Title
Amending Chapter 51.01 of the Administrative Code, titled Disposition of City Property, Authority and procedure, to allow for conveyance of real property used by the Saint Paul Regional Water Services, to the Board of Water Commissioners.
Body
SECTION 1
WHEREAS, the City of Saint Paul’s Disposition of City Property ordinance offers instructions to city officials on the sale and conveyance of city property when it is no longer required to support or facilitate the provision of services to city residents; and
WHEREAS, the ordinance provides various methods to dispose of city property, depending on the needs and interests of both the city and the purchasers of city property; and
WHEREAS, in 2023 the City Council adopted several revisions to the ordinance, based on review and analysis by city staff, to ensure that the methods of disposition are appropriate, simple, clear, efficient, and meet all parties’ needs and interests; and
WHEREAS, a new method of disposition is needed to allow for the conveyance of city property to the Board of Water Commissioners (Board) if the property was previously acquired by the city for use by Saint Paul Regional Water Services (SPRWS), and potentially for less than appraised fair market value if the property will be used to further the mission and operations of the Board or SPRWS and its facilities; now, therefore, be it
RESOLVED, that the Council of the City of Saint Paul does hereby ordain:
SECTION 2
Chapter 51.01 of the Saint Paul Administrative Code is hereby amended as follows:
Sec. 51.01. - Authority and procedure.
Whenever the duly authorized director of any department may deem it in the best interests of the city to dispose of any real property acquired by the city by eminent domain proceedings, by deed, or otherwise acquired and dedicated to a specific public purpose, for which the city can legally dispose of, the property shall be disposed of in the following manner:
(a) City council approval of disposition. All city real property recommended for disposition shall first be reviewed and approved by the city council by resolution, after a public hearing, and adopted by at least five (5) affirmative votes.
(1) Staff report. The director of the department who has jurisdiction over the property, or their designee, shall request the office of financial services real estate section to prepare a report to the mayor and the city council with the following information:
a. Description of the property's size and general location;
b. Description of the purpose for which the property was obtained;
c. History of municipal use, if any, or uses for which it might be held;
d. Whether the property is only usable by contiguous property owners or is marketable;
e. Verification that the property could not be used by a different city department;
f. Method of disposition the city recommends should be followed to dispose of the property;
g. Recommendation as to whether any special covenants or restrictions should be imposed in conjunction with disposition of the property;
h. Description of a potential buyer's use of the property and financial benefit to owning the property, and any economic or cultural benefits to the surrounding community;
i. Any additional pertinent information for the disposition of the property; and
j. Valuation of the property by the office of financial services real estate section. No city property may be disposed of for less than its appraised fair market value unless otherwise provided for in this chapter.
(2) Disposition resolution. The city council disposition resolution shall:
a. State the reason for disposing of the property;
b. State that there is no longer a public purpose for owning the property;
c. State the method of disposition of the property; and
d. Include any additional information as may be required.
(b) Methods of disposal. All city property authorized for disposition by the city council shall be disposed of by quitclaim deed or warranty deed using one (1) of the following methods:
(1) Sale by public auction. The city purchasing office may sell a property by public auction in accordance with current city purchasing policies and procedures. The public auction shall be conducted by the city's purchasing office after notice is provided in the official newspaper for at least once a week for two (2) successive weeks and such other advertisements and publications as the city purchasing office may deem desirable. The notice shall include a description of the property, the appraised value thereof, the time and place of the public auction, and a copy of the disposition resolution.
(2) Sale by sealed bids. The city purchasing office may sell a property by sealed bids in accordance with current city purchasing policies and procedures. Sealed bids shall be received and opened by the city's purchasing office after notice is provided in the official newspaper for at least once a week for two (2) successive weeks and such other advertisements and publications as the city purchasing office may deem desirable. The notice shall include a description of the property, the time and place of receiving bids, any requirement for a bid deposit, and a copy of the disposition resolution.
(3) Sale to contiguous owner. In any case where the city shall have acquired fee title to any platted lot, tract or parcel of land, or any part thereof for a public purpose, including dedication to the opening, widening or extending of any public street or alley right-of-way, and if the city property can only be put to its highest and best use when aggregated with a contiguous property because of its size, shape, topography or other restriction, the city, without advertisement therefor or competitive bids, may sell and convey all right, title, estate and interest of the city in such property or any part thereof, to the owner of the platted lot, tract or parcel of land which shall be contiguous to the city property. If more than one (1) qualifying contiguous property owner expresses interest in purchasing the city property, the city council may direct that the city property be disposed of by sealed bids in accordance with section 51.01(B)(2).
a. A property is contiguous to the property to be sold if it touches at least one (1) common boundary of the property to be sold, without being separated by a road, alley, railroad, or waterway.
(4) Sale by real open market. If in the disposition resolution the city council determines that the most effective method of identifying a buyer for the city property is through advertisement on the open market, the city may secure the services of an independent real estate broker, licensed in the state of Minnesota, and advertise the city property on the open market.
(5) Advertising for proposals. If in the disposition resolution the city council determines that the use to which the city property will thereafter be put is of importance to the general welfare of the public so that factors in addition to purchase price should be considered in selecting a buyer who will make best use of the property for the well-being of the community, the city council may direct that the city property be disposed of by advertising for proposals. Proposals shall be called for by the city's purchasing office in accordance with current city purchasing policies and procedures. Proposals shall be received and opened by the city's purchasing office after notice is given in the official newspaper for at least once a week for two (2) successive weeks and such other advertisements and publications as the city purchasing office may deem desirable. The notice shall include a description of the property, the appraised value thereof, the time and place for receiving proposals, any requirement for a bid deposit, and a copy of the disposition resolution.
(6) Negotiated sale. In the event that the financial services real estate section has implemented one (1) of the methods of disposition pursuant to section 51.01(B)(1) through (5), but no potential buyer has expressed a willingness to purchase the city property at its established valuation, the city may dispose of the city property through a negotiated sale with any interested party that has already expressed an interest in the property through one (1) of the methods of disposition, and in any manner that it may deem advisable, including the office of financial services real estate section negotiating a final price that is lower than the fair market value.
(7) Exchange of city property. If the city council determines in the city disposition resolution that a negotiated exchange of city property may better serve the public welfare than a sale of the city property, the city council may by such resolution direct the real estate section of the office of financial services to make or obtain an appraisal of the property to be received in the proposed exchange. The value of the property to be received by the city in such exchange shall not be less than the market value of the city property.
(8) Conveyance to HRA. City property may be conveyed to the housing and redevelopment authority (HRA) of the city if the property is intended to be subsequently conveyed to a third-party for housing or commercial redevelopment purposes. The city council may determine in the disposition resolution that the property may be conveyed to the HRA for less than appraised fair market value if the city council also determines that the use to which the city property will thereafter be put is of importance to the general well-being of the community.
(9) Conveyance to Board. City property may be conveyed to the board of water commissioners (Board) if the property was previously acquired by the city for use by Saint Paul Regional Water Services (SPRWS). The city council may determine in its disposition resolution that the property can be conveyed to the Board for less than appraised fair market value if it also finds that the property will be used to further the mission and operations of the Board or SPRWS and its facilities.
(9)(10) Lease of city property. Negotiated leases of city property are not subject to the requirements of section 51.01(1) but rather are authorized by the provisions of Chapter 86.03 of the Administrative Code.
SECTION 3
This Ordinance shall take effect and be in force thirty (30) days following passage, approval, and publication.