Chapter 3.07


3.07.010    Purpose – Policy – Objectives.

3.07.020    Authority.

3.07.030    Declaration of surplus.

3.07.040    Sale or lease procedures.

3.07.050    Conveyance procedures.

3.07.060    Exceptions.

3.07.010 Purpose – Policy – Objectives.

A. Purpose. The purpose of this chapter is to establish policies and procedures regarding the surplussing and the sale or lease of certain real property owned or otherwise controlled by the city.

B. Policy. It shall be the policy of the city to consider sale or lease of real property owned or controlled by the city when such property is determined to be surplus to the needs of the city, and where it is demonstrated to the satisfaction of the city council that sale or lease will best serve the public interest. For purposes of this chapter, the public interest will best be served when a transaction accomplishes one or more of the objectives listed in subsection C of this section.

C. Objectives. The purpose and policies of this chapter are intended to accomplish the following basic objectives, which should be achieved in a balanced manner to ensure that none are over-emphasized to the detriment of the others:

1. Stimulate the development of the city’s economic base to provide employment opportunities and tax revenues for the city and other local taxing entities;

2. Meet the financial obligations resulting from prior property transactions of the city;

3. Provide capital for economic development purposes, for parkland operations (planning, acquisition, design, construction and maintenance and operation), and such other purposes as the council determines are necessary and appropriate; and

4. Provide a source of general revenue to the city over and above the tax yields from such real property. [Ord. 7-16 § 1, 2016].

3.07.020 Authority.

Whenever it is determined by the city council that it is in the best interest of the city that real property owned by the city should be sold or leased, the council may authorize the sale or lease and conveyance of such real property, upon any terms and conditions which it deems appropriate. In taking such action, the council may reserve, sell or lease mineral or other resources on any such real property separate and apart from the land in the same manner and upon the same terms and conditions as provided for in this chapter. [Ord. 7-16 § 1, 2016].

3.07.030 Declaration of surplus.

Prior to the sale or lease of any city-owned real property, the city council shall determine that the property is excess to the present and future municipal needs of the city.

A. In making such a determination, the council shall utilize the following criteria:

1. Conformance with the city’s comprehensive plan as provided;

2. Recommendations from the economic development board and the planning commission, and, as deemed appropriate and requested by the council, recommendations from other city boards and commissions such as the utility advisory commission and the parks and recreation board;

3. Input from the public at a duly advertised public hearing; and

4. Other forms of input determined appropriate or desirable by the council.

B. If the council determines the property to be no longer necessary for present and future municipal use, it may declare by resolution the property to be surplus. Upon making such declaration of surplus, the council may also make the following determinations:

1. Whether the parcel should be sold or leased;

2. Whether special consideration should be given to abutting land owners;

3. Whether special covenants or restrictions should be placed on the real property as a condition of sale or lease;

4. Whether the parcel should be sold or leased by sealed bid;

5. What formality of appraisal is necessary to set the minimum acceptable price to achieve reasonable value.

C. Upon declaration of surplus by the council, staff shall undertake disposal of the parcel(s) in accordance with the council’s directives. [Ord. 7-16 § 1, 2016].

3.07.040 Sale or lease procedures.

Sale or lease procedures may be initiated following one of two events: a determination by the city council that economic indicators favor sale or lease or upon specific request by a firm or individual to lease or purchase city property.

A. Sealed Bid Process. If the council requires the real property to be sold or leased upon competitive bids, the following procedures shall be utilized:

1. The city clerk shall give notice that the city will invite bids for purchase or lease of the property by one publication in the official newspaper of the city, posting on the city website and on the subject real property, and/or such other notification or advertising determined to be appropriate. The publication and posting shall be at least 15 business days before the final date for submitting bids;

2. Publication and posting for bids shall particularly describe the property or portion thereof proposed to be sold or leased, shall designate the place and the time of the bids to be opened, and shall set forth any terms and minimum price, if any, established by the council;

3. Bids shall be opened in public at the time and place stated; and

4. The council may reject any and all bids, or the bid for any one or more of the parcels included in the advertisement for bids, and reserves the right to waive any irregularities in the bid process.

B. Negotiation Process. The council may determine that property should be sold or leased through negotiations, either as a result of a specific request, or as a result of city-initiated advertising or other solicitation. In either event, sale or lease consideration shall proceed as follows:

1. All requests shall be directed to the mayor or his designee;

2. When deemed appropriate, the mayor or his designee shall schedule the request for review and consideration by any affected board or commission, along with a report discussing the following:

a. Status of the surplus property;

b. Whether the property should be considered for public bid offerings;

c. Whether, and for what reason(s), sale or lease would be advantageous to the city; and

d. Any other special considerations which apply to and which will aid the board in considering the request;

3. The appropriate board or commission shall review the request and make findings, based on the policy and objectives and the criteria provided in this chapter, for the council’s consideration;

4. The council shall act on the request, with due consideration to the findings and recommendation of the economic development board and, as appropriate, other boards, commissions, or individuals. [Ord. 7-16 § 1, 2016].

3.07.050 Conveyance procedures.

Upon receipt of an acceptable bid or negotiated offer for sale or lease of city real property, the city manager or his designee shall submit a report and recommendation to the city council for action. The council shall proceed as follows:

A. The council may solicit additional information it deems necessary and appropriate, including input from the public at a duly advertised public hearing, prior to taking action to accept or reject any sale or lease offer.

B. Upon determination of an acceptable bid or offer, the council shall authorize the mayor or his designee to cause the necessary instruments to be prepared and executed.

C. Copies of such instruments shall be filed with the Benton County assessor’s office by the city clerk.

D. The title to any sold city real property shall not be transferred until the purchase price therefor has been fully paid and any applicable terms or conditions have been fully satisfied.

E. The net receipts from sold city real property, not designated for other purposes, shall be deposited into the appropriate fund. [Ord. 7-16 § 1, 2016].

3.07.060 Exceptions.

This chapter shall not apply to the following dispositions of real property:

A. When selling to another governmental agency, in which event the transfer is approved by the court as provided by law;

B. When provisions of the Revised Code of Washington (RCW) impose conditions for the disposition of municipal property, those laws shall be treated as limited exceptions to this chapter; and

C. Sale of properties that have been acquired by the city by means of foreclosures of real estate sales contracts or for nonpayment of LID or other assessments and whether by deed in lieu of foreclosure or by judgment of foreclosure and attendant sheriff’s deed. [Ord. 7-16 § 1, 2016].