A. Value; Recommendation: When City owned real property is being disposed of, Real Estate Services provides guidance on value and researches property basis information using third party appraisal or in house valuation methods, assesses strategic redevelopment opportunities as applicable, and makes recommendations on disposition strategy.
B. Significant Classification: Real Estate Services, in conjunction with the Chief Procurement Officer, will make a determination as to whether the real property being disposed of is classified as significant based on the criteria outlined in chapter 2.58 of the City Code.
C. Determination: Real Estate Services will determine, based on the market information available to it at the time, whether the property should move forward to sale through the sealed competitive bid process, or whether a waiver will be sought. In making this determination, the following may be considered:
1. Assessed value of the property.
2. Appraised value as determined by a sufficient and acceptable appraisal performed by a licensed appraiser using a commercially reasonable method of appraisal or by a market opinion or other commercially reasonable method of valuation from a licensed real estate professional or other qualified person when such a method would be more cost effective depending on the size, nature, estimated value and current market conditions of the property.
3. Whether the property is only usable by abutting owners or is of general marketability.
4. Whether the property can only be put to its highest and best use when aggregated with an abutter's property because of its size, shape, topography or other restriction, and a recommendation as to whether the property should be negotiated for sale to the abutter; provided, that the abutter is willing to purchase for the appraised value of the property; or if more than one qualifying abutter expresses interest in purchasing the property, a recommendation as to whether the City should solicit sealed bids from all abutters; in no case, however shall the property be sold to an abutter without notifying other abutting property owners that may have an interest.
5. Whether special consideration should be given to some other public agency that has a use for the property.
6. Whether any special covenants or restrictions should be imposed in conjunction with sale of the property.
7. Whether the property is a key redevelopment site where the City has a vested interest or other reasons for controlling conditions for a sale or transfer.
D. Options: Based on the initial evaluation, Real Estate Services may:
1. Move forward with an offering process using a sealed competitive bid format (the preferred process) using commercially reasonable real property sales principles and procedures; or
2. After relevant evaluation has been completed, and it is determined the sealed bid process is not applicable or advantageous, a waiver may be granted by the Chief Procurement Officer and the Finance Director allowing the property to be offered by a request for proposals (RFP), sold based on a third party appraised value or internal market evaluation, or as otherwise outlined in chapter 2.58 of the City Code regarding disposal of City owned real property assets.
a. As applicable, Real Estate Services will request a waiver of the sealed competitive bid, which will be signed by the Chief Procurement Officer and Finance Director authorizing the implementation of the proposed method to proceed.
E. Additional Considerations: After waiver or sealed competitive bid determination is complete as detailed above, and if the property is classified as significant, it will also be routed through the significant parcels of real estate process detailed in chapter 2.58 of the City Code, which requires additional considerations, including holding public hearings. (2019 Compilation)