HomeMy WebLinkAbout09 0819 19((-+h vT-11
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JEFFERSON COUNTY
STATE OF WASHINGTON
IN THE MATTER OF AMENDING THE }
JEFFERSON COUNTY CODE BY ADDING }
A NEW CHAPTER, TO BE KNOWN } ORDINANCE NO. 09-0819-19
AS CHAPTER 3.57, RULES FOR THE }
DISPOSAL OF COUNTY REAL PROPERTY }
WHEREAS, Article VIII, Section 7 of the Washington Constitution provides that the
county may not give any money, or property, or loan its money, or credit in aid of any individual,
association, company or corporation, except for the necessary support of the poor or infirm;
WHEREAS, the county has not, by ordinance, enacted rules regulating the disposal of
surplus property in general or for the disposal of property for public benefit in particular; and
WHEREAS, the county owns parcels of land, all or a portion of which, the board of county
commissioners may wish to transfer of in the future as surplus property or property for public
benefit; and
WHEREAS, per RCW 36.34.010 whenever it appears to the board of county
commissioners that it is for the best interests of the county and its people that any part or parcel, or
portion of such part or parcel, of property, whether real, personal, or mixed, belonging to the county,
including tax title land, should be sold, the board of county commissioners shall sell and convey
such property, under the limitations and restrictions and in the manner provided in RCW 36.34.010;
and
WHEREAS, RCW 36.34.135 authorizes the board of county commissioners, by
negotiation, to lease property owned by the county located anywhere in the county and that is
suitable for affordable housing for a term not to exceed 75 years to any public housing authority or
nonprofit organization that has demonstrated its ability to construct or operate housing for very
low-income, low-income, or moderate -income households and special needs populations, and
WHEREAS, rules for such dispositions will enhance transparency and ensure consistency
and fairness; and
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WHEREAS, given the need for affordable housing, the county desires to enact rules to
regulate the disposition of property for public benefit purposes pursuant to RCW 39.33.015; and
WHEREAS, RCW 39.33.015(8)(a) defines "public benefit" as "affordable housing for
low-income and very low-income households as defined in RCW 43.63A.510, and related facilities
that support the goals of affordable housing development in providing economic and social stability
for low-income persons; and
WHEREAS, RCW 43.63A.510(4)(c) defines "low-income household" as "a single person,
family, or unrelated persons living together whose income is more than fifty percent but is at or
below eighty percent of the median income where the affordable housing is located;" and
WHEREAS, RCW 43.63A.510(4)(b) defines "very low-income household" as "a single
person, family, or unrelated persons living together whose income is at or below fifty percent of
the median income, adjusted for household size, for the county where the affordable housing is
located;" and
WHEREAS, RCW 84.14.010(10) defines "moderate -income household" as "a single
person, family, or unrelated persons living together whose adjusted income is more than eighty
percent but is at or below one hundred fifteen percent of the median family income adjusted for
family size, for the county where the project is located, as reported by the United States department
of housing and urban development;" and
WHEREAS, there is a significant need for affordable housing in Jefferson County; and
WHEREAS, RCW 39.33.015(8)(b) defines "surplus public property" as "excess real
property that is not required for the needs of or the discharge of the responsibilities" of the county;
and
WHEREAS, the county desires to amend Title 3 of the Jefferson County Code (JCC) to
provide procedures for the sale, disposition or lease of county -owned surplus property consistent
with RCW 39.33.015 and any other applicable state statutes.
NOW, THEREFORE, Jefferson County Board of Commissioners hereby ordains that a
new chapter in the JCC shall be created, to be known as Chapter 3.57, reading as set forth in the
attached Appendix A.
ADOPTED this day of 2019, at a.m.
pry, JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
s,
SEAL:
Kate e Chair
ZY/4 ;
�'. David S Me
ATTEST:
Erin LuncTgVen, Date
Clerk of the Board
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Greg Brotherton, Member
APPROVED AS TO FORM:
� 4M4 � 15 � �-�
r, Date
CKhief Civil Deputy Prosecuting Attorney
APPENDIX A
Chapter 3.57
RULES FOR SALE, DISPOSITION OR LEASE
OF COUNTY SURPLUS REAL PROPERTY
3.57.10 Policy.
The board of county commissioners declares that it is in the public interest for real property owned
by the county to be returned to the tax rolls if it is not needed for some present or future government
use and if it can be sold for a reasonable return. The board of county commissioners also declare
that it is in the public interest to transfer county property for a public benefit purpose consistent
with the requirements of this chapter and state law. It is therefore the policy of the county to transfer
of parcels of property owned by the county which are determined to be surplus property pursuant
to this chapter, where disposal of a subject parcel: (1) Would afford the county a reasonable return
from the transaction; or, (2) Is determined by the board of county commissioners to be in the public
interest for a public benefit purpose; and, (3) The disposal is conducted consistent with the
requirements of this chapter and state law.
3.57.20 Definitions.
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(1) "Abutter" means the owner of a parcel adjacent to a parcel being considered for transfer
under this chapter. However, a person shall not be deemed an abutter, if a right-of-way
separates the parcel from the parcel being considered for transfer under this chapter, unless
the purchase will allow a higher and better use of the abutter's parcel.
(2) "Fair market value" means the amount in cash that a well-informed buyer, willing but not
obligated to buy the property, would pay, and that a well-informed seller, willing but not
obligated to sell it, would accept, taking into consideration all uses to which the property
is adapted or may be reasonably adaptable.
(3) "JCC" means the Jefferson County Code, as now existing or hereafter amended.
(4) "MAI -Certified Appraiser" means an appraiser who has obtained the "MAI" designation
awarded by the Appraisal Institute. See https://www.appraisalinstitute.org/assets/l/7/mai-
path-chart.pd£
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(5) "Or" means or and includes and/or.
(6) "Parcel" means a parcel of real property or any portion or part of a parcel of real property.
(7) "Public benefit" has the same meaning as in RCW 39.33.015(8)(a).
(8) "Public agency" means the state or any municipality or subdivision thereof, the federal
government of a federally recognized Indian tribe. For the avoidance of doubt, public
agency includes a "governmental agency" as that term is used in RCW 36.34.130.
(9) "RCW" means the Revised Code of Washington, as now existing or hereafter amended.
(10) "Real property" has the same meaning as in RCW 84.04.090. For the avoidance of doubt,
"real property" includes any parcel, including real property, personal property, or mixed
property located on the parcel.
(11) "Reasonable return" means sale for tangible and intangible consideration equal to, or greater
than, the appraised fair market value.
(12) "Surplus property" has the same meaning as in RCW 39.33.015(8)(b). For the avoidance
of doubt "surplus property" as used in this chapter applies only to real property.
(13) "Transfer" means either a sale or a lease of surplus property.
3.57.30 Authorized Transfers.
Real property declared surplus by the board of county commissioners and may be transferred for:
(1) A reasonable return or for public benefit by sealed bid, auction, negotiated sale; (2) An exchange
for real property of equal value pursuant to RCW 36.34.330; (3) A transfer to a public agency
pursuant to RCW 39.33.010; (4) A transfer for affordable housing pursuant to RCW 39.33.015; (5)
A transfer to a public agency pursuant to RCW 36.34.130; or, (6) Pursuant to a special disposition
process under this chapter.
3.57.40 Special Disposition.
......................................................................................................................................................................................................
(1) If the public interest in a reasonable return is outweighed by the public benefit, due to factors
such as (by way of illustration and not limitation) the unique character or development
potential of a given parcel or use for a public benefit purpose as affordable housing, the
county administrator may recommend the board of county commissioners approval the
disposal of a parcel by a special disposition process, which may include disposal for less
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than the appraised fair market value or for other forms of consideration in addition to or in
lieu of monetary payment to the county.
(2) The special disposition process may include sale or transfer by any of the methods set forth
in this section, including, but not limited to, leases, options to purchase, lease -purchase
transactions, or other commonly used, commercially reasonable means of disposal.
(3) Approval for special disposition of a parcel under this section shall include written findings
of the board of county commissioners setting out and supporting the basis for the decision
to use the special disposition process, and in the case of a public benefit purpose, that the
public benefit of disposal pursuant to this section outweighs the public interest in a
reasonable return.
3.57.50 Surplus property resolution.
(1) A parcel owned by the county may be declared surplus by the board of county
commissioners after the following procedures have been completed:
(a) The county administrator shall include the following information, if known, in the
staff report to the board for each parcel under consideration:
(i) Description of the subject parcel's size, general location, and legal
description;
(ii) Description of the circumstances under which the subject parcel was
obtained;
(iii) Description of what funds were used to initially acquire the subject parcel;
(iv) Recommendation as to which fund the proceeds from its sale, if any, should
be credited;
(v) History of county use, if any, or uses for which it might be held;
(vi) Value of the subject parcel and whether further appraisal before sale is
recommended and the type of appraisal required;
(vii) Whether the subject parcel is marketable;
(viii) Whether the subject parcel only is usable by abutting owners or has the
highest return if conveyed to abutting owners;
(ix) Whether some other public agency has a use for the subject parcel;
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(x) Whether the subject parcel should be leased, sold at auction, by sealed bid,
or by negotiation;
(xi) Recommendation as to whether any special covenants or restrictions should
be imposed in conjunction with sale of the subject parcel; and,
(xii) When recommending use of the special disposition process, provide the
rationale supporting the basis for the recommendation, and in the case of a
public benefit purpose as provided in RCW 39.33.015, the rationale for how
the public benefit outweighs the public interest in a reasonable return.
(b) A public hearing shall be held to consider the surplus declaration for the subject
parcel. Notice of hearing on the proposal to dispose of any county property must
particularly describe the property or portion thereof proposed to be sold and
designate the place where and the day and hour when a hearing will be held thereon
and be posted in a conspicuous place in the courthouse. Both posting and the date of
first publication must be at least ten days before the day set for the hearing.
(2) Following the public hearing, the board shall determine whether the subject parcel shall be
declared surplus.
(3) Any declaration of surplus property shall be made by resolution. The resolution shall also
make the following determinations:
(a) How the subject parcel should be transferred including but not limited to by sealed
bid, at auction, through a negotiated sale, or through special disposition process,
which may include a transfer for a public benefit purpose as provided in RCW
39.33.015;
(b) Whether special covenants or restrictions should be imposed as a condition of the
transfer; and,
(c) The minimum consideration acceptable in accordance with this chapter.
(4) Determination of Value/Minimum Consideration Acceptable.
(a) If the county has a sufficient and acceptable appraisal of the subject parcel, no
additional appraisal shall be required.
(b) If an acceptable appraisal is not available, the county administrator shall obtain a:
(i) Limited opinion of value for parcels under $25,000;
(ii) Short form appraisal report for parcels under $50,000; or
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(iii) Full narrative appraisal report by an MAI -Certified Appraiser.
3.57.60 Sale procedure.
..........................................................................................
The following procedures and requirements shall apply to the sale of surplus property:
(1) County Treasurer or Designee Conducts All Sales at Public Auction. The county treasurer
or designee shall supervise all sales of surplus property at auctions pursuant to the
requirements of state law and this chapter. The Treasurer may sell by means permitted per
RCW 36.34.080.
(2) Notice and Hearing Requirements. If a subject parcel is to be sold, the notice and hearing
requirements applicable to sales of county property in Chapter 36.34 RCW shall be
followed.
(3) Negotiated Sale to Owner of an Abutting Property. If the subject parcel can only be put to
its highest and best use when aggregated with an abutter's parcel because of its size, shape,
topography, or other restriction, the subject parcel may be negotiated for sale to the abutter,
provided:
(a) The abutter is willing to purchase for the fair market value of the subject parcel as
determined under JCC 3.57.060(3); and,
(b) If more than one qualifying abutter express interest in purchasing the subject parcel,
the board may solicit sealed bids from all qualifying abutters.
(4) The complete terms of sale shall be detailed and available for viewing at time of legal
publication of notice of sale.
(5) Closing Costs. All closing costs, exclusive of deed preparation, shall be borne by the
purchaser including, but not limited to, survey work, title insurance, recording costs, and
escrow fees if applicable.
(6) Transfer for Public Benefit Purpose. The provisions of JCC 3.57.050(4) are not required
but may be imposed for transfers of surplus utility property for public benefit purpose as
provided in RCW 39.33.015.
(7) Form of Conveyance. All conveyances shall be made by quitclaim deed or such other form
of conveyance and on such terms as determined by the county prosecuting attorney.
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3.56.70 Transfer of surplus property for consideration other than cash.
Surplus property may be transferred for consideration other than cash under the following
conditions:
(1) If the board of county commissioners determines that the transfer of a parcel declared
surplus under this chapter could realize greater benefit to the county through consideration
other than cash, the board of county commissioners may invite prospective purchasers to
tender consideration other than cash. Upon receipt of a bid or offer tendering consideration
other than cash, and prior to accepting such bid or offer for consideration other than cash,
the county administrator shall make a report to the board of county commissioners during
an open public meeting setting forth the benefits of such a transaction for consideration
other than cash.
(2) Before accepting any bid or offer for consideration other than cash, an adequate appraisal
shall have been made by a qualified independent MAI -Certified Appraiser.
(3) If the board of county commissioners finds that the bid or offer for consideration other than
cash has more value or benefit to the county than any other bid or offer submitted, the board
of county commissioners may authorize the county administrator to accept the bid or offer
for consideration other than cash.
3.57.70 Lease of surplus public property.
.......................................................................................................................................-........... -
(1) The board of county commissioners may authorize the lease or sublease of any parcel, under
such terms and conditions as they may deem desirable, fair and appropriate, either by use
of negotiations or bidding in the best interests of the county, or a transfer for a public benefit
purpose as provided in RCW 39.33.015.
(2) Notice and Hearing Requirements. If a subject parcel is to be leased, the notice and hearing
requirements applicable to leases of county property in Chapter 36.34 RCW shall be
followed.
3.57.80 Corrections.
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If any portion of this ordinance is declared invalid or unconstitutional by any court of competent
jurisdiction, such holding shall not affect the validity of the remaining portion(s) of this ordinance.
3.57.90 Severability.
Upon the approval of the county prosecuting attorney, the clerk of the board of county
commissioners and the codifiers of this ordinance are authorized to make necessary corrections to
this ordinance including, but not limited to, the correction of scrivener's/clerical errors, references,
ordinance numbering, section/subsection numbers and any references thereto.
3.57. 100 Effective Date.
This ordinance shall take effect and be in force when approved by the board of county
commissioners.
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JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
REGULAR AGENDA REQUEST
TO: Board of County Commissioners
Philip Morley, County Administrato
FROM: Mark McCauley, Central Se es Dire for
DATE: August 19, 2019
SUBJECT: Public Hearing to Consider an Ordinance Enacting Rules Regulating
the Disposition of Property for Public Benefit Purposes
STATEMENT OF ISSUE: Jefferson County has an acute shortage of affordable housing. To help
increase the inventory of affordable housing Olympic Community Action Programs (OlyCAP) is proposing
a project to build a 44 unit affordable housing facility in Port Townsend. The proposed project would also
house a child care/early learning program which would be available to residents of the affordable housing
facility and to other Jefferson County residents.
OlyCAP has identified a county parcel (948323702) for the proposed project that is located on Castle Hill
adjacent to the County's Community Development Department just southeast of the intersection of 7h Street
and Hendricks Street. Jefferson County issued a Letter of Intent on May 6, 2019 committing to make the
parcel available for the project, so OlyCAP can pursue funding for the project. Before the property can be
made available to OlyCAP the county must enact rules to regulate the disposition of property for public
benefit purposes, per RCW 39.33.015(3).
ANALYSIS: The Board of County Commissioners approved a Public Hearing Notice which was
published in the county's legal newspaper on August 7 and August 14, 2019. The Public Hearing is to take
public comment on the attached proposed ordinance prior to deliberations.
FISCAL IMPACT: The proposed ordinance, in and of itself, has no fiscal impact. Subsequent events may
have a fiscal impact, which at this time are impossible to determine.
RECOMMENDATION: That the Board of County Commissioners approve the attached proposed
ordinance.
REVIEWED BY:
,Count Administrator D to