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F -24 <br />REVENUE PRODUCING PROPERTY <br />The City owns and manages an extensive and valuable assortment of property <br />including streets, parks, beaches, public buildings and service <br />facilities. The City also owns and operates a yacht basin, a mobile home <br />park, a luxury residential development and various other revenue producing <br />properties. Most of the revenue n property is tidelands, filled <br />tidelands or waterfront. Unencumbered ee value of revenue producing <br />property is estimated at upwards of one hundred million dollars, and <br />income typically contributes ten percent of all City revenues. <br />As owner of property, the City is the steward of a public trust, and state <br />law requires the City to maximize its returns or be subject to a charge of <br />making a gift of public funds. Nevertheless, the City Council recognizes <br />the importance of this property not only as a revenue generator, but also <br />as a means to provide otherwise infeasible uses and facilities to benefit <br />the community. <br />In managing its property, the City will continually evaluate the potential <br />of all City owned property to produce revenue. This may include leasing <br />unused land, renting vacant space, establishing concessions in recreation <br />areas or other similar techniques. The City Council will evaluate the <br />appropriateness of establishing new revenue producing properties using <br />sound business principals and after receiving input from neighbors and <br />users. <br />The policy of the City Council is that revenue producing property be <br />managed in accordance with the following: <br />Whenever a lease, management contract, concession, sale or similar <br />action regarding a revenue producing property is considered by the <br />City, an analysis shall be conducted to determine the maximum or <br />open market value of the property. This analysis shall be conducted <br />using appraisals or other techniques to determine the highest and <br />best use of the property and the highest value of the property. <br />2. All negotiations regarding the lease, management contract, <br />concession, sale or similar action regarding a revenue producing <br />property shall include review of an appraisal or analysis of the use <br />being considered for the property conducted by a reputable and <br />independent professional appraiser, real estate consultant or <br />business consultant. <br />The City shall seek, whenever practical and financially <br />advantageous, to operate or manage all property and facilities <br />directly with City staff or contractors. <br />In all negotiations regarding the lease, management contract, <br />concession, sale or similar action regarding a non - residential <br />revenue producing property, the City shall seek revenue equivalent <br />to the open market value of the highest and best use; and, whenever <br />possible the City shall conduct an open bid or proposal process to <br />insure the highest financial return. <br />Whenever less than the open market or appraised value is received or <br />when an open bid process is not conducted, the City shall make <br />specific findings setting forth the reasons thereof.