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HomeMy WebLinkAboutOrdinance No. 2938-2017Suggested by: Administration CITY OF KENAI fANCE NO. 2938 -2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $20,600 IN THE WATER & SEWER FUND FOR THE PURCHASE OF APPROXIMATELY 2.27 ACRES OF REAL PROPERTY DESCRIBED AS LOTS 1 AND 2, BLOCK B, BEAVER CREEK ALASKA SUBDIVISION AMENDED, SECTION 36, T6N, R1 1W, TO BE RETAINED BY THE CITY FOR PUBLIC USE. WHEREAS, the total purchase price for the two subject parcels containing approximately 2.27 acres is $20,000, plus estimated closing cost of $600, which is less than appraised value as determined by a qualified appraiser pursuant to Kenai Municipal Code Section 22.05.135 - Acquisition of Real Property; and, WHEREAS, the purchase would provide the City additional property reserved for public use for the protection of the City's Municipal Wells; and, WHEREAS, it is in the best interest of the City to purchase the above described property to be retained by the City and Municipal Well protection purposes; and, WHEREAS, Water & Sewer Fund, Fund Balance is sufficient and available to accommodate the purchase at this time. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI ALASKA, that: Section 1. Form: That this is a non -code ordinance. Section 2. That the Kenai City Council hereby authorizes the City Manager to purchase the real property known as Lot's 1 and 2, Block B, Beaver Creek Alaska Subdivision Amended, Section 36, T6N, R11W, for the total purchase price of $20,000 plus estimated closing costs of $600, on a form approved by the City Attorney, to be retained by the City for public use. Section 3. That the Kenai City Council further finds the acquisition of the subject parcel to be in the best interests of the citizens of the City of Kenai and that the public interest shall be served by its acquisition for the total purchase price of $20,000 plus estimated closing costs of $600, in accordance with the recitals above which are incorporated herein. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 29XX -2017 Page 2 of 2 Section 4. That estimated revenues and appropriations be increased as follows: Water & Sewer Fund Increase Estimated Revenues: Appropriation of Fund Balance $20.600 Increase Appropriations: Water - Land $20.600 Section S. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 6. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 18th day of January, 2017. Approved by Finance: •' Introduced: January 4, 2017 Enacted: January 18, 2017 Effective: February 17, 2017 New Text Underlined; [DELETED TEXT BRACKETEDI "Villaye with a Past, C# with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 �d Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 11111. 1992 MEMORANDUM: TO: Rick Koch, City Manager FROM: Matthew Kelley, City Planner /lam DATE: December 23, 2016 SUBJECT: Ordinance No 2938 - 2017 Purchase of Real Property from Douglas W. Cofer The purpose of this communication is to provide additional information in support of Ordinance No. 2938 — 2017. The proposed Ordinance, would appropriate funding for the purchase of real property described as Lot's 1 and 2, Block B, Beaver Creek Alaska Subdivision Amended, Section 36, T6N, R11 W, Seward Meridian, consisting of approximately 2.27 acres. The subject parcels are located on at the Southeast corner of Shotgun Drive and Minchumina Avenue (undeveloped), one lot north of the Kenai Spur Highway near Milepost 6.5 of the Kenai Spur Highway. The subject parcels consist of two rectangular- shaped lots which are sparsely vegetated, low -lying lands. Lot 1 contains a small gravel pad which is undeveloped. Lot 2 is also undeveloped. Future development of the City's Municipal Wells in this specific area could locate water and sewer infrastructure improvements on the two subject parcels. Purchase of these two subject parcels would provide additional property for future municipal well improvements. The agreed upon purchase price is the lesser of $25,000 or appraised value, as determined by a qualified real estate appraiser. The City retained the services of a qualified appraiser which they determined the value of the subject parcels to be $20,000. Thus the purchase price of both Lot's 1 and 2 will be $20,000. Funding will be provided by an appropriation of the Water & Sewer Fund, fund balance in the amount of $20,600 which is available and unappropriated at this time. Attached, please find an aerial photograph identifying the subject property Thank you for your consideration. V f/ KPB Parcel No: 04106201 & 04106201 Owner: Douglas W. Cofer Acreage: 2.27 h �d � M i A r`. Zoning: Rural Residential N � E ,• �i+u�awsKn U 0 120 240 480 Feet EARNEST MONEY RECEIPT AND AGREEMENT Received from City of Kenai hereinafter called PURCHASER, the sum of $0.00, in the form of a check payable to Stewart Title of the Kenai Peninsula in trust for Douglas W. Cofer and Brenda K. Cofer hereinafter called SELLER, as Earnest Money on N/A (date), in part payment of the purchase price of the following described real property: Legal Description: Lots 1 & 2, Block B, Beaver Creek Alaska Sub Amended, 81 -101 (04106201 & 04106202). In the Kenai Recording District, Third Judicial District, State of Alaska. The total purchase price is $20.000.00, payable as follows: $ earnest money ®balance due at closing OR ❑Bank loan with OR ❑ Owner Finance $_ payable at $_ or more per Including/Plus interest at %. Interest accrues from _ . First payment due _ Amortized years _. ❑Due on Sale Clause Late fee of $ for Oast due. ❑Full Coverage Insurance Required. Collect at — Other terms: 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 S Owners Title insurance Lenders Insurance 50150 Escrow Settlement/Closing Fee 50150 Recording Fee Escrow Set Up Fee Escrow Annual Fee _ Attorney Doc Prep Fees _ Delinquent Property Taxes _ Pending /Levied Assessments _ 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. 1. The title is to vest and read: City of Kenai ( ❑husband and v6fe, ❑ 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 20 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 maybe 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. Subject to approval of City Counejl b. C. d. e. 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 February 24, 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. lo. There are no verbal or other agreements which modify or affect this agreement. Time is of the essence of this agreement. WHEREFORE the Seller and purchaser being in accord do bind themselves hereto by their signatures hereunder: 2 name) of Kenai, I Ostrander, City Manager name) name) Telephone: Fax: email: Address: Telephone: Fax: email: Address: Date: Date: SELLER: ;sign name) Douglas Cofer ;print name) Telephone: (907) 252 -3558 Fax: email: coferdoug @yahoo.com Address: 6223 Kenai Spur Highway Kenai, AK 99611 name) Ida Cofer name) Telephone: Fax: email: Lender:— an #: ephone #: Lender:— an #: ephone #: Address: 3 AFTER RECORDING RETURN TO: City of Kenai 210 Fidalgo Ave., Ste.200 Kenai, AK 99611 STATUTORY WARRANTY DEED The Grantor(s): Douglas W. Cofer and Brenda K. Cofer, husband and wife, whose address is: 6223 Kenai Spur Highway, Kenai, AK 99611 for and in consideration of the sum of ten dollars ($10.00), lawful money of the United States, and other good and valuable consideration in hand paid, the receipt and sufficiency of which is hereby acknowledged, do hereby GRANT, CONVEY and WARRANT to: The Grantee(s): City of Kenai, whose address is: 210 Fidalgo Ave., Ste.200, Kenai, AK 99611 the following described real property, together with all tenements, hereditaments, and appurtenances located in the Kenai Recording District, Third Judicial District, State of Alaska: Lots One (1), and Two (2), Block B, BEAVER CREEK ALASKA SUBDIVISION AMENDED, according to Plat No. 01 -101, Kenai Recording District, Third Judicial District, State of Alaska. EXCEPTING THEREFROM THE SUBSURFACE ESTATE and all rights, privileges, immunities and appurtenances of whatsoever nature accruing unto said estate pursuant to the Alaska Native Claims Settlement Act of 12 -18 -71 (85 Stat 688, 7134; 43 U.S.C. 1601, 1613(f) (1976) as reserved by the United States of America. FURTHER SUBJECT to reservation and exceptions in U.S. Patent and otherwise of record, real property taxes, H any due, notes on plat, and covenants and restrictions of records. DATED: January , 2017 Grantor. Douglas W. Cofer Brenda K Cofer State of Alaska ) Third Judicial District) ss. On this _ day of January, 2017, before me, the undersigned, a Notary Public in and for said State, personally appeared Douglas W. Cofer and Brenda K. Cofer, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) istam subscribed to the within Instrument and acknowledged to me that he /shelthey executed the same in his/her /their authorized capecity(tes), and that by hisfherltheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public in and for the State of Alaska My Commission Expires: _ Ile Na: 15898 AK Statutory Narranty Deed Indiv SP Page 1 of 1 MacSwain Associates LLC 4401 Business Park Blvd., Suite 22 Anchorage, Alaska 99503 Phone: 907 -561 -1965 Fax: 907 -561 -1955 s. macswain@am acswain. com November 30, 2016 Matt Kelley City Planner City of Kenai 210 Fidalgo Avenue Kenai, Alaska 99611 Re: 2.27± Acres of Residential Land Lots 1 & 2, Block B, Beaver Creek Alaska Subdivision, Plat No. 81 -101 Kenai, Alaska Dear Mr. Kelley: We have prepared an Appraisal Report of the above - referenced property. The appraised property consists of 2.27 acres of residential land improved with a small gravel pad. The property rights appraised is the fee simple interest. The report is prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). Based on the data, reasoning, and analysis that follow, we are of the opinion that the market value of the appraised property, as of November 3, 2016, is as follows. TWENTY THOUSAND DOLLARS ($20,000) Your attention is directed to the Assumptions and Limiting Conditions of this report. We hope the appraisal report assists your evaluation of the property. If you have any questions regarding this report, please contact our office. Respectfully, 5 Steve MacSwain, MAI State of Alaska Certificate No. 42 16- 2993(1): Lots 1 & 1, Block B, Beaver Creek Alaska Subdivision, Kenai, Alaska