050 of 2015 - City Owned Real Property (Chapter 2.58) 0 15-1
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SALT LAKE CITY ORDINANCE
No. 50 of 2015
(City Owned Real Property)
An ordinance amending Chapter 2.58 of the Salt Lake City Code,relating to City owned
real property.
Be it ordained by the City Council of Salt Lake City,Utah:
SECTION 1. That Chapter 2.58 of the Salt Lake City Code,relating to City owned real
property,is hereby amended as follows:
Chapter 2.58
CITY OWNED REAL PROPERTY
2.58.010:SURPLUS REAL PROPERTY;IDENTIFICATION AND REPORTING
REQUIREMENTS:
2.58.020:SURPLUS REAL PROPERTY;METHODS OF DISPOSITION:
2.58.030:CONVEYANCE FOR VALUE:
2.58.035:SIGNIFICANT PARCEL OF REAL PROPERTY:
2.58.040:SALE OF REAL PROPERTY;NOTICE AND HEARING:
2.58.050:VALIDITY OF ACTIONS:
2.58.060:DISPOSITION OF PROCEEDS:
2.58.010:SURPLUS REAL PROPERTY;IDENTIFICATION AND REPORTING
REQUIREMENTS:
Department heads shall periodically identify potential surplus property within the possession of
their departments and report such property to the"chief procurement officer,"as defined in title
3,chapter 3.24,for consideration.The chief procurement officer shall also periodically review
such reports to determine whether excess properties are on hand that need to be disposed of.Any
disposition of surplus real property that is,in part or whole,open space land under chapter 2.90
must also comply with the disposition process outlined in 2.90.120.
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2.58.020:SURPLUS REAL PROPERTY;METHODS OF DISPOSITION:
Real property determined to be surplus under the criteria set forth in this chapter may be
disposed of by one or more of the following means:
A.Trade:The chief procurement officer,under the direction of the director of finance,may
authorize surplus property to be traded for other property.
B.Sale,Lease Or Irrevocable Transfer:The chief procurement officer may authorize the sale,
lease,or other irrevocable transfer of surplus property and shall adopt and comply with
specific written guidelines establishing requirements for notice,bidding or other conditions
of such sale,lease or other transfer of surplus real property.
C.Revocable Transfers:Permits,licenses,easements,franchises and other transfers of real
property that are,by the terms of conveyance,revocable by the city,shall be permitted under
the provisions of this chapter.
2.58.030:CONVEYANCE FOR VALUE:
A.Every sale of city owned real property shall be conducted by the chief procurement officer or
under his/her express written authority.All other conveyances for value,including leases,
permits,rights of way,revocable permits and easements,shall be conducted in a manner
designated in writing by the mayor.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: 1)when conveyed to units of
government or other public or quasi-public organizations;or 2)when an encroachment on the
public way,within the corporate limits of Salt Lake City,involves a beautification project,
including but not limited to decorative street lighting,building facade lighting,flower and
planter boxes,and landscaping that furthers specific goals and objectives set forth in the
city's strategic plan,master plans,or other official documents.
B.The highest and best economic return to the city,as referred to in this chapter,shall be
estimated by one or more of the following methods:
1.Sealed competitive bid;
2.Evaluation by a qualified and disinterested appraiser;
3.Other professional publications and valuation services;or
4.An informal market survey conducted by the chief procurement officer in the case of items
of real property having a readily discernible market value.
C.Sales of city real property shall be based,whenever possible,on competitive sealed bids.The
chief procurement officer,in consultation with the director of finance,may waive the
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competitive bidding requirement when the value of the property has been estimated by an
alternate method specified under subsection B of this section,and:
1.The value of the property is considered negligible in relation to the costs of sale by bid;
2.Sale by bidding procedure is deemed unlikely to produce a competitive offer;or
3.Circumstances indicate that bidding on the property will not be in the best interests of the
city.
2.58.035:SIGNIFICANT PARCEL OF REAL PROPERTY:
In connection with any proposed sale,lease,conveyance or other disposition of real property
owned by the city,the following real property is deemed to be"significant":
A.Any property where the conveyance of the property would result in a request to amend the
city budget;
B.Any property where the conveyance of the property would result in a request for a change of
zoning of that property;
C.Any property that is specifically referenced in a master plan or where the proposed use of the
land following its conveyance would conflict with the master plan for the area;and
D.Any property designated as significant on table 2.58.035D,"Table Of Significant Parcels Of
Real Property".
EXHIBIT A
TABLE 2.58.035D
TABLE OF SIGNIFICANT PARCELS OF REAL PROPERTY
Transactions
Granting Fee Title Transactions Granting An Interest
Lease Or Revocable Permits
Type Of Property Property Temporary Utility
Property' Sales Exchanges Use Easements Permits5 Commercial Residential
Agreements
Airport Y Y N N N N n/a
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Golf Y Y Y4 Y Y Y Y
courses
Open Y Y Y Y Y Y Y
space2
Public Y Y N N N N N
buildings
(except
airport
property)
Public
utilities
properties:
Canal Y Y N N N N N
properties
Sewer Y Y N N N N N
facilities
Storm Y Y N N N N N
drain
facilities
Water Y Y N N N N N
facilities
Watershed Y Y N N N N N
Streets and
alleys:
Aerial Y Y N N N n/a n/a
rights
Subsurface Y Y N N N n/a n/a
rights
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Surface Y Y Y4 N N N N
rights3
Notes:
n/a=Not applicable
1.To the extent that the property falls into more than one category,the more restrictive process
will apply.
2.Includes all open space property within or without city boundaries,as defined in chapter 2.90
and title 21 A.
3.To the extent that any surface use involves a street or alley closure,such use would also be
subject to the street or alley closure process.
4.More than 10 years'initial term or more than 30 years'total with option terms.
5.Includes telecommunications franchises and telecommunications right of way permits.
2.58.040:SALE OF REAL PROPERTY;NOTICE AND HEARING:
A.A significant parcel of real property owned by the city or any significant legal interest therein
shall not be sold,traded,leased or otherwise conveyed or encumbered until the city has
provided reasonable notice to all interested parties and held at least one public hearing on the
proposed conveyance as set forth herein.
B.Reasonable notice of the proposed conveyance shall include the following:
1.Notice of the proposed conveyance shall be mailed to all abutting property owners.
2.Notice of the proposed conveyance shall be delivered to the office of the city council,
posted in the office of the city recorder,delivered to a local media representative,and
posted on the city's website.
C.No significant parcel of city owned real property identified on table 2.58.035D may be
conveyed until after a public hearing has been held before one or more of the following as
may be applicable: the planning commission,the airport advisory board,the public utilities
advisory committee,the golf advisory board,or the parks,natural lands,urban forestry,and
trails advisory board.
D.In addition to the public hearing required above,the city council may also request a public
hearing before the conveyance of the property.Any request for a hearing before the city
council must be delivered to the office of the mayor no less than fifteen(15)days after
delivery of the notice to the office of the city council pursuant to subsection B2 of this
section.If no request for a hearing is made within that time period,the city council shall be
deemed to have waived any right to request a hearing.
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If a written call for hearing has been made by the city council,the mayor or his or her
designee shall attend the hearing to hear and consider comments upon proposals to convey
the property specified in the notice.The hearing shall take place before,after or in
conjunction with a regularly scheduled city council meeting,as determined by the mayor.
E.Any notice of a proposed conveyance of a significant parcel of city owned real property shall
specify the following:
1.A 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;
6.The basis upon which the value of the interest has been determined by the city;
7.The date,time and location of the public hearing to be held before the planning
commission,airport advisory board,public utilities advisory committee,golf advisory
board,or parks,natural lands,urban forestry,and trails advisory board,as applicable.The
notice shall further state that interested persons may appear and comment upon the
proposal.
F.The conveyance or encumbrance of a significant parcel of real property of the city may be
finalized:
1.By the mayor,at his/her discretion following notice and any public hearings required by
this section;or
2.By the mayor,if the transfer is revocable and the mayor has determined that an
unanticipated combination of facts and conditions of pressing necessity has emerged that
requires that action be taken before a city council hearing.Such conditions shall not be
deemed to arise unless it appears that delay from the notice or a city council hearing would
produce:
a.Great or irreparable injury to persons seeking the conveyance or encumbrance,with
negligible impact upon city interests,
b.Serious detriment to the social or economic interest of the community as whole;or
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3.Substantial economic loss to the city.
G.Any decision by the mayor to forego the city council hearing provisions of this section shall
be made in writing to the city council,stating the specific reasons upon which the decision
was based.
H.The following shall be exempt from the mandatory procedures of this section;
1.The leasing of existing buildings,infrastructure,or facilities;
2.Special events or free expression activities lasting less than twenty one(21)days;
3.The leasing of recreation areas in accordance with their intended use;
4.The selling of burial rights in the Salt Lake City Cemetery;and5.The granting of easements or
other rights that service the property,including grants in connection with utilities or safety
equipment such as traffic signal poles.Any such easement or use right must be primarily for
the benefit of the city.With respect to open space land under chapter 2.90,such easement or
use right maybe granted only with the approval of the city's open space lands manager.
2.58.050:VALIDITY OF ACTIONS:
No provision of this chapter shall be construed to require or to invalidate any conveyance or
encumbrance by the city nor to vest rights or action of any kind against the city,its officers,
agents or employees.
2.58.060:DISPOSITION OF PROCEEDS:
All proceeds or revenue from the sale of any real property sold by the city,including real
property declared surplus by an internal service fund of the city,shall be deposited in a surplus
property account within the capital improvements fund of the general fund or the Salt Lake City
open space lands fund as may be applicable.However,if the property was purchased with
monies from an enterprise fund,or from properties designated by the mayor for use by an
existing enterprise fund,then the proceeds or revenue shall be deposited in a surplus property
account within that enterprise fund's capital improvements fund.Funds within surplus property
accounts may not be expended without prior appropriation or approval of the city council.
SECTION 2. Effective Date. That this ordinance shall take effect immediately upon the
date of its first publication.
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account within that enterprise fund's capital improvements fund.Funds within surplus property
accounts may not be expended without prior appropriation or approval of the city council.
SECTION 2. Effective Date. That this ordinance shall take effect immediately upon the
date of its first publication.
Passed by the City Council of Salt Lake City,Utah this 6th day of October ,
2015. AA
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CHAIRPER N
LAKe
ATTOO,k/
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CI ' RECORDER 100 -
ipqrE SEAV
Transmitted to Mayor on October 13, 2015 .
Mayor's Action: >( Approved. Vetoed.
cl.f�� / ,
,? . A S.6."1 YOR..
,--C; _CITY RECORDER ( 'h,,, ?„...
(SEAL)
Approved As To Form
Salt LakeLa1 City Attomey's Office
Boyd Ferguso Date
Bill No. 50 of 2015.
Published: October 30, 2015 •
HB_ATTY-#42197-v2-Amending_2_58_re_ci ty_owned_real_property.DOCX
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