Empathy List Archives

KR

Kay Robbins Wall

Tue, May 10, 2022 6:38 PM

A tiny town in my area wants to sell their community center to an individual, and carry the note for a term of two years. Is there a requirement for the town to obtain an appraisal first? Is there any prohibition against the town carrying the note for two years?
Thanks so much,
Kay Wall

A tiny town in my area wants to sell their community center to an individual, and carry the note for a term of two years. Is there a requirement for the town to obtain an appraisal first? Is there any prohibition against the town carrying the note for two years? Thanks so much, Kay Wall

JM

Jon Miller

Tue, May 10, 2022 6:55 PM

Kay,

Look to your Charter and ordinances for requirements for sale. Our Charter sets an amount above which an ordinance is required to sale property. If there is any issue, an appraisal may be necessary to protect the trustees. As a political matter, it might be wise for the trustees to obtain an appraisal.

If the property has been used for public purposes, it may require a resolution determining that the property is no longer needed for a public purpose in order to remove the property from its status as public trust property and thereby enable to town to sell it.

I have never looked at the issue of whether a municipality could finance property for an individual other than as part of an economic or industrial development transaction. I find it difficult to find a public purpose in financing a private individual’s purchase of property unrelated to a development project of the town and would want to research it before advising my client to proceed. Also, if the town has any financing outstanding I would run the contemplated sale by the town’s financial advisor and/or bond counsel to make certain existing financing would allow such a sale.

Jonathan E. Miller
City Attorney
City of Mustang
1501 N. Mustang Road
Mustang, Oklahoma 73064
Telephone: (405) 376-7746
Facsimile: (405) 376-7721

This email is sent by the City Attorney and may contain information that is privileged or confidential. If you received this email in error, please notify the sender by reply email and delete the email and any attachments. If you are a and officer, employee or agent of the City of Mustang, you should not share this email with others. Sharing this email may result in a loss of the attorney-client privilege.

From: Kay Robbins Wall lkrw@sbcglobal.net
Sent: Tuesday, May 10, 2022 1:39 PM
To: OAMA Luistserv oama@lists.imla.org
Subject: [Oama] sale of property

A tiny town in my area wants to sell their community center to an individual, and carry the note for a term of two years. Is there a requirement for the town to obtain an appraisal first? Is there any prohibition against the town carrying the note for two years?

Thanks so much,

Kay Wall

Kay, Look to your Charter and ordinances for requirements for sale. Our Charter sets an amount above which an ordinance is required to sale property. If there is any issue, an appraisal may be necessary to protect the trustees. As a political matter, it might be wise for the trustees to obtain an appraisal. If the property has been used for public purposes, it may require a resolution determining that the property is no longer needed for a public purpose in order to remove the property from its status as public trust property and thereby enable to town to sell it. I have never looked at the issue of whether a municipality could finance property for an individual other than as part of an economic or industrial development transaction. I find it difficult to find a public purpose in financing a private individual’s purchase of property unrelated to a development project of the town and would want to research it before advising my client to proceed. Also, if the town has any financing outstanding I would run the contemplated sale by the town’s financial advisor and/or bond counsel to make certain existing financing would allow such a sale. Jonathan E. Miller City Attorney City of Mustang 1501 N. Mustang Road Mustang, Oklahoma 73064 Telephone: (405) 376-7746 Facsimile: (405) 376-7721 This email is sent by the City Attorney and may contain information that is privileged or confidential. If you received this email in error, please notify the sender by reply email and delete the email and any attachments. If you are a and officer, employee or agent of the City of Mustang, you should not share this email with others. Sharing this email may result in a loss of the attorney-client privilege. From: Kay Robbins Wall <lkrw@sbcglobal.net> Sent: Tuesday, May 10, 2022 1:39 PM To: OAMA Luistserv <oama@lists.imla.org> Subject: [Oama] sale of property A tiny town in my area wants to sell their community center to an individual, and carry the note for a term of two years. Is there a requirement for the town to obtain an appraisal first? Is there any prohibition against the town carrying the note for two years? Thanks so much, Kay Wall

JM

Jon Miller

Tue, May 10, 2022 8:09 PM

Kay,

Ignore my earlier comment about checking the town’s charter….

Jonathan E. Miller
City Attorney
City of Mustang
1501 N. Mustang Road
Mustang, Oklahoma 73064
Telephone: (405) 376-7746
Facsimile: (405) 376-7721

This email is sent by the City Attorney and may contain information that is privileged or confidential. If you received this email in error, please notify the sender by reply email and delete the email and any attachments. If you are a and officer, employee or agent of the City of Mustang, you should not share this email with others. Sharing this email may result in a loss of the attorney-client privilege.

From: Kay Robbins Wall lkrw@sbcglobal.net
Sent: Tuesday, May 10, 2022 1:39 PM
To: OAMA Luistserv oama@lists.imla.org
Subject: [Oama] sale of property

A tiny town in my area wants to sell their community center to an individual, and carry the note for a term of two years. Is there a requirement for the town to obtain an appraisal first? Is there any prohibition against the town carrying the note for two years?

Thanks so much,

Kay Wall

Kay, Ignore my earlier comment about checking the town’s charter…. Jonathan E. Miller City Attorney City of Mustang 1501 N. Mustang Road Mustang, Oklahoma 73064 Telephone: (405) 376-7746 Facsimile: (405) 376-7721 This email is sent by the City Attorney and may contain information that is privileged or confidential. If you received this email in error, please notify the sender by reply email and delete the email and any attachments. If you are a and officer, employee or agent of the City of Mustang, you should not share this email with others. Sharing this email may result in a loss of the attorney-client privilege. From: Kay Robbins Wall <lkrw@sbcglobal.net> Sent: Tuesday, May 10, 2022 1:39 PM To: OAMA Luistserv <oama@lists.imla.org> Subject: [Oama] sale of property A tiny town in my area wants to sell their community center to an individual, and carry the note for a term of two years. Is there a requirement for the town to obtain an appraisal first? Is there any prohibition against the town carrying the note for two years? Thanks so much, Kay Wall

LP

Lowell Peterson

Tue, May 10, 2022 11:12 PM

I do not believe there is any requirement for an appraisal. I recommend that the governing body include a finding that the price is at or above FMV in its authorizing resolution.
I also believe the town can carry the note so long as a non-appropriation clause is included to avoid the prohibition against incurring obligations beyond the current fiscal year. While I was practicing, I had the language in my electronic files but perhaps someone else can provide it.

Respectfully Yours,
Lowell
22309 E. 67th Street
Broken Arrow, OK 74014
(918) 805-4090
Lpeterson@live.com

-------- Original message --------
From: Kay Robbins Wall lkrw@sbcglobal.net
Date: 5/10/22 1:39 PM (GMT-06:00)
To: OAMA Luistserv oama@lists.imla.org
Subject: [Oama] sale of property

A tiny town in my area wants to sell their community center to an individual, and carry the note for a term of two years. Is there a requirement for the town to obtain an appraisal first? Is there any prohibition against the town carrying the note for two years?

Thanks so much,

Kay Wall

I do not believe there is any requirement for an appraisal. I recommend that the governing body include a finding that the price is at or above FMV in its authorizing resolution. I also believe the town can carry the note so long as a non-appropriation clause is included to avoid the prohibition against incurring obligations beyond the current fiscal year. While I was practicing, I had the language in my electronic files but perhaps someone else can provide it. Respectfully Yours, Lowell 22309 E. 67th Street Broken Arrow, OK 74014 (918) 805-4090 Lpeterson@live.com -------- Original message -------- From: Kay Robbins Wall <lkrw@sbcglobal.net> Date: 5/10/22 1:39 PM (GMT-06:00) To: OAMA Luistserv <oama@lists.imla.org> Subject: [Oama] sale of property A tiny town in my area wants to sell their community center to an individual, and carry the note for a term of two years. Is there a requirement for the town to obtain an appraisal first? Is there any prohibition against the town carrying the note for two years? Thanks so much, Kay Wall