Publisher's Note: This Section has been AMENDED by new legislation (Ord. 2023-69
, adopted 11-28-2023). The text of the amendment will be incorporated below when the ordinance is codified.
A. Policy: The sale, lease, sublease, or other conveyance of real or personal property acquired by Ogden City, acting as the local redevelopment authority, as part of the closure of the defense distribution depot Ogden, Utah, shall conform to the standards and procedures provided in this section. Such conveyances shall not be subject to the requirements of section 4-3A-5 of this article.
B. Definitions: As used in this section, the following terms shall have the designated meanings:
ARMY: The United States of America, acting through the secretary of the army.
DDOU ENTERPRISE FUND: The enterprise fund established in the city's annual budget for the acquisition, administration, operation, maintenance, and development of the DDOU property.
DDOU EXCHANGE PROPERTY: Real property received in exchange for DDOU property.
DDOU PERSONAL PROPERTY: Any personal property conveyed to Ogden City, acting as the local redevelopment authority, as part of the closure of the defense distribution depot Ogden, Utah, under the terms of the purchase contract.
DDOU PROPERTY: Any real property conveyed to or leased by Ogden City, acting as the local redevelopment authority, as part of the closure of the defense distribution depot Ogden, Utah, under the terms of the purchase contract or the LIFC.
DEVELOPMENT AGREEMENT: That certain master development agreement between Ogden City and Boyer ORBIC, LC, for development of the Ogden Regional Business and Industrial Center, dated December 29, 1999.
LIFC: That certain lease in furtherance of conveyance, between the city and the army, effective October 1, 1999, for the lease of a substantial portion of the DDOU property yet to be conveyed to Ogden City under the purchase contract.
LEASE AGREEMENT: That certain lease agreement for existing facilities and grant of option to lease future development land, between Ogden City and Boyer ORBIC, LC, dated December 28, 1999.
PROJECTED COSTS: 1. The city's cost of acquiring and leasing the DDOU property under the purchase contract and the LIFC;
2. The city's cost of constructing, installing and financing the infrastructure and improvements necessary for the development of the DDOU property; and
3. The present and future costs of developing, owning, possessing, subleasing, maintaining and managing the DDOU property, including the costs of overseeing the lease and development agreement.
PROJECTED REVENUES: The reasonably projected revenues from sales, rent, real property taxes, privilege taxes, personal property taxes, sales taxes, or other revenue sources.
PURCHASE CONTRACT: That contract of purchase between the department of the army and Ogden City, Utah, dated May 5, 1999, and as amended by the third addendum agreement, dated November 21, 2000.
C. Standards: Any sale, lease, sublease or other conveyance of DDOU property or DDOU personal property by the city, or the approval by the city of any sublease of DDOU property under the lease and development agreement, shall comply with the following standards:
1. The favorability of any conveyance shall be determined based on economic development criteria and not merely the "highest and best economic return" that could be realized by the city by the sale, lease, or sublease of the particular piece of property. Such economic development criteria shall include, but not be limited to:
a. Job creation or retention to an extent which meets the goals, parameters and assumptions of the DDOU reuse plan, considering the number of jobs and wage ranges projected per land use area; and
b. A measurable positive impact to the tax base, considering revenue to be generated by the proposed use as compared to the project cost of municipal services.
2. The proposal includes sufficient investment by the lessee or buyer to promote overall development of the DDOU property and to further the goals of the DDOU reuse plan.
3. The proposed buyer, lessee or sublessee demonstrates the intention and capability to enhance the area in accordance with the design guidelines established in furtherance of the DDOU reuse plan.
4. Any city resources required to accommodate the proposal, if applicable, are adequately offset by the return to be received under the conveyance.
5. The term of any lease or sublease is of sufficient length to facilitate appropriate reuse.
6. Any sublease of DDOU property possessed by the city under the LIFC shall comply with all requirements of the LIFC.
7. Any conveyance of DDOU property or DDOU personal property owned by the city shall comply with the requirements of the applicable deed of conveyance or bill of sale from the United States of America to the city.
8. Any DDOU property being conveyed shall be made subject to the declaration of conditions, covenants, and restrictions established and recorded pursuant to the lease and development agreements.
9. The proposed property use shall be compatible with the approved DDOU reuse plan and the applicable zoning ordinances of the city.
10. The city shall receive adequate consideration, as described in subsection D of this section.
11. DDOU personal property determined to be unnecessary for the reuse of DDOU shall be disposed of in accordance with the provisions of article B of this chapter, subject to restrictions on the use of proceeds under the purchase contract and the requirements of subsection H of this section.
D. Adequate Consideration: It is the intention of the city council that the development of the DDOU property be self- supporting, and that use of the general fund and other revenues of the city be minimized to the greatest extent possible. It is also the intention of the city council that the development of the DDOU property should eventually become revenue generating after meeting the present and future costs to be incurred in implementing the DDOU reuse plan. In furtherance of such intentions, any conveyance of DDOU property shall be for cash, or its equivalent, and for not less than fair market value, unless it is determined by the mayor, and approved by resolution of the city council, that:
1. The proposed development of the property in question merits economic incentives;
2. The city otherwise receives adequate consideration for the property; and
3. The provision of such economic incentives will not unreasonably affect projected costs or projected revenues.
E. Subdivision Approvals Required: No portion of the property shall be sold unless and until the subdivision of such property has been approved in accordance with the ordinances and requirements of the city. The granting of any lease with an option to buy shall contain a provision that the future conveyance and the description of the property to be conveyed under such option shall be subject to future subdivision approval, in accordance with Ogden City ordinances.
F. Mayor To Submit Quarterly Report: The mayor shall provide to the city council a quarterly report on all sales, leases, subleases or other conveyances of real property, including any subleases approved under the lease agreement. Such quarterly report shall include the following:
1. The status of any pending negotiations for the sale, lease, or sublease of DDOU property, and the general terms and conditions involved, to the extent such disclosure would not prevent the city from completing the transaction on the best possible terms.
2. Completed or approved transactions, including the general terms and conditions. General terms and conditions shall include: the name of the lessee/buyer, identification of property, price and/or other consideration, any unusual obligations assumed by the city.
3. Whether the proposal will require further action by the city council or the RDA.
G. Exercise Of "Put" Under Lease And Development Agreements: The city has the right to require the tenant to purchase certain portions of the DDOU property under paragraph 26 of the lease agreement (the "put"). Because the exercise of the "put" could have a significant impact upon projected costs and projected revenues, the mayor may not exercise the "put" unless approved by resolution of the city council.
H. Proceeds:
1. Except as provided in subsection H2 of this section, proceeds received by the city for the sale or lease of DDOU property or DDOU personal property shall be deposited in a restricted trust account within the DDOU enterprise fund, and subjected to such controls as are reasonably determined by the finance officer to be necessary to ensure compliance with the purchase contract, lease agreement, and development agreement.
2. At such time as proceeds received by the city from the sale or lease of DDOU property or DDOU personal property are no longer subject to restrictions in use under the purchase contract, lease agreement or development agreement, such proceeds shall be appropriated in the following order of priority:
a. Payment of amounts pledged toward bonded indebtedness.
b. One million dollars ($1,000,000.00) annually beginning in FY2022 through FY2026 to the capital improvement fund for use in a project or projects benefitting the Marshall N. White Center.
c. One million dollars ($1,000,000.00) annually beginning in FY2022 through FY2026 to the Ogden City redevelopment agency to be used for the quality neighborhoods initiative.
d. Two hundred thousand dollars ($200,000.00) annually for public arts, with one hundred thousand dollars ($100,000.00) appropriated annually for arts grants as provided in section 3-16-5, and one hundred thousand dollars ($100,000.00) appropriated for public arts projects as provided in chapter 1, article C of this title, provided that the balance of unencumbered funds in the arts fund at the beginning of a fiscal year, shall not exceed five hundred thousand dollars ($500,000.00).
e. No less than one hundred thousand dollars ($100,000.00) annually for emergency repairs or unanticipated critical need repair projects in the city that do not require planning commission review to determine compliance with the city general plan.
f. After consideration of the deductions for the appropriations described in subsections H2a through H2e of this section:
(1) No less than fifty percent (50%) of the proceeds received annually shall be used for the funding of capital improvement projects; and
(2) Up to ten percent (10%) of the proceeds received annually, but not exceeding one hundred fifty thousand dollars ($150,000.00), shall be appropriated to a community plan capital improvement account to allow the accumulation of funds for future appropriation for capital improvement projects identified in adopted community plans.
g. Early retirement of city debt that is to be paid from the city’s general fund, as deemed appropriate.
h. Funding of other projects or programs, as deemed appropriate.
I. Proceeds Received From Properties Received In Exchange: The following standards shall apply to DDOU exchange property:
1. Proceeds from the sale of DDOU exchange property are considered to be proceeds from the sale or lease of DDOU property and subject to the requirements of subsection H of this section.
2. In no event shall DDOU exchange property, subject to the reinvestment requirements under the purchase contract, be sold for less than fair market value, unless the city council takes such budgetary action as is necessary to reimburse the DDOU enterprise fund for the difference between the sales price and the fair market value amount.
3. The finance officer, with the assistance of the city attorney and the director of the community and economic development department, shall maintain a list of all DDOU exchange property.
J. Applicability Of Section: The provisions of this section shall not affect the validity or enforceability of:
1. Any sale, contract of purchase, or option to purchase approved in writing, prior to February 20, 2001, and in accordance with the ordinances existing on the date of approval; or
2. Any sublease of DDOU property approved in writing, prior to February 20, 2001, and in accordance with the ordinances existing on the date of approval.
(Ord. 2003-20, 8-5-2003; amd. Ord. 2003-82, 12-20-2003; Ord. 2005-65, 11-22-2005; Ord. 2007-44, 6-12-2007; Ord. 2011-37, 7-5-2011; Ord. 2015-35, 7-7-2015; Ord. 2016-23, 4-12-2016; Ord. 2019-23, 6-11-2019; Ord. 2021-5, 1-19-2021; Ord. 2021-20, 4-27-2021)