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HomeMy WebLinkAboutResolutions - 2001.09.06 - 26680'4 MISCELLANEOUS RESOLUTION #01231 BY: Planning and Building Committee, Charles E. Palmer, Chairperson September 6, 2001 IN RE: DEPARTMENT OF FACILITIES MANAGEMENT — REVISION OF APPENDIX "C" PROCEDURES FOR THE SALE, PURCHASE AND LEASING OF PROPERTY TO: OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS, pursuant to Miscellaneous Resolution Numbers 91090, 93048 and 95213, the Oakland County Board of Commissioners established procedures for the sale, purchase and leasing of property; and WHEREAS, the present real estate transaction procedures for the Oakland County Board of Commissioners require amending and/or updating to meet current accepted real estate transaction practices; WHEREAS, current generally accepted real estate transaction practices dictate real estate appraiser licensing and proper environmental testing prior to the consummation of the sale or purchase of property. WHEREAS, the Departments of Facility Management and Corporation Counsel recommend that the Board of Commissioner's Procedures for the Sale, Purchase or Lease of Property (Appendix "C") be revised and adopted as follows: Appendix C PROCEDURE FOR SALE AND PURCHASE OF PROPERTY (Adopted Per MR #91090, as amended per MR #93048 and MR #95213) (SUPERCEDES ANY PREVIOUSLY ADOPTED RESOLUTIONS) SALE OF PROPERTY 1. If there are no statutory restrictions on the sale, it may be conducted as follows: (a) The County Executive, with the concurrence of the Planning and Building Committee, shall perform or obtain an appraisal, and shall employ properly licensed and qualified real estate appraisers, and pay the standard fee thereof, or as an alternative, the properly licensed and qualified County appraisal staff may be utilized by the County Executive if authorized by the Board of Commissioners Planning and Building Committee. No land shall be sold at less than the lowest appraised value unless such appraised value is waived by the Board of Commissioners. (b) No formal negotiations for the sale of any interest in real property, shall be undertaken until such time as the Planning and Building Committee has authorized negotiations. (c) All recommendations regarding sales of land shall be made in one of the following ways at the discretion of the Planning and Building Committee: (1) Sale to Local Public Agencies: Prior to offering the property for sale to the general public or via private sale the County Executive, with the concurrence of the Planning and Building Committee, may first offer the property for sale to the local public agency in which the property is located. The sale price shall not be less than the lowest appraised value in accordance with Paragraph 1.(a) above. The Local Agencies shall be provided written notification of available property and be given thirty (30) days to respond. (2) Private Sale: The County Executive, with the concurrence of the Planning and Building Committee, may sell at private sale for not less than the lowest current appraised value placed upon the property in accordance with Paragraph 1. (a) above. Public Sale: The County Executive, with the concurrence of the Planning and Building Committee, may advertise once each week for two successive weeks (unless otherwise prescribed by statute) to either hold a public auction or accept sealed offers for the sale of the property up to, but not later than, the time fixed for opening of same in accordance with the Oakland County Purchasing Division Procedures. The Planning and Building Committee shall fix a minimum acceptable value at which said property can be sold. The minimum value shall not, unless otherwise authorized by the Board of Commissioners, be less than the lowest appraised value under Paragraph 1.(a) above. (4) In the case of limited use parcels (non-conforming parcels) acquired for water, sewer and County Drains, the County Executive, with the concurrence of the Planning and Building Committee, shall notify the local units of government, public agencies and adjacent property owners that the County is proposing to sell said parcel. If the local units of government, public agencies and adjacent property owners are interested the County Executive shall advise them of all information that the County has in regard to said properties' easements being retained, soil conditions, etc. and shall advise the local units of government, public agencies and adjacent property owners of the deadline to make purchase offers. If no offers to purchase are received from the local units of government, public agencies or adjacent property owners, the County Executive will then advertise for public sale of such limited use property in accordance with Paragraph 1.(c)(3) above. The Planning and Building Committee shall make their recommendations for the disposal of the property to the Board of Commissioners. Whenever the requirements of Paragraphs 1.(c)(1), 1.(c)(2), 1.(c)(3), or 1.(c)(4) above have been fulfilled and no sale made thirty (30) days thereafter, the Planning and Building Committee may authorize the County Executive to notify the licensed brokers in the area that the lands are for sale at not less than the lowest appraisal or highest offer received. The County Executive shall be authorized to pay from the proceeds of the sale the customary broker's fee. (3) (5) 2 (d) The Planning and Building Committee shall determine the amount and type of advertising to be done, the time and place of sale, provide for such terms as it deems reasonable, the manner in which it is to be conducted and make reasonable rules and regulations pertaining to the same not in conflict with the requirements of the Rules for Oakland County Board of Commissioners. (e) In all cases, the Planning and Building Committee may withdraw any land authorized for sale up to the time the County Executive shall have received a commitment thereon. At any public sale, the Planning and Building Committee reserves the right to reject any or all offers received. LEASE & PURCHASE OF PROPERTY 2. All leasing and purchasing of property shall be under the jurisdiction of the Planning and Building Committee and shall be as follows: (a) No formal negotiations, for the acquisition of any interest in real property, including lease and options to purchase, shall be undertaken until such time as the Planning and Building Committee has authorized such negotiations. (b) For property acquisition under $500,000 in value, the Planning and Building Committee may rely upon the properly licensed and qualified county appraisal staff of the County Equalization Division or the Property Management Unit of the Department of Facilities Management or as an alternative a properly licensed and qualified real estate appraiser. (c) For property acquisition over $500,000 in value the County Executive, with the concurrence of the Planning and Building Committee, shall employ two properly licensed and qualified real estate appraisers or as an alternative the properly licensed and qualified County appraisal staff, who shall appraise the property under consideration and submit a written report concerning the appraisal to the Planning and Building Committee. (d) No written offer to acquire property may be made prior to the receipt of the necessary appraisals, and no offers to acquire property shall be made in an amount more than the highest appraised value, except by the Board of Commissioners' approval. A written Offer to Purchase property contingent upon Paragraphs 2.(b) — 2.(e) may be made with approval of the Planning and Building Committee. (e) Purchases for Public Utility Easements shall follow procedures in Paragraphs 2.(b) and 2.(c). Any offer to purchase real property shall contain an environmental due diligence period and associated contingency that would allow the County to terminate the purchase agreement without penalty in the event that adverse environmental conditions were encountered during the due diligence period. During the due diligence period, at a minimum, a written Phase One Environmental Site Assessment shall be prepared consistent with applicable American Society of Testing and Materials standards by a (0 3 qualified professional. If the Phase One Environmental Site Assessment identified adverse environmental conditions, a Phase Two Environmental Site Assessment shall be prepared and submitted. Real property rights for sewer, water, drainage, and utility easements, and/or rights of way may be obtained without a Phase One or Phase Two Environmental Site Assessment if waived by the Planning and Building Committee (and the Office of Corporation Counsel.) NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby revises its Procedures for the Sale, Purchase and Lease of Property (Appendix "C") as described above. BE IT FURTHER RESOLVED that the said procedures as described above shall supercede all previous procedures relative to the sale, purchase or lease of property. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE Planning & Building Committee Vote: Motion carried on unanimous roll call vote with Melton and Dingeldey absent 4 Resolution #01231 September 6, 2001 The Chairperson referred the resolution to the General Government Committee. There were no objections.