whether the parcel should be sold by sealed bid or through negotiation. The final report and recommendation, approved by the Mayor, shall be presented no later than September 1 for consideration by the City Council. The Council shall schedule a public hearing by publishing a notice not less than 10 days or more than 25 days prior to the time set for hearing accompanied by a news release to printed and electronic media. The notice shall state for each parcel: 1. An easily understood description of property locations. 2. The date, time and place of the hearing. 3. Whether special covenants or restriction are proposed as a condition of sale. 4. Whether the parcel is proposed to be sold by sealed bid or through negotiated sale. If a negotiated sale, the notice shall give the prospective purchasers and proposed use. In addition to publication, the notice of hearing shall be posted conspicuously upon the property and notification mailed to all property owners within 300 feet at least 10 days prior to the public hearing. FollOwing a public hearing, council shall determine those parcels to be declared surplus and disposed of based on Council's further determination of: 1. Whether special covenants or restriction should be imposed as a condition of sale. 2. Whether the parcel should be sold by sealed bidili!i!~iii!i~!iii~iii~ii or negotiated sale. SURPLUS.IRS - Disk 2 - 7/13/94 2 3. Findings outlined in BMC 13.12 for those park properties listed in that chapter. 4. Whether purchase may be by real estate contract not to exceed ten equal payments and setting the interest rate. Parks Board review required by BMC 13.12 shall supplement the procedures above for Parks properties listed under BMC 13.12.020. (b) In addition to the annual surplus property review, the Mayor, a department head or the City Council may initiate the surplus review procedures of this section for a particular property at any time by filing a request with the Clerk. 2.78.030 SURPLUS PROPERTY - DISPOSITION. (a) Determination of Property Value. Where no current appraisal (conducted within the last six months of surplus declaration) is available, the Clerk shall arrange, 1) a limited opinion of value for properties estimated at less than $25,000; 2) short form appraisal report for properties valued as less than $100,000, but greater than $25,000;or 3)full narrative appraisal report for properties estimated in excess of $100,000 in value. The Clerk shall only accept offers for purchase within 10% of the appraised price as a minimum accepted price unless otherwise provided below. (b) Sealed Bid Process. All properties not approved for ~i~!i!~ negotiated sale shall be subject to a sealed bid process. The following notification procedure shall be utilized: 1. A notice of the City's intent to dispose of the property in question shall be conspicuously posted on the property no less than two weeks prior to the date set for final bid submittals. Similar notice shall be posted at City Hall. 2. Property subject to sale shall be advertised in the real estate section of the Bremerton Sun at least once for four consecutive weeks preceding the final day for submitting sealed bids. 3. Notice and ads shall include a description of the property, the SURPLUS.IRS - Disk 2 - 7/13/94 3 procedure by which this property is disposed of, deposits which must be made, the minimum price that will be accepted, and any condition of use or development imposed by the Council. Any bid that is submitted of $1,000 or less must be accompanied by a bid deposit in the form of a cashier's check payable to the City equal to 25 % of the bid amount. Where the bid amount exceeds $1,000, the bid deposit shall be 10% of the bid. It shall be the obligation of the successful bidder to pay the full purchase price within 30 days from the date of the bid award, and failure to do so, shall result in forfeiture of the bid deposit to the City as liquidated damages. (d) Sale to Abutting Owner. If the surplus property has value only to an abutting owner because of its size, shape, topography or other restrictions, the Clerk shall accept the minimum acceptable purchase price from an abutter (or abutters); Provided: 1. An abutter is the only one that can put the property to its highest and best use in combination with the abutter's property; 2. The abutter is willing to purchase for the minimum acceptable selling price; 3. Where more than one, the abutters are agreed among themselves as to the division or allocation of the rights of ownership or have waived any preferential right of purchase offered by this policy. (e) Other Negotiated Sales. 1. In the event City Council finds that a unique character or development potential of a particular parcel of City property is such that special considerations or conditions of sale to a particular purchaser, including another public entity, create benefits to the City and the greater community which outweigh monetary return to the City, the Council may declare such parcel surplus to the City's needs and direct a negotiated sale subject to final Council approval. 2. When a potential purchaser offers property in exchange for City SURPLUS.IRS - Disk 2 - 7/13/94 4 property which may enhance other City property or promote the needs of the City, Council may declare the subject property surplus and direct a negotiated sale subject to final approval by Council. 3. Transfers to other public entities may be at less than current market value if the Council, by resolution approved by a majority plus one vote, approves the transfer and declares the particular City interests served thereby. 4. Sales under this section shall be negotiated by the Administrative Services Director, City Attorney and department head most directly affected by the property transaction, unless otherwise directed by the Mayor. (f) Closing. Subject to Council modification, 1. The City Attorney's Office shall prepare and handle all closing documents in regard to property sales or exchanges, including necessary legal provisions to ensure that the subject property is used or developed in a manner consistent with special considerations or conditions approved by Council; 2. All conveyances shall be by statutory warrant deed; and 3. All costs exclusive of deed preparation shall be borne by the purchasers, including title insurance if desired, recordation costs, brokerage and escrow fees if applicable. 2.78.040 ACQUISITION OF PROPERTY -OFFER. The department acquiring property for a budgeted purpose shall make a written offer to acquire the property for the full amount established by appraisal or by less formal estimate of value for properties with a value below $75,000. The offer shall summarize the basis for the amount of just compensation, and benefits or damages to remaining real property shall be separately stated. If an uneconomic remnant would result from acquisition, the department shall offer to acquire that remnant. An uneconomic remnant is a parcel with little or no utility or value. The City Council shall approve each real estate purchase agreement or delegate approval of agreements to the Mayor for one or a number of parcels to be acquired for a common purpose setting a limit on total compensation in advance. SURPLUS.IRS - Disk 2 - 7/13/94 5 2.78.050 POSSESSION AND USE. (a) No Owner shall be required to surrender possession of real property before the agreed purchase price is paid, an amount not less than the City's appraisal of the fair market value of the property is deposited with a court having jurisdiction of condemnation of such property for the immediate and unrestricted use of the owner, or the amount of the award of compensation in the condemnation proceeding is paid. (b) As part of negotiations, the department may administratively extend an owner or tenant's occupancy by a short term rental or for a period subject to termination on short notice, depending on the needs of the department, for an amount not exceeding the fair rental value of the property to a short-term occupier. 2.78.060 RELOCATION. The construction or development of a public improvement shall be so scheduled that, to the greatest extent practicable, no person lawfully occupying real property shall be required to move from a dwelling or business without at least ninety days written notice of the date such move is required. The City hereby elects not to apply the provisions of RCW 8.26.035 through 8.26.115 when acquiring property as part of a program or project unless required by federal financial assistance. 2.78.070 EXPENSES OF TRANSFER. As soon as practicable after the date of payment of the purchase price or the date of deposit in court of funds to satisfy the award of compensation in a condemnation proceeding to acquire real property, the department shall reimburse or pay the reasonable expenses for: 1o Recording fees, transfer taxes and similar expenses. 2. Penalty costs for full or partial prepayment of any reexisting recorded mortgage. 3. The pro rata portion of real property taxes paid which are allocable to a period subsequent to the date of vesting title in the City. 2.78.080 EFFECT ON VOLUNTARY SALES. Sections .040 through .070 of this SURPLUS.IRS - Disk 2 - 7/13/94 6 chapter shall not apply to voluntary sales negotiated' following an offer from the City or the owner where the City has not expressly stated in writing its intent to acquire the particular parcel by condemnation. Section 3. Effective Date. This ordinance shall take effect ten days following passage and publication. APPROVED by the City Council of the City of Bremerton this ?e~, day of ( ~ ~, ~,_~.- , 1994. PASSED by the City Council of the City of Bremerton this/..~ day of (~/~/,~_ , 1994. SHERRIL HUFF-lv~ES, t,Council President APPROVED this [~ day of~~-~ ,1994. L~NN HORTON, Mayor AT, VEST: KATHLJ~EN McCLUSKE~7~City Clerk EFFECTIVE DATE PUBLICATION DATE ORDINANCE NUMBER SURPLUS.IRS - Disk 2 - 7/13/94 7