Sec. 2-621. - Authority of department.

(a)

Real property owned by the city and approved for disposition, generally. The real estate and housing department shall conduct the procedure for selling, leasing, exchanging or otherwise transferring (the "disposition" of) real property owned by the city, or any interest therein, approved by the department for disposition, to any purchaser, subject to any covenants, conditions, and restrictions as the department and the council may deem to be in the public interest; provided, that any such sale shall be on the basis of not less than one-third cash, the balance to be paid within three years at six percent interest payable semiannually, secured by a first mortgage, or such other terms and conditions approved by the department and the council.

(b)

Habitable dwelling units acquired by the city at sheriff's sale and not redeemed by previous owner. In those instances in which the city has acquired real property which includes habitable dwelling units at sheriff's sale and such real property is not redeemed by the previous owner pursuant to 36 Del. Laws ch. 143, § 3, as amended, the city, through the real estate and housing department, may, in the disposition of the property and at its sole discretion, give bid preference to persons who were legal tenants-in-possession of such real property or some part thereof at the time of the sheriff's sale of such property; and where it is determined that such preference shall be given, the property shall be disposed of in accordance with the procedures set forth in section 2-622(9).

(c)

Governmental agencies, governmental authorities and nonprofit organizations. Governmental agencies, governmental authorities organized pursuant to 22 Del. C., and nonprofit organizations are exempt from the bid procedures of section 2-622 through 2-624. The real estate and housing department, after approval by the council of a resolution declaring certain real property to be property approved for disposition, may negotiate an agreement of sale, lease, exchange or other transfer of such real property owned by the city with any such governmental agency, governmental authority, or nonprofit organization after first causing public notice of negotiations to be given in a newspaper having general circulation in the city.

(d)

Disposition authorized by federal law. The disposition of real property, including infrastructure assets and related fixtures, which is authorized by federal law, federal regulation, or presidential executive order, is exempt from the bid procedures of sections 2-622 through 2-624. The real estate and housing department and/or the department of public works, after approval by the council of a resolution declaring such real property, including infrastructure assets and related fixtures, to be approved for disposition, may negotiate an agreement of sale, lease, exchange, or other transfer of such property, after first causing public notice to be given in at least one daily newspaper of citywide distribution.

(e)

Street vacation and disposition of real property thereof in exchange for real property for new or realigned street. In instances in which an existing city street or part thereof is to be vacated and removed from the official city map and the real property thereof is to be exchanged for other real property to be used for a new or realigned street to be dedicated for the same such public purpose and to be added to the official city map, the real estate and housing department, after approval by the council of an ordinance approving the vacating of the subject city street, its removal from the official city map and the disposition of the property thereof, may negotiate and complete an agreement of sale, lease, exchange or other transfer of such real property owned by the city with the owner of real property who is offering to convey to the city real property of that owner which is proposed to be used for purposes of a new or realigned city street, provided that it is dedicated for such purpose and is added to the official city map by the same ordinance of council referenced above or by a subsequent ordinance of council.

(Code 1968, § 30-11; Ord. No. 92-053(sub 1), § 1(h), 7-2-92; Ord. No. 95-025(sub 1), § 1, 4-20-95; Ord. No. 95-026, § 1, 5-4-95)

Editor's note—

The special act cited in subsection (b) is found in § 4-183 of part I, subpart B (related laws).

Sec. 2-622. - Procedure generally.

The procedure for sale, lease, exchange or other transfer of real property owned by the city and approved for disposition shall be as follows:

(1)

Property approved for disposition. The council shall by resolution declare the property to be approved for disposition and authorize the conduct of disposition proceedings by the real estate and housing department; such resolution may include recommendations of the planning office, the commerce department, and the real estate and housing department as to the future use or uses most consistent with overall urban renewal planning, restrictions and conditions as to the nature and promptness of future use, and restrictions as to the design and location of structures to be altered or erected thereon.

(2)

Request for proposals. The real estate and housing department shall cause public notice of the request for proposals for the disposition of the property to be given by publication once each week for two consecutive weeks in a newspaper having general circulation in the city, and make available all pertinent information to persons interested in submitting a proposal in the form of a bid on the specific property which has been approved for disposition.

(3)

Contents of notice. The notice shall identify the property, shall state the time, date and place where the bids will be opened, shall specify any conditions or restrictions on future use, and shall state that such further information as is available may be obtained at the real estate and housing department.

(4)

Opening of bids. The real estate and housing department shall open all bids at the time, date and place specified. Bids may be submitted up to the time specified for the opening of bids.

(5)

Approval of bid. The bids, together with the recommendations of the planning office, the commerce department and the real estate and housing department, if any, shall be submitted to the council which, by resolution, shall approve the bid of the best bidder. The council shall have the right to reject all bids.

(6)

Documents for disposition. Upon receipt of the resolution of the council approving the accepted bid, the mayor and city clerk shall execute all documents necessary for the disposition of the specific property.

(7)

Second series of notices. If no bid is accepted after the first series of public notices, the council shall by resolution direct the real estate and housing department to publish a second series of public notices and conduct bidding.

(8)

Authorization of agent for the city. If no bid is accepted after the second series of public notices, the council may by resolution engage the services of a person authorized by law to sell real estate to act as agent for the city in selling, leasing, exchanging, or otherwise disposing of the property. Such person shall receive a commission not to exceed six percent of the sale price; provided, however, that any such sale price and terms of disposition must be approved by resolution of the council.

(9)

Section 2-621(b) properties. Whenever it has been determined that the tenants-in-possession shall be given preference in the purchase of any real property pursuant to section 2-621(b), the procedures outlined in subsections (2) through (8) of this section, inclusive, shall not be applied and instead the following alternative procedure for the sale of section 2-621(b) real property shall be substituted:

a.

The real estate and housing department shall determine an appropriate minimum bid for such real property.

b.

The city shall notify the tenant or tenants-in-possession of the property at the time of sheriff's sale in writing, mailed to the property address, within 30 days of the expiration of the statutory redemption period of the city's intent to dispose of such property and to give preference to the tenants thereof. Such notice shall advise the tenants-in-possession of such real property of the minimum bid, any and all restrictions and/or conditions of the bid and sale of such real property, and shall also state the time, date and place that bids will be opened, and that such further information as is available may be obtained from the real estate and housing department.

c.

The real estate and housing department shall open all bids at the time, date and place specified; and all bids, together with the recommendations of the department, if any, shall be submitted to the council which, by resolu

tion, shall approve the bid of the best bidder. The council shall have the right to reject all bids.

d.

Upon receipt of the resolution of the council approving the accepted bid, the mayor and city clerk shall execute all documents necessary for the transfer of title to such real property.

e.

If no bids from interested tenants are received or if no bid is accepted, the council may, by resolution, direct that the property be disposed of through the property disposition procedures outlined in subsections (2) through (8) of this section.

f.

Nothing in this subsection (9) shall be construed as prohibiting or preventing a legal tenant-in-possession of real property or any part thereof from participating in the property disposition procedures as set forth in subsections (2) through (8) of this section.

(10)

Notice of pending sale or auction of city-owned vacant dwellings. Whenever it has been determined that disposition of city-owned buildings that are vacant and that are, in whole or in part, dwellings or contain dwelling units, as defined in the Housing Code, and such disposition is proposed to be by sale or auction conducted by the real estate and housing department, the said department shall provide written notification to residents and occupants of properties that are dwellings and are located within a radius of one city block in each direction or 250 feet of the property that is the subject of the proposed sale or auction. Such notice may be provided by ordinary postal service or by hand delivery or by leaving such notice at the said dwellings within such area. Additional notice may also be provided through the auspices of the city office of cable television.

(Code 1968, § 30-12; Ord. No. 92-053(sub 1), § 1(h), 7-2-92; Ord. No. 98-009, § 1, 2-5-98)

Sec. 2-623. - Expenses of sales.

The real estate and housing department is authorized to pay the expenses incurred by the city in the disposition of any property pursuant to the provisions of this division. Such expenses shall be paid out of the sales price or other proceeds derived from disposition of the respective properties.

(Code 1968, § 30-13; Ord. No. 92-053(sub 1), § 1(h), 7-2-92)

Sec. 2-624. - Disposition of proceeds from sales.

All moneys received from sales under this division shall be turned over to the city treasurer for use in accordance with the terms of law.

(Code 1968, § 30-14)

Sec. 2-625. - Disposition, etc., of real property acquired through federal community development block grants.

(a)

Authorization. The real estate and housing department shall have the authority to acquire and dispose of and to rehabilitate or cause to have demolished real property through funds obtained from federal community development grants. Acquisition and disposition of property shall be upon the recommendation of the mayor and approval of council.

(b)

Procedure for disposition. The department shall dispose of such property, notwithstanding sections 2-621 through 2-624, by the following procedure:

(1)

The department may recommend restrictions and conditions as to the nature and promptness of future use.

(2)

The procurement and records division, upon receipt of the recommendations of the real estate and housing department, shall follow the procedure in section 2-622(2), (3) and (4) to advertise, receive and open bids for the disposition of the property.

The real estate and housing department however, at its discretion and without regard to the preceding paragraph, may authorize the procurement and records division to dispose of the property by auction or lottery.

(3)

Bids shall be reviewed by the real estate and housing department which shall decide which bid is most consistent with the recommended future use of the property, taking into consideration the ability of the bidder to perform. It shall have the right to reject all bids.

(4)

Upon approval of a bid by the mayor, the mayor and city clerk are authorized to execute all documents necessary for the transfer of title to the property.

(5)

If no bid is received or accepted, the department may obtain bids for the property by whatever methods it deems best. Any bids so obtained shall be processed as in the procedure stated in subsections (3) and (4) of this section.

(c)

Disposition of proceeds and expenses of sale. All monies received from sales under this section shall be turned over to the city treasurer to be credited to the community development block grant program account. Expenses of sale incurred by the procurement and records division shall be payable out of the community development block grant program account.

(d)

Governmental agencies and nonprofit organizations. Governmental agencies and nonprofit organizations are exempt from the bid procedure of this section. The real estate and housing department may negotiate an agreement of sale with such an organization after first causing public notice of negotiations to be given in a newspaper having general circulation in the city.

(Code 1968, § 30-15; Ord. No. 92-053(sub 1), § 1(c), (h), 7-2-92)

Sec. 2-626. - Grants of licenses, easements and rights-of-way for utilities.

The department of public works shall have the authority subject to the approval of the council by resolution to grant such licenses, easements, and/or rights-of-way as shall be necessary for the construction, installation, maintenance, repair, operation and inspection of utilities, including but not limited to gas and electric service, and water and sewer service.

(Code 1968, § 30-16)

Sec. 2-627. - Sale or exchange of real estate and/or grants of licenses, easements or rights-of-way for streets, roads, sidewalks or other public rights-of-way.

The department of public works shall have the authority, subject to the approval of council by resolution, to sell or exchange any real estate belonging to the city or to grant any license, easement, right-of-way or other interest in or over real estate as shall be necessary to facilitate the construction, maintenance, operation and/or repair of streets, roads, sidewalks, and/or other public rights-of-way including bridges; provided, however, that public notice of such action shall be advertised at least one week in advance, in a newspaper of citywide distribution.

(Code 1968, § 30-17)

Sec. 2-628. - Grants and licenses, easements and rights-of-way, generally.

(a)

Authorization. The real estate and housing department shall have the authority, subject to the approval of the council by resolution, to grant such licenses, easements and/or rights-of-way as shall be deemed necessary or appropriate; provided, however, that the grant of any such licenses, easements or rights-of-way shall be submitted to any department affected thereby for comment.

(b)

Procedure for disposition.

(1)

The real estate and housing department, upon its own recommendation and that of any affected department, shall cause public notice of the intended grant of the license, easement or right-of-way to be given by publication in a newspaper having general circulation in the city and further shall make available all pertinent information to persons interested in submitting a bid for such grant.

(2)

The notice shall identify the real property affected by the intended grant, and the nature and purpose of such grant, shall state the time, date and place bids will be opened, shall further specify any conditions or restrictions on future use, and shall state that such further information as is available may be obtained at the real estate and housing department.

(3)

The real estate and housing department shall open all bids at the time, date and place specified. Bids may be submitted up to the time specified for the opening of bids.

(4)

The bids, together with the recommendations of the real estate and housing department and the affected department, if any, shall be submitted to the council which, by resolution, shall approve the bid of the best bidder. The council shall have the right to reject all bids.

(5)

Upon receipt of the resolution of the council approving the accepted bids, the mayor and city clerk shall execute all documents necessary for the grant of the proposed license, easement or right-of-way.

(Code 1968, § 30-18; Ord. No. 92-053(sub 1), § 1(h), 7-2-92)

Secs. 2-629—2-650. - Reserved.