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HomeMy WebLinkAboutOrdinance No. 2919-2016Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2919 -2016 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, DETERMINING THAT LOT 3A, BLOCK 1, SPUR SUBDIVISION NO. 1, 1983 ADDITION, CITY -OWNED AIRPORT PROPERTY LOCATED OUTSIDE THE AIRPORT RESERVE, IS NOT NEEDED FOR A PUBLIC PURPOSE AND AUTHORIZING THE SALE OF THE PROPERTY TO DEAN YOU, OR HIS ASSIGNEE. WHEREAS, on February 16, 2016, the City issued a request for proposals for the lease or purchase of Lot 3A, Block 1, Spur Subdivision No. 1, 1983 Addition, City owned Airport property outside the Airport Reserve, (the Property) but did not receive any acceptable proposals; and, WHEREAS, the City has since received two competing unsolicited offers to purchase the Property and finds it in the best interest of the City and Airport to sell the Property to the highest offeror, Dean You, or his Assignee (Grantee); and, WHEREAS, the City of Kenai received a Quitclaim Deed from the Federal Aviation Administration (FAA) on December 1, 1963, to nearly 2,000 acres of land subject to certain restrictions, including that no property shall be used, leased, sold, salvaged, or disposed of for reasons other than for Airport purposes; and, WHEREAS, on December 12, 1983, the FAA executed a Deed of Release for an area of land subject to the Quitclaim Deed allowing for the lease, sale, or disposal of certain Airport lands by the City; and, WHEREAS, Lot 3A, Block 1, Spur Subdivision No. 1, 1983 Addition is subject to that Deed of Release; and, WHEREAS, KMC 21.15.010 - Airport Land Outside the Airport Reserve, provides that the City may sell land outside the Airport Reserve when in the judgment of the City Council, such land is not required by the City for a public purpose; and, WHEREAS, the Property was previously leased and contains an aging structure last used primarily for a bowling alley and is not needed for a public purpose; and, WHEREAS, a bowling alley in the community provides recreational activities for both youth and adults and the City understand it is the intent of the purchaser to reopen at least part of the structure as a bowling alley; and, WHEREAS, the Property was appraised as of February 3, 2016, and the purchase price is in excess of the appraised land value, but does not reflect the full appraised improvement value, which is in need of significant deferred maintenance; and, New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2919 -2016 Page 2 of 3 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a non code ordinance. Section 2. Statement of Ownership: That the City of Kenai is the owner of Lot 3A, Block 1, Spur Subdivision No. 1, 1983 Addition (the Property). Section 3. Public Purpose and Best Interest Findings: That the Property is not needed for future public municipal or Airport purposes. Under the Airport Layout Plan, the Property is designated for non - aviation commercial uses. The sale of the Property is in the best interests of the City and Airport as it serves a purpose of continuing commercial growth and investment in the City and rehabilitation of the improvement on the Property. Section 4. Authorization of Sale: That the Kenai City Council hereby authorizes the City Manager to sell the City -owned lands described as Lot 3A, Block 1, Spur Subdivision No. 1, 1983 Addition, under the procedures and terms established for the sale of Airport lands and as otherwise provided herein, subject to the following additional essential terms and conditions of sale: The sale will be made through a negotiated sale to Dean You or his assignee, for a sum not less than $525,000. Section 5. Title: That title shall be conveyed by warranty deed. Any instrument conveying title to the Property shall include the following restrictions, promises, and /or covenants: (a) that the City of Kenai reserves, for itself and its heirs, executors, administrators, successors, transferees, and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Property, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation of or flight in the said airspace, and for use of said airspace for landing on or at and for taking off from or operating on Kenai Municipal Airport; and, (b) that the Grantee expressly agrees for itself and its heirs, executors, administrators, successors, transferees, and assigns to restrict the height of structures, objects of natural grown, and other obstructions on the Property to a height of not more than 242 above mean sea level; and, (c) that the Grantee expressly agrees for itself and its heirs, executors, administrators, successors, transferees, and assigns to prevent any use of the Property which would interfere with landing or taking off of aircraft at the Kenai Municipal Airport, or otherwise constitute an airport hazard; and, New Teat Underlined; ]DELETED TEXT BRACKETED] Ordinance No. 2919 -2016 Page 3 of 3 (d) that all covenants heretofore stated shall run with the land and shall inure to the benefit of, and be binding upon the heirs, executors, administrators, successors, transferees, and assigns of the parties to the contract for sale and conveyance. Section 6. Proceeds of Sale: That should a sale of the Property be finalized, all revenues from the sale shall be deposited in the Airport Land Sale Permanent Fund for use in the development, improvement, and operation of the Kenai Municipal Airport and as otherwise required in that Deed of Release recorded on November 19, 1973 at Book 74, Pages 325 -327, Kenai Recording District. Section 7. Effective Date: That pursuant to KMC 1.15.070(1), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of September, 2016. PAT PORTER, MAYOR Introduced: September 7, 2016 Enacted: September 21, 2016 Effective: October 21, 2016 New Tent Underlined; ]DELETED TEXT BRACKETED] BO "'Village with a Past, C# with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 illlll 1992 MEMO* P_FROM: TO: City Council Rick Koch DATE: September 2, 2016 SUBJECT: Ordinance 2919 -2016, Lot 3A, Block 1, Spur Subdivision No. 1, 1983 Addition. Not Needed for a Public Purpose and Authorizing Sale of the Property The purpose of this correspondence is to submit and recommend Council adoption of the above referenced ordinance. The above referenced Airport Land was under lease for many years and was operated as a bowling alley. Approximately two years ago the lease was terminated and the City /Airport received ownership of any improvements on the property. The improvements are in a significantly distressed condition, and may or may not, have value, based on future use of the property. The City /Airport accomplished a Request for Proposals process to determine interest in either leasing and /or purchasing the property. Two proposals were received, which were declined by the City Council. The City /Airport received two unsolicited offers to purchase the property and any improvements. A request for Best and Final Offers was presented to the proposers and were received by the City /Airport. Both offers, with subsequent clarification, provided the same conditions: 1. As -is, where -is 2. No warranties 3. Cash 4. No financing conditions 5. Closing within 30 -60 days The proposal from Dean you, or his designee, in the amount of $525,000 provides the greatest return to the City /Airport. If you have any questions, please contact me at your convenience.