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RESOLUTION NO. R-36-2016 October 18, 2016
Real Property Disposition Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY ADOPTING A REAL PROPERTY DISPOSITION POLICY
WHEREAS, the Board of Directors of the Redevelopment Agency of Salt Lake City (the "Board") desires to formalize policies with respect to the Redevelopment Agency of Salt Lake City's ("RDA") real property disposition, and
WHEREAS, the Redevelopment Agency of Salt Lake City ("RDA") was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act, and
WHEREAS, the Utah Community Reinvestment Agency Act grants the RDA powers to sell, convey, grant, gift, or otherwise dispose of any interest in real property; and provide for project area development, and
WHEREAS, the RDA utilizes real property disposition to implement project area plans and Salt Lake City master plans.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, AS FOLLOWS:
1. Administration and Approval Process. Unless otherwise designated herein, the administration and approval process for the disposition of RDA-owned real property shall be conducted in the following manner:
a. The Board shall be provided reports on the status of all RDA-owned real properties, including properties actively being disposed of, as according to the Reporting procedures outlined herewith.
b. As determined by the RDA Executive Director, RDA-owned properties may be identified as candidates for disposition and authorized to be disposed of according to the Methods of Disposition contained herewith.
c. If a satisfactory offer is received on an RDA-owned property, and the disposition terms and conditions are approved by the RDA Executive Director, RDA staff shall dispose of the real property pursuant to the RDA's administrative procedures, unless disposition terms are required to be forwarded to the Board for consideration and approval of the sales price according to the Sales Price Protocol outlined herewith.
d. If the disposition requires the approval of the Board, upon approval of the sales price by a majority vote of the Board real property disposition shall be arranged pursuant to the RDA's administrative procedures.
e. The RDA Executive Director may enter into exclusive negotiation, option to purchase, and development agreements.
2. Real Property Disposition Scope. The policy applies to all real property owned by the RDA.
3. Real Property Categorization. All real property owned by the RDA shall be categorized as either Tier 1 or Tier 2.
a. Tier 1 properties shall be real properties that are RDA-owned and meet at least one of the following categories:
i. Property within a strategic geographic location that is considered vital to the redevelopment of the project area, which geographic location is identified in the Project Area Plan.
ii. Property is specifically identified in a Salt Lake City adopted master plan.
iii. Property is a parcel or parcel assemblage that totals two (2) or more contiguous acres in size.
iv. Property is listed on the local or national register of historic places as historically significant.
v. Property is fronting or adjacent to city-owned property, other than a public street, of at least 0.5 acres in size.
b. Tier 2 properties shall be those that are RDA-owned and are not otherwise included in Tier 1.
4. Reporting. Unless otherwise specified herein, RDA staff shall provide the Board with reports regarding the disposition and status of RDA-owned properties as follows:
a. The RDA shall provide a written briefing to the Board, no less than semi annually per fiscal year, which contains an inventory of all Tier 1 and Tier 2 properties. Such briefing shall also include an address and description of each property, including the approximate size and zoning; description of significant structures or improvements on the site; description of any interim uses occurring on the site; date acquired; disposition status; and timeframe for potentially disposing of the property.
b. Updates regarding the disposition process for Tier 1 properties shall be provided at one of the Agency's public meetings at the following stages of the disposition process:
i. Pre-Disposition
Prior to marketing of the property, RDA staff shall provide an update to the Board as to the property's reuse plan, method of disposition, timeline of disposition, and other information relevant to the disposition of the property.
ii. Developer Selection
RDA staff shall provide an update to the Board when a purchaser has been selected with which to negotiate terms of the sale.
iii. Development Agreement
RDA staff shall provide an update to the Board when the RDA has entered into a real estate purchase agreement with the selected purchaser.
5. Methods of Disposition. Disposition of all RDA-owned real property shall abide by all applicable laws and be conducted in a competitive and transparent manner as deemed appropriate and effective. Further, disposition methods shall support the RDA and Salt Lake City objectives as outlined in master plans, project area plans, and other adopted policies. Disposition of property shall be consistent with the RDA's Housing Policy to determine if the inclusion of affordable housing is appropriate. All RDA-owned properties shall be subject to a development agreement or other mechanism to ensure compliance with the intended reuse plan for the property. Unless otherwise specified herein, RDA-owned properties shall be disposed of through the use of the following methods:
a. Competitively Marketed
The RDA shall competitively market properties to create open and transparent exposure to the marketplace. Methods to competitively market properties are available for any RDA-owned property and include the following:
i. Request for qualifications (RFQ): to competitively market the property through a time-limited qualifications-based selection process.
ii. Request for proposals (RFP): to competitively market the property through a time-limited project-based selection process.
iii. Market property on an open-ended basis: to competitively market the property through a listing with a property broker or other marketing channels.
b. Exclusively Negotiated
An exclusively negotiated sale may be deemed appropriate and effective only if at least one of the following criteria is met:
i. The property is landlocked.
ii. Sale to an adjacent property owner to facilitate redevelopment objectives as defined in a project area plan.
iii. Sale to a non-profit or governmental agency for a community development or public use.
iv. Sale of property that has been competitively offered with no competitive responses received.
v. Sale of property that has previously been used as a public right of way that is no longer required for such purpose.
vi. Exchange of property to facilitate redevelopment objectives as defined in a project area plan.
6. Sales Price Protocol. Unless otherwise specified herein, RDA shall dispose of real property under the most advantageous terms that are appropriate for the circumstances, and shall abide to the methodology outlined herein as follows:
a. The sales price of the property shall be fair market value as determined by an RDA-commissioned appraisal that is based on an as-is appraisal premise. No Board approval shall be required for a sale at appraised fair market value.
b. Property may be discounted below fair market value to support the implementation of project area plans.
i. Property discounts shall be determined by a financial analysis of the project, including a gap analysis that demonstrates the property discount is necessary for the project to succeed. Market conditions, economic trends, and public benefits relating to affordable housing and economic development shall be considered when determining property discounts.
ii. Property discounts are subject to approval by a majority vote of the Board if property is to be sold at a discount greater than 10% from the as-is appraised fair market value.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this 18th day of October, 2016.