Spokane Municipal Code

Title 07 Finance

Chapter 07.16 Public/Private Partnership Agreement Requirements

Section 07.16.010 Market Value Appraisals

1. Consistent with the principles and purpose of the Federal Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), the City adopts, in full, the “minimum appraisal standards,” of 12 CFR Part 34, Section 34.44. This includes, but is not limited to, a requirement that in all transactions in which City funds are transferred or put at risk that appraisals used to assess the value of property be based on market value.

2. Pursuant to SMC 7.16.010, “market value” will be defined as “the most probable price a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.” Implicit in this definition are the consummation of a sale as of a specific date and the passing of title from seller to buyer under conditions whereby:

1. 1. buyer and seller are typically motivated;

1. 2. both parties are well informed or well advised, and acting in what they consider their own best interest;

1. 3. a reasonable time is allowed for exposure in the open market;

1. 4. payment is made in cash in U.S. dollars or on terms comparable thereto; and

1. 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

3. The conditions of SMC 7.16.010 and SMC 7.16.020 will apply to all situations in which the City, or a public development authority, or a non-profit corporation acting “on behalf of” the City pursuant to a Federal Revenue Ruling 63.20, purchases or leases real property, where the cost of said purchase or lease exceeds one thousand dollars annually.

Date Passed: Monday, March 9, 2009

Effective Date: Saturday, April 11, 2009

ORD C34404 Section 1