[HISTORY: Adopted by the City Council of the City of Lackawanna 11-8-1993 by L.L. No. 6-1993 (Ch. 107 of the 1987 Code). Amendments noted where applicable.]
As used in this chapter, the following terms shall have the meanings indicated:
CITY-OWNED REAL ESTATE
Encompasses all property acquired and held by the City of Lackawanna for use of the City as an entity and that acquired and held for public use and benefit of its citizens.
[Amended 9-5-2017]
The City Council shall determine what City-owned real estate is no longer required for public use by the City.
[Amended 5-9-2008]
A. 
The City has the power to sell or dispose of its real property or any interest therein when no longer required for its purposes by enactment of an ordinance for the sale of real property. Said ordinance providing for the sale of property purchased and held for public purpose shall require the affirmative vote of 3/4 of all members of the City Council. All other City owned real property may be sold by an ordinance approved by a majority vote of the Council and approved by the Mayor.
B. 
No person, firm or entity owning real property in the City with unpaid real property tax due to the City shall be allowed to purchase any City property from the City as provided by Chapter 12 of the City Code, nor shall any such person or entity owing back City real property taxes be allowed to be a member of any board or commission of the City or to be the recipient of any contract for work, labor, services or goods sold to the City.
C. 
No person, firm or entity owning real property in the City with pending violations of City building codes shall be allowed to purchase any City property from the City as provided in Chapter 12 of the City Code. Nor shall any such person, firm, or entity be allowed to be a member of any board or commission of the City or to be the recipient of any contract for work, labor, services or goods sold to the City.
[Added 7-17-2018]
Where title to the real estate proposed to be sold was acquired by the City for a public purpose, including streets, parks, playgrounds, public recreation buildings or areas and all other public places, prior authorization of the State Legislature for its sale is required.
After state legislative approval, the sale of City-owned real estate as described in § 12-4 above, the City may provide for its sale to the highest responsible bidder at public auction by sealed bids after advertisement at least once each week for three weeks in its official newspaper or other newspaper. The notice of public sale shall contain a statement of the time and place where all bids received in pursuance thereof will be publicly opened and read, and pursuant to said notice, all bids received shall be publicly opened and read at the time and place so specified.
[Amended 9-5-2017]
The sale of all other real property purchased or held by the City for its use as distinguished from that described in § 12-4 above, and including real property acquired by tax sale or foreclosure may be sold by private sale.
Procedure for the sale of other real property purchased or held by the City for its use as a corporate entity shall be as follows:
A. 
The purpose of providing for the sale of property under this section is to restore real property to the tax rolls to be revenue producing.
B. 
The legislative act required by the City to sell its real property hereunder is by an ordinance duly enacted and passed by the City Council.
C. 
The City Council shall be provided a list of real property described herein available for private sale.
[Amended 9-5-2017]
D. 
The City Assessor shall maintain and revise this list annually and by June 1 of each year send to the Council its revised list.
[Amended 9-5-2017]
E. 
The real property included on the list shall be made available for private sale, and the public may make an offer to purchase the same. The City Clerk may, from time to time, advertise in the City's official newspaper and/or in other newspapers a brief tax description of City property available for private sale and inviting the public to offer to purchase same.
[Amended 9-5-2017]
F. 
The offer to purchase said property shall be made in writing on a form prescribed by the City Assessor and presented by the offeror to the City Assessor's office.
G. 
The City Assessor shall, within 10 days of its receipt, forward all offers to the City Council with the City Assessor's recommendation to sell or to receive and file the offer.
H. 
Upon receipt by the Council of the offer to purchase with the City Assessor's recommendation, the Council may:
(1) 
Receive or file any offer;
(2) 
Approve the sale; or
(3) 
Authorize and direct the City Assessor to advertise the property for sale and proceed to sell the property at public auction, subject to approval of the Council, which may accept or reject all bids received.
Procedure for the sale of real property by the City by public auction shall be as follows: Sales at public auction shall be conducted by the City Assessor as the agent of the Council, upon the terms and conditions as set forth herein, and he or she shall fix the time and place of such sales. All sales ordered by the Council shall be publicly advertised in the official newspaper by display advertisement once a week before the date of sale in such newspaper.
The City Assessor shall report to the Council the best offer or highest bid made for the property. Upon consideration of such report by the Council, it may approve the same and the City and the purchaser shall thereupon be bound by the terms thereof. It is the purpose of the Council to honor the highest bid made at public auction and effect a sale of the property to the highest bidder. Informal bids of a higher amount made for any parcel sold at a public auction, after the auction sale, will not be recognized or considered.
The City Assessor shall contact the various City Departments, such as Recreation, Public Works, Sewage, Development, etc., as to their need for municipal purposes, either at present or future, for property in question. All replies are to be returned to the City Assessor within 10 days of the request. The absence of reply shall indicate no interest. The Assessor shall include a report on this in its recommendation to the Council.
All sales shall be made subject to the following:
A. 
At each public auction, the real property offered for sale shall be struck down to the highest bidder therefor, who must, by 4:00 p.m. in the afternoon of the same day, deposit with the Treasurer a minimum sum equal to 20% of the sum bid. Each purchaser at the time of the said sale shall sign a memorandum of his or her purchase, agreeing to comply with the terms and conditions herein contained. Notwithstanding the foregoing, the sale shall be subject to final approval by the Council of the City of Lackawanna.
B. 
The bidding will be kept open after the property is struck down and upon the failure of the purchaser to comply with the terms of the sale, said property shall be offered to unsuccessful bidders on said property in the descending order of their bids.
C. 
Within 15 days of the sale of said property, the City Attorney or a member of his or her staff shall prepare a contract with the purchaser embodying the terms and conditions herein.
D. 
Said transaction shall be closed within 45 days of the sale of said property; provided, however, extensions of time for the closing may be granted by the City Attorney only if the purchaser is prevented from closing on the due date by circumstances not attributable to him or her. Whenever an extension of time is granted, the City Attorney shall certify to the Council that an extension, not to exceed 30 days, will not prejudice the interest of the City, and upon the filing of such certificate with the Council, the time limited for the closing of the sale shall be extended to the date fixed by such certificate of the City Attorney. Successive extension of time may be given by the City Attorney but no extension of time shall be for a period longer than 30 days. If the purchaser shall fail to pay the balance of the purchase price and accept and record the deed upon the closing date, his or her deposit will be forfeited and the property resold.
E. 
The balance of the bid price shall be paid in full in cash or by certified check, payable to the City of Lackawanna, upon delivery of the deed.
F. 
The City shall not furnish tax and title searches or surveys covering said premises. If any purchaser desires any tax and title searches, surveys and/or policies of title insurance, the purchaser may obtain them at such purchaser's own expense and upon request, the City shall furnish the purchaser with a legal description of the property to be sold.
G. 
At the time of closing, hereinafter provided for, the City shall tender to the purchaser a quit claim deed.
H. 
The purchaser shall pay the mortgage tax imposed on any purchase money mortgage given in connection with the purchase and the recording fee therefor, and shall also pay the tax, if any, imposed on the deed.
I. 
The purchaser shall have possession of said premises from the date of the delivery of the deed, subject to existing tenancies, if any.
J. 
Rentals, county and City taxes and sewer rentals shall be prorated and adjusted as of the date of delivery of the deed.
K. 
The sale shall be closed, the payments made and the deed shall be delivered at the office of the City Attorney within 45 days from the effective date of the resolution of the Council approving the sale of the premises.
L. 
The approval by the Council of the bid made at public auction and the terms of sale reported to it, or an offer to purchase property from the City at private sale and the terms of sale reported to it, shall constitute a valid and binding contract and shall inure to the benefit of the City and the purchaser, his or her heirs, distributees, executors, administrators, successors and assigns. The bid at public auction or offer to purchase and the terms of sale reported with either said bid or offer shall constitute the entire agreement between the parties thereto relating to said sale and purchase, and shall supersede all prior or other agreements and representations in connection with said sale and purchase.
M. 
All sales, pursuant to this resolution, shall be closed in the Erie County Clerk's Office by an employee of the City Attorney's office whose duty it shall be to demand that the purchaser immediately record the deed given by the City and said employee shall refuse to deliver a deed to any purchaser who shall not record the deed at the time of closing.[1]
[1]
Editor's Note: Former Subsection n, which immediately followed this subsection, was deleted 6-2-1997.