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Before any City-owned real property is sold, the City department who has jurisdiction and control over the property must determine that it is no longer required for their use and must declare the property excess. Any real property, vacant or improved, shall not be sold without the approval of the board or officer having the management of the department.
For example, a vacated old branch library must first be declared no longer needed for operations by the City before the old branch library can be offered for sale at public auction.
In order to determine public agency interest in the acquisition of City-owned surplus property, a solicitation of interest shall be sent to public agencies within Alameda County. Said agencies shall be allowed sixty (60) days to express interest in the purchase of said surplus property
Once the City has determined a parcel is surplus, a description of the Proposed Surplus Property (Assessor’s Block and Parcel Number) must be sent, together with a request, to the Planning Commission to determine its appropriate zoning classification. Planning Commission zoning review classification shall be limited to surplus real property equal to or larger than 2,500 square feet in area.
If the surplus property is equal to or larger than 2,500 square feet in area, the Planning Commission will review the proposed surplus property to determine if some special circumstance exists where it would be in the best interest of the City to sell by negotiated transaction to the adjoining or abutting owner. If no such special circumstance exists then the surplus property shall be sold in accordance with Ordinance No. 11602 C.M.S. by open competitive bidding, after proper advertisement, to the highest bidder.
If the Planning Commission determines the surplus property should be sold by negotiated transaction, all contiguous owners shall be contacted and given an opportunity to express their interest in obtaining the surplus property. If more than one contiguous owner expresses an interest in buying the surplus property, consideration will first be given to splitting the surplus property to allow each owner to buy that portion contiguous to his/her property. If this is not feasible, contiguous owners will be allowed to enter competitive bidding process, limited to the contiguous owners, for the surplus property with that owner who offers the highest bid being given preference to purchase the surplus property.
The minimum price for the surplus property shall be determined and a Resolution prepared for the City Council authorizing the calling for competitive bids for sale of the surplus property by bids which meet or exceed the minimum price. The Resolution authorizing the surplus property sale shall provide:
- The time and place bids are to be received;
- The minimum bid on each parcel included in the surplus property;
- The statement regarding zoning and the zoning classification determination;
- A description of the surplus property;
- The amount and type of deposit required of the successful bidder;
- Whether bids are to be oral or seal bids;
- The minimum amount of increase of each bid if oral bids are to be received;
- When the balance of the bid price must be paid;
- Information regarding the surplus property bid process advertisement to be placed in the official newspaper(s) of the City of Oakland.
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