Real estate auctions create unique problems for the city as
compared with other auctions or the sale of real estate in normal
course. In addition, the connotation of a real estate auction is demeaning
to the image of the city and projects a false image and perception
of real estate value within the city, economic market conditions and
aesthetic quality of Rancho Mirage. The city has a public interest
in preserving the quality of the image of Rancho Mirage. A real estate
auction brings to the city traffic problems, facilities problems and
detrimentally interferes with the contractual relations between the
city and the developer. Individual private residential communities
have inadequate parking, circulation on and off site and physical
facilities necessary to accommodate an auction. The privacy and security
of these private communities is severely compromised by hundreds of
individuals springing upon these private walled residential areas.
The city has experienced the difficulty in obtaining project completion
when dealing with the numerous and sudden new homeowners in a project
where the original agreement for construction of improvements was
with the developer no longer present or interested after the sudden
sale. As a result of these concerns, the regulation of real estate
auctions is necessary to secure the public health, safety and welfare
of the city.
(Ord. 471 § 1, 1990)
includes all activity prefatory to and the public sale of
more than one parcel or unit of real property to the highest bidder
by one licensed or authorized to sell real estate in such a manner.
Real estate auction does not include the sale of a single parcel pursuant
to court order or California law pertaining to nonjudicial foreclosure.
(Ord. 471 § 2, 1990)
No person may assist in, make preparations for, participate
in, operate, advertise for, or sell real estate at auction without
first obtaining a nontransferable permit for that activity. The permit
shall be issued and approved by the city and the city council. A permit
shall also be required if the auction is held outside of Rancho Mirage.
(Ord. 471 § 3, 1990)
As a condition to issuance of any real estate auction permit,
the following shall be required:
A.
A real
estate auction permit may only be issued for auctions to be held within
the RH (Resort Hotel) zone.
B.
All
auctions shall be held in an indoor location.
C.
The
time and manner of inspection of the real estate to be auctioned shall
be established within the terms of the permit for any property to
be sold. On the day of the auction, a multipassenger vehicle must
be provided for access to and inspection of the real property to be
auctioned. Prior to and including the day of the auction no more than
two, six passenger automobiles or twelve prospective purchasers per
residential unit may be allowed at the property site at any one time
for inspection and a maximum of one hundred persons.
D.
The
development project of which the real property to be auctioned is
a portion must have complied with or provide security satisfactory
to the city sufficient to secure all conditions of any development
permit issued.
E.
The
city may impose any condition reasonably related to mitigate any impact
of the auction activity upon the residential area within which the
auctioned property is located and/or the city in general.
(Ord. 471 § 4, 1990)
A permit fee of five hundred dollars shall be paid prior to
issuance of the auction permit.
(Ord. 460 § 1, 1990)
The application shall state:
A.
Applicant's
name, business address, telephone and facsimile number. If applicant
is a partnership or corporation, include the name of the responsible
person for purposes of the application and the name of the person
authorized to accept service on behalf of the entity within the state
of California;
B.
Addresses
of the real property to be auctioned;
C.
Location,
date and hours of the auction and inspection time for real estate;
D.
Number
of individuals expected to be at the auction as either customers,
spectators or participants;
E.
Transportation
made available for transfer of the auction participants and/or customers
from the location of the auction to and from the inspection site of
the real property to be auctioned;
F.
The
security guards to be placed on site to provide security to the residential
area containing the real property to be auctioned.
(Ord. 471 § 6, 1990)
