TITLE
Recommendation that: 1) City Manager shall prepare a list and status
of use report on all City-owned real estate within thirty (30) days; and
2) City Attorney shall draft an ordinance outlining the specific procedures by which City-owned assets can be sold or leased so that proceeds from such sales are applied to further municipal improvements and not salaries and benefits.
DISCUSSION
The City of Long Beach continues to face long term structural deficit problems while at the same time attempting to meet the needs of repairing an aging infrastructure and maintaining a high-quality level of service to the community. While attempting to do an admirable job in facing this challenge, further measures can and should be taken to address the long-term critical financial situation the City of Long Beach.
The City owns a considerable amount of real estate which could be sold or leased in order to generate revenues to fund municipal improvements.
In order to determine what part of the real estate portfolio could be sold or leased, the City's real estate portfolio needs to be reviewed and updated on an annual basis. Such a review must include: an inventory of the real estate, an operating plan for such property, a disposition plan for surplus property, market research to support anticipated transactions and a request for authority to act within defined parameters as established by the City Council.
The major elements of the Portfolio Plan should include:
· Property evaluation and characterization of real estate assets
· Strategy for City occupied real estate
· Investment Portfolio Plan (Leases to for-profit tenants)
· Review of Not-for-Profit Leases
· Disposition Plan for surplus assets
· Business Case development review to support proposed transactions
· Legal document development and review
SALE OF CITY OWNED REAL ESTATE: As part of an overall portfolio management plan for the City's real estate assets, the City Manager should review the City's property...
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