Number
060444
Version
SUBSTITUTE 3
Reference
Sponsor
ALD. HINES and MCGEE
Title
A substitute ordinance relating to the sale of city-owned real estate.
Sections
304-49 rc
304-50 cr
304-51 rp
308-23 rp
Analysis
This ordinance revises city procedures for disposal of city-owned real property. Property is classified into 2 categories: neighborhood property, consisting of improved residential property with 4 or fewer units, unimproved residential property suitable for one or 2 units and unbuildable lots; and development property, any parcel that is not neighborhood property.
The procedure for disposition and sale of neighborhood property is as follows: the commissioner of city development will from time to time prepare a neighborhood property disposition report listing, by aldermanic district, properties to be disposed of. Any member of the common council may, within 15 calendar days, direct the commissioner to withhold from disposition any parcel located in his or her aldermanic district. The commissioner may then only sell or dispose of such parcel after common council action. Otherwise, the commissioner shall have authority to advertise and market all neighborhood property listed in the report. The commissioner of neighborhood services also has the authority to issue garden permits for city-owned vacant lots.
Pursuant to the commissioner of city development advertising and marketing neighborhood properties, the commissioner shall, at the request of the common council member in whose district the property is located, prepare a notice for mailing by the common council member to all residents and property owners within a 500 foot radius of the proposed sale of a neighborhood property. Such residents and property owners are given 30 days to respond to bid on the property. A bid submitted by the resident or property owner within the 500 foot radius who intends to occupy as an owner shall be given first consideration with respect to the purchase of the property.
With respect to disposition of development property, the commissioner may only sell or lease such property pursuant to common council action, except the commissioner may, without council action, lease such property for a term not to exceed one year, provided the common council member in whose district the property is located is provided notice of such lease and either the member fails to object to the proposed lease or, if an objection is made, the objection is overruled by the common council.
The ordinance also prescribes certain guidelines relating to conveyance of properties such as not selling to a person or entity delinquent in the payment of any property tax, special assessment or charge to the city; or anyone against whom the city has an outstanding judgment; or anyone who has been convicted of violating an order of the health department or department of neighborhood services within the past year, unless the common council, by vote, expressly authorizes a conveyance to such or person or entity.
Not affected by this ordinance are the following properties: property owned or utilized by the Milwaukee board of school directors and property owned or controlled by the board of harbor commissioners.
This ordinance also retains the current code provisions for vacating the city's acquisition of delinquent property and returning it to the former owner of record.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 304-49 of the code is repealed and recreated to read:
304-49. Disposal of City Real Estate.
1. DEFINITIONS. In this section:
a. "Commissioner" means the commissioner of the department of city development.
b. "Development property" means any city-owned parcel that is not neighborhood property.
c. "Neighborhood property" means any city-owned parcel that is any one of the following:
c-1. An improved residential lot containing 4 housing units or less.
c-2. A vacant residential lot suitable for one or 2 housing units.
c-3. A vacant lot which is not suitable or amenable of improvement because of the size, shape, dimensions, surface or subsurface conditions or other conditions of the lot.
d. "Report" means a neighborhood property disposition report sent to the council from the commissioner describing all neighborhood property that, in the commissioner's determination, is not being used by the city and is recommended for sale or disposition.
2. NEIGHBORHOOD PROPERTY DISPOSITION REPORT. The commissioner shall, from time to time, tender to the common council by letter, a report listing, by aldermanic district, neighborhood property recommended for disposition. For each parcel of neighborhood property, the following information shall be provided: address; tax key number(s) if available; property description including whether or not improved and, if improved, a brief description of such improvements; parcel size; and proposed method of disposition.
3. COMMON COUNCIL DIRECTION AFTER REPORTS. Any member of the common council may, within 15 calendar days after receipt of a report, direct the commissioner to withhold from disposition any parcel listed on the report that is located in his or her aldermanic district. Such directives shall be in writing and timely delivered to the commissioner. In the event of timely designation, the commissioner may only sell or dispose of the designated parcel after common council approval.
4. CITY SALES OF NEIGHBORHOOD PROPERTY. Except for parcels of neighborhood property designated by a member of the common council pursuant to sub. 3, and for which the common council fails to approve the sale of such parcel of neighborhood property, the department of city development, under direction of the commissioner, shall pursuant to this subsection have authority to advertise and market for conveyance, and to convey, by lease, deed, or other appropriate form of conveyance, all neighborhood property in the report.
a. If the department chooses to solicit bids for a neighborhood property, the department shall, at the direction of the common council member in whose district the property is located, prepare a notice which may be mailed by the common council member to each resident and property owner of the circular area having a radius of 500 feet, centered on the property which is to be sold, informing residents and property owners that the city is soliciting offers to purchase the property. The bid solicitation notice shall state that if the resident or property owner is interested in purchasing the property, the resident or property owner should submit an offer to purchase by 10:00 a.m. on the 30th day after the date of notice. If the 30th day falls on a weekend or holiday, the deadline for submitting an offer shall be the next business day. A bid submitted by a resident or property owner within the 500 foot radius who intends to occupy as an owner shall be given first consideration with respect to the purchase of a property.
b. All conveyances shall be for adequate market consideration, as determined by the commissioner or commissioner's designee, which consideration may recognize and value monetary as well as non-monetary consideration, including, but not limited to, public policy considerations of property and neighborhood stabilization, health, safety and welfare concerns, future improvements to or development or remediation of the parcel, returning the parcel to the tax rolls, and promoting home ownership. The commissioner may impose restrictions and remedies in connection with any such conveyance, in order to effectuate the transaction, including, but not limited to, deed restrictions requiring home ownership or ownership by property-tax-paying owners, deadlines for commencement and completion of improvements, requiring the combination of the parcel with another or other parcels, and requiring the correction of building code violations and satisfaction of orders of the health department and department of neighborhood services, and reversionary or other city-protective provisions in the event of breach or default.
5. CITY SALES OF DEVELOPMENT PROPERTY.
a. The commissioner may only sell, convey or lease, for a term greater than one year, city-owned development property after and pursuant to council approval.
b. Notwithstanding the foregoing the commissioner may, without common council approval, lease development property for a term not to exceed one year, provided the commissioner has provided the member of the common council in whose district the development property is located, notice of such proposed lease and a summary of the terms thereof; and either the commissioner receives no objection to the proposed lease from the common council member at any time during the period 15 days following delivery of such notice, or the commissioner timely receives an objection to the proposed lease from the common council member in whose district the development property is located, but such objection is overruled by a vote of the common council approving such proposed lease.
6. GARDEN PERMIT LEASES. Annual leases, for no more than the growing season, of neighborhood property, may be issued to individuals by the department of neighborhood services in order to permit such individuals to plant and cultivate a garden thereon.
7. ALL SALES. The city of Milwaukee adopts ss. 62.22 (1) and 62.23 (17) Wis. Stats., pursuant to the council's authority under. s. 62.03 (2) Wis. Stats. Pursuant to those provisions, and to s. 62.11(5) Wis. Stats., and s. 4-10 of the city charter, sales and conveyances authorized hereby may be to designated persons or entities for adequate fair market consideration, which consideration may recognize monetary as well as non-monetary consideration, including, but not limited to, those public policy and other considerations referred to in sub. 4.
8. GENERAL BUYER POLICIES. Notwithstanding the foregoing, unless otherwise authorized by a vote of the common council, the city shall not convey development property or neighborhood property to any person or entity ("grantee"), without first obtaining such grantee's warranty that neither the grantee nor any principal of the grantee is:
a. Delinquent in the payment of any property tax, special assessment, special charge, or special tax to the city.
b. A party against whom the city has an outstanding judgment.
c. A party against whom the city has outstanding health or building code violations or orders from the city's health department or department of neighborhood services that are not actively being abated.
d. A party who has been convicted of violating an order of the health department or department of neighborhood services within the past year.
e. A party who owned property in the city that, at any time within the past 5 years the city acquired by means of property-tax foreclosure.
f. A party who has been convicted of a felony determined by the commissioner to reasonably cause neighborhood or community concern with respect to neighborhood stability, health, safety or welfare. In making this determination, the commissioner may consider factors such as the nature of the crime, the date of conviction and the existence and nature of community impact and complaints.
9. DEED SIGNATURES. The commissioner or designee is authorized to sign deeds and instruments of conveyance and related documents such as, without limitation, a release of deed restriction on behalf of the city with respect to conveyances authorized hereunder.
10. RECORDING OF DEEDS. All deeds for conveyances authorized hereunder shall be recorded by the department of city development with the Milwaukee county register of deeds office within 7 business day of closing, and the grantee shall pay the cost of recording. Alternatively, a title insurance company, a lender, or the grantor's or grantee's attorney may record the deed so long as such party agrees to meet the time period for recording required hereunder.
11. SALE PROCEEDS. The net proceeds from the sale of city-owned real estate acquired through property-tax foreclosure, other than rental proceeds, shall be credited to the reserve for tax deficit fund.
12. NO TAX EXEMPTION. All deeds of conveyance for development property shall contain a permanent restriction prohibiting the grantee, and all subsequent owners, from applying for an exemption from real estate taxation for such development property pursuant to s. 70.11 Wis. Stats., unless otherwise approved by a two-thirds vote of the common council.
13. PROPERTY NOT AFFECTED. This section does not affect or apply to:
a. Property owned or utilized, at any time, by the Milwaukee board of school directors.
b. Property owned or controlled by the board of harbor commissioners.
c. Leases of neighborhood property pursuant to sub. 6.
Part 2. Section 304-50 of the code is created to read:
304-50. Vacation of In Rem Judgment. Where the city has obtained an in rem judgment pursuant to s. 75.521, Wis. Stats., the city attorney's office shall be directed to petition the court on an ex parte basis to reopen and vacate the city's judgment only where the following requirements have been complied with:
1. The former owner of record or any person having an interest of record has submitted a written request to the city treasurer on a form provided by the city treasurer to have the in rem judgment vacated. No written request to proceed under this section may be submitted for consideration to the common council where more than 45 days has elapsed from the date of entry of the in rem judgment to the date of receipt of the request by the city treasurer or where the requester did not have any interest of record in the property.
2. The written request must identify the property address, the property's tax key number, the name and mailing address of the applicant, and the applicant's interest in the property. It must also include a list of all other real property in the city which the former owner has an ownership interest.
3. Prior to submittal of the written request to the city treasurer, the requester shall have paid to the city treasurer in cash or by cashier's check deposits of administrative costs of the various city departments. The requester, if the former owner of record, shall also have filed an application to record the subject property and any other unrecorded properties with the department of neighborhood services, as required in s. 200-51.5.
4. The former owner of record or person having an interest of record may request not more than once to have the in rem judgment vacated on the subject property.
5. The city treasurer shall date stamp, upon receipt, all written requests to proceed under this section and then forward all requests which are timely received to the city clerk along with a written report which indicates: the amount of unpaid taxes, charges, interest and penalties due on the subject properties; whether the administrative and overhead costs of the various city departments have been paid; and the status of tax payments for all other properties located in the city in which the former property owners have an ownership interest and which identifies any other costs incurred or to be incurred by it with respect to the properties. The city clerk shall, upon receipt of the completed written request forms and the written report from the city treasurer, introduce a common council file no later than the next regular meeting and notify the city attorney's office, city treasurer's office, department of city development, the department of neighborhood services and the health department in writing at the time of such introduction that a request has been made to proceed under this section. Those departments from which reports are due shall provide those reports to the city clerk within 15 working days. An extension of the 15 day period may be granted by the city clerk upon receipt of a written request submitted by the reporting department.
6. The department of neighborhood services has submitted a written report to the city clerk verifying whether any of the properties is subject to raze orders issued pursuant to s. 218-4, indicating what if any orders to correct condition of premises have been issued by the department, and listing total costs incurred or to be incurred by it with respect to each property.
7. The department of city development has submitted a report to the city clerk which indicates: whether any of the properties is located in an existing or planned project area; whether any is suitable for any public program or use; whether any is vacant or occupied; and which lists total costs incurred or to be incurred by it with respect to each property, including but not limited to: repair costs, razing charges, expenses associated with environmental matters and property management fees.
8. The health department or the department of neighborhood services has submitted a written report to the city clerk verifying whether any of the properties is subject to a nuisance notice issued by the department, and which lists total costs incurred or to be incurred by it with respect to each property.
9. Upon receipt of all of the required reports, the city clerk shall submit a coordinated report to the appropriate committee of the common council, and the common council shall make the final determination whether any of the properties should be returned to their former owners. The coordinated report shall include, on a per property basis, the total costs and expenses reported by each of the reporting departments, as well as total costs and expenses reported to the city clerk by any other city department or agency concerning the properties.
10. If vacation of the city's foreclosure judgment is approved by the common council, then the requester shall, within 45 days of the date of the resolution of the common council approving the vacation of the judgment and the return of the subject property to the former owner, pay to the city treasurer by cash or cashier's check, the city's total costs associated with the property, which shall include: costs reported to the common council; all costs incurred by the city with respect to the property through the date of vacation of the city's judgment; all city and county taxes, assessments and charges including interest and penalties through the date of the vacation; and all administrative and overhead costs, including but not limited to, administrative and overhead costs incurred by the reporting departments beyond those costs already paid under sub. 3. Said amount shall be the amount needed to redeem the property and may be ascertained by the requester contacting the treasurer's office.
11. Any rental income collected by the city shall be applied against the total amount due to the city for the redemption of the property.
12. If the requester withdraws the request after submitting it to the city treasurer or if the request is denied, the city may retain all or a portion, as the city determines, of the administrative fees paid under sub. 3 to defray the city's cost of processing the request.
13. If the requester fails to make full payment of the total amount due the city within 45 days of the date of the resolution approving return of the subject property, all deposits made by the requester shall be forfeited, and the common council's approval of the return of the property shall be null and void.
14. If each of the requirements of subs. 1 to 13 has been satisfied, the city attorney's office shall petition the court on an ex parte basis to reopen and vacate the city's judgment with respect to the subject property (on a nunc pro tunc basis to the date of the filing of the petition for foreclosure) so that title to the same may be restored to the former owner, and the city attorney's office shall cause the order from the court so vacating the judgment nunc pro tunc to be filed with the register of deeds office in Milwaukee county.
Part 3. Section 304-51 of the code is repealed.
Part 4. Section 308-23 of the code is repealed.
LRB
APPROVED AS TO FORM
________________________
Legislative Reference Bureau
Date:______________________
Attorney
IT IS OUR OPINION THAT THE ORDINANCE
IS LEGAL AND ENFORCEABLE
_____________________________
Office of the City Attorney
Date:________________________
Requestor
City Attorney
Drafter
KPS/ms
September 21, 2006
1050-2006-1158:109267
LRB06489-5
BJZ:mbh
02/06/2007
Clerical correction -- 2/6/07 -- jro