Item No: 5B.
Meeting Date: May 13, 2013
From: Raymond S. Sharp, Interim City Manager
Subject: Ordinance establishing procedures for sale and conveyance of real property owned by the City of Leesburg
Staff recommends approval of the ordinance.
Recently, while considering an agenda item for sale of real property owned by the city, a question arose with regard to whether or not procedures had been correctly followed. Upon further review by the City Attorney, it became apparent that the City Commission has not established procedures for sale and conveyance of real property owned by the city.
At my request, the City Attorney prepared this ordinance to establish standardized procedures for sale and conveyance of real property owned by the city. Upon adoption, the original property will again be offered for sale, strictly in accordance with these procedures.
1. Adopt the ordinance as presented; or,
2. Such alternative action as the Commission may deem appropriate.
The ordinance itself has no fiscal impact. However, it serves to establish procedures which will ensure that the city’s interests are adequately protected in the future.
Department: City Manager
Prepared by: R. Sharp
Attachments: Yes____ No X
Advertised: ____Not Required ______
Attorney Review : Yes X No ____
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. N/A
Project No. ___________________
WF No. ______________________
AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING §2 – 1 OF THE CODE OF ORDINANCES, PERTAINING TO THE SALE AND CONVEYANCE OF REAL PROPERTY OWNED BY THE CITY; ESTABLISHING A PROCEDURE FOR THE SALE OF PROPERTY DEEMED TO BE SURPLUS BY THE CITY; PROVIDING FOR EXCEPTIONS; PROVIDING A SAVINGS CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE.
BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:
§2 – 1 of the Code of Ordinances of the City of Leesburg, Florida, is hereby amended to read as set forth below:
Sec. 2 – 1. Conveying Real Estate – Authority of City; Procedure for Sale.
(a) The city may convey real estate in which the city has any real or apparent interest, after adoption by the City Commission of a resolution authorizing the conveyance and setting forth the terms and conditions of the sale thereof.
(b) If the City Manager deems any parcel of real property owned by the City to be unneeded, surplus, or otherwise desirable for sale, the City Manager may direct City staff to provide public notice soliciting bids for the property from the public, through legal advertisements in the newspaper, posting at City Hall, posting on the City web site, or such other means as the City staff deems necessary and appropriate to provide public notice of the opportunity to bid on the property. In addition, written notice shall be given by U.S. Mail to the owners of each parcel sharing a common boundary with the property to be offered for sale.
(c) Prior to initiating public notice for real property having an assessed value on the Lake County Property Appraiser’s records which exceeds $25,000.00, the City shall obtain at least one appraisal to determine the fair market value of the property prior to offering it for sale to the public. For parcels having a value on the tax roll of $25,000.00 or less, no appraisal is required but the City Manager shall have the discretion to direct staff to obtain an appraisal nonetheless. If an appraisal is obtained, the City shall not accept any offer which is more than 10% below the appraised value of the property.
(d) The public notice shall direct parties interested in bidding on the property to submit sealed bids stating the amount offered and terms of payment, along with any other pertinent conditions of the offer, by a date specified in the notice which shall be no less than 20 days after the initial publication of the notice. Once the deadline for submitting bids has passed, City staff shall open the bids and they shall be presented to the City Commission at its next regular meeting, for consideration.
(e) Ordinarily the City Commission will select the highest bidder to purchase the property, and direct staff to enter into a contract with the highest bidder (unless the bid included a contract offer signed by the bidder in which case the City Commission may approve the execution of the contract at that time). However, the City Commission may consider other factors in addition to whether a bid is highest, including but not limited to any conditions or contingencies specified in the highest bid which may make a bid other than the highest more attractive overall. The City Commission shall have the right to reject all bids for any reason whatsoever, and either re – advertise the property for sale, or direct the City Manager to retain the property rather than sell it.
(f) The procedures set forth in subsections (b) through (e) of this Ordinance are not required for every sale of real property owned by the City. The City Commission may direct the City Manager to offer any City owned real property for sale either through a real estate broker, by advertisement and posting of signs, by public auction, or by any other method, and may accept an offer on any City owned real property which has not been advertised for public bids, in the sole discretion of the City Commission. The procedures specified are intended to apply only to parcels of real property deemed unneeded or surplus which the City desires to sell for those reasons.
(g) The approval by the City Commission for execution by the Mayor of a contract for the sale of any City owned real property shall be deemed to include authorization for the Mayor, City Manager and other City personnel to execute all documents necessary and desirable to effectuate the closing of the transaction contemplated by the contract, without further approval of the City Commission.
All ordinances or part of ordinances which are in conflict with this Ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect of any of the conflicting ordinance, in which case those ordinances so affected shall be hereby repealed in their entirety.
If any portion of this Ordinance is declared invalid or unenforceable, and to the extent that it is possible to do so without destroying the overall intent and effect of this Ordinance, the portion deemed invalid or unenforceable shall be severed herefrom and the remainder of the ordinance shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable.
This Ordinance shall become effective upon its passage and adoption according to law.
PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the day of , 2013.
THE CITY OF LEESBURG, FLORIDA
DAVID KNOWLES, Mayor
BETTY M. RICHARDSON, City Clerk