Feb
25

New Orleans Sale of Surplus Property Auction Approaching: What You Need To Know!

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UPDATE: The Sale of Surplus Properties auction has been scheduled for May 17th, 2013. View additional information on our surplus property blog page HERE. We now are hosting sale-related documents, including appraisals, City Planning Commission staff reports, and City Council ordinances.

According to our sources at City Hall, the much anticipated sale of surplus properties is becoming closer to a reality and the auction is tentatively scheduled for early May. We’re processing property information that was provided by the city and will have that information available online shortly. In the mean time, here’s what you need to know about how the auction process works.

Keep in mind that most of these properties are potentially eligible for historic tax credits  and the restoration tax abatement program!

SALES PROCESS FOR CITY-OWNED PROPERTY

The City may sell (through public auction) immovable property (real estate) that is no longer needed for public purpose. These particular auctions are different than the Sheriff’s auctions or NORA’s auctions. The process for bringing property any city owned property to auction is lengthy. The steps are as follows:

1. The Department of Property Management, through the Division of Real Estate and Records, locates property that the City is not using. A constituent may bring a request regarding a particular property to the Division and request that it be sold at public auction.

2. If the property is deemed saleable, the requested sale is presented to the Planning Advisory Committee (PAC) for review, comments, and recommendations. If any city department may determine that the property is still needed for public use then the sale will not move forward.

3. If approved by PAC, the requested sale is then submitted to the City Planning Commission (CPC) for approval or denial. CPC may deny, approve, or conditionally approve the auction of a property. CPC may place provisos on the sale of the property, which will require that certain terms and/or obligations are met prior to or as part of the sale.

4. If the sale is approved or conditionally approved with provisos, the property is appraised to determine fair market value.

5. After a value is determined, the auction of the property must be approved by the City Council. An ordinance containing the property description, appraised value, and any provisos set by the CPC is introduced to the City Council.

6. If the Ordinance is passed and approved by the Mayor, an auction date and time is set and an advertisement runs in the Times Picayune Newspaper three times over a span of thirty days. The property may have an “open house” during this period.

7. At least thirty days after the ordinance has been signed by the Mayor, the property auction is held. The starting bid is the fair market value of the property. Auctions are held in the City Council Chambers at City Hall.

8. A winning bidder must deposit 10% of the winning bid amount with the Real Estate and Records Division (Room 5W06) within one (1) hour of the completion of the auction. The deposit must be in cash, certified check, or money order and is NON-REFUNDABLE. If a deposit is not timely made, the property is offered to the second highest bidder.

8. The act of sale is sent to the City Law Department for review and signature. The purchaser typically has 120 days to coordinate with the Law Department to complete the sale. If there is a proviso attached to the property sale by the CPC, it will become part of the act of sale. The remainder of the payment, as well as costs associated with promulgation of the ordinance and advertising are all due at the signing of the act of sale.

– Do you have additional questions? View the FAQ sheet online HERE. –

Properties under consideration for surplus and sale:

200 N. Alexander in Mid City

4877 Laurel  located Uptown

1000 Poland in Bywater

2552 St. Philip in Treme/Esplanade Ridge

6038 St. Claude in Holy Cross

4131 Elysian Fields in Gentilly

7540 Paris

7131 Chef Menture 

STAY TUNED for additional information. See our previous post about the surplus auction HERE.

– Do you have additional questions? View the FAQ sheet online HERE. –

Categories : FOR SALE

3 Comments

1

[...] days ago via Twitter New Orleans’ own PRC posted a link detailing a list of city owned property likely to soon be available at auction.  The Crescent [...]

2

[...] Be sure to read this blog post: New Orleans Sale of Surplus Property Auction Approaching: What You Need To Know! [...]

3

[...] sure to read this blog post: New Orleans Sale of Surplus Property Auction Approaching: What You Need To Know! Also, read through all related documents, FAQ sheets and alike on the City of New Orleans website [...]

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