HomeMy WebLinkAbout100-12POLICY & PROCEDURE
Subject:
Surplus Real Property Index: Administration
Number: 100-12
Effective Date Supersedes Page Staff Contact Approved By
6/10/2004 1/2/2002 1 of 4 Gregg Zimmerman J 6 itJ Q.Q,,,_
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1.0 PURPOSE:
To ensure realizing the disposal of surplus real property at fair market value in a cost
effective manner, and to establish procedures for real property sales.
2.0 ORGANIZATIONS AFFECTED:
All Departments/Divisions
3.0 REFERENCES:
3.1 RCW 35A.80.010 "Public Utilities, General laws applicable"
3.2 RCW 35.94.040 "Lease or sale of land or property originally acquired for public
utility purposes"
3.3 RCW 39.33A10 "Sale,exchange, transfer,lease of public property authorized-
Section deemed alternative"
3.4 RCW 39.33.020 "Disposal of surplus property - Hearing-Notice"
4.0 POLICY:
4.1 It is the policy of the City of Renton that surplus real property shall be sold at fair
market value to restore monies to the General Governmental Fund or Enterprise
Fund which acquired the property originally.
4.2 To ensure that there is no net loss in parks land to the City, the disposition of surplus
park land must result in either the addition of property of a greater or equal value to
the property sold or the sales price must be used for the acquisition of additional park
property at fair market rates.
4.3 This policy shall be applicable in all cases except those wherein the City has prior
contractual or legal obligations for disposal of the property.
5.0 DEFINITIONS:
5.1 "Administrative Costs" are those costs incurred by the City of Renton during the
processing of property for sale. Such costs include but are not limited to legal costs,
salaries, supplies, advertising, and other costs required to produce a sale.
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5.2 "Assessed Value" is the dollar amount assigned by the King County Assessor as the
valuation of the land and improvements for taxation purposes.
5.3 "Fair Market Value" is the price that a willing buyer would pay to a willing seller for
the purchase of property in an open and competitive market.
5.4 "Surplus Real Property" is property acquired by a division which is no longer needed
to fulfill the original or an alternate need within the same division.
5.5 An "Enterprise Fund" department or division is any department or division for which
a separate financial accounting is used for government operations that are financed
and operated in a manner similar to business enterprises and for which preparation of
an income statement is desirable.
5.6 A "General Governmental Fund" department or division is any department or
division, which is sustained by the fund supported by taxes, fees, and other revenue
that may be used for any lawful purpose.
6.0 PROCEDURES FOR ENTERPRISE FUND DEPARTMENTS AND DIVISIONS:
6.1 Prior to requesting Council approval to initiate these Surplus Real Property
Procedures, any Enterprise Fund department or division having surplus real property
shall first determine potential use of such surplus property by other General
Governmental Fund departments or divisions and Enterprise Fund departments or
divisions. If another department(s) or division(s) expresses interest in the subject
property, then, in consultation with the City's Administration,the subject property
shall be transferred to one of these departments or divisions. An Enterprise
department or division must be duly compensated for the transfer of any real
property of any other City department or division. The exchange of monies for the
transfer of real property from an Enterprise Fund department or division to other City
departments or divisions shall be handled through an Interfund Transfer.
6.2 If no other department or division expresses interest in the subject property, then the
Enterprise Fund department or division having surplus real property shall request
Council approval to initiate these Surplus Reai Property Procedures and Council
authorization for the Property Services Section to order an appraisal to determine the
fair market value of the subject property.
6.3 Council shall set a date for a public hearing, as nearly as possible to 60 days from the
original approval.
6.4 At least 10 days but not more than 25 days prior to the hearing, the City Clerk shall
cause to be published a public notice setting forth the date, time and place of the
hearing, at least once in a newspaper of general circulation in the area where the
property is located. This notice shall identify the property using a description which
can be easily understood by the public and shall describe the current use of the lands
involved.
6.5 After the hearing, the Council shall deternune whether the subject property should be
declared surplus. If the Council deternunes the property to be surplus, a resolution
making such a declaration shall be adopted.
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6.6 If the subject property is declared surplus, the Property Services Section shall offer
the property to other City departments and divisions. If no City department or
division expresses interest in the subject property, then the property shall be offered
to other local agencies, the abutting property owners, and any parties having
expressed an interest in the property.
6.7 If none of the parties listed in the previous section expresses interest in the subject
property, then the Property Services Section shall advertise for bids for a minimum
two-week period following the resolution, which declares the subject property to be
surplus. For the following two weeks, sealed bids may be received, time and date
stamped, and the highest and best offer within 10% of, or over, the appraised value
shall be accepted.
6.8 Sales of parcels shall be handled through independent escrow.
6.9 In the event no acceptable offer is received within the bid period, the property shall
continue to be marketed by the Property Services Section on a first come first served
basis, using all resources common to the marketing of such property,including but
not limited to installing signs, distributing offering information to local real estate
firms, and publishing offering information monthly in a neighborhood newspaper.
6.10 The Property Services Section shall be authorized to negotiate with prospective
purchasers and accept reasonable offers on behalf of the City after ensuring
concurrence from the Enterprise Fund department or division in the terms of the sale.
6.11 Costs of maintaining the property pending sale shall continue to be the responsibility
of the Enterprise Fund department or division.
6.12 The administrative costs of this procedure shall be reimbursed to the Property
Services Section from the proceeds of the sale. The balance of the proceeds shall be
credited to the appropriate account of the Enterprise Fund department or division.
7.0 PROCEDURES FOR GENERAL GOVERNMENTAL FUND DEPARTMENTS AND
DIVISIONS:
7.1 Prior to requesting Council approval to initiate these Surplus Real Property
Procedures, any General Governmental Fund department or division having surplus
real property shall first determine potential use of such surplus property by other
General Governmental Fund departments or divisions and Enterprise Fund
departments or divisions. If other departments or divisions express interest in the
subject property, then, in consultation with the City's Administration, the subject
property shall be transferred to one of these departments or divisions. A General
Governmental Fund department or division must be duly compensated for the
transfer of any real property to an Enterprise Fund department. Transfer of real
property from a General Governmental Fund department or division to another
General Governmental Fund department or division does not require the exchange of
monies. If the transfer of real property from a General Governmental Fund
department or division to another department or division involves the exchange of
monies, it shall be handled through an Interfund Transfer.
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7.2 If no other department or division expresses interest in the subject property, then the
General Governmental Fund department or division having surplus real property
shall request Council approval to initiate these Surplus Real Property Procedures and
Council authorization for the Property Services Section to order an appraisal to
determine the fair market value of the subject property.
7.3 Council shall set a date for a public hearing, as nearly as possible to 60 days from the
original approval.
7.4 At least 10 days but not more than 25 days prior to the hearing, the City Clerk shall
cause to be published a public notice setting forth the date, time and place of the
hearing, at least once in a newspaper of general circulation in the area where the
property is located. This notice shall identify the property using a description which
can be easily understood by the public, and shall describe the current use of the lands
involved.
7.5 After the hearing, the Council shall determine whether the subject property should be
declared surplus. If the Council determines the property to be surplus, a resolution
making such a declaration shall be adopted.
7.6 If the subject property is declared surplus, the Property Services Section shall offer
the property to other local agencies, the abutting property owners, and any parties
having expressed an interest in the property.
7.7 If none of the parties listed in the previous section expresses interest in the subject
property, then the Property Services Section shall advertise for bids for a minimum
two-week period following the resolution, which declares the subject property to be
surplus. For the following two weeks, sealed bids may be received, time and date
stamped, and the highest and best offer within 10% of, or over, the appraised value
shall be accepted.
7.8 Sales of parcels shall be handled through independent escrow.
7.9 In the event no acceptable offer is received within the bid period,the property shall
continue to be marketed by the Property Services Section on a first come first served
basis, using all resources common to the marketing of such property,including but
not limited to installing signs, distributing offering information to local real estate
firms, and publishing offering information monthly in a neighborhood newspaper.
7.10 The Property Services Section shall be authorized to negotiate with prospective
purchasers and accept reasonable offers on behalf of the City after ensuring
concurrence from the General Governmental Fund department or division in the
terms of the sale.
7.11 Costs of maintaining the property pending sale shall continue to be the responsibility
of the General Governmental Fund department or division.
7.12 The administrative costs of this procedure shall be reimbursed to the Property
Services Section from the proceeds of the sale. The balance of the proceeds shall be
credited to the General Governmental Fund.
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