Procedure to Bring a Parcel to Auction

1. Procedure to Bring a Parcel to Auction: A parcel has been declared excess by the Excess Committee and approved by the District's Board of Directors for sale.
2. "Excess" is piece of land or a "remnant" of the larger parcels which the District acquired for a floodway project.
3. All District property will be sold via competitive public oral auction unless it is a qualified sale to a government agency.
4. An appraisal establishes the fair market value and minimum opening bid price at the auction -- there are no "fire sales."
5. Legal notices of the public auction must be advertised for a reasonable amount of time.
6. Send the Flood Control District a letter stating your commitment to purchasing the subject property should it be taken to public auction, and your willingness to submit an earnest money deposit with the District to bring it to auction. The earnest money is an approximate expense of the appraisal and advertising.
7. The District reconfirms the property is no longer needed for our project and that it can be sold at auction by initiating a District-wide request for availability of selling the subject property. All divisions within the District must agree that the parcel can be sold.
8. The District allows 30 days for this process.
9. If it is determined, after the review period, that the property is no longer needed and it may be sold, Property Management will contact you and request you remit the earnest money deposit.
10. The District will order an appraisal of the property when the earnest money is received.
11. Appraisal takes approximately 90 days. After the appraisal is received, an auction date is set and advertising begins.
12. Disposition of earnest money:
    • If you are the successful bidder at the auction, you are still responsible for the appraisal cost (as all successful buyers are), and will be credited with the balance of your deposit toward the actual purchase price.
    • If you are out-bid at the auction, you will receive your deposit money back.
    • If you or no one else bids at the auction, you forfeit all of your earnest money.
    • If you are still interested in pursuing the purchase of the property you have inquired about, please send the District a letter formatted with the information outlined in item #6 above. If you have questions call (602) 506-4746.
13. On the day of the auction, an earnest money cashier's check of 10% of the appraised value is required from each bidder.
14. A bid packet covers the requirements for the auction, the terms of the auction and conditions on how the land is to be sold.