A. 
The city may sell, exchange, grant, dedicate, donate or otherwise dispose of city real property by any lawful means, as long as it follows the requirements of this title.
B. 
The city may dispose of real property when the city council finds that it is no longer needed for municipal purposes or the conveyance will promote a public purpose. The disposal ordinance which approves the disposal will include a statement of finding.
C. 
All disposals will be conducted in a fair and impartial manner. The city will have and may exercise all rights and powers in the disposal of real property as if the city were a private person.
D. 
Any document which is required to carry out the land decisions of the city council will be signed by the mayor, and attested by the city clerk or notarized. Whenever possible, the form of conveyance will be reviewed by the city attorney.
E. 
The city manager will furnish the city council with a summary which describes land title, the current city land inventory, and any anticipated problems which may occur in disposing the property.
(Ord. 94-16 (part), 1995)
A. 
All disposals will be by ordinance. The ordinance will include:
1. 
Finding. A finding that the property is no longer needed for municipal purposes. If the property is being disposed at less than the appraised value, the reasons will be included in the finding.
2. 
Statement of Facts. A statement of facts which supports the finding.
3. 
Property Description. A legal description of the property.
4. 
Purpose or Type of Disposal. A description of the type of disposal (for example public, or economic development).
5. 
Method of Disposal. A description of the method of disposal (for example, auction, lottery, negotiated sale or donation).
6. 
Property Value. A description of the appraised property value and how it is determined (for example, appraisal or a letter of opinion).
7. 
Public Notice. A description of the time, place and specific steps which will be followed to conduct the disposal.
B. 
The city council will describe the appraised value of property in the ordinance for the disposal. The value of the property will be appraised value as determined by an appraisal or a letter of opinion prepared by a qualified appraiser or assessor. The appraisal will have been made within one hundred eighty days prior to council action.
(Ord. 94-16 (part), 1995)
A. 
At least thirty days is required between the time a disposal ordinance is introduced and the time that it is finally adopted by the city council. Once an ordinance is introduced, it will be posted at those places outlined in municipal code for thirty days and may serve as the only public notice of disposal.
(Ord. 94-16 (part), 1995)
The city may dispose of municipal land using one of the following methods:
A. 
Sealed bid auction, with the property being sold to the qualified bidder who submits the highest sealed bid by the date and time specified in the notice and according to instructions to bidders. The minimum bid shall be the appraised value of the property as described in Section 5.30.020B, unless otherwise provided for in this title;
B. 
Public outcry auction, with the property being sold at a public auction to the qualified bidder who makes the highest bid. The minimum bid shall be the appraised market value of the property as determined in Section 5.30.020B, unless otherwise provided for in this title;
C. 
Negotiated sale or exchange. City land may be sold or exchanged by negotiation to a selected buyer or grantee if the city council determines that the sale or exchange is needed to protect or promote the public interest and the buyer or grantee has been selected without unfair discrimination among similarly situated persons;
D. 
Grant or donation. The city council may grant or dedicate real property to a municipality, state or federal entity, nonprofit corporation or association, or a Native village council, without a public sale and for consideration agreed upon between the city and the grantee if the city council finds that the grant or dedication is beneficial to the public.
(Ord. 94-16 (part), 1995)
A. 
If there is more than one bid at public auction or by sealed bid for a particular lot or group of lots, the lot or lots will be sold to the highest bidder. The highest bidder will be the one whose bid represents the highest total price for the property interest. In the event that two or more parties submit high but identical bids, the city council may determine the successful bidder by lot or reject all bids.
B. 
If it is determined that there are no acceptable offers, the city manager may negotiate for the sale or lease. However, the city council must by resolution approve the terms and price prior to entering into a written agreement.
C. 
In the event that the high bidder defaults, the city manager may offer the parcel for over-the-counter disposal for an amount equal to the high bid offered.
(Ord. 94-16 (part), 1995)
A bidder may appeal the city manager's determination of the apparent high bidder or irregularities in the bid process to the city council within ten working days following determination. The appeal must be in writing and contain a short statement about the grounds for an appeal. The city council will review the appeal within twenty days of receipt and rule.
(Ord. 94-16 (part), 1995)
Following the appeal or the council's ruling, the city manager will notify the successful bidder that the city is preparing to issue an appropriate lease, deed or sales contract. Upon receipt of the notice, the bidder is granted thirty calendar days to send in any bid balance due and in addition, will complete all necessary documents.
(Ord. 94-16 (part), 1995)
The disposals described in this section can be authorized by the city council for less than the appraised value of the real property and may be exempted by the city council from the disposal methods described in Section 5.30.040 A through C. The ordinance which authorizes the disposal must comply with all other sections of this title.
A. 
Disposal for Public Purposes. The city council may dispose of real property to a municipality, state or federal entity, nonprofit corporation or association, or a Native village council, when the disposal is for a public purpose. This type of disposal is required to follow these requirements:
1. 
A finding that the disposal to the entity promotes a public purpose and a statement of facts supporting the finding;
2. 
A condition that the title may revert to the municipality in the event that the property is no longer used for the public purpose justifying the disposal; and
3. 
A waiver from the Native village council from any immunity from suit for the purpose of enforcing the reversion provision, if the disposal is to a Native village council.
B. 
Disposal for Economic Development. The city council may dispose of real property or an interest in real property to any person or entity to promote local trade or industry. The following requirements must be included in the non-code ordinance:
1. 
A finding that the property or interest in property being disposed of will be used to further local trade or industry; and
2. 
A condition that title will revert to the municipality in the event that the property is no longer used for the local trade or industry justifying the disposal.
C. 
Disposal to Settle Claims of Equitable Interest. The city may convey property to a person or entity who has a valid claim of equitable interest in the property or in a substantial improvement located upon the property.
D. 
Miscellaneous Disposals. The city council may settle disputed claims or litigation by authorizing disposal of real property or an interest in real property.
(Ord. 94-16 (part), 1995)
When a reversionary clause is included in a disposal conveyance and the condition of the reversionary clause is violated, the city council may decide whether the property should revert to the city. A decision to enforce a reversionary clause may be done by resolution. Any real property reconveyed to the city under a reversionary clause will be by quitclaim deed. If the city does not enforce a violation of a reversionary clause, it retains the right to enforce subsequent violations.
(Ord. 94-16 (part), 1995)
Disposal of interest by lease, grant of easement, or right-of-way will follow the requirements of this title. The terms and conditions of leases, easements and rights-of-way will be established by the city council for each disposal.
(Ord. 94-16 (part), 1995)
A. 
Property obtained by clerk's deed, foreclosure, or judicial order or decree is exempt from Sections 5.30.020 and 5.30.030 and subject to disposal according to the provisions of this section if disposal occurs within five years of the city obtaining the property or within ten years if the property is repurchased by the former record owner.
B. 
Other than repurchase by the former record owner, disposal under this section shall be by non-code ordinance conforming to the requirements of this section and other applicable code, statutory, or judicial requirements.
C. 
All ordinances required by this section must state:
1. 
The legal description of the property;
2. 
The address or a general description of the property sufficient to provide the public with notice of its location;
3. 
The name of the last known record owner of the property;
4. 
The means or action by which the city obtained the property; and
5. 
Whether the former owner shall be entitled to apply for remittal of any portion of sale proceeds.
D. 
An ordinance authorizing sale by auction must additionally state the method or methods of auction authorized. The ordinance may, but is not required to, state a minimum sale price.
E. 
An ordinance authorizing disposal of a type authorized by Section 5.30.080(A) must additionally comply with the relevant requirements of that section. A disposal of this type is also considered property retained by the city for a public purpose.
F. 
Sale to the former record owner is authorized without ordinance if the former owner's statutory or code right to repurchase the property has not expired.
G. 
The city may sell property containing a residential building to a person, other than the former record owner or a person sharing a dwelling unit with the former record owner, who has a valid claim of a substantial equitable interest in the property or in a substantial improvement located upon the property for an amount equal to the tax assessed value of the property, or, if the property is sold by auction, and if the person otherwise is in full conformity with the invitation for bids, the recognized equitable interest holder shall be considered as high bidder if the interest holder's bid is no more than twenty percent less than the highest bid received from a bidder not having an equitable interest recognized by the city manager in accordance with this section.
1. 
The determination of a valid claim of a substantial equitable interest in the property or in a substantial improvement located upon the property shall be made by the city manager upon proof provided by the claimant and solely at the city manager's discretion.
2. 
A claimant who seeks a bidder preference under this subsection must present the claim and supporting evidence to the city manager no later than five business days after an ordinance authorizing disposal of the property is set for public hearing.
3. 
Under this subsection, occupancy of the property, or a portion thereof, as a primary residence for two years or more prior to the date the foreclosure action was filed may be considered a substantial equitable interest by the city manager.
4. 
In this subsection, "residential" means a building or area of buildings used primarily as dwelling units and "dwelling unit" means a room or group of rooms intended for use as living quarters for one family, including washing, sleeping, cooking and eating facilities.
(Ord. 15-12 § 2, 2015)