Memorandum 15-076 Process for Land Sales

Memorandum ID: 
15-076
Memorandum Status: 
Information Only

Related Meetings

Details

Memorandum 15-076

TO:                       Mayor Wythe and Homer City Council

FROM:                 Katie Koester, City Manager

DATE:                  May 20, 2015

SUBJECT:         Process for land sales

At the April 14th meeting the Council asked for a memo outlining the current procedure for selling land. The process for municipal property sales is outlined in Homer City Code, Chapter 18.12. A summary follows:

Appraisal. A parcel cannot be sold for less than fair market (appraised) value. If the KPB assessed value of the parcel is over $1,000 it must be appraised within 6 months before Council authorizes sale.
Council Action. Council must declare a parcel is no longer required for a public purpose. Most of the time this can happen by resolution, however if the property was acquired by foreclosure, it must be done by ordinance.

Resolution includes:

-Terms and conditions of the sale

-Specifies if sale is by sealed bid or public outcry auction

Sale by sealed bid. Bidder must turn in bid accompanied by check or money order equal to 20% for residential lots and 10% for all others by noon the Friday before the Council meeting.

-Specifies if sale is for cash or cash deposit and installment agreement

Advertising. Advertise sale of land in local paper and 3 public places at least 30 days prior to the date of sale.
Sale of Parcel.

 Sealed bids. Council opens sealed bids received the Friday before the meeting at their regular meeting and awards the bid to the highest bidder per square foot. If 2 or more parcels submit identical bids, Council can accept any bid or reject all bids. Council must approve the purchase agreement.
Auction. Approval of a public sale by Council authorizes the City Manager to take the necessary steps to complete and close the sale

What if….

No buyer is found. If no acceptable sealed bid is received or no buyer is found at an outcry auction, the Council can authorize the City Manager by resolution to negotiate sale of property.

Property was acquired by foreclosure. If a property was acquired by the City through foreclosure less than 10 years before the date of sale, the former owner is entitled to a portion of the sale after all unpaid taxes and assessments are collected.

City wants to give the land to another government entity. The City Council can, by resolution, transfer, donate, or dedicate land below market value and without an appraisal to another government entity (state, federal or municipality).

 

Next Steps

 

Get an Appraisal for Identified City Lots. During the April 14th review of the Land Allocation Plan Council asked for staff to move forward on the sale of 17 lots in 6 separate locations. In order to move forward the first action that needs to be taken is to have the lots appraised. If the appraisals can be done within the authority of a city manager authorized sole source contract and funds can be found in the existing budget I will work on getting the lots appraised and bring a resolution to the Council with terms of sale for all 17 lots.

 

Improving the Process.  Council indicated a desire to look at revising the process for selling city lots to make it more fluid. If the Council would like to take this opportunity to make recommendations on how the process could be improved, they can be incorporated into an ordinance for your next meeting.

 

 

Enc:

Chapter 18.12 Municipal Property Sales

Example of resolution authorizing sealed bid sale: Resolution 07-105

Example of RFP soliciting bids

Lots from Land Allocation Plan designated for sale