HomeMy Public PortalAboutCC-102_Real Property Transactions Policy_Effective 10-03-2018
City of Lebanon
New Hampshire
COUNCIL POLICY
Real Property Transactions
Policy Number Effective Date Last Revision Page No.
CC-102
Prior #00-01-C August 1, 2018 October 3, 2018 Page 1 of 12
Approved by: City Council
www.lebanonnh.gov
SECTION 1.0: PURPOSE
To provide guidance by clarifying the circumstances, procedures and
processes for disposing of or transferring interests in CITY owned real estate.
SECTION 2.0: SCOPE
Authority to implement changes to this Policy is delegated to the CITY
MANAGER without prior notice if it is deemed to be in the best interest of the
City of Lebanon. This Policy is available for public review and inspection.
SECTION 3.0: DEFINITIONS
NOTICE OR NOTICE OF SALE: means a brief description of the property, the
hour, date and place of sale or disposition, and the location of the property,
as well as other such information considered relevant by the CITY MANAGER.
PUBLIC AGENCY: includes the federal government or any federal department
or agency, the state and all departments, agencies, boards and commissions
of the state, counties, school districts, cities, towns, municipal corporations
and any other political subdivisions of the State of New Hampshire.
PUBLIC PROPERTY OR PROPERTY: means real property which is owned by the
CITY.
REAL PROPERTY: means real estate, and appurtenances thereto, over which
the CITY has oversight responsibilities as provided by City Charter and State
law.
REDEVELOPMENT AREA: an area of the City that has been designated by the
City Council as having redevelopment potential where City properties,
regardless of whether they are deemed surplus or have current uses by the
City, may be redeveloped in a manner that meets certain goals and objectives
of the City as expressed in its Master Plan and other public policies. Public
uses and parcels, including public ways, may be reconfigured in such areas,
including, but not necessarily, in conjunction with private property.
City of Lebanon
New Hampshire
COUNCIL POLICY
Real Property Transactions
Policy Number Effective Date Last Revision Page No.
CC-102
Prior #00-01-C August 1, 2018 October 3, 2018 Page 2 of 12
Approved by: City Council
www.lebanonnh.gov
SURPLUS PROPERTY: any real property no longer having practical use to the
City of Lebanon.
TAX DEEDED PROPERTY: property taken due to non-payment of property
taxes in accordance with RSA 80:38.
SECTION 4.0: PROCEDURES
4.1 DISPOSITION OF PROPERTY:
1. DEEMING PROPERTIES AS SURPLUS TO CITY NEEDS OR SUITABLE FOR
REDEVELOPMENT
When a property is being considered for disposition, it must first be deemed
surplus to CITY needs or suitable for redevelopment as part of a
redevelopment area. To determine whether a property is surplus to CITY
needs or suitable for redevelopment, the following shall take place:
A. If City property is being considered for redevelopment, the Council shall,
by resolution, designate one or more specific redevelopment areas
where the City may consider redevelopment proposals that may involve
the reconfiguration of public and private property parcels and boundary
lines and disposition of public property. The resolution may:
1. Broadly indicate the parameters the Council may consider in
deciding if redevelopment and disposition of public property is
appropriate and in the public interest, including how any public
uses of such property may be alternatively accommodated, and
may be by reference to a draft REQUEST FOR PROPOSALS (RFP);
2. Direct the City Manager to consider a public benefit determination
pursuant to §4.1.2.A.4, “CONVEYANCE TO ADJOINING PROPERTY
OWNER(S);” or
3. Direct the City Manager to consider and propose a conveyance to
a Development Authority pursuant to §4.1.2.A.9 “CONVEY TO A
DEVELOPMENT AUTHORITY.”
City of Lebanon
New Hampshire
COUNCIL POLICY
Real Property Transactions
Policy Number Effective Date Last Revision Page No.
CC-102
Prior #00-01-C August 1, 2018 October 3, 2018 Page 3 of 12
Approved by: City Council
www.lebanonnh.gov
B. Review and comment shall be solicited by the City Manager or his/her
designee from all CITY departments; relevant boards, committees and
commissions; and the Lebanon School District.
C. A report shall be prepared for review by the City Council which contains
the full assessment information and property card for each property
along with all comments received from departments, boards,
committees, commissions, and the School District.
D. Upon review of all information, the City Council shall consider, and act
upon by resolution, authorization for the City Manager to:
1. retain such property or properties for future use by the CITY; or
2. convey such property or properties by deed through public auction,
by advertised sealed bids, by other means specified herein, or in a
manner as justice may require.
Authority to convey property or properties shall continue in effect for one
year from the date of the action by the City Council unless otherwise
provided.
2. DISPOSING OF PROPERTY
The City Council shall have the power to establish a minimum amount for
which a property is to be sold and the terms and conditions of the sale.
The disposal of any property or properties shall not be contrary to the public
interest. The permanent disposition of property may be by SALE OR
EXCHANGE and the partial or temporary disposition of property may be by
EASEMENTS, LICENSES, AND LEASES. The sale of public property for
redevelopment within a Tax Increment Financing District (TIFD) shall
comply with any applicable Tax Increment Financing Plan (TIFP) adopted
by the City pursuant to RSA 162-K:9.
City of Lebanon
New Hampshire
COUNCIL POLICY
Real Property Transactions
Policy Number Effective Date Last Revision Page No.
CC-102
Prior #00-01-C August 1, 2018 October 3, 2018 Page 4 of 12
Approved by: City Council
www.lebanonnh.gov
A. SALE OR EXCHANGE – Disposition through sale or exchange of property
or properties shall be by Competitive Sealed Bids, Public Auctions,
Request for Proposal (RFP), Conveyance to Adjoining Property
Owner(s), Trade-in or Exchange, Conveyance to Another Public Agency,
Conveyance to a Development Authority, or in a manner as justice may
require, as follows:
1. COMPETITIVE SEALED BIDS
a. A Request for Sale Bid Package shall be created that lists the
property or properties offered for sale; designate location; and state
the terms and conditions of sale and instructions to bidders
including the place, date, and time set for bid opening.
b. Notice of the sale should be given at least 10 days before the date
set for opening bids.
c. Notice shall be given by making the Request for Sale Bids publicly
available through posting notice to the City’s website and by
newspaper advertisement. Notice may also be given by mailing a
Request for Sale Bid Package to prospective bidders, including those
bidders on lists that may be maintained for this purpose.
d. Bids shall be opened publicly.
e. Award shall be made in accordance with the provisions of the
Request for Sale Bids to the highest responsive and responsible
bidder, if the price offered by such bidder is acceptable to the City
Council. Where such price is not acceptable, the City Council may
reject the bids in whole or in part and negotiate the sale provided
the negotiated sales price is higher than the highest responsive and
responsible bidder’s price, or bids may be resolicited.
f. The sale shall be binding upon the CITY only upon award of the bid
and delivery of the deed to the successful bidder after adoption of
a City Council resolution approving the sale, and no other action of
City of Lebanon
New Hampshire
COUNCIL POLICY
Real Property Transactions
Policy Number Effective Date Last Revision Page No.
CC-102
Prior #00-01-C August 1, 2018 October 3, 2018 Page 5 of 12
Approved by: City Council
www.lebanonnh.gov
the CITY or its representatives shall be construed to vest any right,
title or interest to or in the property in any person prior to the
adoption of the resolution and delivery of the deed.
2. PUBLIC AUCTION
When appropriate, an experienced auctioneer should be used to cry
the sale and assist in preparation of the sale. The solicitation to
bidders should stipulate, at a minimum, all the terms and conditions
of any sale; that a deposit may be required to participate in the
bidding; that the purchaser must consummate the purchase within a
stated time; and that the CITY retains the right to reject any and all
bids.
3. REQUEST FOR PROPOSALS (RFPs)
The City may issue requests for proposals for the development or
redevelopment of City property deemed surplus and/or suitable for
redevelopment within Redevelopment Areas designated by the City
Council. Such RFP process shall include the following:
a. The RFP shall specify the criteria on which proposals will be
evaluated and scored. Such criteria may include, but not be limited
to, proposed purchase price or other consideration for the property
interests to be conveyed, the proposed extent of redevelopment
including the expected assessed property value upon completion,
conformity with specified public policy goals consistent with the
City’s Master Plan and other guidance documents, the time frame
for development, the experience and management and financial
capability of the proposed development team.
b. The Council shall designate an RFP review committee that shall
score all complete and qualified RFP responses. The Council may
designate itself as such review committee or may appoint such City
Councilors, staff, other board and committee representatives, and
citizens as it deems appropriate to such review committee. The
City of Lebanon
New Hampshire
COUNCIL POLICY
Real Property Transactions
Policy Number Effective Date Last Revision Page No.
CC-102
Prior #00-01-C August 1, 2018 October 3, 2018 Page 6 of 12
Approved by: City Council
www.lebanonnh.gov
review committee may recommend that the City Council proceed
with a planned sale to the top scoring respondent that is deemed to
provide the City with the best overall value to the City.
c. The Council may accept the recommendation of the review
committee or reject it and make no sale or start the process over.
d. The Council may authorize the City Manager to negotiate certain
terms and enter into a Purchase and Sale Agreement with the
selected redeveloper that may specify certain milestones to be
achieved prior to closing on a sale.
4. CONVEYANCE TO ADJOINING PROPERTY OWNER(S)
Upon recommendation of the City Manager, by resolution of the City
Council, the City may sell or exchange any real property or interest
therein to any person who owns an interest in the same real property
or who owns an interest in adjoining real property. Sale or exchange
shall require a determination by the City Manager that the public
benefit will be served by uniting ownership of the CITY’s real property
or real property interest with the adjoining property. Such
determination may consider, without limitation:
a. The range of possible uses for the real property or interests;
b. The proposed uses for the real property or interests by the proposed
grantee;
c. The size, configuration and other characteristics of the real property
or interests;
d. Existing or proposed restrictions upon the development or use of
the real property or interests; and
e. The value of the real property or interests.
City of Lebanon
New Hampshire
COUNCIL POLICY
Real Property Transactions
Policy Number Effective Date Last Revision Page No.
CC-102
Prior #00-01-C August 1, 2018 October 3, 2018 Page 7 of 12
Approved by: City Council
www.lebanonnh.gov
5. TRADE-IN, EXCHANGE, OR GRANT OUTRIGHT
By resolution of the City Council, the City may trade-in, exchange
or grant outright real property after a determination is made that
the trade-in or grant outright value is expected to exceed the value
estimated to be obtained through the sale or other disposition of
such property as evidenced by an appraisal.
6. CONVEY TO A PUBLIC AGENCY
By resolution of the City Council, the City may sell to a public agency
any real property or interest therein. In the event of a real property
interest other than a lease, the CITY shall obtain an appraisal of the
property to be sold.
7. CONVEY TO A DEVELOPMENT AUTHORITY
By resolution of the City Council, the City may sell property within a
development or redevelopment area to a developer or redeveloper
pursuant to a development or redevelopment agreement (pursuant
to NH RSA 205). The development or redevelopment agreement
shall provide such covenants, conditions, and restrictions upon the
property and other terms and requirements as the CITY COUNCIL
determines to be in the public interest or necessary to carry out the
purposes of the development or redevelopment plan.
8. AS JUSTICE MAY REQUIRE
By resolution of the City Council that the public interest would be
served, disposal of property may be achieved by engaging a real
estate agent or broker to list and sell the property, including a
condition on the sale that the Buyer’s obtain development approvals
in advance.
City of Lebanon
New Hampshire
COUNCIL POLICY
Real Property Transactions
Policy Number Effective Date Last Revision Page No.
CC-102
Prior #00-01-C August 1, 2018 October 3, 2018 Page 8 of 12
Approved by: City Council
www.lebanonnh.gov
B. EASEMENTS, LICENSES, AND LEASES – Disposition through Easements,
Licenses, and Leases shall be as follows:
1. UTILITY EASEMENTS
The City may grant to any utility company a nonexclusive easement
upon, under or across public property (other than street right-of-
way) for such utility company’s facilities. Such easement shall be
subject to such payments, provisions, and limitations as the CITY
may impose.
a. Conditions: Grant shall be made by resolution of the City Council
provided that:
i. The easement will not substantially interfere with CITY use of
the property;
ii. That the benefit to the public of increasing availability of utilities
by granting the easement outweighs any detriment to the CITY
of imposing the easement upon the public property;
iii. That granting the easement is otherwise consistent with the
interests of the CITY.
b. Along with other appropriate provisions, the instrument granting
the easement shall specify the facility to be installed by the
easement holder within the easement and shall provide that:
i. The acceptance of the easement shall impose upon the grantee
the obligation to indemnify, defend, pay and hold the CITY
harmless against any loss, claims, injury or other liabilities of
any description arising out of the easement or use or misuse of
the property pursuant to the easement; and
ii. The CITY shall have the right to require the easement holder to
relocate any and all facilities from time to time to avoid conflicts
or potential conflicts with existing or proposed improvements to
City of Lebanon
New Hampshire
COUNCIL POLICY
Real Property Transactions
Policy Number Effective Date Last Revision Page No.
CC-102
Prior #00-01-C August 1, 2018 October 3, 2018 Page 9 of 12
Approved by: City Council
www.lebanonnh.gov
CITY land. In the case of an easement which is described in this
subsection and which is limited in use to providing utilities to
CITY property, the easement may be granted administratively
by the City Manager without resolution or other action by the
City Council if the required findings are made by the City
Manager, and if the easement document is approved as to form
by an attorney for the CITY.
iii. The conveyance of interest in abandoned or discontinued rights-
of-way shall be governed by New Hampshire RSA Chapter 231
and/or any other appropriate and applicable State statute.
2. TEMPORARY LICENSES
The City Manager shall have the authority to enter into temporary
licenses or similar agreements for the use of CITY owned property,
including but not limited to, land, buildings, office space, rooms and
other interior and exterior space, but not CITY rights-of-way. Such
agreements shall be in a form approved by the attorney for the CITY
and shall have a term of one (1) year or less. Such agreements shall
contain a unilateral termination clause in favor of the CITY that does not
require the CITY to give more than thirty (30) days’ notice of
cancellation.
3. LEASES
Any lease of CITY owned real property shall be reviewed and approved
by the City Manager followed by a recommendation to the CITY
COUNCIL accompanied by a determination that such action is consistent
with adopted CITY plans and policies.
Any lease of CITY owned airport real property shall be reviewed and
recommended by the Airport Manager and reviewed and approved by
the City Manager followed by a recommendation to the City Council
accompanied by a determination that such action is consistent with
City of Lebanon
New Hampshire
COUNCIL POLICY
Real Property Transactions
Policy Number Effective Date Last Revision Page No.
CC-102
Prior #00-01-C August 1, 2018 October 3, 2018 Page 10 of 12
Approved by: City Council
www.lebanonnh.gov
adopted CITY plans and policies including the Airport Master Plan and
compliance with FAA regulations/requirements.
Any lease of CITY owned real property shall be approved by the City
Council. The City Council may take one of three actions:
a. Reject the lease as proposed and recommended by the City
Manager;
b. Grant preliminary approval and request that it be brought back
before the City Council after the necessary land-use permits have
been obtained; or
c. Approve the lease as proposed and recommended by the City
Manager with authorization for the City Manager to execute the
necessary documents when all required land-use permits have
been duly obtained. Land-use permits shall include appropriate
review and action by all applicable land use boards (i.e. the
Conservation Commission, Zoning Board, Planning Board, or
Heritage Commission).
d. After the execution of the lease documents, zoning/building
permits are applied for and issued to the CITY with the lessee as
the co-applicant. The lessee is responsible for the construction
of the buildings in accordance with the CITY’s adopted Site Plan
Review and Building Code Regulations. When construction is
completed in accordance with the Site Plan Review approval,
and the Building Code/Permit, a Certificate of Occupancy is
issued.
e. In accordance with New Hampshire RSA Chapter 72:23, I(b), Real
Estate and Personal Property Tax Exemption: All leases and other
agreements, the terms of which provide for the use or occupation
by others of real or personal property owned by the state or a city,
town, school dist4rict, or village district, entered into after July 1,
1979, shall provide for the payment of properly assessed real and
City of Lebanon
New Hampshire
COUNCIL POLICY
Real Property Transactions
Policy Number Effective Date Last Revision Page No.
CC-102
Prior #00-01-C August 1, 2018 October 3, 2018 Page 11 of 12
Approved by: City Council
www.lebanonnh.gov
personal property taxes by the party using or occupying said
property no later than the due date. All such leases and
agreements shall include a provision that “failure of the lessee to
pay the duly assessed personal and real estate taxes when due
shall be cause to terminate said lease or agreement by the lessor.”
All such leases and agreements entered into on or after January
1, 1994, shall clearly state the lessee’s obligations regarding the
payment of both current and potential real and personal property
taxes, and shall also state whether the lessee has an obligation to
pay real and personal property taxes on structures or
improvements added by the lessee. If the lessee using or
occupying the property fails to pay the duly assessed personal and
real estate taxes on the due date, the tax collector of the taxing
district involved shall notify the lessor that the same remains
unpaid. Upon receipt of said notification from the tax collector,
the lessor shall terminate said lease or agreement and pay over
to the tax collector from amounts received from said lease such
sums as are necessary to satisfy the tax due.
3. Sale or lease proceeds in connection with the disposal of interest of CITY
owned real property shall inure without restriction to the benefit of the
Fund from which original acquisition was financed or upon which
operational control and responsibility resides.
4. Net proceeds from the disposal or conveyance of interest in Airport real
property acquired through Federal or State grants shall inure exclusively to
the benefit of the Airport Fund for dedication to Airport operations,
activities and capital requirements.
5. In the absence of City Council direction to the contrary, proceeds from the
sale of Airport land shall be so reserved and accounted for to ensure that
the corpus remains intact and that only interest accruing on such proceeds
shall be utilized to finance Airport operations.
City of Lebanon
New Hampshire
COUNCIL POLICY
Real Property Transactions
Policy Number Effective Date Last Revision Page No.
CC-102
Prior #00-01-C August 1, 2018 October 3, 2018 Page 12 of 12
Approved by: City Council
www.lebanonnh.gov
4.2. TAX DEEDED PROPERTIES
It shall be the intent of the CITY to return all parcels acquired through the tax
deeding process to the tax rolls except where the public’s interest may be
better served through retention of specific parcels.
Unless a former owner gives notice of intent to repurchase a tax deeded
property in accordance with RSA 80:89, disposition of those properties
acquired through tax deeding will take place when recommended by the City
Manager after approval from the Council in accordance with this policy.
SECTION 5.0: REFERENCES (Charter/Code/State Statues)
C419:23 General Powers (Council)
C419:30 Powers and Duties of Manager
RSA 47:5 City Property
RSA 80:80 Transfer of Tax Lien
SECTION 6.0: POLICY & PROCEDURE REVISION HISTORY
Section Revisions Date
Original Adoption 2/2/2000
Amendment All Re-Write of Policy 8/1/2018
Amendment 4.1.2.A Amended Section 10/3/2018
Amendment 4.1.2.A.8 Added Section 10/3/2018
Amendment 5.0 Amended Reference 10/3/2018