HomeMy WebLinkAbout3282 Creating AMC 2.55 - Disposal of Real Property ORDINANCE NO. 3282
AN ORDINANCE CREATING SECTION 2.55 OF THE AS14LAND MUNICIPAL
CODE: DISPOSAL OF REAL PROPERTY
Annotated to show deletions and additions to the Ashland Municipal Code sections being
modified. Deletions are bold lined through, and additions are bold underlined.
WHEREAS,Article 2. Section I of the Ashland City Charter provides:
Powers of the City. The City shall have all powers which the constitutions, statutes, and
common law of the United States and of this State expressly or impliedly grant or allow
municipalities, as fully as though this Charter specifically enumerated each of those
powers, as well as all powers not inconsistent with the foregoing; and, in addition thereto,
shall possess all powers hereinafter specifically granted. All the authority thereof shall
have perpetual succession;
WHEREAS,the City desires to create section 2.55 of the Ashland Municipal Code: Disposal of
Real Property;
WHEREAS, the City from time to time owns real property that is no longer needed for public
use, or the sale, exchange, conveyance or lease of the real property is necessary or convenient or
will otherwise further public interest;
WHEREAS,the City desires to establish clear, transparent, and fair procedures for the
evaluation and disposition of such surplus real property, consistent with ORS Chapter 221, ORS
Chapter 271, and the Oregon Revised Statutes;
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
2.55.010 Purpose and Scope.
The purpose of this chapter is to provide procedures and standards for the disposal of real
property owned by the City and to ensure that such disposals are conducted in a manner that
complies with Oregon State Law, including ORS Chapter 221 and 271.
SALE OF REAL PROPERTY
2.55.020 Sale of Real Property.
1. Except as provided by AMC 2.55.030 (Alternative Sales) and 2.55.040 (Affordable
Housing Dispositions)the City Manager, or their designee, shall present any proposal for
the sale of any City-owned real property to the City Council at a properly noticed
meeting. If the City Council considers it necessary or convenient to sell real property,
before any sale occurs, the City must abide by the notice and hearing requirements
outlined below. For the purposes of AMC 2.55.030 and 2.55.040, "Sale"includes a lease
ORDINANCE NO. 3282 Page 1 of 5
option agreement under which the lessee has the right to buy the leased real property in
accordance with the terms specified in the agreement.
The City Council may give further guidance or instructions to staff before initiating a
sale, including but not limited to, establishing bidding criteria,retaining a real estate firm,
posting notice on the City website.
a. Notice. The City shall publish a notice of the proposed sale in a newspaper of
general circulation in the city. The notice shall be published at least once during
the week prior to the public hearing. If such a newspaper does not exist, the City
shall publish a notice of the proposed sale in a manner consistent with Public
Meetings, and on the City website at least once during the week prior to the public
hearing.
b. Substance of the Notice. The notice shall provide information regarding the
following minimum information, though the City may include additional details at
its discretion:
i. A description of the property or interest to be sold,
ii. The proposed uses for the property,
iii. The reasons why the City Council considers it necessary or convenient to
sell the property and,
iv. The time and place of the public hearing at which the sale of the property
will be discussed.
c. Public hearin4. Not earlier than five days after publication of the notice, the
public hearing concerning the sale shall be held at the time and place stated in the
notice. The nature of the proposed sale and the general terms thereof, including an
appraisal or other evidence of the market value of the property, shall be fully
disclosed by the City Council at the public hearing. Any resident of the city shall
be given an opportunity to present written or oral testimony at the hearing.
Nothing in this section prevents the City Council from holding the hearing at any
regular or special meetings of the City Council as part of its regular agenda.
2. City Council Determination: Following the public hearing and consideration of public
testimony, the City Council shall determine whether to authorize the proposed sale.
If the City Council provided guidance in initiating a sale, like selling to the highest
bidder, the City shall follow through with that process. For sales of real property that do
not involve the highest bidder, the City Council may consider the valuation factors listed
in Section 3 below.
3. Valuation Factors. In determining property value, the City may consider public interest
and community benefits not reflected in market price. The following considerations are a
non-exhaustive list that may guide public-use valuation:
a. The suitability of the property for City or public purposes.
b. Allowing for more cohesive development of an area.
c. Providing needed commercial development, housing, employment, or recreational
opportunities.
d. Advancing the City's comprehensive plan.
ORDINANCE NO. 3282 Page 2 of 5
e. Increasing the City's tax base.
f. Supporting other adopted City priorities.
4. Sale Closing. If the City Council authorizes the sale of City property, the City Manager
shall act as the city representative for any closing documentation or negotiations.
2.55.030 Alternative procedure for sale of city-owned real property
1. In addition to or in lieu of AMC 2.55.020,the City Council may, from time to time, adopt
a resolution establishing a procedure for the sale of individual parcels of a class of City-
owned real properties, or any interest in the properties, under a single program
established within the City for the sale of that class of properties. The City manager may
thereafter sell any parcel under that adopted procedure in lieu of the other procedures
established in this Ordinance and ORS 221.725.
2.55.040 Affordable Housing Dispositions.
1. Applicability. The City may, in accordance with ORS 221.729, sell real property to
develop affordable housing. Such dispositions may be made under procedures established
by separate City Council resolution, consistent with applicable authorities and required
deed restrictions.
TRANSFER, LEASE, DONATION OF REAL PROPERTY
2.55.050 Transfers or lease of real property.
1. Transfer or lease of real property: Subject to the limitations regarding burial grounds and
land adjacent to railroads (see ORS 271.310(2) and (3)), if real property is not needed for
public use, or whenever the public interest may be furthered, the City Council may sell,
exchange, convey, or lease for any period not exceeding 99 years all or any part of the
City's interest in the property to a governmental body or private individual or corporation.
Consideration for the transfer or lease may include cash, real property, or both. In the
event of a sale of real property, the City must follow the provisions set forth in 2.55.020,
Sale of Real Property.
Unless the City Council determines that the public interest may be furthered, then real
property needed for public use may not be sold, exchanged, conveyed or leased under the
authority of ORS 271.300 to 271.360, except that it may be exchanged for property that is
of equal or superior useful value for public use. Any such property not immediately
needed for public use may be leased if, in the discretion of the governing body having
control of the property, the property will not be needed for public use within the period of
the lease.
2. Property not needed for public use. Consistent with ORS 271.330,the City Council may
relinquish or transfer title to City real property not needed for public use as follows:
ORDINANCE NO. 3282 Page 3 of 5
a. If the property is not needed for public use, the City may relinquish title to any
government body, providing the property is used for not less than 20 years for a
public purpose by the governing body in the State of Oregon.
b. To a qualifying nonprofit corporation, as defined in ORS 271.330(2)(b)(A), real
property for:
i. Low-income housing, as defined in ORS 27 L')3 0(2)(a)(A).
ii. Social services, including education,training, counseling, health and
mental health services, and the provision of facilities and administrative
services to support such services, as set forth in 271.33)0(2)(b)(B).
iii. Childcare services, including education, training, and the provision of
facilities and administrative services to support childcare services, as set
forth in ORS 271.330(2)(a)(C).
c. To a nonprofit, real property for the creation of open space, parks, or natural areas
for perpetual public use, subject to a reversionary interest in the favor of the City
as described in ORS 271.330(3).
d. To a nonprofit, municipal or private corporation, real property for the purpose of
providing broadband service, subject to a reversionary interest in the favor of the
City as described in ORS 271.330(4).
2.55.060 Exchange of Real Property.
1. Authorization. The City Council may authorize the trade or exchange of real property
with other governmental entities or with private parties.
2. Equivalent Value. The City may exchange real property only if the value of the real
property accepted by the City in exchange for any of its property plus cash, if any, shall
not be less than the value of the property relinquished.
3. Property Valuation. The value of the respective properties proposed to be exchanged
shall be determined by the City Council. The City Council shall cause it to be appraised
by one or more competent and experienced appraisers. The compensation, if any, of the
appraisers shall be borne equally by the respective owners of the property. In case the
valuation shall not be mutually satisfactory to the respective owners it shall not be
binding upon them.
SECTION 2. Severability. Each section of this ordinance, and any part thereof, is severable,
and if any part of this ordinance is held invalid by a court of competent jurisdiction, the
remainder of this ordinance shall remain in full force and effect.
SECTION 3. Codification. Provisions of this Ordinance shall be incorporated in the City Code
and the word "ordinance"may be changed to "code", "article", "section", "chapter" or another
word, and the sections of this Ordinance may be renumbered, or re-lettered,provided however
that any Whereas clauses and boilerplate provisions (i.e. Sections 3-5) need not be codified and
the City Recorder is authorized to correct any cross-references and any typographical errors.
ORDINANCE NO. 3282 Page 4 of 5
The foregoing ordinance was first read by title only in accordance with Article X, Section
2(C) of the City Charter on the �2 day of n 1�:(L; �� , 2026, and duly
r,-r PASSED and ADOPTED this _day of 1,). 2026.
PASSED by the City Council this day of �' �( �j', , 2026.
ATTEST: A4
Alissa olo zinski, Ci Recorder
SIGNED and APPROVED this��day of 1,f)l , 2026.
Tonya Gra am, Mayor
Reviewed as to form:
Carme Zahran, Assi t City Attorney
ORDINANCE NO. 3282 Page 5 of 5