2.197 Real Property | Medford Municipal Code

2.197 Real Property.

(1) This code section provides procedures and standards for the disposal of real property by the City.

(2) Classification. Real property owned by the City is classified as stated below. At the time of a proposed sale of real property by the City, the City Manager or the Manager’s designee shall determine the classification of the property.

(a) Substandard Undeveloped Property. Lots or parcels without structures that are not of minimum buildable size for the zone in which they are located or that cannot be developed for other reasons;

(b) Standard Undeveloped Property. Lots or parcels without structures that are of minimum or greater buildable size for the zone in which they are located and that can be developed;

(d) Special-Case Property. Any real property that, notwithstanding subsections (a), (b), and (c) of this section, was acquired by the City subject to an agreement restricting the use, transfer, or disposition of the property.

(3) Disposal of Substandard Undeveloped Property. The City Manager or the Manager’s designee is authorized to sell substandard undeveloped property by direct negotiation with an adjoining property owner. The City Manager or Manager’s designee may, but is not required to, use a real estate broker to assist the transaction.

(a) Any proposed sale of standard undeveloped property or developed property shall be set for a hearing before the Council. The Council may consider the sale of multiple properties at the hearing.

(b) The City Recorder shall cause notice of the hearing to be published once in a newspaper of general circulation in the City at least five days prior to the hearing describing the property proposed for sale. Notice shall also be mailed to property owners within 200 feet of the subject property.

(c) Public testimony shall be solicited at the hearing to determine if a sale of the property or any portion of it is in the public interest.

(d) After the hearing, the Council shall decide whether to offer the property for sale and shall establish minimum acceptable terms. The Council may consider appraisal(s) or other evidence of market value in establishing the minimum acceptable terms. The Council may decide to offer the property for sale only if it determines that the property is surplus to the City’s needs.

(e) The City shall obtain an appraisal or other evidence of market value before concluding any sale to a private entity. No appraisal is required for property which has a fair market value of less than $100,000, but other evidence of market value of such properties must be provided prior to sale to a private entity.

(f) If a sale is authorized by the Council, it may direct that the property be listed with the City’s real estate agent of record or direct that it be sold by bids. If sale is to be by a bidding process, a notice soliciting sealed bids shall be published at least once in a newspaper of general circulation in the City at least two weeks prior to the bid deadline date. The notice shall describe the property to be sold, the minimum acceptable terms of sale, the person designated to receive bids, the last date bids will be received, and the date, time, and place that bids will be opened.

(g) The City Manager or Manager’s designee is authorized to approve the sale of the property if the minimum acceptable terms set by Council are met.

(h) If one or more bids are received at or above the minimum acceptable terms, the highest bid shall be accepted and the City Manager or Manager’s designee shall complete the sale.

(i) If no acceptable bids are received, the Council may:

(i) Accept the highest bid among those received;

(ii) Direct staff to hold another sale, with the same or amended minimum terms;

(iii) Direct the property to be listed with the City’s real estate agent of record, or if the City does not have a real estate agent of record, with a local real estate broker on a multiple listing basis;

(iv) Decide to keep the property.

(j) Notwithstanding the provisions of this section, the Council may adopt, after public notice and hearing, a resolution establishing a procedure for the sale of individual parcels of a class of City-owned real properties, or any interest in the properties, under a single program established within the City for the sale of that class of properties. The City may thereafter sell any parcel under that adopted procedure in lieu of the procedure established in this section, as allowed by state statute.

(k) Notwithstanding the provisions of this section, the Council may authorize, after public notice and hearing, sale or lease of property not needed for a public purpose to certain non-profit organizations for nominal consideration. The Council may use a Request for Proposal process to solicit proposals for sale or lease of surplus property to non-profit entities. Properties sold or leased to such organizations must be used for the purposes of the organization and not for commercial business, trade, or manufacturing. If the properties are used in violation of this restriction, title to the property shall revert back to the City or the lease shall be terminated. Non-profit organizations which may acquire or lease property from the City in this manner include organizations that principally provide educational, recreational, medical, or social services to the public.

(5) Broker Selection. The City may retain a real estate broker of record or retain real estate brokers on a case-by-case basis.

(6) Transfer of an Interest Other Than Fee Title. The transfer of an interest in real property by the City is not a sale of surplus real property if the City retains title to the property. The City may transfer an easement or other interest in real property less than fee title.

(7) Transfer to Governmental or Non-Profit Entity. The City Council may authorize transfer of real property of any type to another governmental entity or to a nonprofit entity, with or without consideration, for so long as the property is used for public purposes by the entity to which it is transferred. The agreement shall provide for return of the property to the City if the property is no longer used by the transferee for public purposes.

(8) Special-Case Property. The City shall comply with all agreements and restrictions applicable to special-case property. The City may transfer special-case property following any of the applicable procedures provided by this chapter, subject to the restrictions imposed by deed or agreement. If the deed or agreement provides a procedure for transfer by the City, the City may transfer the property as provided by the deed or agreement.

(a) The City Council may authorize the trade or exchange of real property with other governmental entities or with private parties.

(b) The City shall exchange real property with private entities only if the City receives at least equivalent value for the property it transfers. Payments may be made to compensate for any imbalance in the value of the property exchanged.

(c) For exchanges with private entities, the City shall require or obtain an appraisal or other evidence of market value if the value of the property transferred by the City or received by the City exceeds $100,000.

(d) In determining the relative value of the properties exchanged, in addition to the factors normally considered in determining the value of property, the City may consider the following factors:

(i) Whether the property is adjacent to or otherwise enhances the value of other property the City owns.

(ii) The suitability of the property for City use.

(iii) Whether the transfer of the property being transferred by the City to a private party will result in a benefit to the City or community. Potential benefits may include allowing more cohesive development of an area, providing needed housing or employment opportunities, or increasing the City’s tax base.

(10) Procedures for Specific Types of Properties. The Council may by resolution establish procedures for the sale of specific types or categories of real property that differ from the procedures required by this chapter.