Bessemer/Renaissance Center Analysis, Motion, Statutes; The questions have been emailed to the city as information requests

"Please explain why the deal didn't have to be rebid..."

George Hartzman

"Because it doesn’t need to.

...what this was – not construction, but facilitating redevelopment.

The current process allowed the proposer to outline their plans, and you had one proposer seeking to obtain the property and the other requesting that the City keep it.

Bidding is not relevant here.

The RFP process used in the past was optional, and there is no requirement under state law that the City is required to have any sort of process for these proposals.

So to be perfectly clear – this was not a contract to construct or repair and was not a contract to purchase apparatus, supplies, materials, and equipment.

As it was for redevelopment, bidding is not required or necessary."

Mujeeb

S. Mujeeb Shah-Khan
CITY ATTORNEY
OFFICE OF THE CITY ATTORNEY
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§ 160A‑457. Acquisition and disposition of property for redevelopment.

...any city is authorized, either as a part of a community development program or independently thereof, and without the necessity of compliance with the Urban Redevelopment Law, to exercise the following powers:

...to dispose, through sale, lease, or otherwise, of any property so acquired to any person, firm, corporation, or governmental unit; provided, the disposition of such property shall be undertaken in accordance with the procedures of Article 12 of this Chapter, or the procedures of G.S. 160A‑514..., which says "Such conveyance shall be for such consideration as may be agreed upon by the commission and the association or corporation, which shall not be less than the fair value of the property agreed upon by a committee of three professional real estate appraisers currently practicing in the State."

Was the fair value from three appraisers $490,000?

Why would the City of Greensboro say the property is worth $490,000,

if Guilford County says the property it's worth $2,964,100?

Article 12. Sale and Disposition of Property. § 160A‑265. Use and disposal of property.

In the discretion of the council, a city may: ...sell or dispose of real and personal property, without regard to the method or purpose of its acquisition or to its intended or actual governmental or other prior use.

§ 160A‑266.  Methods of sale; limitation.

...a city may dispose of real or personal property belonging to the city by:

(1)        Private negotiation and sale;
(2)        Advertisement for sealed bids;
(3)        Negotiated offer, advertisement, and upset bid;
(4)        Public auction; or
(5)        Exchange.
(b)        Private negotiation and sale may be used only with respect to personal property valued at less than thirty thousand dollars ($30,000) for any one item or group of similar items.

If there wasn't an RFP/bid process,

how was city council's motion not a private negotiation?

Real property, of any value, and personal property valued at thirty thousand dollars ($30,000) or more for any one item or group of similar items may be exchanged as permitted by G.S. 160A‑271, [160A‑271 = Exchange of property, which doesn't apply], or may be sold by any method permitted in this Article other than private negotiation and sale, except as permitted in  and G.S. 160A‑279. [160A‑279 = Sale of property to entities carrying out a public purpose, ie; social services, for which a strip mall shopping center does not apply]

§ 160A‑269.  Negotiated offer, advertisement, and upset bids.

A city may receive, solicit, or negotiate an offer to purchase property and advertise it for upset bids.

When an offer is made and the council proposes to accept it, the council shall require the offeror to deposit five percent (5%) of his bid with the city clerk, and shall publish a notice of the offer.

Was 5% deposited, and the offer published?

The notice shall contain a general description of the property, the amount and terms of the offer, and a notice that within 10 days any person may raise the bid by not less than ten percent (10%) of the first one thousand dollars ($1,000) and five percent (5%) of the remainder. When a bid is raised, the bidder shall deposit with the city clerk five percent (5%) of the increased bid, and the clerk shall readvertise the offer at the increased bid. This procedure shall be repeated until no further qualifying upset bids are received, at which time the council may accept the offer and sell the property to the highest bidder. The council may at any time reject any and all offers.
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From § 160A‑457. Acquisition and disposition of property for redevelopment

...To sell...real property or any interest therein in a community development project area to any redeveloper at private sale for residential, recreational, commercial, industrial or other uses ...provided that such sale, exchange or other transfer, and any agreement relating thereto, may be made only after approval of the municipal governing body and after a public hearing;

...the notice shall disclose the terms of the sale, exchange or transfer.

 

Did the notice include the terms of the sale?

At the public hearing the appraised value of the property to be sold, exchanged or transferred shall be disclosed; and the consideration for the conveyance shall not be less than the appraised value.

Was the appraised value of the property disclosed?