(a) General. All disposal shall be conducted in a fair and impartial manner. Procedures for conducting all disposal shall be set out in the resolution authorizing each disposal.
(b) Competitive disposal. The city may conduct the following types of competitive disposal:
(1) Sealed bid auction. The minimum bid for the sealed bid auction shall be the fair market value of the property or interest in property as determined under § 8.10.060(b).
(2) Public outcry auction. The minimum bid for the public outcry auction shall be the fair market value of the property or interest in property as determined under § 8.10.060(b).
(3) Lottery. In the case of a lottery, the price of the property or interest in property may be established by the City Council.
(c) Disposal for public services. The City Council may dispose of real property or an interest in real property to a municipality, state or federal entity or to a nonprofit corporation or association, or a Native Tribal Council, when the recipient is providing a necessary public service to residents of the municipality, without seeking bids and for less than the fair market value of the real property or interest in real property. If the disposal is made under this division, the resolution authorizing the disposal must include an addition to the requirements in § 8.10.060(b):
(1) A finding that the disposal to the entity is for provisions of a necessary public service and a statement of facts upon which such a finding is based;
(2) A requirement that the conveyance is the property or property interest disposed include a condition that the title will revert to the municipality in the event the property is no longer used for the necessary public service justifying the disposal; and
(3) In the event that the entity receiving the property or interest in real property is a Native Tribal Council, a requirement that the Native Tribal Council waive any immunity from suit for the purpose enforcing the reversion provision.
(d) Disposal for economic development. The City Council may dispose of real property or an interest in real property to any person or entity in furtherance of local trade or industry without seeking bids and for less than the fair market value of that real property or interest in real property as determined under § 8.10.060(b). If a disposal is made to further economic development, the non code ordinance authorizing the disposal must include in addition to the requirements in § 8.10.060 (b):
(1) A finding that the property or property interest in real property to any person or entity in furtherance of local trade or industry; and
(2) A requirement that the conveyance of the property or property interest disposed include a condition that title will revert to the municipality in the event that property is no longer used for the local trade or industry justifying the disposal.
(e) Miscellaneous disposal. The City Council may settle disputed claims or litigation by authorizing disposal of real property or an interest in real property.
(f) Disposal to settle claims of equitable interest. Upon a finding by the City Council that is in the public interest, the city may convey real property or an interest in real property for less than fair market value to a person who has a valid claim of equitable interest in the property or in a substantial improvement located upon the property. That finding shall be incorporated in and made a part of the resolution that accomplishes the conveyance.
(g) Disposal for residential purposes. Upon a finding by the City Council that there is a current residential housing shortage in the community and that making land available for residential purposes at less than market value is in the public interest, the city may convey real property or an interest in real property for less than fair market value to a domiciled city resident who seeks the parcel for development and use as a personal place of residence. That finding shall be incorporated in and made a part of the non-code ordinance that accomplishes the conveyance. When real property or interest in real property is disposed of pursuant to this division, the deed or lease must contain a condition subsequent which ensures that if the land is used for any use other than residential use for a period of years after the disposal, title will revert to the city. In addition, disposal under this division shall include a requirement for the construction of a habitable dwelling within years after the disposal or title will revert to the city.