Chapter 3.70
DISPOSITION OF REAL ESTATE
Sections:
3.70.050 Finance committee findings.
3.70.060 Application of finance committee findings and recommendations.
3.70.070 Methods of property disposal.
3.70.010 Purpose.
The purpose of this section is to establish policy and procedure for disposing of real estate owned by the town of La Conner. [Ord. 970 § 1, 2006.]
3.70.020 Definitions.
(1) “Surplus property” means real property in which the town holds a real property interest, but the town council has found that there is no current or future need for it.
(2) “Appraisal” means a narrative report of an opinion of fair market value by a licensed appraiser paid for by the town. Appraised value is different from assessed valuation used by the Skagit County assessor for tax levy purposes.
(3) “Reasonable return” means an amount of money acceptable to the town council that is as close as possible to the appraised value. [Ord. 970 § 1, 2006.]
3.70.030 Policy.
(1) Real property that is not needed by the town may be sold in order to return it to the tax rolls, or to put it to a better use for the benefit of the community. There may be real property the town chooses to hold to meet future needs or opportunities.
(2) A reasonable and justifiable return to the taxpayers shall be sought for the subject property based upon the appraised and assessed values.
(3) An executive session shall be held to determine the minimum price at which surplus real property shall be offered for sale. Negotiations between the designated representative(s) of the town and a potential buyer shall be private, which may include decisions to purchase or lease property or to grant an option of right of first refusal. All sale and lease transactions shall be conducted in public. [Ord. 970 § 1, 2006.]
3.70.040 Initiation.
Anyone can submit a formal recommendation or written proposal to the mayor. The decision to initiate a sale is delegated to the mayor and the town council. [Ord. 970 § 1, 2006.]
3.70.050 Finance committee findings.
The finance committee, together with the appropriate staff and the town attorney, shall review all recommendations and proposals. The review should include an analysis of all current and future needs for the property, the benefits of continuing ownership versus the costs of ownership, any liabilities that could be relieved, any legal difficulties (boundaries, encroachments, etc.) foreseen in conveying the property, and the potential uses for any funds derived from a sale. The finance committee’s findings and recommendations should be delivered to the town council. [Ord. 970 § 1, 2006.]
3.70.060 Application of finance committee findings and recommendations.
If the town council decides to act on the committee report, then the town council shall:
(1) Prescribe the method for disposition.
(2) Decide whether any special covenants or restrictions shall be imposed as a condition of sale.
(3) Specify which, if any, items of personal property shall be removed from the property before it is placed on the market.
(4) Determine what action(s) shall be taken to remove impediments to a sale or to improve marketability. Any repairs estimated to cost over $5,000 shall be certified and estimated by a licensed building contractor.
(5) Authorize the mayor to hire a fee appraiser to establish fair market value.
(6) Schedule an executive session to discuss the minimum price at which the property shall be offered for sale.
(7) Set the minimum price at which the property shall be offered for sale in an open, public meeting. [Ord. 970 § 1, 2006.]
3.70.070 Methods of property disposal.
The town council shall select one of the following methods to dispose of the property, in accordance with state laws:
(1) Sealed bid;
(2) Auction;
(3) Broker;
(4) Negotiated sale. [Ord. 970 § 1, 2006.]
3.70.080 Closing.
Closing shall take place in the office of the town attorney or an escrow company. [Ord. 970 § 1, 2006.]