The process for offering any property through a sealed competitive bid is as follows:
A. OM: A property Offering Memorandum (OM) consistent with typical commercial real estate listings and practices and containing relevant property information will be prepared by Real Estate Services. This document may contain only basic information, or may be more extensive based on the relevant characteristics of the particular real property being offered, at the discretion of Real Estate Services. Real Estate Services will be responsible for creating and deploying templates for this purpose, with the discretion to custom design any OM that is deemed necessary and/or advantageous.
B. Marketing Period: A scheduled marketing period will be established by Real Estate Services allowing sufficient time for proper market exposure and will range from two (2) weeks to one month or more per Real Estate Services discretion. The Offering Memorandum will specify the marketing period and the required response date for offer submissions.
C. Distribution: The Offering Memorandum will be distributed to prospective buyers through the City's third party solicitation publication system ("BidSync"), and one or more of the following methods:
1. Posting on the City's surplus property website;
2. Distribution to local real estate brokerage agents or networks;
3. Installing "for sale" signs on the property;
4. Publishing offering information in the newspaper or through on line marketing channels;
5. Direct solicitation of known interested buyers;
6. Notice to adjacent property owners;
7. Local commercial MLS or other listing services.
D. Supporting Information: Supporting information will be included with the Offering Memorandum, including a City approved standard Purchase and Sale Agreement (PSA), site plans and/or other relevant info. The offering materials will also include a Letter of Intent (LOI) format to be used by the prospective purchasers for making the offer.
E. Reserve Price: If deemed by Real Estate Services as advantageous to the City, a reserve price may be established under which the City will not sell the property. Sources considered for determination of the reserve price could include appraisal, basis information, tax value or other relevant local market information. This reserve price may be included in the offering. Real Estate Services shall have the discretion to waive the reserve price if the property is in high demand and has a readily discernible market value which could command a premium price, or if in its assessment there is no benefit to the City for including a reserve price.
F. Tour, Inspection: Real Estate Services may conduct a scheduled tour/inspection of the property for interested bidders at a designated time that will be published in the Offering Memorandum.
G. Offers: Offers to purchase will be submitted on the City provided LOI form with a statement that the purchasing entity is willing to agree to the general standard terms and conditions of the boilerplate PSA.
H. LOI: The LOI will serve as the term sheet that outlines the various terms and conditions that the prospective purchaser is offering.
I. Sealed Bids: Sealed bids shall be submitted as described in the OM.
J. Bid Security: As part of the offer to purchase, prospective purchasers shall be required to submit a bid security/earnest money deposit along with the bid of five percent (5%) of the proposed purchase price in the form of a cashier's check or letter of credit. The winning bidder's earnest money deposit will be deposited in an escrow account at a title company by the City within twenty four (24) hours of bid acceptance. Deposits submitted by unsuccessful bidders will be returned.
K. Review; Recommendation: The City shall review the bids/offers for disposition and shall provide a final recommendation with respect to the disposition of the subject property or properties. The City shall have the right to waive any reserve price or to reject any or all bids if it is determined this is in the best interest of the City.
L. Marketing Through MLS: Should the process not yield an acceptable offer, or any offers, Real Estate Services shall have the right to market the property by listing it through local MLS services and/or placing a sign on the property for a more traditional real estate sales process that is open ended and not based on a defined bid timeframe, and take offers as they come in from the market. Real Estate Services shall determine whether any reasonable offer received in this manner should be accepted. Real Estate Services shall also have the discretion to hire a real estate broker to conduct the marketing or may choose to handle these services in house. (2019 Compilation)