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FAS-017 - Acquisition or Disposal of City Properties Policy_1986�P, SAINTWIIN Subject: Acquisition or Disposal of City Properties Category: Policy Policy No.: FAS -017 M&C Report No.: Effective Date: April 21, 1986 Next Review Date: (3 years) Area(s) this policy applies to: Real Estate Office Responsible for review of this Policy: Real Estate Related Instruments: Policy Sponsor: Real Estate Senior Manager Document Pages: This document consists of 13 pages. Revision History: Council Adoption: April 21, 1986 Amended: February 11, 1991 Common Clerk's Annotation for Official eRecord Date of Passage of Current Framework:_April 21, 1986 1 certify that this Policy was adopted by Common Council as indicated above. ... ,..,,......... May 11, 2017 Common Clerk Date Date Created: Common Council Approval Date: Contact: April 21, 1986 Real Estate Senior Manager I ISTS NeiZ 1. COUNCIL RESOLUTION ADOPTING POLICY..................................................................................1 2. POLICY..........................................................................................................................................2 3. AMENDMENT TO POLICY...........................................................................................................11 POLICY - PROPERTY ACQUISITION AND DISPOSA C.C.O. April 21, 1986 RESOLVED that as recommended by the City Manager, the submitted new policy for acquisition and disposal of City properties be adopted. CITY OF SAINT JOHN POLICY RE ACQUISITION OR DISPOSAL OF PROPERTY Overview The City owns in excess of 600 properties, most of which are used for some specific purpose or for which there is some future use. There are some, however, that were acquired through the years and in various ways that are not being used for any City purpose. The City is paying taxes to the Province on these parcels and is also losing the taxes that a private individual would pay to the City. In the case of vacant land, we are also losing the potential for development and the creation of jobs. Considering all these factors, a procedure was adopted in 1983 and amended in 1984, that outlined the steps to be followed in the acquisition or disposal of properties. There has also been an emphasis on the disposal of all properties not being used or needed for City purposes. This disposal of unneeded properties has resulted in the sale of several but there are still many that are of no use to the City. It is felt that the emphasis on disposal of these properties should continue and the experience (if the last 2 112 years suggests some changes are warranted in the procedures as they presently exist. The following is therefore proposed as an amended policy to be established for use in the sale or purchase of properties by the city, SALE OF CITY -OWNED PROPERTIES - INITIATED BY THE CITY 1. Property Management Staff will annually prepare a list of City - owned properties which are surplus to City requirements that will be recommended to Council for declaration as surplus. 2. Once Council has approved this list of surplus property there will be public notification that the list is available for inspection in the Property Management Branch. Copies of the list will be sent to other levels of Government for their consideration. - 2 - 3. a) VACANT LAND Tenders for the sale of any parcel of vacant land included in the list of surplus property will be received until a specified date by the Common Clerk. All tenders received will be provided to the Property Management Branch for analysis, appraisal and recommendation. If the value of any particular property is in excess of $100,000 then an appraisal of the property will be completed by an outside appraiser. b) BUILDINGS REQUIRING REDEVELOPMENT Buildings requiring redevelopment that are included in the list will be advertised on an individual basis with proposals for the purchase and development to be received by the Property Management Branch by a specific date. Any proposals received will be evaluated by staff and recommendations made to Common Council. c) OTHER BUILDINGS Surplus buildings not included in 3(b) may be advertised on an individual basis by listing them for a period not to exceed 90 days with a Real Estate Company that will use the Multiple Listing Service. The listing price will be based on an appraisal completed by staff (or by an independent appraiser if value exceeds $100,000) and will be approved by Common Council. The Real Estate Company will be chosen by the Property Management Branch from a list of qualified companies who have applied to be placed on such a list with the companies being chosen on a rotating basis. 4. Any property on the list of surplus properties would be available for sale for a period of one year after Council's approval without further public notice. Persons interested in purchasing these properties after the closing time for tenders would make application in writing to the Deputy Commissioner, Property Management. A staff appraisal would be completed and negotiations carried out for sale of the property at or near the appraised value. - 3 - At the conclusion of negotiations on any property, a report/recommendation will be made to Common Council. SALE OF CITY -OWNED PROPERTIES - INITIATED BY OTHERS 1. If the property is not on the surplus property list, or if more than one year has elapsed since Council's approval of the list, then application for purchase will be directed to the Deputy Commissioner, Property Management. Following input from other City Departments, a report/recommendation will be made to Common Council. If the decision is made by Council to dispose of the property, it will be publically advertised unless circumstances indicate this is not practical, in which case the sale price must be at least 10% above the appraised value. CONDITIONS TO BE ATTACHED TO SALE OF PROPERTY 1. In evaluating proposals or applications for the purchase of City property, City Staff shall consider the benefits to the City by the sale of the land (1) on its tax base, (2) potential terms of employment to be derived from the proposed use of the land, (3) the potential use of the land for the benefit of the City or for charitable or health organizations. 2. It shall be a policy of the City that generally speaking, the City shall not release or convey land unless a use of the land is proposed and in such case there shall be a time factor specified during which the land is to be developed. Any recommendation for sale shall contain a time during which a proposed development is to take place. It shall be a condition of sale that if a proposed development does not take place, the City shall be entitled to repurchase the property within the time period specified in the sale agreement at the purchase price or at a nominal fee if such can be negotiated. PURCHASE OF PROPERTY FOR CITY PURPOSES - INITIATED BY CITY 1. If privately -owned properties are required in order to carry out a project approved by Council, then the Department or agency responsible for the project will prepare plans showing the property required, and request the Property Management Department to commence negotiations for the acquisition. - 4 - 2. An appraisal of the required property will be completed by a City appraiser, and an independent appraisal may also be obtained if the value of the property is estimated to be over $100,000. If the appraised property value is within the project budget, then negotiations will be carried out to acquire the required property at or near the appraised value. If the property value is in excess of the project budget, the Department responsible for the project should review the property requirements, and reconfirm that the property is required, or whether the property requirements should be varied. 3. If projects approved by Council have some flexibility in the matter of property requirements, then proposals for the required property may be invited; following the same procedure as for the sale of properties. 4. At the conclusion of negotiations on any property, a report/recommendation will be made to Common Council. 5. If the negotiations to purchase do not result in the agreement of both parties, an independent appraisal may be obtained, if not already obtained under 2. If still no agreement is reached, a recommendation may be made to Common Council that expropriation procedures be started. PURCHASE OF PROPERTY FOR CITY PURPOSES - INITIATED BY OTHERS 1. Offers to sell property to the City should be directed to the Deputy Commissioner, Property Management. 2. Staff will investigate any beneficial use the City may have for such property, and a recommendation/report will be made to Common Council. 3. If the principle of purchase of such property is ultimately .approved by Council, acquisition of the property will be commenced following the appraisal and negotiating procedures as in 2, 4 and 5(Purchase of land for City Purposes - Initiated by the City). ISITION AND DISPOSAL OF PROPERTY COMPARISON OF PROCEDURES SALE OF PROPERTY - INITIATED BY CITY PROPOSED PRESENT Property Managment staff will 1. Same except that list must annually prepare a list of first be checked by other properties to be recommended to City Departments. Council for declaration as surplus. If Council approves the list, 2. Same. there will be public notification that the list is available for inspection in the Property Management Branch. Copies of the list will also be sent to other levels of government. 3. a) Tenders for the sale of any 3. parcel of vacant land will be received by the Common Clerk and passed to the Property Management Branch for analysis, appraisal and recommendation. If the value of any parcel is in excess of $100,000 then an appraisal willbe by an independent appraiser. b) Buildings requiring redevelopment that are included in the list will be advertised on an individual basis with proposals for the purchaseanddevelopment to be received by the Provertv Management Branch by a specificdate. Any proposals received will be evaluated by staff and recommendations "jade by the City Manager to Council for approval. Applications for sale of any parcel of vacant land received by Property Management Branch for review, analysis, appraisal and negotiation. Also #5 - If acceptable proposals are received on any particular property, a staff appraisal will be completed and an independent appraisal acquired if the value is in excess of $50,000. Negotiations would then be carried out by staff. 4. Same except proposals are to be received by the Common Clerk. - 2 - '1111191M c) Surplus buildings not included in 3(b) may be advertised on an individual basis by listing them for a period not to exceed 90 days with a Real Estate Company that will use the Multiple Listing Service. The listing price will be based on an appraisal completed by staff (or by an independent appraiser if value exceeds $100,000) and will be approved by Common Council. The Real Estate Company will. be chosen by the Property Management Branch from a list of qualifieF -companies who have applied to be placed on such a list with the companies being chosen on a rotating basis. 4. Any property on the list of surplus properties would be available for sale for a period of one year after Council's approval without further public notice. Persons interested in purchasing these properties after the closing time for tenders would make application in writing to Deputy Commissioner, Property Management_. A staff appraisal would be completed and negotiations carried out for sale of the property at or near the appraised value. 6. Same except does not designate who has the authority to chose the Real Estate Company and states they will be advertised wT'ta Real Estate Company. 7. Same except written applications are received by the City Manager's Office. 5. At the conclusion of 8. Same. negotiations on any property, a report and/or recommendation will be made to Common Council. - 3 - SALE OF PROPERTIES - INITIATED BY OTHERS If the property is not on the surplus property list, or if more than one year has elapsed since Council's approval of the list, then application for purchase will be directed to the Deputy Commissioner, Property Management. Following input from other City Departments a report/recommendation will be made to Common Council. If the decision is made by Council to dispose of the property, it will be publicly advertised unless circumstances indicate this is not practical, in which case the sale price must, be at least 10% above the appraised value. Flow Chart: Staff ---> City Manager --.N Council. PRESENT B 1) Applications for properties on the surplus property list would follow the procedure outlined previously. 2) Application for property not on the surplus list would be made to Common Council and referred to City Manager for recommendation. Flow Chart: Council —> City Manager —;*Staff —> City Manager —> Council . No public advertising specified. CONDITIONS TO BE ATTACHED TO SALE OF PROPERTY 11m9owl 1. in evaluating proposals or Same applications for the purchase of City property, City staff shall consider the benefits to the City by the sale of the land (1) on its tax base, (2) potential terms of employment to be derived from the proposed use of the land, (3) the potential use of the land for the benefits of the City or for charitable or health organizations. im - 4 - MIT"1191M 2. It shall be a policy of the City that generally speaking, the City shall not release or convey land unless a use of the land is proposed and in such case there shall be a time factor specified during which the land is to be developed. Any recommendation for sale shall contain a time during which a proposed development does not take place, the City shall be entitled to repurchase the property within the time period specified in the sale agreement at the purchase price or at a nominal fee is such can be negotiated. WIM PURCHASE OF PROPERTY FOR CITY PURPOSES - INITIATED BY CITY 1. If privately -owned properties are required in order to carry out a project approved by Council, then the Department or agency responsible for the project will prepare plans showing the property required, and request the Property Management Department to commence negotiations for the acquisition, 2. Independent appraisal may be obtained if value exceeds $100,000. 3. If projects approved by Council have some flexibility in the matter of property requirements, then proposals for the required property may be invited; following the same procedure as for the sale of properties. •.M " D (1) Same (2) Independent appraisal may be obtained if value exceeds $50,000. (3) Same -5 - PROPOSED 5 - PROPOSED PRESENT 4, At the conclusion of negotiations (4) Same on any property, a report/ recommendation will be made to Common Council. 5. If the negotiations to purchase (5) Same do not result in the agr6ement of both parties, an indep6ndent appraisal may be obtained, if a recommendation may be made to Common Council that expropriation procedures be started. PURCHASE OF PROPERTY FOR CITY PURPOSES - INITIATED BY OTHER PROPOSED PRESENT 1. Offers to sell property to the E (1) Offers to sell property to City would be directed to the the City should be Deputy Commissioner, Property directed to Common Management. Council and referred to the City Manager for a recommendation. 2. Staff will investigate any (2) Same beneficial use the City may have for such property, and a recommendation/report will be made to Common Council. 3. If the principle of purchase of (3) Same such property is ultimately approved by Council, acquisition of the property will be commenced following the appraisal and negotiating procedures as in 2,4 and 5 (Purchase of property for City Purposes - Initiated by the City). Flow Chart: Staff —> City Manager Flow Chart: Council ---> City Council. Manager —.> Staff —>City Manager ---o Council. Amendment to Acquisition or Disposal of Property Policy on February 11, 1991 RESOLVED that as recommended by the City Manager, the policy regarding acquisition or disposal of property be amended by changing Clause 2 of the section entitled "Conditions to be Attached to Sale of Properties" to read as follows: 2. (a) It shall be a policy of the City that the City shall not release or convey land unless a use of the land is proposed. (b) Sale of such land will be on condition that the proposed development will reach a specified point of completion within a mutually -agreed timeframe. This clause shall be generally interpreted to be that the placement of footings shall be completed within one year of the time of transfer of title. (However, dependent upon specific circumstances, alternative conditions may be imposed by Council.) (c) Where the specified timeframes are not met, the City may exercise its option to reacquire the property for the purchase price or for such other forms of restitution as may be decided by Council.