This policy amends the Lot Sales Program for surplus city-owned real property as passed by the Rockaway Beach City Council on April 14, 1987. It authorizes the City Recorder to sell selected properties without further Council action. This policy provides the mechanism whereby city staff can market and sell surplus city-owned real property (as itemized in the ordinance) to the public. This policy is being formed in response to public inquiries about buying lots and from the Council's desire to actively pursue surplus property sales.
I. Marketing commissions.
A. City staff will disseminate marketing information through mechanisms such as mailings, advertisements, press releases and area real estate brokers.
B. The city will offer these properties directly in the capacity of a listing broker. City staff will cooperate with selling brokers by paying a 5% selling commission when a selling broker is involved in the sale.
C. Staff will selectively place signs on individual properties and rotate the signs periodically.
II. Sale prices.
A. For each individual lot, the city staff shall post a price list. Individual lots will be priced based on a pricing formula which includes 2 components. One component is 100% of the city's costs (which includes assessments outstanding, interest, taxes, foreclosure and maintenance costs and title insurance). The second component is an adjusted benchmark appraised valued based on City of Rockaway Beach comparable lot sales.
B. Annually staff will index upward, not downward, any increase in the fair market value of lots using the City of Rockaway Beach comparable lot sales for comparison. The price list shall be posted after each adjustment and shall be subject to approval of the City Council.
C. Prospective purchasers will be informed of the possibility of easements, covenants, conditions or restrictions on the properties. They will be sold free and clear of title encumbrances, liens and back taxes.
III. Lots included.
A. Exhibit A* shall constitute the lots included in the Single Lot Sales Program.
IV. Financing.
The city will offer financing of lot sales to individuals only excluding partnerships, associations and corporations, upon the following conditions:
(1) A minimum down payment of 20% of the purchase price or the outstanding property taxes, whichever is greater;
(2) A minimum of 10% per annum fixed rate of interest adjusted periodically to match commercial mortgage lending rates;
(3) Maximum 10 year amortization period;
(4) Monthly payments;
(5) Land Sale Contract in form approved by the City Attorney and signed by the purchaser;
(6) A credit check or other evidence of the purchaser's ability to pay, which if unsatisfactory, will be grounds to reject the financing of the sale;
(7) Any monthly collection charges by the escrow agent chosen by the city shall be paid by the purchaser; and
(8) Prepayments will be encouraged and no prepayment penalty will be charged.
V. Closings.
A. All sales will be closed through escrow.
B. City staff and the City Attorney will handle arrangements for earnest money agreements, title reports and land sale contracts.
C. The city staff is provided the discretion to employ title companies for the provision of title reports, title insurance and escrow closing and escrow collection. Title companies shall be selected with consideration and emphasis on the following 2 criteria:
1. The cooperation and willingness of the title company to provide title insurance for lots acquired in the city foreclosure process; and
2. Costs to the city (including administrative costs).
D. All documents hereinbefore mentioned shall be signed by the City Recorder.
VI. Exceptions.
A. Those persons who may be interested in individual lot or multiple lot sales upon terms and conditions which do not comply with this procedure and program are encouraged to contact the City Recorder. The Council reserves the right to make exceptions to this policy on a case-by-case basis after compliance with O.R.S. 221.725 or 221.727, whichever may be applicable.
VII. Reporting.
A. The city staff will report sales activity to the Council monthly.
B. The city staff will report to the City Council the results of the financing program including a comparison to sales made without financing.
(Prior Code, Ord. 258, passed 12-13-1988)