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F-7 <br />INCOME AND OTHER PROPERTY <br />The City owns and manages an extensive and valuable assortment of property including <br />streets, parks, beaches, public buildings and service facilities. The City also owns or <br />ground leases and/or operates a yacht basin, resort hotel and apartment property, a <br />luxury residential development and various other income-producing properties. Much <br />of the income property is tidelands, filled tidelands or waterfront. Unencumbered fee <br />value of income property is substantial. <br />As owner/manager of property, the City is the steward of a public trust, and state law <br />requires the City to maximize its returns on state -managed property or be subject to a <br />charge of making a gift of public funds. Nevertheless, the City Council recognizes the <br />importance of this property not only as a revenue generator, but also as a means to <br />provide otherwise financially less feasible uses and facilities that benefit the community. <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 or licensing unused land, <br />renting 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 generating opportunities on City controlled areas using sound business <br />principles and after receiving input from neighbors, users and the public. <br />The policy of the City Council is that income and other property be held and managed in <br />accordance with the following: <br />A. Whenever a lease, license, management contract, concession 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. This <br />analysis shall be conducted using appraisals or other techniques to determine the <br />highest and best use of the property and the highest income generating use of the <br />property. <br />B. All negotiations regarding the lease, license, management contract, concession, 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 and <br />independent professional appraiser, real estate consultant, or business consultant. <br />C. The City shall seek, whenever practical and financially advantageous, both in the <br />short and long term, to operate or manage all property and facilities directly with <br />City staff or contractors, provided staff have the expertise needed to competently <br />do so, or to oversee the work of contractors. <br />11 <br />