1-08-RFP-25 Attachment A - Admin Code G.34.2 Sale of City CRA Surplus Real Estate.pdf

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ADMINISTRATIVE CODE

Latest Revision Date: Effective Date:

October 20, 2020 A.C. Number: G.34.2

{replaced AC 77} July 1, 2021 Subject: City Manager Approval:

Sale of City & CRA Surplus Real Estate

ALL DEPARTMENTS

PURPOSE

To establish a procedure for the sale of City-owned real estate designated as surplus that is not located within a community redevelopment area and applicable to Section 163.380(3)(a), Florida Statutes.

OBJECTIVE

To provide guidelines which regulate the sale of City-owned real property designated as surplus.

RESPONSIBILITIES

1. The City Council shall be responsible for approving the list of all surplus City-owned real estate that is available for sale.

2. The City Council shall approve the listing price for all property sales based on the Comparable Market Analysis as provided by the Broker. Council shall be responsible for approving the sale of all surplus City-owned real estate.

3. The City Manager, or designee, shall determine the method for disposition of the real property taking into consideration the best use and highest value to the City.

4. The City Attorney, or designee, shall review and render an opinion as to the legality of the transfer of the surplus City-owned real property.

5. Parks & Recreation, Facilities, Public Works, Utilities, Police and Fire Department staff shall review properties considered for sale to ensure that subject properties are not required for future needs.

6. Land Development division of the Growth Management department shall review the proposed use of each real estate parcel and provide a written determination on whether intended use is permissible per the Land Development Code and site is considered developable as-is or as part of an assemblage of adjacent properties.

7. The City Clerk shall maintain and revise the City’s Property Rolls following the actual disposition of real estate and shall notify the Risk Management Department of the sale of any real estate.

ATTACHMENT A

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8. The Risk Management Department shall adjust the City’s insurance policies as necessary.

PROCEDURES

The Processes for disposal of surplus real estate should be considered in the order established below:

1. Special Disposition Process

Surplus property may be disposed of directly to a public agency at its request upon a determination that the public agency’s use shall be for public use. The City may donate the real property or dispose of it at a price representing the fair market value based on recent comparable sales.

2. Adjacent property owners

The City Manager, designee or contracted real estate broker, may negotiate a sale price for a surplus real property with an adjacent property owner if at least one of the following applies:

a. The parcel is not buildable by itself under its current zoning.

b. The parcel is a buildable parcel under its current zoning designations, and the combining of the parcel to an adjacent parcel would provide better development from a planning perspective than the development of the surplus real property by itself.

c. The parcel can only be put to its highest and best use when combined with an abutter’s property because of its size, shape, topography, or other restriction.

d. The parcel is a remnant and is below the average normal standard size and shape of other privately-owned properties in the immediate neighborhood.

e. The sale of the parcel to other than an adjacent property owner may cause an undue or unfair hardship to such adjacent owner in the standard land use development or operation of his/her property.

f. The sale of the parcel to other than an adjacent property owner would deprive the adjacent owner of an existing vested right of access to a public right-of-way and thereby create a possible cause of action against the City.

g. Each adjacent property owner shall be provided a 30-day notice of the availability of the surplus property. If more than one (1) adjacent property owner is interested in acquiring the property and have offered to purchase the property for the listed price established by the City or its contracted

3 | P a g e real estate broker, all interested parties will be notified of the multiple offers and requested to submit their highest and best offer within three (3) business days. The City Manager shall determine which offer should be accepted based on the quality of the offer submitted and the highest and best use of the property and make a final recommendation to City Council.

h. At a City Council meeting, Council shall approve the sale of all surplus real estate. Council may designate the City Manager to execute purchase contracts.

i. If no adjacent property owners indicate an interest in acquiring the surplus real property, the property shall be offered to the general public.

3. Listing with a Real Estate Broker

a. A Real Estate Broker licensed by the State of Florida shall be selected through a request for proposal (RFP) as outlined in the policies and procedures of the City’s Procurement department.

b. Property consisting of five (5) acres or more and deemed suitable as commercial or industrial shall have a value determined by appraisal. The appraisal will be performed by a general appraiser licensed by the State of Florida and conform to the Uniform Standards of Professional Appraisal Practice (USPAP). The appraisal must be signed and certified by the appraiser and should include the appraiser's state license number.

c. Residentially-zoned properties under ten (10) acres and deemed suitable for only residential purposes, shall have the sale price determined through the Comparable Sales Method by the City’s contracted real estate broker. The broker shall compare prices paid for recently sold properties that are similar in size, characteristics, and location of the subject property to be sold.

d. All surplus City-owned real estate approved by the City Council shall at a minimum be advertised for sale through the local Multiple Listing Service (Space Coast MLS). The property shall be posted with a “For Sale” sign with the Real Estate Broker’s name and information.

e. The contracted Real Estate Broker shall maintain all records pertaining to the sale of surplus City-owned real property, to include but not limited to the valuation of property (appraisal or comparable sales method), Master Listing Agreements, marketing collateral of surplus real estate, offers, counteroffers, and any and all relevant documents, and provide a copy of same to the City for public records purposes.

f. City Manager, or Designee, may review and send counteroffers through the contracted real estate broker, and make a final recommendation to City Council.

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g. At a City Council meeting, Council shall approve the sale of all surplus real estate. Council may designate the City Manager to execute purchase contracts.

h. Purchasers of City surplus real estate, through a Real Estate Broker, shall deposit earnest money into escrow in an amount equal to ten percent (10%) of the purchase price within three (3) business days of execution of a purchase and sale agreement for the purchase of the property.

4. Disposition by Auction

a. Property may be sold through an auction sale utilizing agreement(s) for auctioneer services established in accordance with Chapter 38 (Procurement Department) of the City’s Code of Ordinances.

b. Where property is sold at auction, the prevailing bidder must comply with the deposit and escrow requirements as earnest money to outlined in an agreement between the City and auctioneer. In the event the purchaser is unable to pay the remaining amount within the required time, the earnest money deposit shall become nonrefundable and may be retained by the City as liquidated damages.

c. If the real property is not sold because of the auction process, the property may be sold to the party who makes the highest reasonable offer to purchase the property contingent on City Council approval.

d. At a City Council Meeting, City Council shall approve the sale of all surplus real estate. Council may designate the City Manager to execute purchase contracts.

5. Disposition by Request for Proposal

a. Property is sold through a process that includes a request for proposal

(RFP).

b. An RFP shall be publicized by electronic means and, if legally necessary, by advertisement in print media. A specification document, including any applicable criteria for quantitative scoring or rating of all applicant proposals, shall be made available to any person or entity which the City determines would be a qualified developer/buyer.

c. Upon the selection of the developer/buyer that receives the highest score or rating for its proposal, and which demonstrates its ability to meet any required conditions, the City Manager, or designee, shall prepare a recommendation for approval by City Council.

d. At a City Council meeting, Council shall approve the sale of all surplus real estate. Council may designate the City Manager to execute purchase

5 | P a g e contracts.

6. Unsolicited Offers/Disposition by Public Notice

a. Unsolicited offers on real estate owned by the City or CRA which are brought forth by a member of the general public, and during a period in which the City does not have a contracted Real Estate Broker, may be entertained by the City Manager, or Designee.

b. Upon receipt of an unsolicited offer, the City Manager, or Designee, shall follow the standard internal due diligence process to ensure that such propert(ies) are not required for future infrastructure or parks needs.

c. The City shall notify the general public of the availability of City or CRA-owned real estate and shall provide a 30-day notice of the availability of the surplus property. If more than one (1) member of the general public is interested in acquiring the property and have offered to purchase the property, all interested parties will be notified of the multiple offers and requested to submit their highest and best offer within three (3) business days. The City Manager shall determine which offer should be accepted based on the quality of the offer submitted and the highest and best use of the property and make a final recommendation to City Council.

d. At a City Council meeting, Council shall approve the sale of all surplus real estate. Council may designate the City Manager to execute purchase contracts.

e. Purchasers of City surplus real estate shall deposit earnest money into escrow in an amount equal to ten percent (10%) of the purchase price within three (3) business days of execution of a purchase and sale agreement for the purchase of the property.

Property Condition and Environmental Due Diligence

The potential purchaser of any surplus real property is responsible, but is not obligated, for conducting due diligence to determine the environmental condition of the property. The potential purchaser may be required to provide the City with a copy of any environmental studies or reports related to the property, such as Phase I of Phase II environmental site assessment reports. The City shall make available for viewing any environmental reports it has on the property to the purchaser who enters a contract for purchase. Unless provided otherwise, all property shall be sold ‘as is’.

Funds from Sale

Funds from the sale of real property will be distributed into appropriate City accounts complying with any intent or restrictions placed on the property when acquired. For instance, General Development Corporation settlement properties designated for

6 | P a g e road fund; drug related forfeiture properties into the appropriate police fund;

enterprise operation properties in enterprise funds, etc.

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BAYFRONT COMMUNITY REDEVELOPMENT AGENCY (CRA)

PURPOSE

The disposal of property within the community redevelopment area is governed by Section 163.380, Florida Statutes.

OBJECTIVE

To provide guidelines which regulate the sale of CRA-owned real property.

RESPONSIBILITIES

1. The Bayfront CRA Board of Commissioners, through its powers established within Section163.380, Florida Statutes, shall be responsible for approving the sale, lease, disposition, solicit private development proposals, or otherwise transfer of real property or any interest therein acquired by it for community redevelopment to any private person, and shall have the right to retain such property for public use, and may enter into contracts for residential, recreational, commercial, industrial, educational, or other uses, in accordance with the Bayfront Community Redevelopment District 2024 Plan (Plan), adopted in February 2010.

The Bayfront CRA Board of Commissioners shall approve a list of available CRA-owned real estate for sale, lease or otherwise transfer real estate and give public notice of such disposition by publication in a local newspaper having general circulation for at least 30 days prior to the execution of any contract.

2. The Bayfront CRA Executive Director, or designee, shall determine the method for disposition of real estate taking into consideration the goals of the Plan and the highest and best use for the redevelopment area.

3. The City Attorney, or designee, shall review and render an opinion as to the legality of the transfer of CRA-owned real estate.

4. The Land Development division of the Growth Management department shall review the proposed use of each real estate parcel and provide a written determination on whether the intended use is permissible per the Land Development Code and site is considered developable as-is or as part of an assemblage of adjacent properties.

5. The City Clerk shall maintain and revise the City’s Property Rolls following actual lease, disposition or transfer of real estate and shall notify the Risk Management Department of the sale of any real estate.

6. The Risk Management Department shall adjust CRA insurance policies as necessary.

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7. The City Council shall be responsible for approving the sale of any jointly owned City and CRA-owned real estate within the community redevelopment area following approval by the Bayfront CRA Board of Commissioners.

PROCEDURES

Process for the disposal or transfer of CRA-owned real estate should take into account and give consideration to the following:

1. Short and Long-Term Leases

a. The Bayfront Executive Director, or designee, shall consider the public interest for uses in accordance with the Plan for the short and long-term lease of CRA-owned real estate. In no instance shall any lease extend beyond the expiration of the CRA.

b. The City Attorney, or designee, shall draft a lease agreement for use of CRA-owned real estate to include length of term, compensation, allowable uses, maintenance and insurance.

c. The Bayfront CRA Board of Commissioners shall authorize its Chair and Bayfront CRA Executive Director to enter into and execute lease agreements.

2. Sale of CRA-owned using a contracted real estate broker

a. The Bayfront CRA shall follow the City’s guidelines for sale of CRA surplus real estate when listing properties with a Real Estate Broker as outlined above in Section 3 of this administrative code for the sale of City surplus real estate.

b. The buyer or lessee of such real estate shall be obligated to use and develop such property in accordance with the goals and objectives of the Plan.

c. The buyer or lessee of such real estate shall be obligated to occupy and develop such property within an established timeframe as approved by the CRA Board at the time of sale or otherwise transfer of property.

d. The Bayfront CRA may provide in any instrument of conveyance to a buyer that such transfer of property is without power to sell, lease, or otherwise transfer the real estate without prior written consent of the CRA until the buyer has completed the construction of any or all improvements which the buyer has been obligated.

e. The Bayfront CRA shall utilize the City’s guidelines in determining the sale value of property as outlined above in Section 3 of this administrative code for the sale of City surplus real estate.

f. In determining the value of CRA-owned real estate, the CRA shall also consider the public interest for uses in accordance with the Plan for the

9 | P a g e prevention of the recurrence of slum or blight and the long-term benefits to the redevelopment area from the sale of CRA-owned real estate.

g. The Bayfront CRA Executive Director, or designee, may review and send counteroffers through the contracted real estate broker, to the buyer.

h. The Bayfront CRA Board of Commissioners shall approve all final offers for the sale of CRA-owned real estate and authorize its Chair and the Bayfront CRA Executive Director to enter into and execute contracts.

3. For properties which are jointly owned by the City and CRA, the City Council shall approve and jointly enter into and execute contracts. For such properties, City Council shall approval the sale of all surplus real estate. Council may designate the City Manager to execute purchase contracts.Transfer of property through Request For Proposals (RFP)

a. The Bayfront CRA shall give public notice of any solicitation of private development proposals by publication in a local newspaper having general circulation for at least 30 days prior to the execution of any contract.

b. The Bayfront Executive Director, or designee, shall coordinate with and adhere to the policies and procedures of the City’s Procurement Department to prepare, advertise, score and select solicitations of private development proposals.

c. The Bayfront CRA may accept such proposal as it deems to be in the public interest and in accordance with the goals and objectives of the Plan.

d. Except in the case of a governing body acting as the Bayfront CRA Board of Commissioners (such is the case for Bayfront CRA) as provided in Section 163.357, Florida Statutes, a notification of intent to accept such proposal must be filed with the governing body not less than 30 days prior to any such acceptance. ** It is at the discretion of the Bayfront CRA Executive Director to follow this procedure although not required per Florida Statutes.

e. The Bayfront CRA Board of Commissioners shall approve all final offers for the sale of CRA-owned real estate and authorize its Chair and the Bayfront CRA Executive Director to enter into and execute contracts.

Property Condition and Environmental Due Diligence

The potential purchaser of any surplus real property is responsible, but is not obligated, for conducting due diligence to determine the environmental condition of the property. The potential purchaser may be required to provide the Bayfront CRA with a copy of any environmental studies or reports related to the property, such as Phase I of Phase II environmental site assessment reports. The CRA shall make available for viewing any environmental reports it has on the property to the purchaser who enters a contract for purchase. Unless provided otherwise, all

10 | P a g e property shall be sold ‘as is’.

Funds from Sale

Funds from the sale of real property will be distributed into appropriate Bayfront CRA accounts complying with any intent or restrictions placed on the property when acquired.