4-3A-5 Conveyance of Real Property (w/ Legal Analysis)

4-3A-5: CONVEYANCE OF CITY REAL PROPERTY:

A.Highest And Best Economic Return:

1. Every sale, lease, encumbrance, or other conveyance of city owned real property shall be made by the mayor, or under the mayor's express written authority. All conveyances or encumbrances of such property shall be based on the highest and best economic return to the city, except that consideration for property conveyed may be based on other public policy factors if the city council makes a legislative determination that the consideration is adequate.

(Here, the council ordinance generally delegates virtually all the council's power over the disposition and encumbrance of real property to the mayor, subject only to the narrow Council power to reject transactions lacking adequate consideration.)

2. The highest and best economic return to the city, as referred to in this article, shall be for cash, or its equivalent, and for not less than fair market value as estimated by one or more of the following methods:


a. Evaluation by qualified and disinterested appraiser; or

b. An information market survey conducted by the director of management services, or under his/her express written authority, in the case of items of real property possessing readily discernable market value.

3. The mayor may reject any proposed conveyance or encumbrance of real property, if determined in the mayor's sole discretion not to be in the best interests of the city.

(Curiously, the Ogden City Council retains no authority to reject transactions which IT might deem NOT in the best interests of Ogden City. Under this provision, the mayor is amazingly delegated that authority "in his sole discretion.")

B. Public Uses; Planning Commission Review: The sale of any public use property owned by the city shall not be sold if such conveyance would not conform with the Ogden City general plan, and any proposed conveyance of such property shall be reviewed by the planning commission for its determination as to such compliance. The planning commission may adopt guidelines authorizing staff review of such conveyances for compliance with the plan. For purposes of this section, "public use property" includes any real property:

1. Acquired, dedicated, or used as a park, recreation facility, public street, trail, trailhead, or other public way;

2. Acquired, dedicated or used for the delivery of municipal services to the public;

3. Associated with, or contiguous to, the municipal block, the Ogden City cemetery, the El Monte and Mount Ogden golf courses, the community services building, the Marshall White Center, the Ogden-Hinckley airport, the public safety building, the public works complex, Union Station, and the intermodel hub; and

4. Within one hundred feet (100') of the Ogden River or the Weber River or undeveloped property located in the foothills along the eastern boundaries of the city.

"Public use property" shall not include property acquired by the city for a specific project or purpose involving the future conveyance of such property to a third party for other than a public use.

(This paragraph sets up a special class of property transactions which in the following section are re-defined as "significant parcels" and trigger a very limited public input process - i.e., mere "notice and public comment," with NO PROVISION for Council approval.)

C. Disclosure To City Council And Opportunity For Public Comment:

1. Before any sale, lease, trade or other encumbrance of any "significant parcel" of real property of the city, as defined herein, the mayor shall deliver a notice of the pendency of such transaction to the office of the city council and allow an opportunity for public comment on the proposed disposition at a public hearing, after fourteen (14) days' notice in a newspaper of general circulation in the city.

2. For purposes of this subsection, "lease" shall not include the rental of property on a month to month basis or for a term of less than one year. "Lease" shall also not include airport leases governed by the provisions of title 8 of this code.

3. For purposes of this subsection, "significant parcel" means:


a. "Public use property" as defined in subsection B of this section;

b. A parcel of real property, or a combination of contiguous parcels, having an appraised or estimated value in excess of seventy five thousand dollars ($75,000.00); or

c. A parcel of real property, or a combination of contiguous parcels, having a size in excess of one acre.

4. "Significant parcel" shall not include:


a. "DDOU property", as defined in section 4-3A-7 of this article, or property in the Ogden commercial and industrial park as provided in subsection E of this section; or

b. Property being conveyed as part of the following programs so long as such properties would not otherwise be considered to be "public use property" as defined in subsection B of this section:


(1) Infill housing program,

(2) Homestead program,

(3) East Central revitalization program,

(4) HUD asset control area program,

(5) Twenty Fifth Street infill program, and

(6) Any other federally funded program for which the city council has adopted program guidelines.

5. The public hearing requirement imposed herein is not intended to apply if the conveyance is subject to a different notice and public hearing requirement under the provisions of state law or these ordinances.

(This provision refines the definition of "public use" properties and other properties as "significant parcels," and also carves out some exceptions to the definition. Still, there exists NO PROVISION for Council approval).

D. Notice: The notice required in subsection C of this section shall specify the following:

1. A general description of the property to be conveyed or encumbered;

2. The nature of the proposed conveyance or encumbrance whether the property is to be sold, traded or encumbered, including the nature of the conveyance if the property is to be sold, or if a trade or lease of property is contemplated, a brief summary of the proposed transaction;

3. Persons to whom interests are to be conveyed;

4. Any consideration tendered;

5. The name of the person, department or entity requesting such action; and

6. The date, time and place of the public hearing.

(This provision's effect is limited to merely setting forth the details of the above-mentioned public notice and comment process. Notably, no provision is made for Council Approval after this formal process has been completed.)

E. Exception: The sale of city owned lots within the Ogden commercial and industrial park, as such park has been subdivided and recorded in the official records of Weber County, state of Utah, is exempt from the requirements of subsections C and D of this section, provided any such lot sale is for the established market value price as periodically reviewed and established by city administration, such sales are made subject to outstanding industrial park protective covenants, and are for lots properly subdivided in accordance with applicable city ordinances. Any proposed sales of city owned industrial park lots desiring a discount from the established market value price, requesting seller assisted financing via installment sale, second mortgage position, or any other form of incentive from the city shall require notification to the city council in accordance with subsections C and D of this section.

F. Sales Proceeds: The sale proceeds, less closing costs and real estate commissions, from lot sales within the Ogden commercial and industrial park shall be deposited into the city's CIP account and shall be earmarked for payment of outstanding purchase obligations of the city for park property (the Stratford property), park infrastructure improvements, and acquisition of additional park property.

(Ord. 2003-20, 8-5-2003; amd. Ord. 2005-70, 12-6-2005)