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Item 4.
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| City Council Work Session | |
| Date: | 11/21/2022 |
| Title: | Council Property Initiative - GIS Map Walk-Through |
| Presented by: | Andy Zoeller, Finance Director |
| Department: | Finance |
| Presentation: | Yes |
| Legal Review | No |
RECOMMENDATION
No staff recommendation is provided at a work session
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
On 05/09/22 City Council passed an initiative which “directed staff, within the next 90 days, to compile a list of City-owned properties; put together a process to encourage development proposals; and identify costs involved”. City staff has reviewed all properties and marked them as "recommended for sale" if they do not serve an operational need for the City. All properties can be viewed online here: https://billings.maps.arcgis.com/apps/webappviewer/index.html?id=150d79100b924cb78e616bdc61b135a3
Billings Municipal Code Section 22-902 addresses the sale of property:
Sec. 22-902. - Sale, exchange or donation of city real property.
(1) Subject to the provisions of subsections (a) and (b) below, the city council may sell, exchange or donate any real property belonging to the city, including property held in trust for a specific purpose, by a resolution passed by six (6) of the city council members present. The city council shall advertise for competitive bids on any real property prior to sale, exchange or donation. The city council shall have the authority and discretion to select the bid that is in the best interest of the city, conditionally accept a bid or it may reject any and all bids. Other local, state or federal governmental entities expressing interest shall be exempt from competitive bidding, and the city council may sell, exchange or donate specific real property to such governmental entities without a competitive bidding process. However, the council shall proceed as provided in subsections (a) and (b) and approve the Resolution described above when considering the sale, exchange or donation to another governmental entity.
In its discretion, the city council may consider and impose deed restrictions relating to the use or subsequent sale of the property as a condition of the sale, exchange or donation of land.
Prior to selling exchanging or donating said real property, the city administrator or his/her designee shall:
(a) Publish notice in the legal newspaper of the city of the intention to sell, exchange or donate such property and requesting competitive bids prior to the sale, exchange or donation of such lands, giving the public the opportunity to be heard regarding such action. Said notice shall be published no less than fifteen (15) days in advance of the date of the public hearing.
(b) Notify by mail all property owners within three hundred (300) feet of the exterior boundaries of the real property subject to sale, exchange or donation fifteen (15) calendar days in advance of the time, date, place of the public hearing and the existing and proposed use.
(2) Leases of city-owned real property shall be excluded from this section and will be approved in the same manner as all other contracts submitted to the city for approval.
(3) The city administrator is hereby authorized to establish procedures to implement this section including establishment of sale criteria or conditions, a minimum sale price or exchange value and shall have discretion to develop individualized marketing plans to maximize land value and promote city land use policies. The city administrator is authorized to prepare all appropriate documents for signature by the mayor.
(Ord. No. 12-5578, § 1, 9-10-12)
First, the City must publish notice of a public hearing regarding the City's intention to sell, exchange, or donate property. Then, Council conducts a public hearing and Council may pass a resolution allowing for the disposal of the property. Third, proposals are received and reviewed, and a public hearing is set for Council to consider the bids/proposals. All property owners within 300 ft of the identified property are notified of the public hearing. After conducting the public hearing, Council then approves the best proposal or decides not to accept any proposals.
The ordinance seems to require two public hearings, which is not necessary. We suggest amending this ordinance to bring more clarity to the process and to provide more options for the city to dispose of property, such as auction, direct negotiation (once the public is provided a time to compete) and a more traditional realtor involved process. If you concur, staff will draft the amendments for consideration.
Billings Municipal Code Section 22-902 addresses the sale of property:
Sec. 22-902. - Sale, exchange or donation of city real property.
(1) Subject to the provisions of subsections (a) and (b) below, the city council may sell, exchange or donate any real property belonging to the city, including property held in trust for a specific purpose, by a resolution passed by six (6) of the city council members present. The city council shall advertise for competitive bids on any real property prior to sale, exchange or donation. The city council shall have the authority and discretion to select the bid that is in the best interest of the city, conditionally accept a bid or it may reject any and all bids. Other local, state or federal governmental entities expressing interest shall be exempt from competitive bidding, and the city council may sell, exchange or donate specific real property to such governmental entities without a competitive bidding process. However, the council shall proceed as provided in subsections (a) and (b) and approve the Resolution described above when considering the sale, exchange or donation to another governmental entity.
In its discretion, the city council may consider and impose deed restrictions relating to the use or subsequent sale of the property as a condition of the sale, exchange or donation of land.
Prior to selling exchanging or donating said real property, the city administrator or his/her designee shall:
(a) Publish notice in the legal newspaper of the city of the intention to sell, exchange or donate such property and requesting competitive bids prior to the sale, exchange or donation of such lands, giving the public the opportunity to be heard regarding such action. Said notice shall be published no less than fifteen (15) days in advance of the date of the public hearing.
(b) Notify by mail all property owners within three hundred (300) feet of the exterior boundaries of the real property subject to sale, exchange or donation fifteen (15) calendar days in advance of the time, date, place of the public hearing and the existing and proposed use.
(2) Leases of city-owned real property shall be excluded from this section and will be approved in the same manner as all other contracts submitted to the city for approval.
(3) The city administrator is hereby authorized to establish procedures to implement this section including establishment of sale criteria or conditions, a minimum sale price or exchange value and shall have discretion to develop individualized marketing plans to maximize land value and promote city land use policies. The city administrator is authorized to prepare all appropriate documents for signature by the mayor.
(Ord. No. 12-5578, § 1, 9-10-12)
First, the City must publish notice of a public hearing regarding the City's intention to sell, exchange, or donate property. Then, Council conducts a public hearing and Council may pass a resolution allowing for the disposal of the property. Third, proposals are received and reviewed, and a public hearing is set for Council to consider the bids/proposals. All property owners within 300 ft of the identified property are notified of the public hearing. After conducting the public hearing, Council then approves the best proposal or decides not to accept any proposals.
The ordinance seems to require two public hearings, which is not necessary. We suggest amending this ordinance to bring more clarity to the process and to provide more options for the city to dispose of property, such as auction, direct negotiation (once the public is provided a time to compete) and a more traditional realtor involved process. If you concur, staff will draft the amendments for consideration.
ALTERNATIVES
City Council may:
- Approve; or,
- Not Approve
FISCAL EFFECTS
The financial impact is unknown and varies based upon the individual properties
SUMMARY
Our goal for the meeting is to show the Council how to navigate the interactive GIS map and to receive feedback on making amendments to Sec. 22-902. - Sale, exchange or donation of city real property.