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