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Approve Process for Sale of Exempt Remnant Properties March 5, 2019 Page 2 Legal Authority to Dispose of City -Owned Parcels Article V, Section 2-706 of the SAMC governs the sale of real property by the City, and contains provisions for sale to the highest bidder. For substandard parcels that do not meet the minimum zoning requirements for development, Article V, Sections 2-706.1 and 2-709 allow for the sale of any parcel of City -owned real property by direct negotiation with adjacent property owner. If direct negotiations for sale of property to adjacent property owners are not successful, staff will include these substandard property slivers in a subsequent disposition RFP. Activation of Exempt Properties for Disposition Staff from the Community Development, Planning and Building, and Public Works Agencies evaluated the various methods for disposition and is recommending the issuance of an RFP. The RFP process, versus alternative methods, is preferred because it ensures that the City receives maximum value, in terms of public and economic benefits to the community. The RFP process provides the opportunity for a greater response incorporating meaningful land use and development, while requiring proposers to address all City requirements in a clear and realistic way when presenting an offer. Proposed RFP submittal requirements and criteria for evaluation are comprised of the following: • Project Narrative & Preliminary Site Plan for Proposed Development • Bid Amount and Bond Verification • Fiscal and Economic Benefit Analysis • Project Specific Timeline(s) If approved, the RFP will be released at the end of February 2019 with a five-week deadline for submittals. The anticipated award date for this RFP is May 2019 following proposal evaluations and negotiations with selected parties. The estimated economic development benefits that will occur as a result of activation of these vacant lots will promote revenue generating development and increase local workforce base. Additionally, disposing of these exempt properties will generate sustainable City general fund sources with increased property tax rolls and additional utility user taxes collected on an annual basis. Real Property Disposition Policy Exemption The Real Property Disposition Policy, received and filed at the City Council meeting of October 16, 2018, established procedures whereby remnant, City -owned real property assets and interests are identified and recommended for disposition through sale, lease, easement, license, or agreement. However, all of the properties associated with this recommended action were acquired with restricted grant funding and are, thus, exempt from the previously approved Policy. Estimated Financial and Economic Benefits The sale of Real Property is estimated to generate about $10 Million which will be used to reimburse project expenditures and replenish grants used on their acquisition as well as funding more public improvements along Bristol Street. More importantly, the sale of these properties would lead to other significant economic activity spurred from the development of various projects on each parcel including creating local jobs, sales tax, and increased property tax that will be 19C-2