HomeMy WebLinkAboutResolution No. 2017-04Sponsored by: Administration
CITY OF KENAI
NO. 2017 -04
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING
THE SALE OF LOT 3A, BLOCK 1, SPUR SUBDIVISION NO. 1, 1983 ADDITION, CITY -
OWNED AIRPORT PROPERTY LOCATED OUTSIDE THE AIRPORT RESERVE, TO DEAN
YOU, OR HIS ASSIGNEE.
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 City recently declared by Ordinance No 2919 -2016 that the property is
not needed for a public purpose and that a sale of the Property is in the best interest of
the City and Airport and serves a purpose of continuing commercial growth and
investment in the City and rehabilitation of the improvement on the Property; and,
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 several 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 current highest offeror, Dean You, or his Assignee (Grantee); and,
WHEREAS, the Property was appraised as of February 3, 2016, and the purchase price
equals the appraised land value, and reflects no value for the improvement which is
supported by an opinion of the appraiser retained by the City; and,
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Resolution No. 2017 -04
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WHEREAS, KMC 21.25.200 -Terms for Financing Sale of City Lands, authorizes the City
Manager to accept a note secured by a deed of trust for a portion of the purchase price
as long as the down payment is equal to or greater than 15% of the purchase price at a
rate determined by Council; and,
WHEREAS, in order to facilitate the sale of property and in consideration of the condition
of the structure and plans of the purchaser to invest in the rehabilitation of the property
the Council determines that an interest rate of .75% is appropriate.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA:
Section 1. 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 2. 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 $450,000.
The City will carry a deed of trust on the property for an amount not to exceed
$125,000 for a term not to exceed 13 months from the recording date with an
interest rate determined by Council be .75% payable in monthly installments.
Section 3. Title: 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,
Resolution No. 2017 -04
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(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 4. 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 S. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 18 day of January,
2017.
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BRIAN GABRIEL SR., MAYOR
EARNEST MONEY RECEIPT AND AGREEMENT
Received from Dean You hereinafter called PURCHASER, the sum of $15,000.00, in the form of a check
payable to Stewart Title of the Kenai Peninsula in trust for the City of Kenai hereinafter called SELLER, as Earnest
Money on January , 2017 (date), in part payment of the purchase price of the following described real property:
Legal Description: KPB Parcel 904705303, L3A, B1, Spur Sub No. 1983 Addition, 83 -211,
In the Kenai Recording District, Third Judicial District, State of Alaska.
The total purchase price is $450,000.00, payable as follows: $20,000.00 earnest money
[]balance due at closing OR []Bank loan with OR
® Owner Finance $125,000.00 payable at $interest only or more per month. Including/Plus
interest at 0.75 %. Interest accrues from Date of Recordin¢ . First payment due 1 month from
date of recordine. Amortized 13 months.
[]Due on Sale Clause Late fee of $ _ for _past due.
®Full Coverage Insurance Required. Collect at FNBA. Other terms: Buyer has already paid
$5,000.00 of the $20,000.00 earnest money directly to seller.
THE CLOSING COSTS are to be paid between Seller and Purchaser as follows:
Indicate: (S) = Seller; (P) = Purchaser; (50150) = Split equally between Seller and Purchaser
P Owners Title insurance
_ Lenders Insurance
50/50 Escrow Settlement/Closing Fee
50150 Recording Fee
50150 Escrow Set Up Fee
50150 Escrow Annual Fee
S Attorney Doc Prep Fees
S Delinquent Property Taxes
S Pending/Levied Assessments
S Clear Existing Liens
_ As -Built Survey Fee
Appraisal
_ Final Inspection on Appraisal
Other Costs
_ Origination Fee
_ Commitment Fee
_ Discount Points
_ Tax Registration Fee
_ Flood Certification
_ Credit Report
_ Document Preparation Fee
_ MIP/PMI
_ V.A. Funding Fee
_ Establish/Replace Reserves on New Loan
_ Interest to Closing Date New Loan
_
Well/Septic Testing (if required by lender)
_ Home Inspection Fee
Smoke Detectors
WARNING: IT IS PURCHASER'S AND SELLER'S RESPONSIBILITY TO SEEK AND
CONSULT WITH OWN INDEPENDENT LEGAL ADVISOR, TAX ADVISOR, BUILDING
& SOIL INSPECTOR, LAND SURVEYOR, WATER & SEWER ENGINEER, OR OTHER
APPROPRIATE ADVISOR FOR THIS TRANSACTION AND AT THE SOLE COST TO THE
PARTY REQUESTING SUCH SERVICE(S) UNLESS OTHERWISE STATED ABOVE.
SUCH SERVICE OR DILIGENT INQUIRY SHALL BE COMPLETED WITHIN 10 DAYS
OF SELLER'S SIGNATURE HEREON OR ANY OTHER TIME FRAME AND MUTUALLY
AGREED TO IN WRITING BETWEEN SELLER AND PURCHASER.
i. The title is to vest and read: City of Kenai ( ❑husband and wife, ❑ married, ❑
unmarried,)
2. Seller agrees to furnish and deliver to Purchaser as soon as procurable a purchaser's
policy of title insurance to be issued by Stewart Title of the Kenai Peninsula. If the title
cannot be made clear as aforesaid within 10 days from the issuance of a preliminary title
report, Purchaser may cancel this agreement and Seller must refund the earnest money. It
is also agreed that the Purchaser may waive defects or require the price to be renegotiated
to cover any defects or encumbrances at the Purchaser's sole discretion without loss of
the earnest money refund.
3. If title is made good on or before closing and the Purchaser neglects or refuses to
complete the purchase, the earnest money may, at Seller's sole option, be forfeited as
liquidated damages, which shall not preclude any other remedy available at law or in
equity, if any.
4. The property shall be conveyed by WARRANTY DEED free of encumbrances except for
rights reserved in federal patents or state deeds, building or use restrictions general to the
district, and building or zoning regulations and provisions shall not be deemed defects
nor encumbrances. Any defects or encumbrances may be discharged at closing out of the
purchase money.
5. Taxes for the current year, rents, interest, mortgage reserves, will be prorated as of the
date of closing.
6. Possession will occur on recording.
7. Purchaser offers to purchase the property on the terms noted in its present condition and
this agreement is issued subject to:
a. As is. Where is.
b. Subiect to City Council action to approve sale
c. Not subject to a building inspection
d. $5.000.00 Earnest money has already been paid directly to the seller. The
remaining $15.000.00 earnest money is to be paid directly to Stewart Title of
will be paid to the City of Kenai in the event this transaction fails to close.
8. The sale shall be closed in the offices of Stewart Title of the Kenai Peninsula with an
escrow or closing agent on or before January 191h. 2017 (date) "Closed" shall mean the
day the deed of contact is recorded and funds are to be disbursed.
9. Purchaser and the Seller will, on demand of either, deposit in escrow with the closing
agent all instruments and monies necessary to complete the purchase.
to. There are no verbal or other agreements which modify or affect this agreement. Time is
of the essence of this agreement.
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WHEREFORE the Seller and purchaser being in accord do bind themselves hereto by their
signatures hereunder:
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Date:
Date:
SELLER:
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Telephone:
Fax:
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