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F -7 <br />INCOME PROPERTY <br />The City owns and manages an extensive and valuable assortment of property <br />including streets, parks, beaches, public buildings and service facilities. The <br />City also owns and operates a yacht basin, a mobile home park, a luxury <br />residential development and various other income properties. Most of the <br />income property is tidelands, filled tidelands or waterfront. Unencumbered fee <br />value of income property is estimated at upwards of one hundred million <br />dollafis, and 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 law <br />requires the City to maximize its returns or be subject to a charge of making a <br />gift of public funds. Nevertheless, the City Council recognizes the importance of <br />this property not only as a revenue generator, but also as a means to provide <br />otherwise unfeasible uses and facilities to benefit the community. <br />In managing its property, the City will continually evaluate the potential of all <br />City owned property to produce revenue. This may include leasing unused <br />land, renting vacant space, establishing concessions in recreation areas or other <br />similar techniques. The City Council will evaluate the appropriateness of <br />establishing new income properties using sound business principals and after <br />receiving input from neighbors and users. <br />The policy of the City Council is that income property be managed in accordance <br />with the following: <br />1. Whenever a lease, management contract, concession, sale or similar action <br />regarding income property is considered by the City, an analysis shall be <br />conducted to determine the maximum or open market value of the <br />property. This analysis shall be conducted using appraisals or other <br />techniques to determine the highest and best use of the property and the <br />highest value of the property. <br />2. All negotiations regarding the lease, management contract, concession, <br />sale or similar action regarding income property shall include review of <br />an appraisal or analysis of the use being considered for the property <br />conducted by a reputable and independent professional appraiser, real <br />estate consultant or business consultant. <br />3. The City shall seek, whenever practical and financially advantageous, to <br />operate or manage all property and facilities directly with City staff or <br />contractors.