Lebanon council updates surplus-property code to follow state statute, adds flexibility for sales

Lebanon City Council on Aug. 27 approved Ordinance Bill 7 (Ordinance No. 3038), revising chapter 3.16 of the municipal code to align the city's surplus real-property procedures with the Oregon Revised Statutes. City staff said the existing local code required advertising and soliciting bids for all surplus property sales, a process that can be cumbersome when only adjacent owners have practical use for a parcel. The amendment allows the city, after declaring property surplus and completing required public notice and hearing steps, to follow ORS procedures that include options such as soliciting bids, listing with a realtor, obtaining an appraisal, or negotiating directly with a neighboring property owner. City Recorder Frank read the ordinance title aloud before the council took a vote. During discussion the presenter explained that the first step remains a council declaration that a property is surplus and that a public hearing and notice are required. The presenter summarized: after declaring surplus the council may direct staff to solicit bids or to pursue appraisal and direct negotiation based on circumstances. Councilors expressed support for the change as a cleanup measure that would save time and money in cases where a full bid process is unnecessary. One councilor said, "I like the idea of just getting an appraisal, eliminating real estate agents. That'll save not only time but money," and another councilor noted that the code change simply adds flexibility while preserving the public-hearing requirement. Action: the council voted to approve the ordinance by voice vote. No amendments to the ordinance text were made during the meeting. Staff said the city will continue to notify the public and follow statutory public hearing requirements before selling surplus property. What remains: the city will continue to declare properties surplus by council action, hold public hearings, and then choose the sale method that best fits the parcel and public interest. Staff said procedures and notifications required by state law remain in place.