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HomeMy WebLinkAbout23- Ordinance 2065 - Final Adoption Generally Revising the Purchase and Disposition of Municipal Property Ordinance 2065 Page 1 of 9 ORDINANCE NO. 2065 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA REPEALING CHAPTER 2, ARTICLE 6, DIVISION 5 OF THE BOZEMAN MUNICIPAL CODE AND ADDING CHAPTER 2, ARTICLE 8, DIVISION 1 TO BE ENTITLED REAL PROPERTY; AND GENERALLY REVISING THE ENABLING LEGISLATION FOR THE PURCHASE AND DISPOSAL OF REAL PROPERTY, INTERESTS IN WATER, AND THE GRANTING AND ACCEPTANCE OF EASEMENTS; AND CLARIFYING SAID DIVISION SUPERSEDES STATE LAW. WHEREAS, the City of Bozeman has adopted self-government powers and those powers are enumerated in its Charter, and the laws and Constitution of the State of Montana; and WHEREAS, pursuant to its Charter, the Montana Constitution, and state law, the City may exercise any power not prohibited by the constitution, law or charter and neither the Montana Constitution, state law, or the City Charter prohibits the City Commission from adopting this Ordinance; and WHEREAS, pursuant to §7-8-101(2) and (3), MCA the City may sell or trade to any county or political subdivision any property, however held or acquired, that is not necessary for the conduct of the city or town business; and WHEREAS, pursuant to §7-8-103(2), MCA the City is empowered and given the right to accept, receive, take, hold, own and possess any gift, donation, grant, devise, or bequest, any real property; any improved or unimproved park or playground; any water, water right, water reservoir, or watershed; any timberland reserve; any fish or game reserve in any part of the state and to own, hold, work, and improve the same; and WHEREAS, pursuant to §7-8-4201, MCA the City may sell, dispose of, donate, or lease any property belonging to the city; and WHEREAS, pursuant to §7-14-4101, MCA the City has the authority to establish, alter, and maintain traffic ways and public grounds; and DocuSign Envelope ID: FF3CD7CA-7D27-4B94-929C-C9CA9393C8CD Ordinance 2065 Page 2 of 9 WHEREAS, the City is subject to the restrictions of Article X, Section 6, of the Montana Constitution when disposing of city owned real property; and WHEREAS, pursuant to Attorney General Opinions 43 Op. Atty. Gen. No. 41 and 43 Op. Atty. Gen. No. 55 the City pursuant to its self-government powers may dispose of city property however acquired including property held in trust for a specific purpose and sell property by a simple majority; and WHEREAS, the city commission recognizes these revisions are necessary to clarify processes for the disposal of city owned real property; to codify that disposal of city property that will preserve historical properties, provide for economic development, provide for affordable housing, or for purposes that further the climate action and sustainability goals of the city may be sold for less than appraised value subject to conditions; and increase efficiencies in the process to obtain interests in water as well as the granting and accepting of easements of real property, rights- of-way, or public infrastructure. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That the entirety of current Chapter 2, Article 6, Division 5 of the Bozeman Municipal Code is hereby repealed and the division reserved. Section 2 That under Chapter 2, Bozeman Municipal Code, a new Article 8 and Division 1 shall be created and shall be codified as follows: ARTICLE 8 – PROPERTY DIVISION 1. –REAL PROPERTY Sec. 2.08.100. - Authorization for city to obtain property. Sec. 2.08.110. – Acquisition of interests in water. Sec. 2.08.120. - Authorization for city to sell, donate, and exchange city property. Sec. 2.08.130. - Appraisal required for acquisition and disposal of real property; exceptions. Sec. 2.08.140. - Additional requirements for sales, donations and exchanges. Sec. 2.08.150. - Terms of sale. Sec. 2.08.160. - Lease of city property. Sec. 2.08.170. - Easements. Sec. 2.08.180. – Use of proceeds of property disposition. Sec. 2.08.190. - State law superseded. DocuSign Envelope ID: FF3CD7CA-7D27-4B94-929C-C9CA9393C8CD Ordinance 2065 Page 3 of 9 Sec. 2.08.100. - Authorization for city to obtain property. Except as may otherwise be provided by this code, the city commission has jurisdiction and power, under such limitations and restrictions as are prescribed by law, to purchase and accept by donation or exchange any real property necessary for the use of the city and to preserve, take care of, manage, and control the same. The city manager may enter into leases on behalf of the city for the purposes of providing facilities for city operations. Sec. 2.08.110 - Acquisition of interests in water. The city manager may, subject to the availability of funds, purchase or otherwise acquire any interests or rights in water including the acquisition of shares in a water project or entity for and on behalf of the city. Sec. 2.08.120. - Authorization for city to sell, donate, and exchange city property. A. The city commission has the jurisdiction and power to sell, donate, or exchange any real property belonging to the city, however acquired, including property held in trust for a specific purpose. The city manager may enter into agreements to sell, donate, or exchange real property subject to ratification by the city commission and compliance with this division. B. Any sale, donation, or exchange of real property must be accomplished under the provisions of this division. C. In an exchange of real property, an exchange of city property may not be made unless property received in exchange for the city property is of an equivalent value. If the properties are not of equivalent values, the exchange may be completed if the city receives sufficient consideration approved by a majority of the city commission, in addition to the delivery of title. Sufficient consideration may include but is not limited to financial compensation or a public benefit as determined by a majority of the city commission. D. The city may exchange, donate or sell at a reduced rate city owned real property to another governmental entity for a governmental purpose. E. The city may donate or sell at a reduced rate city owned real property containing a historically significant building or monument to an entity that agrees to restore or preserve the property. The contract for the transfer of the property proposed for historic preservation that is sold for less than appraised value or donated must contain at minimum provisions that: 1. Require the property to be preserved in its present or restored state upon any subsequent transfer; and 2. Provide for the reversion of the property, including any improvements made to the real property, to the city for noncompliance with conditions attached to the transfer. DocuSign Envelope ID: FF3CD7CA-7D27-4B94-929C-C9CA9393C8CD Ordinance 2065 Page 4 of 9 F. The city may donate or sell at a reduced rate city owned real property for economic development purposes to an entity that agrees to develop the property for economic development purposes. The contract for the transfer of property proposed for economic development purposes that is sold for less than appraised value or donated must contain at minimum, provisions that: 1. Require the property be developed in such a manner as to provide economic development opportunities, including job creation or retention, for industries of value to the city, or for development implementing an urban renewal plan; and 2. At the discretion of the city commission, provide for the reversion of the property, including any improvements made to the real property, to the city for noncompliance with conditions attached to the transfer. G. The city may donate or sell at a reduced rate city owned real property to an entity for the purpose of constructing buildings which will provide emergency or transitional shelter housing or rental housing for low to moderate-income households, or buildings which may be sold as low to moderate-income households. The contract for the transfer of property proposed for housing built pursuant to this section must contain at minimum, provisions that: 1. Provide, for a period of time and under the conditions specified in the transfer, emergency or transitional shelter or housing for low to moderate- income households; and 2. At the discretion of the city commission, provides for the reversion of the property, including any improvements made to the real property, to the city for noncompliance with conditions attached to the transfer. H. The city may donate or sell at a reduced rate city owned real property for climate action and sustainability purposes to an entity that agrees to develop or otherwise utilize the property for purposes that further the climate action and sustainability goals of the city. The contract for the transfer of property proposed for climate action and sustainability purposes that is sold for less than appraised value or donated must contain at minimum, provisions that: 1. Require the property be developed or otherwise utilized in such a manner as to further the climate action and sustainability goals of the city; and 2. At the discretion of the city commission, provide for the reversion of the property, including any improvements made to the real property, to the city for noncompliance with conditions attached to the transfer. DocuSign Envelope ID: FF3CD7CA-7D27-4B94-929C-C9CA9393C8CD Ordinance 2065 Page 5 of 9 I. The city manager may establish procedures for the purchase, exchange, donation, or sale of City real property. The city manager must adopt such procedures by administrative order. Sec. 2.08.130. - Appraisal required for acquisition and disposal of real property; exceptions. A. An appraisal is required when the city purchases a fee simple interest in real property or a conservation easement using public funds, unless specifically exempted. B. An appraisal is required for any sale, exchange, or donation of city real property, unless specifically exempted. C. An appraisal is not required when the sale, exchange, or donation of real property is to or between another governmental entity if the property will continue to be used for governmental purposes. A sale, exchange or donation of real property with another governmental entity may, at the discretion of the city commission, provide for the reversion of the property, including any improvements made to the real property, to the city in the event the recipient no longer uses the property for governmental purposes. D. An appraisal is not required for the acquisition of interests in water rights or rights of way for utility or road purposes. E. For any purchase, sale, exchange or donation requiring an appraisal under this article, the property must be appraised within one year prior to the date of provisional adoption of the ordinance approving the sale, donation, or exchange unless waived by the commission. Sec. 2.08.140. - Additional requirements for sales, donations and exchanges. A. Prior to selling, exchanging, or donating any real property under this division, the city commission must find the real property proposed for sale, donation, or exchange is either no longer necessary to conduct city business or that the public interest may be furthered by the sale, donation, or exchange. This determination must be made by a two-thirds vote of all commission members. B. If the determination required by subsection A is made in the affirmative, the commission must decide at a subsequent public meeting whether to adopt an ordinance selling, donating or exchanging the property. This determination must be made by a two-thirds vote of all commission members. C. For the sale of real property, the city may sell property by bid, public auction or direct negotiated sale, subject, where required by this division, to a minimum price established through appraisal. For donations and exchanges, the city may negotiate a donation or exchange directly to a specific person or entity, including other governmental entities, without advertising for bids. DocuSign Envelope ID: FF3CD7CA-7D27-4B94-929C-C9CA9393C8CD Ordinance 2065 Page 6 of 9 D. Notice of sale, exchange, or donation must be published as provided in Mont. Code Ann. §7-1-4127. The city may terminate these procedures at any time and may reinitiate the same or different procedures at a later date. Sec. 2.08.150. - Terms of sale. Unless otherwise determined by two-thirds of the city commission: A. Except for sales conducted pursuant to 2.08.120 (D), (E), (F), (G) and (H) a sale under this division must be for cash or on terms approved by two-thirds of the commission. B. Except for sales conducted pursuant to 2.08.120 (D), (E), (F), (G) and (H), or for sales, exchanges, or donations with another governmental entity, a sale of city real property may not be made for less than 90 percent of the appraised value. C. The title to any property sold may not pass from the city until the purchaser or the purchaser's assigns have met all obligations of the sale or exchange agreement. Sec. 2.08.160. - Lease and Licensing of City Property/ Parking Permits. A. The city commission has the power to lease any lands, buildings, structures, or improvements, owned by the city, however acquired, for any length of time and for any purpose. The commission may enter into such leases at a reduced rate if the city property is to be used for a public purpose. B. The development or other use of any city lands, buildings, structures, or improvements, whether by a lessee, or their invitees, must comply with this code. C. The leasing of one or more parts of a building, improvement, or structure may be done by resolution of the commission. The leasing of an entire tract of record owned by the city must be done pursuant to ordinance. C. The city manager may grant a license for a temporary use of city real property under conditions determined by the city manager. The parking commission may grant a license for a temporary use for facilities under its jurisdiction under conditions determined by the parking commission. E. The parking commission has the power to issue permits for parking spaces in parking structures and parking lots within its jurisdiction and establish standards for the same. Sec. 2.08.170. – Easements. A. The city manager or director designee may on behalf of the city accept the grant or dedication of real property, rights-of-way, or public infrastructure. The acceptance must be in writing. The acceptance must be recorded in the records of the Gallatin County Clerk and Recorder and the original must be returned to the city clerk. Nothing herein may be construed to authorize the city manager to accept an easement or grant as shown on a subdivision plat until such final plat has been approved by the city pursuant to law. B. The city manager may grant rights-of-way for private, municipal, or public utilities across land owned by the city. The city manager may determine whether consideration for the grant is DocuSign Envelope ID: FF3CD7CA-7D27-4B94-929C-C9CA9393C8CD Ordinance 2065 Page 7 of 9 required. The grant must be in writing. The grant must be recorded in the records of the Gallatin County Clerk and Recorder and the original must be returned to the city clerk. D. The city manager may authorize, subject to the availability of funds, the purchase of right- of-way for public infrastructure or public purposes. Sec. 2.08.180. – Use of proceeds of property disposition. The funds derived from property disposed of in accordance with this division, in the discretion of the city commission, may be credited to any account that is in the best interest of the city. Sec. 2.08.190. - State law superseded. Pursuant to the city's self-government powers, Section 7-8-4201, MCA, addressing the disposal, donation, lease or sale of city property is hereby superseded. All other applicable provisions of state law not in compliance with this division are hereby superseded. Title 7, Chpt. 8, Part 1, MCA is specifically not superseded. Section 3 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 4 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Section 5 Severability. DocuSign Envelope ID: FF3CD7CA-7D27-4B94-929C-C9CA9393C8CD Ordinance 2065 Page 8 of 9 That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 6 Codification. Sections 1 and 2 of this Ordinance shall be codified. Section 7 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. DocuSign Envelope ID: FF3CD7CA-7D27-4B94-929C-C9CA9393C8CD Ordinance 2065 Page 9 of 9 PROVISIONALLY PASSED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 13th day of December, 2022. ____________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: ____________________________________ MIKE MAAS City Clerk FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the ___ of ____________________, 2023. The effective date of this ordinance is __________, __, 2023. _________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _______________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney DocuSign Envelope ID: FF3CD7CA-7D27-4B94-929C-C9CA9393C8CD January February 9 10