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HomeMy WebLinkAboutEstablishing Procedures for the Disposition and Rental of Real Property owned City of South BendORDINANCE No Passed by the Common Council of the City of South Bend, March 27 n 5387 -72 19 72 IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana Approved and signed by March 28 MARCH 28 72 Clerk of Common Council IRENE K. GAMMON 9_12_ Clerk ORDINANCE NO. 5387 - 72 AN ORDINANCE ESTABLISHING PROCEDURES FOR THE DISPOSITION AND RENTAL OF REAL PROPERTY OWNED BY THE CITY OF SOUTH BEND, INDIANA, AND FOR OTHER PURPOSES. STATEMENT OF PURPOSES AND INTENT The City of South Bend, Indiana, is authorized by Section 18- 1 -1.5 -2 (d) of the Indiana Code (Burns, Sec. 48 -1452 (d) ) to dispose of its interests in real property owned by the City. Section 18- 1- 1.5 -17 of the Indiana Code (Burns, Sec. 48 -1467) provides that procedures for the exercise of powers conferred upon the City, where not established by State law, shall be established by Ordinance. The provision of State law which established procedures for disposi- tion of property (Sec. 18 -1 -4 -1 of the Indiana Code; Burns, Sec.48- 1407) was repealed by Indiana Acts 1971, P. L. 250, Sec. 1. The City of South Bend, Indiana, intends by this Ordinance to establish such procedures as will provide a responsible and expeditious means to dispose of City -owned property which is not necessary for public use. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: SECTION 1. The Municipal Code of the City of South Bend, Indiana, is hereby amended by the addition thereto of the following new Chapter 30 A: "CHAPTER 30 A. "PROPERTY. "Article I. City -Owned Real Property. "SEC. 30A - 1. City -Owned Real Property: Inventory The Board of Public Works and Safety, or its succ- essor agency (referred to as the Board in the remainder of this Article), shall compile and keep current a detailed inventory of all real property owned by the City of South Bend, Indiana. The Board shall also prepare and keep current maps and plats of all such real property. The Board may provide for the appraisal of any such inventoried property at any time. "SEC. 30A - 2. Same: Procedure for Disposition The Board shall provide for the disposition of City- owned real property, disposition of which is not otherwise provided for by Indiana Law, as follows: (a) If the Board shall determine that any real property owned by the City of South Bend is not necessary to the public use and is not set aside by state or city law for public purposes, the Board shall adopt a resolution declaring the particular real property as excess and available for disposition. Such resolution shall be submitted to the Common Council for its consideration. The declaration of the Board shall be deemed conclusive unless the Common Council by resolution shall disapprove the declaration within thirty (30) days after the Council receives the resolution of the Board. (b) The Board shall appoint two (2) licensed independent appraisers who are freeholders in the City of South Bend, Indiana, to appraise the particular property. All apprai- sals may be used only for the purposes of the Board and shall be retained as a part of the permanent record with respect to the disposition of the particular property. (c) Based upon the appraisals submitted, the Board shall es- tablish a valuation for the property, which may not be less than the average of the two (2) appraisals. In es- tablishing the valuation, the Board may consider, in addi- tion to market value, any liens on the property and costs of disposition. (d) Any property valued by the Board at less than $1,000. may be sold by the Board at private sale, without notice, for at least the sum of the evaluation. (e) Unless otherwise specifically authorized by Resolution of the Common Council, any property valued by the Board at $1,000. or more shall be sold by competitive bidding, as follows: (1) The Board shall prepare an offering sheet specifying the parcel, the physical characteristics, and the offering price, which shall be the valuation estab- lished by the Board. Copies of the offering sheet shall be available to the public on request. Maps and plats concerning the particular property shall be kept in the offices of the Board for inspection by the public. (2) The Board shall publish notice calling for sealed bids at not less than the offering price. Bids may be received in the Offices of the Board until the time specified by notice for the opening of bids. (3) The Board shall open all bids at its public hearing, and every bid opened shall be available for public inspection. The Board shall award the sale of the property to the highest and best bid equal to not less than the offering price. In determining the best bids, the Board shall consider, among other factors, the proposed use of the property zoning restrictions, the size and character of the property, the improve- ments proposed by the bidder, the bidder's plans and ability to make the improvements with reasonable prompt- ness, whether the bidder will sell or rent the property after improvement, and the bidder's proposed sale or rental price. The award of a sale of any property on which the offering price was in excess of $25,000. shall be approved by resolution of the Common Council before it may be deemed effective. (4) If either there is no bid received at least equal to the offering price, or no cash sale for any other reason, then the Board may call for bids by publication offering the property for sale at not less than the offering price on credit in pay- ments not to extend over a period of more than three (3) years, payable in equal quarterly install- ments with interest at a rate to be established by the Board payable in advance. In establishing the rate of interest the Board shall give primary consideration to the rate then being charged by local lending institutions for similar transactions. The publication, bidding and award procedures shall be the same set forth above. (5) If the Board does not receive an acceptable cash or installment bid for the property as a result of the above procedures, then the property cannot be sold for less than the average of the two app- raisals without specific authorization by Reso- lution of the Common Council. (6) Notice required by publication under this section shall appear in two (2) newspapers of general cir- culation in the City of South Bend on two (2) non- consecutive days, the last notice to appear at least fourteen (14) days prior to final date for receipt of bids which shall be the date on which the bids are opened. The published notice shall specify the general location of the peoperty, any limita- tions on use of the property, the offering price, the date, time and place for opening bids, the deadline for receipt of bids, and any other infor- mation or bidding requirements which the Board deems appropriate. (f) After a sale has been awarded by the Board, the pur- chaser shall pay the purchase -money to the Office of the Board to be covered into the General Fund of the City Treasury. After submission of a receipt for the purchase -money to the Board by the Controller, the Board shall cause a quitclaim deed to be prepared, which deed shall be signed by the Mayor and attested to by the City Clerk, with the seal of the City affix- ed. All title and abstract costs shall be paid by the purchaser. If the purchase -money is not paid within twenty (20) days after the award of the sale, the Board may re -award the sale to the next highest and best bid or re -offer the property according to the procedure of this section. (g) If a purchaser under a deferred payment contract fails to make an installment payment within a reasonable per- iod of time after the due date, the contract shall be forfeited and the land shall immediately revert to the City. Such reverted land will then be available for resale. (h) The provisions of this section with respect to apprai- sal, publication, and bidding procedure do not apply to the sale, lease, or other disposition of real pro- perty to other public bodies or agencies for public purposes. "SEC. 30A - 3. Same: Lease The Board is authorized to lease real property owned by the City of South Bend. The Board shall determine the fair rental value of such real property and the rents coll- ected shall be covered into the General Fund of the City Treasury." SECTION 2. The provisions of Chapter 30A of the Municipal Code of the City of South Bend, enacted by Section 1 of this Ordin- ance, may be redesignated to correspond to any changes in recodifi- cation of said Municipal Code. SECTION 3. This Ordinance shall be effective from and after the date of its approval by the Mayor. 1st & 2nd READING 3 13 Comm WHOLE PU -7 -7 ;L- '4- ct,o am� Member of the 'ommon Council FILED IN CLERK'S OFFICE Irene Gammon CITY CLERK, SOUTH BEND, IND. MAR 2 1972 Tjant ttMn Itpart March 27, 1972 XV the ( am"n (Qounru of the (ig of #oath 39enb: Your Committee Of the Whole to whom was referred AN ORDINANCE ESTABLISHING PROCEDURES FOR THE DISPOSITION AND RENTAL OF REAL PROPERTY OWNED BY THE CITY OF SOUTH BEND, INDIANA, AND FOR OTHER PURPOSES Respectfully report that they have examined the matter and that in their opinion the Ordinance go to the Council as favorable, as amended. Odell Newburn Chairman EPE. ,PEG. @ .......... CO.