City-Owned Surplus Property
What is Surplus Property?
Surplus property consists of land and buildings that are owned by the City of Richmond but that have
been determined to be surplus by their use agency and City Council. Once a property is declared
surplus, it is then submitted to Real Estate Services for review to decide whether the property
can be placed on the Surplus List or if it will be sold by Request for Proposal (RFP). All sales
must be approved by City Administration and City Council.
Click here to view the section of the City Code that discusses City Surplus Property
How to Purchase Surplus Property from the Surplus List:
Interested buyers may submit a letter to Real Estate Services expressing interest in a particular property.
The letter* should include:
- Address of the property(ies)
- Offer price(s)
- Intended use of property(ies)
- Certified check for ten percent (10%) of the offer price or $100, whichever amount is greater, as good faith deposit.
*
Click here to view a sample surplus property offer letter.
All letters should be mailed to the Real Estate Director at the address below:
Attention: Director
Office of Real Estate Services
900 East Broad Street
Suite 1105
Richmond, VA 23219
City Code Concerning City Surplus Property
Sec. 26-76. Applicability of article; role of chief administrative officer.
(a)
Applicability of article.
No city-owned real estate shall be sold except in accordance with this article and any applicable provisions of the
Constitution of Virginia, the Code of Virginia and the Charter of the City of Richmond.
(b)
Role of chief administrative officer.
The chief administrative officer may delegate some or all of the duties required of him by this article to the manager of
real estate services or an employee of the chief administrative officer with equivalent responsibilities.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-77. Records and reporting.
(a)
City-owned real estate and surplus real estate.
The chief administrative officer shall prepare and maintain records that enumerate (i) all parcels of city-owned real estate
and (ii) all city-owned real estate that any city officer reports is no longer needed for municipal or public purposes
together with the chief administrative officer's recommendations for the disposal of such real estate in accordance with this
article.
(b)
Report of surplus real estate to council committee.
Upon determining that specific city-owned real estate is no longer needed for municipal or public purposes, the chief
administrative officer shall make a report of such real estate, together with his recommendations for the disposal of such
real estate, at the next meeting of the land use and transportation standing committee of the council or any successor
committee thereof.
(c)
Annual report of real estate sales transactions.
The chief administrative officer shall prepare annually a report of all of the transactions relating to the disposal of real
estate by the city during the 12 months preceding July 1 of each year. The chief administrative officer shall submit such
report to the land use and transportation standing committee of the council or any successor committee thereof by September 1
of each year.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-78. No sale of parks.
Notwithstanding any other provision of law to the contrary, no city-owned real estate that has been designated as a city park
shall be declared surplus property of the city under any circumstances. The chief administrative officer shall take all
appropriate measures to ensure that no city-owned real estate designated as a city park is declared surplus property of the city
under any circumstances.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-79. Acceptance of unsolicited offer.
(a)
Recommendation to accept offer.
If an unsolicited offer is made to purchase city-owned real estate, the chief administrative officer shall immediately bring such
offer to the attention of the mayor and the members of the council. The mayor may recommend that the council accept the offer by
introducing an ordinance to declare such real estate to be surplus real estate and to direct the sale of such real estate to the
offeror under such conditions as the patron of the ordinance may deem appropriate.
(b)
Requiring deposit from offeror.
Upon receiving an unsolicited offer to purchase city-owned real estate or upon the introduction of an ordinance to direct the sale
of real estate to an offeror, the chief administrative officer shall require a deposit from the offeror in accordance with section
26-80 and shall require the offeror to execute a purchase agreement.
(c)
Council action on offer.
The council may act upon the unsolicited offer represented by the introduced ordinance in accordance with section 26-86 and other
applicable provisions of this article.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-80. Deposit.
No ordinance directing the sale of city-owned real estate to a purchaser pursuant to any offer, bid or proposal under this article
shall be adopted unless and until the purchaser has furnished the chief administrative officer with a deposit in the form of a
certified or cashier's check in an amount equal to ten percent of the proposed purchase price or $100.00, whichever is greater,
at the time such offer, bid or proposal is made. The proceeds of the certified or cashier's check shall be applied to the purchase
price of the city-owned real estate if the council accepts the offer, bid or proposal. The city may retain the proceeds of the check
if the offer, bid or proposal is withdrawn before the evaluation of bids or proposals or the final action of the council on the
ordinance to direct the sale of the real estate to the purchaser. However, the city shall not forfeit or waive any other remedies or
rights the city may have otherwise by retaining the proceeds of the check. At the time the council either acceptsan offer, bid or
proposal or rejects all offers, bids or proposals, the check submitted by each unsuccessful offeror, bidder or proposer shall be
returned to that offeror, bidder or proposer.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-81. Declaration of real estate as surplus.
No offer, bid or proposal for the purchase of city-owned real estate shall be sought by solicitation, whether by invitation for bids
or request for proposals, or auction unless and until the council shall first have adopted a resolution declaring such real estate
to be surplus real estate and authorizing the seeking of offers, bids or proposals therefor by solicitation or auction.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-82. Solicitation of offers by invitation for bids.
(a)
Invitation for bids.
If the council, or the chief administrative officer when authorized by resolution of the council, determines that it is in the best
interests of the city to sell surplus real estate with regard to price only, the chief administrative officer shall invite bids for
such real estate. All invitations for bids (i) shall be expressly conditioned on council approval of the sale of the real estate to
the successful bidder in accordance with section 26-86, (ii) shall provide that bids will be evaluated solely on the basis of the
price stated in the bid, (iii) shall require that each bid be received by the chief administrative officer no later than a
specifically stated date and hour, (iv) shall require that each bid be accompanied by a deposit in accordance with section 26-80,
and (v) shall clearly state the requirements of section 26-88.
(b)
Solicitation.
All invitations for bids shall be initiated (i) by publication on the city's world wide web site and (ii) by such other means as to
provide reasonable notice of the invitation for bids to the maximum number of persons that can be reasonably anticipated to submit
bids in response to the particular invitation for bids.
(c)
Acceptance or rejection of bids.
Once the date and hour for the receipt of bids has passed and the bids have been evaluated, the mayor may introduce an ordinance
directing the sale of the real estate to the bidder whose bid complies with the conditions of this section and offers the highest
price for the city-owned real estate. No other criteria shall be considered in evaluating bids solicited under this section. In the
alternative, the mayor may introduce a resolution rejecting all of the bids received.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-83. Solicitation of offers by request for proposals.
(a)
Request for proposals.
If the council, or the chief administrative officer when authorized by resolution of the council, determines that it is in the best
interests of the city to sell surplus real estate with regard to factors other than price, but which may include price, the chief
administrative officer shall request proposals for the real estate. All requests for proposals (i) shall be expressly conditioned
on council approval of the sale of the real estate to the successful proposer in accordance with section 26-86, (ii) shall set
forth in detail the specific evaluation factors upon which the proposals received pursuant to that request will be evaluated, (iii)
shall require that each proposal be received by the chief administrative officer no later than a specifically stated date and hour,
(iv) shall require that each proposal be accompanied by a deposit in accordance with section 26-80 and (v) shall clearly state the
requirements of section 26-88.
(b)
Solicitation.
All requests for proposals shall be solicited (i) by publication on the city's world wide web site and (ii) by such other means as
to provide reasonable notice of the request for proposals to the maximum number of persons that can be reasonably anticipated to
submit proposals in response to the particular request for proposals.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-84. Same--Evaluation of proposals.
(a)
Evaluation factors.
Each request for proposals may be evaluated based on any or all of the following evaluation factors, provided such evaluation
factors are enumerated in the request for proposals:
(1) The proposed use of the real estate;
(2) The financial ability of the proposer to provide for the proposed use of the real estate;
(3) The past experience of the proposer in the development and use of properties for uses similar to the proposed use;
(4) The effect of the proposed use of the real estate on other properties;
(5) The compatibility of the proposed use of the real estate with the city's master plan;
(6) The price the proposer offers to pay for the real estate; and
(7) Such other evaluation factors as the chief administrative officer or the land use and transportation standing committee of the
council or its successor committee may deem appropriate.
(b)
Evaluation process.
The chief administrative officer shall evaluate all proposals based solely upon all of the specific criteria enumerated in the request for proposals. The chief administrative officer shall complete this evaluation within a reasonable period of time following receipt of all of the proposals and report the results of his evaluation both to the mayor and to the council at the same time.
(c)
Acceptance or rejection of proposals.
Once the date and hour for the receipt of proposals has passed and the proposals have been evaluated, the mayor may introduce an ordinance directing the sale of the real estate to the proposer whose proposal complies with the conditions set forth in section 26-83 and is determined based on the evaluation factors stated in the request for proposals to be in the best interests of the city. In the alternative, the mayor may introduce a resolution rejecting all of the proposals received.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-85. Auction of surplus real estate.
If the council, or the chief administrative officer when authorized by resolution of the council, determines that it is in the best
interests of the city to sell specific surplus real estate by auction, the chief administrative officer shall offer such surplus
real estate for sale at public auction through a qualified auctioneer with whom the city has contracted for the sale of surplus
real estate. The chief administrative officer shall ensure that notice of such public auction is given (i) by publication on the
city's world wide web site and (ii) by such other means as to provide reasonable notice of the public auction to the maximum number
of persons that can be reasonably anticipated to participate in such public auction.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-86. Action of council.
(a)
Requirement for council action.
No city-owned real estate shall be sold unless and until the council has declared the real estate to be surplus real estate and adopted an ordinance directing the sale of the real estate to the purchaser.
(b)
Contents of ordinance directing sale of real estate.
Any ordinance directing the sale of surplus real estate to a purchaser shall contain the following information in the text of the ordinance:
(1) Sufficient information to identify the real estate being sold;
(2) The name of the purchaser;
(3) The amount such purchaser proposes to pay for the real estate;
(4) Any conditions of the purchase that the patron deems appropriate; and
(5) Either a declaration that the real estate being sold is surplus real estate or a reference to a prior resolution declaring such real estate to be surplus real estate.
Such ordinance shall direct the chief administrative officer to execute the deed, which must first be approved as to form by the city attorney, and any other documents necessary to consummate the sale of the real estate on behalf of the city.
(c)
Options.
With regard to the sale of surplus real estate by any means authorized under this article, the council may take action to do any of the following:
(1) Authorize the sale of city-owned real estate to the purchaser recommended by the patron of the ordinance directing the sale of real estate to the purchaser by adopting such ordinance, which the council may, if it chooses, amend to add, modify or remove conditions imposed on the purchase as permitted by the article;
(2) Refuse to authorize the sale of city-owned real estate to the purchaser recommended by the patron of the ordinance directing the sale of real estate to the purchaser by rejecting such ordinance; or
(3) Reject all responses to the solicitation and direct the chief administrative officer to issue a new solicitation for the city-owned real estate by adopting a resolution to that effect.
(d)
Considerations by council.
The council may consider any of the following before exercising any of the options in subsection (c) of this section:
(1) The amount of the offer, bid or proposal;
(2) The amount at which the city assessor has appraised the property;
(3) The tax status and financial ability of the offeror, bidder or proposer;
(4) The amounts of any other appraisals of the property;
(5) The current use of the property;
(6) The offeror's proposed use of the property;
(7) The effect of the offeror's proposed use on other properties in the vicinity;
(8) Any evaluation factors in a request for proposals, if applicable;
(9) The conditions, if any, to be imposed on the purchase; and
(10) Any other considerations the council deems relevant.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-87. Effect of ordinance directing sale of real estate.
An ordinance directing the sale of real estate to a purchaser shall be deemed to require the conveyance of the real estate unless
the purchaser does not comply with section 26-88 or any condition set forth in the ordinance. If the purchaser of real estate set
forth in the ordinance does not comply with section 26-88 or any condition set forth in the ordinance, the city shall not attempt
to seek offers, bids or proposals for the purchase of such real estate by solicitation or auction unless and until the council has
first approved or directed such solicitation or auction. The council shall express such approval by adopting a resolution to that
effect.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-88. Payment.
After the council has directed the sale of city-owned real estate, the purchaser shall pay the balance of the purchase price to the
city within 15 days after the city gives the purchaser notice that the deed is ready for delivery. If the purchaser has not paid
the balance of the purchase price within 15 days after notice that the deed is ready for delivery, the sale of the city-owned real
estate shall be void, and the city shall retain the proceeds of the deposit submitted with the offer, bid or proposal of the
purchaser pursuant to section 26-80. The provisions of this section shall apply unless the ordinance directing the sale of the
city-owned real estate expressly provides otherwise.
(Ord. No. 2005-282-270, § 2, 12-12-2005)
Sec. 26-89. Sale of blighted or tax delinquent real estate acquired by city.
(a)
Sale for $1.00.
The chief administrative officer may provide for the sale of real estate for the nominal amount of $1.00 in accordance with Code of Virginia, § 15.2-958.1 if such real estate qualifies under the requirements of Code of Virginia, § 15.2-958.1(A).
(b)
Sale for other than $1.00.
The chief administrative officer may provide for the sale of real estate for valuable consideration other than $1.00 if such real estate qualifies under the requirements of Code of Virginia, § 15.2-958.1(A) for sale for the nominal amount of $1.00.
(c)
Ordinance required.
No real estate shall be sold pursuant to this section unless and until the council has adopted an ordinance directing the sale of the real estate to the purchaser.
(d)
Exemption from article; procedures.
The requirements of this article, except for those set forth in this section, shall not apply to sale of real estate pursuant to this section. The chief administrative officer may pursue the sale of real estate pursuant to this section by such procedures, including, without limitation, invitations for bids or public auctions, as the chief administrative officer may prescribe in compliance with applicable law.
(Ord. No. 2005-282-270, § 2, 12-12-2005)