Ordinance 68 of 2018

 

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SALT LAKE CITY ORDINANCE

No. 68 of 2018

(City Owned Real Property)

 

            An ordinance amending Chapter 2.58 of the Salt Lake City Code relating to City owned real property.

            WHEREAS, Salt Lake City is in the midst of a mounting housing crisis that impacts our residents’ ability to reliably find safe secure housing options for themselves and their families; and

WHEREAS, Salt Lake City must lead by example and investigate every barrier to the creation of new affordable housing in the city and steward solutions that will bring this crisis to a close; and  

WHEREAS, Salt Lake City is committed to utilizing its real property assets to prioritize the development of new affordable housing throughout the city.

            NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah:

 

            SECTION 1.   That Chapter 2.58 of the Salt Lake City Code is amended to read as follows:

Chapter 2.58

CITY OWNED REAL PROPERTY

 

2.58.010:      SURPLUS REAL PROPERTY; IDENTIFICATION AND REPORTING REQUIREMENTS:

 

Department heads, or designees, shall identify potential surplus real property within the possession of their departments a minimum of every three years and report such property to the “chief procurement officer”, as defined in chapter 3.24 of this code, for evaluation.  The chief procurement officer shall periodically review such reports to determine whether excess properties are on hand that should be disposed of. Any disposition of surplus real property that is, in part or whole, open space land under chapter 2.90 must also comply with the disposition process outlined in section 2.90.070. As part of the evaluation of whether to dispose of city-owned real property, potential subject properties will first be evaluated to determine suitability for city use to promote affordable housing, open space, and other city needs.

 

2.58.030: CONVEYANCE FOR VALUE:

A.  Every sale of city owned real property shall be conducted by the chief procurement officer or under his/her express written authority. All other conveyances for value, including trades, leases, permits, licenses, franchises, rights of way, revocable permits and easements, shall be conducted in a manner designated in writing by the mayor. All conveyances or encumbrances of such property shall be based on the highest and best economic return to the city, except that consideration for property conveyed may be based on other public policy factors: (1) when conveyed to units of government or other public or quasi-public organizations; (2) when an encroachment on the public way, within the corporate limits of Salt Lake City, involves a beautification project, including, but not limited to, decorative street lighting, building facade lighting, flower and planter boxes, public safety infrastructure, and landscaping that furthers specific goals and objectives set forth in the city's strategic plan, master plans, or other official documents; or (3) when city-owned real property is conveyed to accomplish the reasonable goals of creation of affordable housing or open space so long as such conveyance complies with Utah law.

 

B.  The highest and best economic return to the city, as referred to in this chapter, shall be estimated by one or more of the following methods:

1.   Sealed competitive bid;

2.   Evaluation by a qualified and disinterested appraiser;

3.   Other professional publications and valuation services; or

4.   An informal market survey conducted by the chief procurement officer or Real Property Manager in the case of items of real property having a readily discernible market value.

 

C.  Sales of city real property shall be based, whenever possible, on competitive sealed bids. The chief procurement officer, in consultation with the director of finance, may waive the competitive bidding requirement when the value of the property has been estimated by an alternate method specified under subsection B of this section, and:

1.   The value of the property is considered negligible in relation to the costs of sale by bid;

2.   Sale by bidding procedure is deemed unlikely to produce a competitive offer; or

3.   Circumstances indicate that bidding on the property will not be in the best interests of the city.

2.58.035: SIGNIFICANT PARCEL OF REAL PROPERTY:

 

In connection with any proposed sale, lease, conveyance or other disposition of real property owned by the city, the following real property is deemed to be "significant":

A.  Any property where the conveyance of the property would result in a request to amend the city budget;

 

B.  Any property that is specifically referenced in a master plan or where the proposed use of the land following its conveyance would conflict with the master plan for the area; and

 

C.  Any property designated as significant on table 2.58.035D, "Table Of Significant Parcels Of Real Property", of this section.

 

TABLE 2.58.035D

TABLE OF SIGNIFICANT PARCELS OF REAL PROPERTY

 

Transactions Granting Fee Title  

Transactions Granting An Interest  

 

 

Property Sales  

Property Exchanges  

Lease Or Temporary Use Agreements  

Easements  

Utility Permits5  

Revocable Permits  

 

Type Of Property1  

 

Commercial  

Residential  

Airport  

Y  

Y  

N  

N  

N  

N  

n/a  

Golf courses  

Y  

Y  

Y4  

Y  

Y  

Y  

Y  

Open space2  

Y  

Y  

Y  

Y  

Y  

Y  

Y  

Public buildings (except airport property)  

Y  

Y  

N  

N  

N  

N  

N  

Public utilities properties:  

 

 

 

 

 

 

 

 

Canal properties  

Y  

Y  

N  

N  

N  

N  

N  

 

Sewer facilities  

Y  

Y  

N  

N  

N  

N  

N  

 

Storm drain facilities  

Y  

Y  

N  

N  

N  

N  

N  

 

Water facilities  

Y  

Y  

N  

N  

N  

N  

N  

 

Watershed  

Y  

Y  

N  

N  

N  

N  

N  

Streets and alleys:  

 

 

 

 

 

 

 

 

Aerial rights  

Y  

Y  

N  

N  

N  

n/a  

n/a  

 

Subsurface rights  

Y  

Y  

N  

N  

N  

n/a  

n/a  

 

Surface rights3  

Y  

Y  

Y4  

N  

N  

N  

N  

 

Notes:

n/a= Not applicable.

1.   To the extent that the property falls into more than 1 category, the more restrictive process will apply.

2.   Includes all open space property within or without city boundaries, as defined in chapter 2.90 of this title and title 21A of this code.

3.   To the extent that any surface use involves a street or alley closure, the street or alley closure process satisfies the process outlined under this chapter.

4.   More than 10 years' initial term or more than 30 years' total with option terms.

 

 

2.58.060: DISPOSITION OF PROCEEDS:

 

All proceeds or revenue from the sale of any real property sold by the city, including real property declared surplus by an internal service fund of the city, shall be deposited in a surplus property account within the capital improvements fund of the general fund or the Salt Lake City open space lands fund as may be applicable, unless otherwise provided by law.  A portion of proceeds from sales of properties, other than from open space lands, may be transferred to a housing trust fund on an annual basis based on the recommendation of the Department of Community and Neighborhoods.  However, if the property was purchased with monies from an enterprise fund, or from properties designated by the mayor for use by an existing enterprise fund, then the proceeds or revenue shall be deposited in a surplus property account within that enterprise fund's capital improvements fund. Funds within surplus property accounts may not be expended without prior appropriation or approval of the city council.

 

            SECTION 2. Effective Date. This ordinance shall become effective on the date of its first publication.

            Passed by the City Council of Salt Lake City, Utah this 27th day of November, 2018.

 

Bill No. 68 of 2018.

Published: December 7, 2018.