Title
Approval of Surplus Property List (B)
This item involves City Commission approval of a listing of proposed surplus and escheated properties for future disposition.
Explanation
On May 21, 2020 the City revised the previously adopted Real Property Policies under Resolution No. 191223. The policy states that the City Commission is tasked with reviewing a list of proposed surplus and escheated properties and determining which of the properties are surplus and approved for donation so that disposition may take place.
The City’s policy dictates that the foremost goal of disposition of these properties shall support the City’s housing goals, including the provision of permanent affordable housing, neighborhood enhancement and stabilization, infill development, and mitigation of the impacts on vulnerable communities from gentrification and displacement.
The Department of Sustainable Development will determine the properties that are suitable for development as single-family or multi-family/mixed-use affordable housing based on such factors as a lot’s zoning designation, size, shape, configuration, and known environmental issues.
Escheated properties that are deemed surplus by the Commission, per the mechanism in the policy, are donated to nonprofit housing organizations (NHO’s) that conduct business in the City of Gainesville and are capable of constructing permanent housing. A reverter clause is included in the deed language so that if homes are not constructed within the designated time period (usually two years), then the City regains all rights of possession of the property.
Currently, Alachua Habitat for Humanity, Inc. holds deeds for two City properties with expired reverter clauses. One property (TP# 11235-010-000) is on target for being granted a Certificate of Occupancy in approximately one month. Construction on the other property (TP# 11317-000-000) is slated to begin in 2022. Staff asks for a two year extension for these projects though clearly the former will be completed before the new expiration, if granted.
In general, when disposition occurs the property is sold “As-Is” and all closing costs, including due diligence, are paid by the Buyer.
When multi-family/mixed-use property is disposed of in the affordable housing context, a restriction is placed so that a certain amount or percentage of housing development on the property shall be permanent affordable housing and ensured to be permanently affordable under the condition of legal mechanisms as determined and approved by the City Attorney’s Office.
Strategic Connection
This item is connected to Goal 3 A Great Place to Live & Experience...here there is a Policy Actions, FY 2021, Affordable Housing Strategy and Goal 4 Resilient Local Economy...the Action item is a Management Action for 2021 identified as "City owned land inventory and disposal policy: implement City-owned land."
Fiscal Note
There is no known fiscal note associated with this item at this time.
Recommendation
The City Commission: 1) approve the Resolution declaring the City property, as further described in Exhibits A and B, as surplus; and 2) approve donation of the escheated parcels to NHO’s; and 3) extend the expired reverter clause for two years on two Alachua Habitat for Humanity, Inc. parcels; and 4) authorize the Mayor to execute, and the Clerk to attest the Resolution, subject to review and approval of the City Attorney’s Office as to form and legality.