173.08 PROCEDURE FOR THE SALE, LEASE OR TRADE OF REAL PROPERTY UPON PASSAGE OF RESOLUTION.
Upon passage of a resolution, provided for in Section 173.07(f), the following procedure shall be followed:
(a) When real property is to be leased or sold only in exchange for money, which shall be the case whenever the City does not desire to exchange its real property for some other specific property, the resolution provided for in Section 173.07(f) shall be advertised, together with all pertinent matters, as in the case of all other purchases and sales.
(b) When real property is to be conveyed in exchange, in whole or in part for a valuable consideration other than money, the resolution required by Section 173.07(f) need not be advertised but instead the City Manager shall cause the fair market value of both the real property to be conveyed by the City and the property to be received by the City to be appraised at their fair market value. The City may, but shall not be required to, accept or rely upon an appraisal provided by a person employed by the party wishing to make an exchange of property with the City. Real property may only be exchanged for other property or other property plus a cash boot which is of equal or greater fair market value. In order to account for reasonable differences in appraisers and appraisal methods for computing fair market value, City-owned real property shall be considered to be of equal value to property to be exchanged for it when the City-owned real property has an appraised fair market value which equals or exceeds the fair market value of property to be exchanged for it by no more than five percent (5%). When, based on the fair market value of the City-owned real property, there is a difference of five percent (5%) or more in the fair market value of City-owned real property and the property to be exchanged for it, no exchange shall occur unless a cash boot is added by the party owning the less valuable property in order to cause the differences in appraised fair market value to be reduced to not more than five percent (5%). However, the City shall not be required to provide a cash boot if the same is waived by the party making the exchange with the City. When, upon the unanimous approval of Council as set forth in the ordinance referred to in subsection (e) hereof, a parcel of real estate to be exchanged for surplus City-owned real estate is of such peculiar or unusual value to the City that a cash boot should not be required to be paid to the City, no cash boot need be paid. However, under no circumstances shall a cash boot be waived by the City when the appraised fair market value of the property to be received does not equal at least seventy-five percent (75%) of the appraised fair market value of the City-owned property to be exchanged for it.
(c) Following advertisement in the case of a sale or lease, the City Manager shall report to Council all valid proposals received for such sale or lease and make a recommendation on the action to be taken.
(d) Following receipt of the appraisals in case of a trade of property, the City Manager shall report to Council the results of the appraisals, and make a recommendation on the action to be taken.
(e) If, upon receipt of the City Manager's report and recommendation to Council, together with the appraisals, if any, Council decides to sell, lease or trade City-owned real property, Council shall adopt an ordinance directing and authorizing that all or part of the City-owned real property identified in the resolution referred to in Section 173.07(f) be sold, leased or traded, and set forth the terms of the transaction.
(f) The City Manager shall sign all conveyances for the sale, lease or trade of City-owned real property.
(Ord. 93-6-65. Passed 6-9-93; Ord. 2018-1-3. Passed 1-10-18.)