RES 2015-15 AMENDING RESOLUTION NO. 2009-02, SURPLUS PROPERTYRESOLUTION NO. 2015-15
A RESOLUTION amending Resolution No. 2009 -02
establishing procedures regarding the surplus and sale
process for real property owned by the City of Bainbridge
Island.
WHEREAS, on March 11, 2009 the City Council passed Resolution No. 2009 -02
establishing procedures regarding the surplus and sale process for real property owned by
the City;
WHEREAS, the City of Bainbridge Island desires to revise these procedures to
allow the City to consider whether surplus property may be sold at below Market Value
or should be transferred to another Bainbridge Island taxing district;
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND,
WASHINGTON, DOES RESOLVE AS FOLLOWS:
1. Amendment
Resolution No. 2009 -02 is revised to read as follows:
A. City Property Inventory. The Director of Public Works shall establish and
maintain an inventory and map of City -owned property. References in this Resolution to
"City -owned property" are meant to include any property owned by the City or any of its
utilities or other special - purpose funds. The inventory will include the following
information:
1. Property name;
2. Street address (if available);
3. Kitsap Assessor's Office Property Tax Parcel Number;
4. Use of property;
5. Listing of restrictions, covenants or other limiting attributes;
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6. Status of property (active or inactive);
7. Any planned future use;
8. City fund that currently owns the property;
9. Estimated land and improvement value; and
10. Restrictions on property use or sale (if applicable).
B. Establishment of Real Property Review Committee. A real property
review committee (the "Committee ") is hereby established which shall advise the City
Council with respect to the disposal of real property owned by the City. The Committee
shall be composed of the City Manager, the Finance Director, the Public Works Director
and the City Attorney.
C. Annual Review of City Real _Property Holdings. The Committee shall
annually review all of the City's current real property holdings with regard to the
following:
1. If the current use is appropriate and necessary;
2. If the property could be used for another City purpose within its
original purchasing fund responsibility;
3. If the property could be used for another City purpose outside of
the responsibility of original purchasing fund;
4. If the property appears to be surplus to the City's needs;
5. Whether there is evidence of potential interest by anyone in
purchasing the property; and
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6. Whether there is an interest by the Board of the Metropolitan Parks
District or by any other Bainbridge Island taxing district in having
the property transferred to that District.
D. AnfILM] Written Reporl. Following its review, not less than once per
calendar year the Committee shall prepare a written report containing recommendations
as to whether any City property should be declared surplus by the City Council. The
report shall contain the following information with regard to any property that the
Committee is recommending to be declared surplus:
1. Description of the location and size of the property;
2. Description of the circumstances under which the property was
obtained;
3. Description of the funds used to acquire the property;
4. Recommendation as to which fund the proceeds from its sale
should be credited;
5. Description of what municipal use the property has been put to in
the past, if any, and what use, if any, for which it might be held;
6. The date of any and each prior appraisal of the property, and the
value determined by each such appraisal;
7. Estimation of value (pre - appraisal) of the property;
8. Whether an appraisal is recommended and the type of appraisal;
9. Whether the property is only usable by abutting owners or is of
general marketability;
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10. Whether special consideration ought to be given to some other
public agency that has a use for the property;
11. Whether the property should be sold at auction, by sealed bid, by
request for proposal (RFP), or by negotiation;
12. Recommendation as to whether any special covenants or
restrictions; should be imposed in conjunction with sale of the
property; and
13. If owned by a City utility, recommendation as to whether the
property should be sold or transferred to the City's General Fund
prior to being conveyed or sold to a third party.
The written report shall be submitted to the City Council no later than April 30 of
each calendar year.
E. Surplus Property Declamation. City property may be declared surplus by
the City Council after the following procedures have been completed:
1. The City Council shall hold a public hearing as part of its process
to consider whether to declare any real property surplus to the
needs of the City. In accordance with RCW 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) not less
than ten (10) days nor more than twenty -five (25) days prior to the
hearing. In addition, a news release pertaining to the public hearing
shall be posted on the city website.
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2. Following conclusion of the public hearing, the City Council shall
determine whether the property shall be declared surplus. If such
determination is made, City Council shall pass a resolution
declaring the property surplus and shall also make the following
determinations:
(a) Whether the property should be transferred to another
Bainbridge Island taxing district;
(b) Whether the property should be sold by sealed bid, at
auction, by request for proposal (RFP), or through
negotiated sale; (including listing with a real estate brokeri
and
(c) Whether special covenants or restrictions should be
imposed as a condition of the sale.
F. Sale_ Procedures_ for Suij?lus Property. The following procedures and
requirements shall apply to property sold as surplus by the City:
1. Determination of Market Value. After a property has been declared
surplus and prior to its sale or transfer, the city shall order one of
the following three types of appraisals based on the Committee's
estimate of the property value.
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...._..... _
Estimated
.-
Recommended Report
Review Suggested
Property Value
Format
Up to $100,000
Limited /Restricted
No
$100,001 to
Limited /Summary
No
$500,000
$500,001 to
Complete /Summary
Yes
$3,000,00
$3,000,00t and
Complete /Self - Contained
Yes
above
The appraiser or reviewer hired by the City must be licensed by the
State of Washington as a "state certified general appraiser."
2. Sale Price. The City may sell or transfer the surplus property for
consideration less than market value only as permitted by law.
3. SEPA Review. The sale and /or transfer of any surplus real
property that is subject to an authorized public use shall be
contingent upon completion of a SEPA review process and the
expiration of the SEPA appeal period.
4. Processes for sale of property.
(a) Disposition by Sealed Bid. Where a property is sold by
sealed bids, any and all bids submitted must be
accompanied by a bid deposit in the form of a cashier
check payable to the City of Bainbridge Island in an
amount equal to ten percent (10 %) of the bid amount. Such
deposit accompanying the successful bid shall be deposited
into escrow until closing on the purchase of the property,
and payment of the remaining amount of the purchase price
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shall be made within thirty (30) days. In the event the
purchaser is unable to pay the remaining amount within the
required time, the earnest money deposit shall become non-
refundable and may be retained by the City as liquidated
damages.
(b) Disposition by Auction. Where property is sold at auction,
the prevailing bidder must immediately tender a cash
deposit or certified check for deposit into escrow as earnest
money to the City of Bainbridge Island in an amount equal
to ten percent (10 %) of the bid amount. Payment of the
remaining amount of the purchase price shall be made
within thirty (30) days. In the event the purchaser is unable
to pay the remaining amount within the required time, the
earnest money deposit shall become non - refundable and
may be retained by the City as liquidated damages.
(c) Disposition by Request for Proposal (including listing with
a licensed real estate broker.) Where property is sold
through a process that includes a request for proposals
(RFP), a specification document (including criteria for
evaluation of applicant proposals) shall be made available
to any person or entity which the City determines would be
a qualified applicant. Acceptance or rejection of responses
to a Request for Proposal shall be in the sole discretion of
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the City Council. If a responsive proposal is accepted by
the Council, the development process will proceed as
follows:
(i) ENA Stage. Once the City selects a Developer, it and
the Developer will then execute an Exclusive
Negotiating Agreement (ENA).
(ii) DDA Stage. Once the ENA has been negotiated and
approved by the Council, a Disposition and
Development Agreement (DDA) will be negotiated
between the parties and presented to the Council for
approval. All legal rights and obligations between the
selected Developer(s), if any, and the City will come
into existence only when a DDA is fully executed by
the parties and then approved by the Council. The legal
rights and obligations of each party shall be only those
rights and obligations which are set forth in the DDA
and any other documents specifically referred to in that
DDA and executed by the parties.
(iii) Constri]ctiori Stage. Once all the DDA conditions
precedent to property transfer have been met, the City
will transfer the site to the Developer, and construction
will begin within a short time thereafter, as mutually
agreed upon by the City and the Developer.
(d) Disposition by Negotiated Sale or Sale through a Real
Estate Broker. Where property is sold by negotiated sale or
through a real estate broker, the purchaser shall deposit
earnest money into escrow in an amount equal to ten
percent (10 %) of the purchase price within three (3)
business days of execution of a purchase and sale
agreement for the purchase of the Subject Property.
Payment of the remaining balance of the purchase price
shall be made within thirty (30) days, unless otherwise
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specified in the purchase and sale agreement. In the event
the purchaser is unable to pay the remaining amount within
the required time, the earnest money deposit shall become
non - refundable and may be retained by the City as
liquidated damages.
4. Notification of Sale of Surplus Property. Notice of sale of surplus
property shall be given in accordance with RCW 39.33.020
5. All requests to purchase City property shall be directed to the
Finance Director with a copy to the City Attorney.
6. Form of Conveyance. All conveyances shall be made by quitclaim
deed.
7. Closing Costs. Closing costs including, but not limited to, title
insurance, recordation costs, and escrow fees shall be allocated as
agreed by the parties. Each party shall bear its own brokerage
costs, if any.
G. Intergovernmental Transfers. Intergovernmental transfers of real property
shall be made in accordance with RCW Chapter 39.33, RCW Section 43.09.210 and /or
any other applicable statutes.
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PASSED by the City Council this 111h day of August, 2015.
APPROVED by the Mayor this 11th day of August, 2015
By: ' L
Anne S. Blair, Mayor
ATTEST /AUTHENTICATE:
By:
Rosalind D. Lassoff. CM
City Clerk
FILED WITH THE CITY CLERK: August 6, 2015
PASSED BY THE CITY COUNCIL: August 11, 2015
RESOLUTION NO. 2015 -15
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