9395-03 Amend Chapter 2, Article 17, Providing for a Deposit prior to Advertising for Sale of Property

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ORDINANCE NO. ~ 3 ~ ~ ° ~ ORDINANCE AMENDING CHAPTER 2, ARTICLE 17 OF THE SOUTH BEND MUNICIPAL CODE PROVIDING FOR A DEPOSIT PRIOR TO ADVERTISING FOR SALE OF PROPERTY STATEMENT OF PURPOSE AND INTENT From time to time the City will determine that certain real property with an assessed value of less than $5,000 should be sold under IC 36-1-11-5 to an interested adjacent property owner or other buyer. The usual procedure in such circumstances is that an interested party will inquire as to the availability of the property, and the City will then advertise to sell the property awarded to the highest bidder. Occasionally no bid is ever received, even from the person who originally inquired. In those circumstances, the City of South Bend loses the cost of the advertisement, plus labor and other associated costs. To help offset such costs, it is proposed that a deposit be required of the person requesting that the property be advertised for sale. NOW, THEREFORE, BE IT ORDAINED BY THE SOUTH BEND COMMON COUNCIL as follows: Section 1. Article 17 of Chapter 2 of the South Bend Municipal Code entitled "Charges for Reports and Services" shall be amended by adding §2-206 to read as follows: Section 2-206. Deposit Required Prior to Advertisement for Sale of Land (a) A $100.00 per parcel deposit shall be required of any party (except for other governmental entities and not-for-profit corporations qualified under 501(c) of the Internal Revenue Code) who requests that the City sell a particular parcel of land prior to advertisement. (b) The deposit shall be collected by the Department of Public Works at the time of the request and shall be applied as follows: 1. If the City determines for whatever reason that it cannot or should not sell the property, the entire deposit shall be returned to the requesting party. 2. If the property is put up for sale and no bid is received, the deposit shall become the property of the City. 3. If the property is sold to someone other than the requesting party, the deposit shall be returned to the requesting party.