RES 2009-02 SURPLUS SALE REAL PROPERTY■7
RESOLUTION NO. 2099. 2
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{A RESOLUTION, -establish' �ocec u -re regarding -the
..p
F j surplus and sale process for real' property owned by the
City of Binbride Island.
WHEREAS, - it is..the policy. of: the City of, Bainbridge Island - that surplus real
property- shall - be sold at Market Value;- and
WRS, the City of Bainbridge- Island-. desires- to. estblis..procedures ,for the .
disposal of surplus real property at Market Value in an orderly and cost effective manner; -
now therefore,
THE CITY COUNCIL . -OF THE:- CITY- OF BAINBRIDGE ISLAND,
WASHINGTON, DOES RESOLVE AS -FOLLOWS:
.: ; City Property Inventor The Director. of Public Works shall establish and
maintain an 'inventory and neap of City -owned property. References in this Resolution to
"City -owned p, perty" .are meant to. include :any property owned by the City or any of its
utilities or other special-purpose ands. The inventory will include the following
information:
a.. Property name;
b. Street, address if available);
Kitsap, Assessor's Office Property . Tax parcel Number;
. Use of property;
o, Listing of restrictions, covenants or other limiting attributes;
f. Status, ofproperty (active or inactive);
g. Any planned future use;
h. City fund that, currently owns the property;
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L Estimated lard and imp16vement value; and
Restrictions - on. pr pert r use .or sale (if applicable).
2. Establishment of Real Propefty Review Committee. A. rel property ieview
committed ` (the "COMMittee") � i - hereby established -which- shall advise the City Council
with respect to the disposal of real property owed ill- be! the art, The Committee a
composed'composed'of the City Administrator, the Finance .-Director, the Public Works - Dir e or and
the City Attorrier. 5
Arcual Review of CiLy deal I ro orty Holding. the Committee shall annually
review all - o th City's current real property lirrgs with regard to the oll�r:
a. If the current use is appropriate and necessary;
b. If the property could be'used -for another City purpose within its driginal
purchasing fund responsibility
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C. -I 'the property 'could be used ' four another 'City pose outside of the
responsibility of original purchasing md;
d. If the property appears to be surplus to the City's creeds; -
. Whether there is evidence of potential interest by anyone in- purchasing the
property; and
f. 'whether there is arc ' interest - by the - Board of - the Me op . blitan Parks
District in having the property transferred to that District.
. Annual written rep .Follow,iri -its: re new, riot less than once per calendar year
the Committee shall prepare a written rep rt containing i7ecommendations as to whether
any City property should be declared surplus by the City Council. The report shall
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contain -the following information with regard to anyproperty that: the Committee is
recommending to be declared lis - {
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a.
Description of the location and size of the property;.
b.
Description of the circumstancesunder which,the propefty was obtained,
C.
Description of the funds used to acquire the property;
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Recommendation mmendation as to which' fand.- the.proQeeds from its -sale..should b
credited,-
redited•escription
Descriptionof what munic'pal use the property has: been put to in the past,
= ' i f an ; and what use, "f any, for which -it aright be held-
f, ..
The date. of any and each prior..: appraisal .of the pr pert r; and the . gal e , .
determin d by each such appraisal;
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Estimationf value (pre -appraisal) -.of tproperty;
h.
Whether an appraisal is recommended and. the type f appraisal
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: Whether the property is only usable by abutting. owners; or is of general
marl etabrlrt
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whether special consideration ought to be. given to, some other public
agency that has a use for the.prpet
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whether the property should be sold at auction, by sealed bid, by request
for proposal (UP), or b : egotratlon',
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Whether the propel should be: designated for consideration as Open
Sp ce and. referred to the Open. Space Commission; and
rrr.Recommendation
As to - . whether any special covenants or restrictions;
should be imposed in conjunction with sale of the property; and
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If owned by a City utility, kecom endation as - to, - whether . 'the .property .
should be sold or transferred to the City's General- Fund prior. t. being -
conveyed or sold to. a third party.
The written - report shall be submitted to'. the - City Council no- later than April 3 0 of each
calendar year.
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S � � 1 s :-Prop rt y Declaration. laration. City property may be: declared surplus by the City
Council after the following procedures have been completed:
a. - The-..: City Council shall -hold a public hearing as - part of Its process to
consider whether to declare any" real property surplus- to the reeds .of the City. In
accordance with I CW- Chapter 39.33, notice,of said hearing shall be published in the
City's official website or, if legally necessary,. in -the -City's newspaper of record) riot less
than ten 1 days nor more than twenty-five (25), days prior to the bearing. In addition, a
nears release pertaining to the public hearing -shall be posted on the city, website.
b: Following: City Council's review of- the' Committee's repor , and
conclusion of the public hearing, the City Council shall determine whether the pto% peaty
shall be-. declared -surplus. if - -such - determination - is ma e; - City' Council shall pass a
resolution declaring the property surplus - and shall also rake the following
determinations:
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Whether the property' should ' be transferred to the Bainbridge
Island Metropolitan politan Parl I �stfict;
(ii)Whether the property should be sold by sealed bid, at auction, by
request for proposal (RFP), or through negotiated sale; in luding
listing with a real estate- broker.
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(iii) Whether special covenants or restrictions should be unposed as
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c ndrti of the sale; and
(I*v) Whether ars appraisal i s necessary to proAde a markei value
estimate.
.: Sale Procedures for Surplus. P ro e , The'following procedures and :requirements
= shall apply to property sold a surplus by the City:
. Determination of "Market Value"/Minimum Acceptable 'rice. After
property has been declared surplus and prior to its sale or transfer, the eify order one f
the following three types of appraisals; a refer of the appraisal in'a'ccorda'nce with the
committees' best estimate of the value s as shown on the attached' chart of -the � � r rt
p p
r
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Estimated
Recommende'd. Report
-.Review Suggested
Property Value
Format
-UL to 1 $.1 KOM
Lim fted/Restricted:,
No
$1001001 to
Limited/Summary
No
$500000
$5003001 to
Complete/Summary
Yes
$3003,000
$3,000,001 and
Complete/Self-Contained
Yes
above
Any appraiser or reviewer hired by the City must be licensed by the State of Washington
as a 46state certified general appraiser."
Whether surplus property is to be disposed of by sealed bid, auction, AFP or
negotiated sale, interested parties shall be advised that the minimum acceptable price
shall be the value determined by'the sufficient and acceptable appraisal. The ndinimal
acceptable price for the surplus property may not be more than 10% below the estimated
market value. B. Marketing Time. (see attached page)
An appraiser must estimate the "marketing time" when the market value of a
property is provided. The committee should consider setting "marketing. time." The
`e.marketing time" will be estimated by and appraiser based on the time it took to sell the
comparables in the report. Generally, the shorter the "marketing time," the lower the
market value estimate will be. For example, if a 20 -acre parcel of vacant land was
surplused by the city, a higher price would likely be offered if the city allowed the
developer to get preliminary plat approval before closing (24 months) than if a closing
were required in 30 days after reaching an agreement on all terms of the sale.
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c.��i A Review. The sale and/or transfer o .a y surplus. real property. that is
sub, ect - to - an authorized. public use .shall be' contingent upon completion of at SEPA
re fe r .pro cess. and the expiration - of the -SEPA appeal period,
d. - Processes for sale of property. .
(i) - Disposition by -Sealed Bid.. Where a property. is. -sold by sealed, bids,
any, and all bids submitted must -be accompanied by: a bid deposit-- i. ; bhp form of a
cashier check payable to t e-.0ty of Bainbridge fsl nd i
includes a relust for popols RF, ars RPP shall be publicized by electronic
rears (arid, if, legally.- necessary, by advertisement in: print media), and a
specification document (including any -applicable criteria for quantitative scoring
or rating of any and all applicant proposals) shall -be made available to any Person
or entity which. the City determines would be a° qualified applicant. Up -bn the
seleetioty of the -applicant that receives the highest score or rating for- its proposal,
and which demonstrates it ability to meet, any required conditions, -the process
shall thea proceed as described- in paragraph(ii) above, as -though the -prevailing
RFP , mere a prevailing bidder -at auction:
(iv) Disposition by -Negotiated -Sale. - Where property is - sdld b
negotiated'. sale, the: purchaser shall deposit ' °earnest money into - escrow -in ars
amount equal to tern percent 10% -of -t ' purchase price within three -b sines
days of execution of a purchase and --sale agreement for the purchase of the
Subject Property. Parent of the ema, i ing balance of the purchase- price shall be
made within thirty o days; unless otherwise seified , in the -purchase and sale
agreement., In the evert the purchaser is unable to pay the remaining amount
Within the 'required time; the earet money . deposit shall become non,-refable
and may r be -retained by the City as - liquidated -damages
V. Fisting With - a -real 'state broker.
e. Notification of Sale of Surplus Prop rt r. In the event the subject pr' pert
is to be disposed of by sealed bid, by RPP or by auction, the following notification
procedur6s shall be followed:
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(i) A notice of the =City's intent. tdispose.: of the: subject -property -shall.
be conspicuously posted on the property no less than tWo 2 - weeks :prior . to.. .the .
date set to commence accepting .bids or the date set for the auction.
(ii) . A similar notice. shall be posted on the bulletin board at City Mall.
(iii) Notice shall be published in the City's o 'fief w b to r, i
legally necessary, in the City's newspaper of record) each week for two. 2
consecutive weeps preceding acceptance of sealed bids or the public auction. All
notices shall include a description of the property, : the .procedure .y which, ;the
subject property 'I's to be disposed of, any earnest money deposits which must be
made (in accordance with Sections 6(c) {i} and (ii)) and the minimum price that
will be accepted.
f, All requests to purchase City property shall be directed to the Finance
Director with a copy to the City Attorney.
. Form of Conveyance. All conveyances shall be made by quitclaim deed.
h. Cloying Costs. All closing costs, Shall be borne 0% by the purchaser and .
0% by the seller including, but not limited to, title insurance, recordation costs, and
escrow fees., Any brokerage costs will be borne by the seller.
7. Intergovemmental Transfers. Intergovernmental transfers of real property shall be
made in accordance with RCW Chapter 39.33, RCw Section 4 .o .2l o and/or any other
applicable statutes.
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PASSED by the: City Co it this 1:0. day of March, 2009.
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APPROVED by the Mayor thi's 11' -day of March, .2009.
Darlene Kordonowy, Mayor
ATTEST/AUTHENTICATE:
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A -A t! I
Rosalind D. Lassoff, CK4C, City Clerk
FILED -WITH THE CITY CLERK: March 2, 2009
PASSED BY THE CITY COUNCIL. March 111 2009
RESOLUTION NO. 2009-02
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