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AMENDMENT NO. ONE TO CONTRACT NO. K-1213-122: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND STOCK REALTY & AUCTION COMPANY, BIG IRON AUCTIONS, A DIVISION OF STOCK AUCTION COMPANY, TO INCLUDE THE SALE OF REAL PROPERTY TO THE AUCTIONEER SERVICES CONTRACT FOR THE CITY OF NORMAN.
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BACKGROUND: The City of Norman acquired 53 parcels of property from Fall of 2008 to Spring 2009 for the construction of the Robinson Street Underpass Project. Subsequent to the completion of the underpass, the City Manager requested city staff to evaluate the existence and marketability of surplus property within the project area. Staff identified three potential parcels of surplus property (labeled on the attached map as Parcel A, Parcel B, and Parcel C).
Parcel A, consisting of 0.93 acres, is bounded by Robinson Street to the south, Dale Street and single-family homes to the north, Fay Avenue and single-family homes to the east, and single-family homes to the west. The only access to this property is from Dale Street. Parcel B, consisting of 0.35 acres, is bounded on the north by Robinson Street, on the south by Hayes Street, and single-family homes, on the east by Stubbeman Avenue, and on the west by undeveloped land zoned C-2 and the railroad tracks. Parcel C, consisting of 0.15 acres, is bounded on the north by undeveloped property owned by the City zoned C-2, but also designated as Institutional on the Norman 2025 Plan, on the south by Hayes Street, and single-family homes, on the east by James Garner Avenue right-of-way, and on the west by single-family homes.
The City Council Community Planning and Transportation Committee met on December 17, 2012 to discuss this topic. At that meeting, the committee recommended that the City of Norman move forward with the sale of these parcels according to the procedure recommended by the City Attorney’s Office. The first step in that process was to acquire written permission for the sale from the Right-of-Way Division Chief for the Oklahoma Department of Transportation (“ODOT”) as required by the Right-of-Way, Utility, and Encroachment Agreement between the City of Norman and ODOT for the underpass project, and that permission has been received.
Following the approval from ODOT, City Council declared the property surplus via Resolution. Under Chapter 8, § 8-301 of the City of Norman Code of Ordinances, Council must declare “any supplies, materials, or equipment” as surplus prior to the sale of such items if their value exceeds one thousand dollars. Subsequent to this declaration by Council, the property may then be sold through competitive bidding at a public auction that is conducted either in person or online (Chapter 8, § 8-302 of the Code of Ordinances). At the July 23, 2013 City Council meeting, City Council approved Resolution R-1314-12 declaring the subject property as surplus.
After City Council approved Resolution No. R-1314-12, the Public Works Department offered the parcels to the person or persons from whom the property was acquired or those persons’ heirs pursuant to Title 27, Section 17(A) of the Oklahoma statutes. This step has been completed, and one previous owner has exercised his option to repurchase his original property. It represents a portion of Parcel A, noted on the attached map. The remaining parcels are now ready to be sold for cash to the highest bidder after notice by publication pursuant to Title 69, Section 101(C) of the Oklahoma statutes.
DISCUSSION: Once staff began to prepare the parcels for sale, it was discovered that the City of Norman did not have an auctioneer on contract to conduct sales of real property. The City of Norman currently has a contract with Big Iron Online Auction Services for auction sales of surplus personal property, i.e. equipment, office furniture, and vehicles. Big Iron Online Auction Services is a division of Stock Realty & Auction Company. Stock Realty & Auction Co., along with their online auction sales for government surplus real property, also has a division that conducts real property auctions.
Under the terms of Amendment No. 1, Stock Realty & Auction Company will conduct public auctions for the sale of real property, and that property shall be sold for cash to the highest and best bidder. Prior to any auction, Stock Realty & Auction Co. shall publish notice of the upcoming sale in the Norman Transcript in two consecutive weekly issues. The Service Fee and Settlement Check procedure remains the same as outlined in Contract No. K-1213-122 - a flat seven percent fee on sales. All other terms of Contract No. K-1213-122 also remain in effect.
RECOMMENDATION: If City Council desires to move forward with the sale of these parcels, Staff recommends adoption of Amendment No. 1 to Contract No. K-1213-122 allowing Stock Realty & Auction Co. to sell these parcels and any future surplus City real property at public auction.