HomeMy WebLinkAboutResolution No. 2017-06u
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2017 -06
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING
THE AMENDED 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,
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
New Text Underlined; [DELETED TEXT BRACKETED]
Resolution No. 2017 -06
Page 2 of 3
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 0.75% is appropriate; and,
WHEREAS, Resolution 2017 -04 approved the sale of the property, however, Mr. You did
not close and has requested new terms for the sale which requires new authorization by
Council.
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. Mr. You or his assignee will pay $163,000.00
upon closing. The City will apply $20,000 previously received as earnest money
to the purchase price.
The City will carry a deed of trust on the property for an amount not to exceed
$267,000 for a term not to exceed 24 months from the recording date with an
interest rate determined by Council be 0.75% payable in interest only 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,
Resolution No. 2017 -06
Page 3 of 3
(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,
(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 5. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of February,
2017.
MAYOR BRIAN GABRIEL SR.,
,_
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014
"Villaye with a Past, C# with a Future"
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1'1111
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TO: Mayor Gabriel
Council Members
FROM: Paul Ostrander, City Manager,?, D
DATE: January 26, 2017
SUBJECT: Resolution No. 2017 -06
Under the direction of Council, Administration attempted to complete the sale of Lot
3A, Block 1, Spur Subdivision No. 1, 1983 Addition to Mr. Dean You. A down
payment of $20,000 was received, $5,000 of which was from the previous down
payment provided by Mr. You, and $15,000 of which was delivered to the City on
January 13. Closing was scheduled for January 19, however, Mr. You was unable
to complete the transaction.
Mr. You has subsequently requested new terms for the purchase of the property.
The total purchase price of the property remains at $450,000 with a payment of
$163,000 upon closing and a deed of trust not to exceed $267,000 for a term not to
exceed 24 months at an interest rate of 0.75 %. Mr. You has communicated to
Administration that his investment group is confident that they will be able to meet
these terms and complete the acquisition.
Although two prior attempts to sell the property to Mr. You were unsuccessful,
Administration feels that it is in the best interest of the City to amend the terms once
again and work towards a successful sale of the property. If this attempt is
unsuccessful, Administration would likely recommend to council that the City pursue
a sale of the property to other interested buyers.
Jan 26 17 03:14p Charlie'sLil'Angels
Charlie (Charlotte) Yamada
1106 V Street
Kenai, AK 99611
907.283.4935 home
907.398.4170 cell
To Whom It May Concern;
(907)283 -4735 p.1
I am a concerned community member, and have been watching the sale of the bowling center,
formerly known as Alaskalanes. I would like to see more attractions for our community members, as
well as tourists who might come to our "All America City!" I feel like we need more things for our youth
to do, as well as our young at heart community members!
I strongly urge the City Council Members to support whatever Mr. Dean You is asking in the
restructuring of his proposal. Apparently, he is learning as did I, that a bowling alley is a very specific
business to embark upon! (It makes investors and lenders stress out). I have spoken with Mr. You, and
he seems to absolutely want to keep the building functioning as a bowling alley, as well as other
recreation activities for our community members to enjoy! Mr. You seems sincere in helping our
fabulous city start the process of trying to rejuvenate itself! And I for one, want to see that happen and
be a part of it, too!
I thank you so much for taking the time to listen to my request. I for one, will be a huge
supporter of this much anticipated building renovation, and I know many others will as well!
With Sincere Thanks,
Charlie (Charlotte) Yamada