From: Bill Reynolds Sent: Tuesday, March 26, 2013 1:53 PM To: City Council Subject: Requested Changes

to Property Disposition Based upon last nights discussions regarding the disposition of City property, and the 1) request for a summary of the current process and 2) recommendations for streamlining the process to cut through some of the issues that have plagued our ability to attract tenants in the past, the following is provided as requested by Vice President Cannada-Wynn. The current policy for disposition of City owned property by sale or lease (with the exception of Airport, Port, or CMPA property) requires the Mayor to identify City owned properties as surplus or available for disposal and to recommend to City Council one of four transactions (open bid, RFP, direct negotiation or economic development direct negotiation). This can be found at 4.29 of the Policies of City Council. The City Council then confirms the property is available, and authorizes the administration to negotiate with a potential buyer or execute the RFP process. Once negotiations are complete, the contract returns to Council for bid acceptance or rejection. In a nutshell, the Mayor and Council essentially touch the process twice. (Mayor to Council to Mayor to Council) This is a burdensome process and violates the efficiency tenant that documents should only be handled by a party once (at the appropriate decision point). The requested revision to the process will ensure that the City can respond to potential buyers or lessees in a timelier manner by reducing the disposal options (open bid, RFP, Direct Negotiation) and allowing the Mayor to determine the applicable transaction method. Such changes will reduce the overall time required to dispose of surplus property, define accountability, and optimize the opportunity to secure and maintain the interest of qualified purchasers or lessees. Council retains the authority to accept or reject all bids or proposals. In essence, 2 steps are eliminated. (Mayor to Council) Appraisals are required with all processes, as well as notification of property owners within 300 feet radius. The revisions basically would be as follows: POLICY FOR DISPOSITION OF CITY OWNED REAL PROPERTY The following guidelines apply to the disposition (by sale or lease) of City-owned property other than at the airport, Community Maritime Park, or port.

Types of Disposal by Sale or Lease A. Open Bid B. Request for Proposal (RFP) C. Direct Negotiation Process The Mayor identifies City property as surplus or otherwise available for disposal, utilization or development. The Mayor then selects from one of the following transaction methods: Open Bid Option: 1. 2. Obtain appraisal. Notify property owners within 300 foot radius.

3. Prepare bid specifications in accordance with applicable City and State ordinances and statutes. 4. 5. Accept public sealed bids. Mayor reviews bids.

6. Council accepts or rejects bid. (Rejected bid returns to Mayor for further negotiation and reconsideration if possible) RFP Option: 1. 2. Obtain appraisal. Notify property owners within 300 foot radius.

3. Identify development or utilization criteria based on comprehensive plan, master plans, economic development goal or market conditions, impact on adjacent neighborhoods, neighborhood input, and physical characteristics of property. 4. Prepare RFP requirements and specifications in accordance with applicable City and State ordinances and statutes. 5. 6. Accept public sealed proposal(s). Mayor appoints Proposal Selection Committee.

7. Selection Committee ranks respondents in order of qualification with regard to the specifics of the RFP and forwards results to the Mayor. 8. Mayor reviews and negotiates with the selected potential buyer to an acceptable agreement

9. Council accepts or rejects agreement. (Rejected agreement returns to Mayor for further negotiation and reconsideration if possible) Direct Negotiation Option: 1. 2. 3. Obtain appraisal (unless property is of little or no value). Notify property owners within 300 foot radius. Mayor negotiates with the potential buyer to an acceptable agreement.

4. Council accepts or rejects agreement. (Rejected agreement returns to Mayor for further negotiation and reconsideration if possible)

William H. Reynolds City Administrator City of Pensacola 222 W Main St. Pensacola FL 32502 850-435-1623 www.cityofpensacola.com For Non-Emergency Citizen Requests or visit Pensacola311.com Notice: Florida has a very broad public records law. Most written communications to or from state and local officials regarding government business are public records available to the public and media upon request. Your email communications may be subject to public disclosure.