SEC. 23.3. CONVEYANCE AND ACQUISITION OF REAL PROPERTY.

The Director of Property may Convey any Real Property owned by the City upon recommendation of the department responsible for the administration of such Real Property, excepting park lands pursuant to Charter Section 4.113(2) or where a Conveyance of such Real Property would violate the terms of any gift, trust, deed restriction, bond covenant, or other covenant or restriction under which the City holds the Real Property. Such Conveyance may be made after the Board of Supervisors, by resolution, determines that the public interest or necessity demands, or will not be inconvenienced by, such Conveyance, and approves the Conveyance. The Board of Supervisors may authorize such Conveyance by resolution without advertisement, public auction, or Competitive Bidding Process if it determines that an advertisement, public auction, or Competitive Bidding Process is impractical, impossible, or is otherwise not in the public interest, including, for example only and not by way of limitation, when the Real Property is not capable of independent development, will be exchanged for other Real Property, or when the Board determines that a negotiated direct Conveyance of the Real Property will further a proper public purpose.

Before the Board of Supervisors approves a Conveyance, the Director of Property shall appraise the fair market value of such Real Property based on a review of available and relevant data and give the notices required by California Government Code Section 54220 et seq., Administrative Code Chapter 23A, or any other applicable provision of state law. Before the Board of Supervisors approves any Acquisition of Real Property that is not a donation of Real Property, the Director of Property shall determine the fair market value of such Real Property based on a review of available and relevant data.

If the Director of Property determines the fair market value of Real Property that the City intends to Acquire or Convey exceeds $10,000 and the proposed Acquisition is not a donation, the Director of Property shall obtain an Appraisal for the Real Property. If the Appraisal determines the fair market value of the Real Property exceeds $200,000, the Director of Property shall obtain an Appraisal Review for such Appraisal. Any Appraisal and Appraisal Review shall have an effective date of value that is not earlier than nine months before the date legislation for the proposed Acquisition or Conveyance is submitted to the Board of Supervisors. Notwithstanding anything to the contrary in this Section 23.3, to preserve Affordable Housing, the Director of MOHCD and the Director of Property are authorized to Acquire any Real Property without an Appraisal (1) through the exercise of rights and remedies under a deed of trust, deed in lieu of foreclosure, loan agreement, regulatory agreement, or other instrument securing the City’s interest in the Real Property, or (2) through negotiated contract or bid of Real Property that is to be sold through public auction, a judicial process, tax sale, or trustee sale.

ire any Real Property without an Appraisal (1) through the exercise of rights and remedies under a deed of trust, deed in lieu of foreclosure, loan agreement, regulatory agreement, or other instrument securing the City’s interest in the Real Property, or (2) through negotiated contract or bid of Real Property that is to be sold through public auction, a judicial process, tax sale, or trustee sale.

The Director of Property shall also advertise by publication the proposed Conveyance if the Conveyance will be by public auction or Competitive Bidding Process, for no less than 30 days. Every Conveyance other than a sale at public auction or through a Competitive Bidding Process shall be for a sales price of at least 100% of the appraised value of such Real Property, except where the Board determines either that (a) a lesser sum will further a proper public purpose, or (b) based on substantial evidence in the record, the terms and conditions of such Conveyance are reflective of the fair market value of the Real Property notwithstanding the appraised value.

(Added by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 179-03, File No. 030582, App. 7/18/2003; Ord. 103-16, File No. 160361, App. 6/24/2016, Eff. 7/24/2016; Ord. 202-19, File No. 190679, App. 8/9/2019, Eff. 9/9/2019)

(Former Sec. 23.3 repealed by Ord. 15-01, File No. 001965, App. 2/2/2001)