OIG Advisory Regarding City’s Real Property Management
Summary
The City of Chicago Office of Inspector General has completed a review of the City’s current practices regarding the periodic evaluation of real property. The review established that the City has no process for periodically evaluating its real property to determine if it is being utilized for the most effective and economical purposes.
Executive Summary
We found that while the City maintains a list of unused, or surplus, properties and works to sell those, it does not periodically evaluate its utilized real property assets to determine if they are being used for the best possible purpose or should be sold.
The City faced a projected deficit of $338.7 million at the beginning of the 2014 budget process and continues to face a $600 million pension cliff in 2015. In such a financial environment, ensuring that the City gets the most effective use out of all of its real property is imperative. In some instances, generating revenue through the sale of currently utilized assets may be the most effective use of City-owned property.
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