(A) The town shall not sell or otherwise convey any interest in real property held by the town unless an ordinance is first adopted by the Town Council.
(B) (1) No disposal by the town of any interest in real property by any means shall be effective unless the procedure followed by the town complies with the requirements of this section and the disposal is reflected in a document of conveyance which meets the following requirements:
(a) The document of conveyance must be in a recordable form permitted by state statute.
(b) The document of conveyance must be signed by the Mayor or in the Mayor's absence, another town official designated in writing by the Mayor.
(c) The document of conveyance must contain a specific reference to the ordinance by which the Town Council has authorized the conveyance to be made.
(d) The document of conveyance must be delivered by the town to its grantee or lessee at the time that the grant or lease is made.
(2) For purposes of this section DISPOSAL or DISPOSE means the sale, lease, exchange or donation of real property.
(C) Unless otherwise provided in this section, the town may dispose of interests in real property only by sale or lease, at public auction, to the highest responsible bidder. The public auction may be conducted by the sealed bid method or by the outcry method. The method used shall be determined by the Town Council and shall be set forth in the ordinance authorizing the sale or lease of the town lands.
(D) The preferred method of disposing of interests in town lands are lease and sale. The town may dispose of town property by exchanging it for other property only if both of the following conditions are met:
(1) The Council determines, in findings set forth in its, resolution authorizing the exchange, that the property is not required for town purposes and that the interests of the town in disposing of the property would be better served by an exchange for other property than by a sale or lease; and
(2) The Council determines that the property proposed to be conveyed to the town in exchange for the town's property is of equal or greater value than the town's property.
(E) When the town sells, leases or exchanges property, it must follow these procedures:
(1) An estimate of value shall be made by an appraiser or by the County Assessor. In the case of a sale or exchange, the estimate of value must be an estimate of the present fair market value of the property. If the proposed disposal is a lease, the estimate of value must be an estimate of both the present fair market value of the property and also the present fair market rental value of the property. Estimates of value may be based upon general information as to recent land sales or leases in Anderson County or nearby communities, and need not include detailed site-specific data or real estate market analysis. The estimated value shall be the minimum legally acceptable price for the property. The estimate of value must be reviewed and approved by the Town Council prior to the conduct of any sale, lease, or exchange. This review and approval may be made by the Council at any time prior to the acceptance of high bids following their tabulation and review.
(2) Notice of the town's intent to dispose of the land, and of the manner by which the land is to be disposed of (i.e., by sale, lease or exchange, sealed bid or public outcry auction), shall be visibly posted at Town Hall and published not less than once a week in a newspaper having general circulation within the town, for two successive weeks prior to the disposal. Notice may also be given by other means considered reasonable by the Mayor and Council. The notice must contain a brief description of the land, its area and general location, the minimum purchase or rental price, any terms or limitations concerning land, and the times and places set forth for the public outcry auction or sealed bid opening (if applicable) and for the exercise of preference rights to meet high bids.
(3) If one or more bids are received at or above the minimum acceptable terms, the highest bid shall be accepted. Council shall award the highest bid at a public meeting.
(4) If no acceptable bids are received on a particular parcel:
(a) The Council may alter or keep the same minimum terms as previously established and direct staff to issue another public notice; or
(b) The Council may alter or keep the same minimum terms previously established and list the property for six months with a local real estate broker on a multiple listing basis. A listing may be renewed for an additional one six-month period.
(5) After expiration of the period set out in division (E)(4) above, the property shall be removed from the market. Any decisions to sell a piece of property once it has been removed from the market shall require that the entire procedure set forth in this section be repeated. The Council may, however, decide whether or not an additional appraisal is necessary.
(F) The Council may authorize the sale of after-acquired title or future interests in real property to which the town is or may in the future become entitled. When this power is exercised, the ordinance and any deeds issued under this section must contain a specific disclaimer of any warranty of title. A deed issued under this section may also contain provision for issuance of a subsequent confirmatory quitclaim deed upon the request of the grantee at such future time as the town may obtain title to the land.
(G) The Council may provide by ordinance for the lease, sale or grant of town lands at less than its fair market value when determined to be in the best economic interest to the town. The ordinance authorizing a lease, sale or grant must include a statement of the reasons why the Council has decided to dispose of the land for less than its fair market value. The Council may act without complying with the provision of division (E) above when the disposal is for a specific public use or determined to be in the best economic interest of the town.
(H) When real property is determined by the Town Administrator to be suitable for tenant occupancy and that occupancy is consistent with the public purpose for which it was acquired or not be needed for the public purpose for which is was acquired for up to five years, the Town Administrator may lease all or any part of it to another for a term not to exceed five years at fair market rent. The Town Administrator may require additional lease terms and conditions consistent with the public health, safety and welfare.
(I) Except in the case of an exchange, all disposals of town property under this section shall be for cash. The Council may provide by ordinance for the sale of property pursuant to an installment sale agreement or with a promissory note secured by a first deed of trust on the sale property. Rent on leases shall be payable monthly or quarterly, as the Council may determine. Any lease or installment purchase agreement issued by the town through an ordinance must provide, among other terms and conditions, that upon a failure by the purchaser or lessee to make timely payment thereunder the contract or lease is terminated and all payments made thereunder are forfeited to the town.
(Ord. 13-08, passed 9-3-13; Am. Ord. 17-11, passed 10-2-17)