Oakland Municipal Code Art. II Sale of City-Owned Real Property, Generally

This Article shall apply to all sales of real property by the City, except for the sale of real property for development. The sale of real property for development shall be governed solely by Article IV below.

(Ord. No. 13287, § 3, 1-6-2015)

The City shall comply with all state laws, to the extent applicable, governing the sale of real property, including the Surplus Lands Act (California Government Code Sections 54220, et seq.).

Prior to soliciting bids from other entities for surplus land, the City shall send written offers to sell or lease surplus land for the purpose of developing housing where at least twenty-five percent (25%) of the units are affordable to persons of low or moderate income to housing sponsors, including nonprofit housing providers. The City shall offer such housing providers first priority for ninety (90) days to negotiate for the purchase or lease of the property for the development of affordable housing.

(Ord. No. 13287, § 3, 1-6-2015)

A. Competitive Process. No real property shall be sold by the City except after calling for oral or written competitive bids or offers, unless the competitive process has been waived as provided for below. Each solicitation for written competitive bids or offersshall contain the following:

1. The time and place bids or offers are to be received.

2. The minimum acceptable bid or offers on each parcel.

3. A description of each parcel.

4. The amount and type of deposit required of the successful bidder or offeror. Said deposit shall be retained by the City if the successful bidder or offeror fails or refuses to complete the transaction.

5. When the balance of the bid or offer price must be paid.

Oral competitive bids or offers may be received through a public auction process or other competitive process.

Notice of the proposed sale and competitive process shall be published in the official newspaper of the City or posted on the City's website. Bids or offers shall be received in public at the time and place specified in the notice calling for bids or offers. The sale, if accepted by the City Council, shall be awarded to the highest bidder or offeror meeting the conditions specified in the notice calling for the sale of the property. The City Council shall have the right to accept or reject any and all bids or offers. If the highest bidder or offeror fails or refuses to complete the transaction, the property may subsequently be sold through negotiation to the next highest bidder or offeror willing to meet the same minimum advertised terms and conditions.

If no bids or offers are received after advertising the property as required by this chapter, the real property may subsequently be sold through negotiation, subject to the approval of the City Council if required.

B. Waiver of Competitive Process. Notwithstanding the above, the requirement to undertake a competitive process and to post notice of the proposed sale shall not apply to any of the following circumstances:

1. The real property is to be sold to another public agency or entity which has the power of eminent domain;

2. The real property is undeveloped and less than five thousand (5,000) square feet in land area;

3. The real property has a fair market value of one hundred thousand ($100,000.00) or less;

4. The City Council has made a finding and determination that calling for bids or offers on a competitive basis is impractical, unavailing or impossible; or

5. The City Council has made a finding and determination that it is in the best interests of the City to sell the real property by negotiated sale.

C. Approval by Ordinance. Per Section 219(6) of the Charter, all sales of real property by the City must be authorized by an ordinance enacted by the City Council, except as provided below.

D. Administrative Authority. Notwithstanding the above, the City Administrator or his or her designee is delegated the full and complete authority to sell City real property in any of the following circumstances:

1. The sale is required by an agency of the state or federal government;

2. The real property has a fair market value of $50,000.00 or less; or

3. The real property was formerly owned by the Redevelopment Agency of the City of Oakland (the "Redevelopment Agency") or the Oakland Redevelopment Successor Agency ("ORSA"), and the Redevelopment Agency or ORSA governing body delegated the authority to sell the real property to the administrative staff of the respective agency by resolution.

The City Administrator or his or her designee is authorized to negotiate and execute all documents necessary for the sale of such real property and take other actions necessary to complete such sale. No further City Council action is required for such sales.

(Ord. No. 13287, § 3, 1-6-2015)

Real property must be sold for a price, payable in cash or other consideration, equal to or exceeding the property's fair market value as determined by an appraisal, unless either (1) the City Council has made a finding and determination that the sale of the property for less than fair market value is in the best interests of the City, or (2) a state or federal government agency requires the sale of the property for less than fair market value.

(Ord. No. 13287, § 3, 1-6-2015)

The following enumerated officers and employees of the City may not as principal, agent, attorney or otherwise, be directly or indirectly interested in the sale of any City-owned real property: Mayor, members of the City Council, members of the City Planning Commission, City Auditor, City Attorney, City Administrator, City Clerk, Director of Finance, Director of City Planning, Director of Planning and Building, Director of Public Works, Real Estate Services Manager, employees of the Real Estate Division, and any other City employee who, because of his or her position with the City, has a potential conflict of interest or a potential advantage ever other potential purchasers.

(Ord. No. 13287, § 3, 1-6-2015)

The City is authorized to grant temporary and permanent easements, including equitable servitudes and right-of-way interests, for access to or use of City real property. This shall include the grant of negative easements such as conservation easements. Per Section 219(6) of the Charter, all such grants must be authorized by an ordinance enacted by the City Council, except as provided for below.

Notwithstanding the above, the City Administrator is delegated the full and complete authority to grant any temporary or permanent easements for access to or use of City real property without Council authorization in any of the following circumstances:

1. The grant of easement is required by an agency of the state or federal government;

2. The easement area is less than five thousand (5,000) square feet;

3. The easement has a fair market value of one hundred thousand ($100,000.00) or less; or

4. The easement period is for one year or less.

The City Administrator or his or her designee is authorized to negotiate and execute all documents necessary for the grant of such easements and take other actions necessary to complete such grant. No further City Council action is required for the grant of such easements.

Any grant of easement must be in exchange for a price, payable in cash or other consideration, equal to or exceeding the fair market value of the easement conveyed as determined by an appraisal, unless (1) the City Council has made a finding and determination that the grant of easement for less than fair market value is in the best interests of the City, or (2) a state or federal government agency requires the grant of easement for less than fair market value.

(Ord. No. 13287, § 3, 1-6-2015)