Chapter 3.14 - PURCHASE, SALE AND LEASE OF REAL PROPERTY
Part of the Code of Ordinances of South Salt Lake, UT.
The text
Sections:
3.14.010 - Definitions.#
"Purchase" of an interest in real property shall include dedication, acquisition for value, donation or trade. "Reasonable notice" for purposes of the sale of a significant parcel of real property shall mean publication in a newspaper of general circulation within the city of the city's intent to declare a parcel of property to be surplus and to sell the parcel. The notice shall identify the parcel by its approximate street address and its approximate size and shall set forth the date, time and place that the public will have the opportunity to comment on the proposed sale. The notice shall be published at least fourteen (14) days in advance of the opportunity provided by the city for public comment.
"Significant parcel" shall mean any parcel of real property the fair market value of which, as determined any reasonable evaluation method, is greater than twenty-five thousand dollars ($25,000.00), the total acreage of which exceeds five thousand (5,000) square feet or the annual rent for which, under a lease agreement, exceeds ten thousand dollars ($10,000.00). The following parcels, whether or not they meet or exceed the value and size criteria, are excluded from this definition: A.
Parcels disposed of by the city as part of a boundary line agreement or adjustment;
B.
Parcels created by a right-of-way vacation or an easement vacation;
C.
Parcels that are not developable unless combined with an adjacent parcel. A parcel will be considered not to be developable if it cannot be independently developed due to city ordinance requirements or due to the unique physical characteristics of the parcel; and
D.
Parcels acquired by eminent domain or other means if the city is statutorily or contractually obligated to first offer the parcel to a specific party, provided that the parcel is offered, sold or conveyed to the party holding the right to acquire the parcel.
(Ord. 2003-09 (part))
3.14.020 - Purchase or lease of real property.#
Interests in real property shall be purchased, leased or otherwise acquired under the direction of the mayor and no other officer or employee shall be authorized to purchase or lease interests in real property on behalf of the city. A.
The mayor shall obtain the approval of the city council for the purchase, lease or acquisition of any significant parcel of real property unless the city council has already appropriated and specifically identified funds for the purchase or lease of the real property in a budget line item. The city council shall give its approval by resolution. The resolution shall identify the budgetary source from which the purchase will be paid.
B.
Any contract for the purchase or lease of a significant parcel of real property signed by the mayor shall be made contingent upon approval by the city council.
C.
Prior to giving its approval for the purchase, lease or acquisition of any significant parcel of real property, the mayor shall:
1.
Certify to the city council that the city has sufficient funds to pay for the purchase, lease or acquisition of any significant parcel of real property according to the proposed contract terms;
2.
Explain how the city may finance the purchase or lease of the interest in real property, if sufficient funds are not available;
3.
Identify the specific line item(s) in the budget where the funding has been authorized;
4.
Identify the specific line item(s) in the budget from where funding can be transferred by budget amendment, if no specific line item has been authorized; or
5.
Identify that fund balance or reserves will be used to fund the acquisition.
D.
Discussions with the city council regarding the purchase, lease or acquisition of real property should occur in closed session when a public discussion of the transaction would disclose the appraisal or estimated value of the property or lease, or prevent the city from completing the transaction on the best possible terms. After discussing the confidential aspects of a real property purchase or lease in closed session, the city council may reconvene in public session to give its approval, by resolution, of a purchase or lease of real property. In the public session, the city council may retain confidential any aspect of the purchase or lease that would prevent the city from completing the transaction on the best possible terms until after the transaction has been consummated.
E.
Prior to the purchase or acquisition of any significant parcel of real property the city shall obtain an appraisal of the parcel.
F.
Prior to the purchase of any parcel of real property in fee simple by the city, and in addition to the disclosures generally required from the seller as part of a real estate transaction, the city shall require the seller of the property to disclose the following:
1.
The history of uses of the property for the past fifty (50) years;
2.
Whether or not the property is at natural grade level or has been filled; and
3.
The types of businesses or activities that have been conducted on the property.
G.
Prior to the purchase of any parcel of real property in fee simple, the city shall commission an environmental assessment of the site by a qualified professional engineer.
1.
The scope of the environmental assessment and the firm or professional to be utilized in the performance of the environmental assessment shall be approved by the mayor prior to the commencement of the assessment.
2.
When a report has been completed indicating the presence of any materials in violation of the state department of health, Salt Lake County board of health regulations and/or the regulations of the Environmental Protection Agency pertaining to hazardous waste and/or petroleum products, the report shall include an estimated cost of removal of the hazardous materials.
(Ord. 2003-09 (part))
3.14.030 - Sale of real property.#
A.
From time to time, the mayor or his or her designee shall compile a list of surplus city real property. If a parcel of surplus property is not a "significant parcel", the mayor may sell it for fair market value using any means that is reasonable, fair and advances the best interest of the city.
B.
If the parcel of surplus property is a "significant parcel", the following procedures shall apply:
1.
Reasonable notice, as defined in Section 13.14.010, shall be given of the city' s intent to declare the parcel surplus and to place it for sale and the matter shall be scheduled, consistent with the notice requirements of Section 13.14.010, on the city council agenda.
2.
At the city council meeting during which the sale of the real property is considered, the public shall be given the opportunity to comment on the proposed sale.
3.
After receiving public comment, the city council may adopt a resolution declaring the parcel of real property surplus and authorizing the mayor to sell it for fair market value using any means that is reasonable, fair and advances the best interest of the city.
(Ord. 2003-09 (part))
3.14.040 - Leasing city-owned real property.#
A.
The mayor may lease an interest in real property owned by the city for a term of five years or less, for fair market value, by means that are reasonable, fair and advance the best interest of the city.
B.
Prior to entering into any lease of an interest in real property owned by the city for a term of greater than five years, the mayor shall first obtain the approval of the city council as follows:
1.
Notice of the intent to lease city property for a term of greater than five years shall be given by placing it as an item on the city council agenda.
2.
The city council may grant its approval by adopting a resolution authorizing the mayor to lease the property for a term of greater than five years for fair market value, by means that are reasonable, fair and advance the best interest of the city.
(Ord. 2003-09 (part))