HomeMy WebLinkAboutResolution No. 2017-52M
CITY OF KENAI
RESOLUTION NO. 2017-52
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE
FINANCING TERMS AND PURCHASING PARTY FOR THE SALE OF TRACT A, DRAGSETH
SUBDIVISION 2016 ADDITION, ACCORDING TO THE OFFICIAL PLAT THEREOF, UNDER
PLAT NO. 2016-22, FILED IN THE KENAI RECORDING DISTRICT, THIRD JUDICIAL
DISTRICT, STATE OF ALASKA, INCLUDING ALL IMPROVEMENTS THEREON AS
PREVIOUSLY APPROVED IN ORDINANCE NO. 2957-2017 (SUBSTITUTE).
WHEREAS, Ordinance No. 2957-2017 (Substitute), authorized the sale of Tract A, Dragseth
Subdivision 2016 Addition to PRL Logistics Inc., for $825,000 pursuant to the terms and
conditions in the previously provided Purchase and Sales Agreement; and,
WHEREAS, an ordinance was previously required to sell the property primarily because it was
sold without a recent appraisal; and,
WHEREAS, the Purchaser has recently requested the City to amend the terms of the Purchase
and Sales Agreement to provide short term financing by the City and change the name of the
Purchaser from PRL Logistics Inc., to Ron B. Hyde Jr.; and,
WHEREAS, Kenai Municipal Code 22.05.105 - Terms for Financing Sale of City Lands, allows for
a sale to be financed by the City for a down payment of not less than 15% for a term of not more
than 20 years and at an interest rate determined by Council; and,
WHEREAS, the Purchaser has requested financing from the City until February 3, 2018 at a rate
of 4% with a 15% down payment inclusive of existing earnest money.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Council agrees to amend the Purchase and Sales Agreement as
Authorized by Ordinance No. 2957-2017 (Substitute) to change the Buyers name from PRL
Logistics to Ron B. Hyde Jr.
Section 2. That the City Council agrees to amend the Purchase and Sales Agreement as
Authorized by Ordinance No. 2957-2017 (Substitute) for Tract A, Dragseth Subdivision 2016
Addition, according to the official plat thereof, under Plat No. 2016-22, filed in the Kenai Recording
District, Third Judicial District, State of Alaska, including all improvements to finance the sale until
February 3, 2018 at a rate of 4% with a down payment of $123,750 (inclusive of existing earnest
money) as provided in the attached Addendum.
Section 3. That the City Manager is authorized to execute the attached Addendum in the
same or substantially same form as attached hereto.
Section 4. That this Resolution takes effect immediately upon passage
Resolution No. 2017-52
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 2nd day of August, 2017.
BRIAN GABRIEL SR., MAYOR
ATTEST:
t Clerk
DowSign Envelope ID: AA203E2F-9BC24D8A-A907-10EDD207C179
Addendum or Amendment to the Purchase and Sale Agreement _
This form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, Inc. ctKA
MLS
I Date 071250017
2 In reference to the Purchase and Sale Agreement between:
3 Ron B Hyde Jr . the Buyer(s), and
4 City of Kenai , the Seller(s), dated
5 n4n4nn17 , covering the real property commonly known as:
6 Address: 2270 Royal Street
7 Legal (the Property): Dragseth Sub 2016 Addn Tract A
8 the undersigned Buyer(s) and Seller(s) hereby agree to the following (check only onsl:
9 l7 Addendum —to be used when more space is needed on the Purchase and Sale Agreement
10 ❑ Amendment — to be used only when changing an existing Purchase and Sale Agreement
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To amend offer to financing by the City of Kenai
Sales price to be $625,000 (eight hundred twenty five thousand and no/100)
Down payment to be 15% ($123,750.00)
Seller Financing
$701,250.00 payable at $3,347.87 or more per month including 4% interest per. annum with a balloon payment due
in 6 months or February 3, 2018 which ever is sooner.
Due on sale clause, no prepayment penalty to be included.
Buyer to carry insurance on property naming Clry of Kenai as additional insured until City is paid in full.
Escrow to be set at First National Bank
Closing cost split:
Recording fees split 50/50
Owners Title paid by Seller
Escrow closing split 50/50
Bank set up fee split 50/50
3% Brokerage fee paid by Seller
Closing to be August 3, 2017
To the extent any provision of this Addendum/Amendment is inconsistent with the provisions of the Purchase and
Sale Agreement, the terns of this Addendum/Amendment shall control.
All other Terms and Conditions to remain the same.
This Addendum/Amendment shall expire unless the parry making this Addendum/Amendment is notified of its
acceptance no later than (date) ❑ a.m. ❑ p.m. (time).
Notification of acceptance of this Amendment/Addendum may be made only by one of the methods specified in the
paragraph titled 'Aoceptance/Notice of Acceptance/Delivery' as contained in Purchase and Sale Agreement.
Date: 7/25/2017--oows.aMe M: Time: L3a.m. LIp.m.
Q Buyer ❑
2:
3:
The undersigned accepts the above Amendment/Addendfan
Upon execution by both parties, this agreement becomes an integral part of the referenced Purchase and Sale Agreement.
Date:
❑ Buyer ❑ Seiler 1:
Time:
2:
Brokerage Licensee(s)
Form 70718. Revised 03113. 0 2015 Alaska Multiple Listing Service, Inc. (AK MLS) AN rights reserved.
❑ a.m. t7 p.m.
3:
"VAayle w d a last, City w1d o f eWT, AP
210 Fidalgo Ave, Kenai, Alaska 99611-7794
'Telephone: (907) 283-7535 1 Fax: (907) 283-3014
the uty a f/ www. kenai.city
KENAI, ALASKA
Nom,/
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Paul Ostrander, City Manager -(77' c7>.
DATE: July 27, 2017
SUBJECT: Dragseth Subdivision sale — amending financing terms and purchasing
party
Ordinance 2957-2017 (substitute) authorized the sale of Tract A, Dragseth Subdivision, 2016
Addition to PRL Logistics Inc., for $825,000. Pursuant to the Purchase and Sales Agreement
approved by that ordinance, PRL Logistics Inc. was utilizing conventional financing to purchase
the property.
Administration received a request on July 25, 2017 to provide short term financing for the sale
and to change the name of the purchaser from PRL Logistics Inc. to Ron B. Hyde Jr. This
resolution amends the financing terms and changes the purchasing party pursuant to that
request.
Your consideration is appreciated.
Sponsored by: Administration
CIN OF KENAI
ORDINANCE NO. 2957-2017 (SUBSTITUTE)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE
SALE OF TRACT A, DRAGSETH SUBDIVISION 2016 ADDITION, ACCORDING TO THE
OFFICIAL PLAT THEREOF, UNDER PLAT NO. 2016-22, FILED IN THE KENAI RECORDING
DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA, INCLUDING ALL
IMPROVEMENTS THEREON, TO PRL LOGISTICS INC., AND PROVIDING THE SALE
PROCEEDS TO THE STATE OF ALASKA FOR REIMBURSEMENT INTO GRANT NO. 15 -DC -
078 FOR USE BY THE CITY TO CONTINUE ENHANCING ACCESS AND OTHER RELATED
IMPROVEMENTS TO THE SOUTH BEACH.
WHEREAS, the City manages dip net access issues on its beaches which includes conflicts
between local property owners and dip net fishery participants; and,
WHEREAS, in 2014 the City Council appropriated $1,900,000 of State Grant funds (Grant No.
15 -DC -078) via Ordinance No. 2771-2014 for the purpose of designing and constructing a new
roadway for access to the South Beach and related improvements to help alleviate such
conflicts; and,
WHEREAS, after numerous meetings with affected property owners and state and federal
agencies weighing alternatives for improved access, including obtaining permitting for building a
new road across City owned wetlands, the City with State approval, authorized the purchase of
seven abutting parcels from Ark Properties, LLC for the purpose of constructing a new road with
minimal wetland disturbance through Resolution No. 2015-50 (Substitute); and,
WHEREAS, the City needed only a portion of the newly acquired property for the purpose of
road construction; and,
WHEREAS, the State's approval of the utilization of Grant funds for the purchase of the property
was conditioned on proceeds from the sale of the unneeded property and improvements
thereon going back into the grant for the City's use for South Beach access and related
improvements; and,
WHEREAS, the City completed construction of a new road providing beach access and a re -plat
of the seven parcels allowing the City to maintain the land needed for the road and maximizing
the value of the unneeded land and improvements for resale; and,
WHEREAS, the City is expending significant funds maintaining the land and improvements for
re -sale and the nature of the improvements limits the available market; and,
WHEREAS, PRL Logistics, Inc., (PRL) has made an offer to purchase the property based on
numerous conditions; and,
New Text Underlined; [DELETED TEXT BRACKETED]
Ordinance No. 2757-2017
Page 2 of 3
WHEREAS, PRL's business plan is to potentially use the property for office space, lodging,
restaurant/bar, event hosting and airport related activities to support its business, including the
operation of an airship; and,
WHEREAS, all of these uses will require the approval by City Planning Commission of
conditional use permits given the current zoning of the property; and,
WHEREAS, PRL's offer is also conditioned on the ability to purchase adjacent City owned land
for the use of an existing airstrip for fix winged and airship uses; and,
WHEREAS, PRL's acquisition of the adjacent property will require a subdivision and conditional
use permit; and,
WHEREAS, PRL has previously refurbished and repurposed old cannery property in the City
demonstrating a responsibility towards environmental sensitivity and respect for the history of
the City; and,
WHEREAS, it is anticipated that PRL's acquisition of additional property in the City will create
new economic opportunities and will be managed in a responsible manner; and,
WHEREAS, the City Council finds that it is in the best interest of the City to sell Tract A,
Dragseth Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 2016-
22, filed in the Kenai Recording District, Third Judicial District, State of Alaska, including all
improvements thereon to PRL for the purchase price of $825,000; and,
WHEREAS, in accepting PRL's offer, the City Council agrees to work cooperatively with PRL for
the future sale of the adjacent City owned lands that include the airstrip; and;
WHEREAS, the property being sold is unique in that it is neither General Fund Land, nor Airport
Land, but instead [and held by the State Grant, therefore City Code provisions governing
General Fund Land and Airport Land do not apply; and
WHEREAS, the City Council finds that it is in the best interest of the City to sell the property for
the aforementioned reasons to PRL without a recent appraisal.
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 Tract A,
Dragseth Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 2016-
22, filed in the Kenai Recording District, Third Judicial District, State of Alaska, including all
improvements thereon.
Section 3. Public Purpose and Best Interest Findings: That the property is not needed for
future public purposes. The sale of the Property is in the best interests of the City as it is
intended to promote new economic opportunities and the proceeds will be used to continue
development of access to the South Beach and related improvements in compliance with Grant
No. 15 -DC -078.
New Text Underlined; [DELETED TEXT BRACKETED]
Ordinance No. 2757-2017
Page 3 of 3
Section 4. Authorization of Sale: That the Kenai City Council hereby authorizes the City
Manager to sell the City -owned lands described as Tract A, Dragseth Subdivision 2016
Addition, according to the official plat thereof, under Plat No. 2016-22, filed in the Kenai
Recording District, Third Judicial District, State of Alaska, including all improvements thereon,
under the terms established in the attached Purchase and Sale Agreement and Addendum
subject to the additional essential terms and conditions of sale on page 6 of the Purchase and
Sale Agreement as amended by the Addendum.
Section 5. Title: That title shall be conveyed by warranty deed.
Section 6. Proceeds of Sale: That should a sale of the property be finalized, all revenues
from the sale shall be provided to the State of Alaska for Grant No. 15 -DC -078 for the City's use
for South Beach access and related improvements.
Section 7. 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 8. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
30 days after adoption. (Emergency ordinances and ordinance making, repealing, transferring,
or otherwise changing appropriations, shall go into effect immediately upon passage unless they
specify a later time: "That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon
adoption").
ENACTED BY THE COUNCIL OF THE CITY OF KENAI,pI, ALASKA, this 17th day of May, 2017.
RIAN GABRIEL SR., MAYOR
ATTEST:
a dra Modigh, City Clert
New Text Underlined; [DELETED TEXT BRACKETED]
Introduced: May 3, 2017
Enacted: May 17, 2017
Effective: June 16, 2017
MEMORANDUM
111114P with a Ave, Cito wid a fug N
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 1 Fax: (907) 283-3014
www.kenai.city
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Paul Ostrander, City Manager
DATE: May 10, 2017
SUBJECT: Ordinance 2957-2017 (Substitute) — addendum to purchase and sale
agreement modifying financing method
This substitute ordinance recognizes and incorporates two addendums to the original purchase
and sale agreement received from the buyer's agent that modify the terms and conditions of the
sale. The original purchase and sale agreement anticipated owner financing with a down
payment of 15% and an interest rate of 4% for 6 months or December 31, 2017, whichever was
earlier, followed by a balloon payment for the remaining principal at that time to satisfy the terms
of the loan.
The buyer is now proposing to utilize conventional financing for the purchase of the property with
closing scheduled for June 20, 2017. Modifications to closing costs for the buyer and seller as a
result of the change in financing are also outlined on the addendum and First National Bank is
removed as the holder of the escrow.
The two addendums are attached for your reference.
DocuSign Envelope ID. CE70243D-C3E44808$EFC-sAOFF7BC18&4
Addendum or Amendment to the Purchase and Sale Agreement `
This formaulhorized form ONLY by alive Real Estate Licensee Subscribers of Alaska Mulfifile Listing Service, lne. ALASKA
MLS
1 Date 002517
2 In reference to the Purchase and Safe Agreement between:
3 PRI, io_gistic INC , the Buyer(s), and
4 City of Kenai . the Seller(s), dated
5 OWS121117 . covering the real property commonly known as:
6 Address: -22TO Royal StCf-eL_
7 Legal (the Property): _ Dragseth Sub 2016 Addn Tract A
8 the undersigned Buyer(s) and Sefier(s) hereby agree to the following {check only one
9 W Addendum -to be used when more space is needed on the Purchase and Sale Agreement
10 Cl Amendment - to be used only when changing an existing Purchase and Sale Agreement
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cxm
Dining room table and chairs, plus 3rd floor desk to remain
Seller to pay 3% brokerage fee
Buyer request city tum water back on in mansion before closing and repair leaks if any.
To the extent any provision of this AddendumlAmendment is inconsistent with the provisions of the Purchase and
Sale Agreement, the terms of this Addendum/Amendment shall control.
All other Terms and conditions to remain the same.
This AddendumlAm indmenf shall expire unless the party making this Addendum/Amendment is nobiled of its
acceptance no later than 05/17/2017 (date) 5 O a.m. 07 p.m. (time).
Notification of acceptance of this Amendment/Addendum may be made only by one of the methods specified in the
paragraph titled'AcceptancefNa ice of Acceptance/Delivery as contained in Purchase and Sale Agreement.
5/8/2017
Date: �m Mee : � Time: ❑ a.m. D p.m.
Q Buyer O Seller 1: 2: 3:
Brokerage 1E910'e Licensee(s)
The undersigned accepts the above Amendmen tlAddendum
Upon execution by both parties, this agreement becomes an integral part of the referenced Purchase and Sale Agreement.
Date:
❑ Buyer ❑ Seller 1:
Time:
2:
44 Brokerage Licensees)
Form 70718. Revised 0&13. 92015 Alaska Mualple Dsting SerWoe. Inc (AK MLS) All rights reaeryed.
❑ a.m. ❑ P.M.
3:
DocuSign Envelope )D: CE702430-C3E4006-BEFC-SAOFF7BC188A
Addendum or Amendment to the Purchase and Sale Agreement
SKA
This form au8tor¢ed for use ONLY by active Real Estate licensee Subscribers of Alaska Multiple Listing Service, Inc. MLS LS
1 Date nd/25/2n17
2 In raference to the Purchase and Sale Agreement between:
3 PRI Logistic- INC . the Buyer(s), and
4 City of Kenai the Seller(s), dated
5 nvnR/2017 . covering the real property commonly known as:
6 Address: 2270 Royal Street
7 Legal (the Property): Dranseth Sub 2015 Addn Tract A
8 the undersigned Buyer(s) and Seller(s) hereby agree to the following (check only one):
9 §0 Addendum — to be used when more space is needed on the Purchase and Sale Agreement
10 0 Amendmerd— to be used only when changing an existing Purchase and Sale Agreement
12 Seller to pay 3% brokerage fee
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Buyer has applied for a conventional loan. will provide 90% letter with in 3 business days of accepted offer.
Seller to pay
12 of lender doe prep fee
Owners Title Insurance
Flood Cert
Tax Registration
12 of Recording fee
12 of Escrow Closing fee
3% Brokerage Fee
Any assessments Levied or Pending
Smoke Detector and CO detectors in place
Buyer to pay:
Lender Origination Fee
Commitment Fee
MIP/PM
12 of Lender doe prep fee
Appraisal
Alta Title
12 Recording and Escrow Closing Fee
To the extent any provision of this Addendum/Amendment is inconsistent with the provisions of the Purchase and
Safe Agreement, the terms of this Addendum/Amendment shall controL
All other Terms and Conditions to remain the same.
This Addendum/Amendment shall expire unless the party making this AddendumlAmendment is notdied of Its
acceptance no later than 05/17/2017 (date) 5 0 a.m. 0 p.m. (time).
Notification of acceptance of this Amendment/Addendurn may be made only by one of the methods specified in the
paragraph tilled'Aooeptance/Notice of Acceptance/Delivery' as contained in Purchase and Sale Agreement.
Date: 5/8/2017 twwaoa.a W. Time: 0 a.m.0 P.M.
W Buyer 0 Seller 1: 2: 3:
Brokerage wssrwezesw<ro.. Licensee(s)
The undersigned accepts the above AmendmentlAddendum
Upon execution by both parties, this agreement becomes an integral part of the referenced Purchase and Sale Agreement
Date:
0 Buyer 0 Seller 1:
Time:
44 Brokerage Ucensee(s)
Form 70710. Revised 03113. C 2015 Alaska Multiple Listing Service, Inc. (AK NLS) All rights reserved.
Cl a.m.0 P.M.
ham. SAY C co
< Lit, A��
KENAI, ALASKA
v
Z -i
CITY OF KENAI
ORDINANCE NO. 2957-2017
Sponsored by: Administration
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, A HORIZING THE
SALE OF TRACT A, DRAGSETH SUBDIVISION 2016 ADDITION, AC ORDING TO THE
OFFICIAL PLAT THEREOF, UNDER PLAT NO. 2016-22, FILED IN TH KENAI RECORDING
DISTRICT, THIRD JUDICIAL DISTRICT, STATEOF ALAS INCLUDING ALL
IMPROVEMENTS THEREON, TO PRL LOGISTICS INC., AND ROVIDING THE SALE
PROCEEDS TO THE STATE OF ALASKA FOR REIMBURSEMEV INTO GRANT NO. 15 -DC -
078 FOR USE BY THE CITY TO CONTINUE ENHANCING ACCESS AND OTHER RELATED
IMPROVEMENTS TO THE SOUTH BEACH.
WHEREAS, the City manages dip net access issues on
between local property owners and dip net fishery participe
WHEREAS, in 2014 the City Council appropriated
15 -DC -078) via Ordinance No. 2771-2014 for the
roadway for access to the South Beach and relate
and,
beaches which includes conflicts
and,
000 of State Grant funds (Grant No.
of designing and constructing a new
ments to help alleviate such conflicts;
WHEREAS, after numerous meetings wig( affected property owners and state and federal
agencies weighing alternatives for improv d access, including obtaining permitting for building a
new road across City owned wetlands, a City with State approval, authorized the purchase of
seven abutting parcels from Ark Prop ies, LLC for the purpose of constructing a new road with
minimal wetland disturbance throug Resolution No. 2015-50 (Substitute); and,
WHEREAS, the City needed onl a portion of the newly acquired property for the purpose of road
construction; and,
WHEREAS, the State's ap oval of the utilization of Grant funds for the purchase of the property
was conditioned on proc ds from the sale of the unneeded property and improvements thereon
going back into the gra t for the City's use for South Beach access and related improvements;
and,
WHEREAS, the C' completed construction of a new road providing beach access and a re -plat
of the seven par Is allowing the City to maintain the land needed for the road and maximizing
the value of th nneeded land and improvements for resale; and,
WHEREAS he City is expending significant funds maintaining the land and improvements for re-
sale and t nature of the improvements limits the available market; and,
3, PRL Logistics, Inc., (PRL) has made an offer to purchase the property based on
conditions; and,
New Text Underlined; [DELETED TEXT BRACKETED]
Ordinance No. 2757-2017
Page 2 of 3
WHEREAS, PRL's business plan is to potentially use the property for office space, lodging,
restaurant/bar, event hosting and airport related activities to support its business, including the
operation of an airship; and,
WHEREAS, all of these uses will require the approval by City Planning Commission of conditional
use permits given the current zoning of the property; and,
WHEREAS, PRL's offer is also conditioned on the ability to purchase adjacent City owned land
for the use of an existing airstrip for fix winged and airship uses; and,
WHEREAS, PRL's acquisition of the adjacent property will require a subdivision and conditional
use permit; and,
WHEREAS, PRL has previously refurbished and repurposed old cannery property in the City
demonstrating a responsibility towards environmental sensitivity and respect for the history of the
City; and,
WHEREAS, it is anticipated that PRL's acquisition of additional property in the City will create
new economic opportunities and will be managed in a responsible manner; and,
WHEREAS, the City Council finds that it is in the best interest of the City to sell Tract A, Dragseth
Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 2016-22, filed in
the Kenai Recording District, Third Judicial District, State of Alaska, including all improvements
thereon to PRL for the purchase price of $825,000 and to finance the sale for up to six months at
a rate of four percent with a down payment of $123,750; and,
WHEREAS, the financing provisions will allow the City to utilize the balance of the purchase funds
for South Beach access and related improvements in 2018; and,
WHEREAS, in accepting PRL's offer, the City Council agrees to work cooperatively with PRL for
the future sale of the adjacent City owned lands that include the airstrip; and;
WHEREAS, the property being sold is unique in that it is neither General Fund Land, nor Airport
Land, but instead land held by the State Grant, therefore City Code provisions governing General
Fund Land and Airport Land do not apply; and
WHEREAS, the City Council finds that it is in the best interest of the City to sell the property for
the aforementioned reasons to PRL without a recent appraisal.
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 Tract A, Dragseth
Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 2016-22, filed in
the Kenai Recording District, Third Judicial District, State of Alaska, including all improvements
thereon.
Section 3. Public Purpose and Best Interest Findings: That the property is not needed for
future public purposes. The sale of the Property is in the best interests of the City as it is intended
New Text Underlined; [DELETED TEXT BRACKETED]
Ordinance No. 2757-2017
Page 3 of 3
to promote new economic opportunities and the proceeds will be used to continue development
of access to the South Beach and related improvements in compliance with Grant No. 15 -DC -
078.
Section 4. Authorization of Sale: That the Kenai City Council hereby authorizes the City
Manager to sell the City -owned lands described as Tract A, Dragseth Subdivision 2016 Addition,
according to the official plat thereof, under Plat No. 2016-22, filed in the Kenai Recording District,
Third Judicial District, State of Alaska, including all improvements thereon, under the terms
established in the attached Purchase and Sale Agreement including the financing conditions
contained therein, and subject to the additional essential terms and conditions of sale on page 6
of the Purchase and Sale Agreement.
Section 5. Title: That title shall be conveyed by warranty deed.
Section 6. Proceeds of Sale: That should a sale of the property be finalized, all revenues
from the sale shall be provided to the State of Alaska for Grant No. 15 -DC -078 for the City's use
for South Beach access and related improvements.
Section 7. Severabilitv: 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 8. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
30 days after adoption. (Emergency ordinances and ordinance making, repealing, transferring, or
otherwise changing appropriations, shall go into effect immediately upon passage unless they
specify a later time: "That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon
adoption").
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of May, 2017
ATTEST:
Sandra Modigh, City Clerk
BRIAN GABRIEL SR., MAYOR
New Text Underlined; [DELETED TEXT BRACKETED]
Introduced: May 3, 2017
Enacted: May 17, 2017
Effective: June 16, 2017
DocuSign Envelope IDE1EDF99D-C421-4000-A0E5-A0B780AF1BFC
Kenai Peninsula Purchase and Sale Agreement
(Residential) W
This form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska NuMple Listing Service, Inc. ALASKA
MLS
Dated Brokerage Names AK MLS ID # Brokerage Ph
04/25/2017 Listing Brokerage:
Selling Brokerage: RE/MAX of the Peninsula AK12001 907-283-5888
MLS #
Licensee Names License # Direct Ph Cell Ph Email Address
Listing 1:
Listing 2:
Selling 1: Glenda Feeken AK12001 907-252-2743 907-252-2743 glenda(a)teamfeeken.com
Selling 2:
Licensee Relationships: The Seller and Buyer acknowledge the following:
a) Listing Licensee 1 U is representing the Seller only (may assist the Buyer); or O is assisting both the Buyer and Seller
as a Neutral Licensee; or O is assisting the Seller without representation.
Listing Licensee 2 O is representing the Seller only (may assist the Buyer); or 0 is assisting both the Buyer and Seller
as a Neutral Licensee; or 0 is assisting the Seller without representation.
b) Selling Ucensee 1 t is representing the Buyer only (may assist the Seller); or 0 is assisting both the Buyer and Seller
as a Neutral Licensee; or U is representing the Seller only (may assist the Buyer); or 0 is assisting the Buyer without
representation.
Selling Licensee 2 0 is representing the Buyer only (may assist the Seller); or 0 is assisting both the Buyer and Seller
as a Neutral Licensee; or 0 is representing the Seller only (may assist the Buyer); or 0 is assisting the Buyer without
representation.
I 7) Buyer((s), PRL Logistic, INC. , hereby deposit(s) earnest money of
2 Fiv. Thousan Dollars ($ 5,000 )Dollars
3 evidenced by: 0 Cash 0 Personal Check 0 Cashiers Check 0 Note, Due on (date)
4 & Of on acceptance of offer
5 shall be held in trust by 0 Listing Broker Q Selling Broker
6 as earnest money on and part payment for the purchase of real property and improvements situated in
7 Kenai (city or area) 99511 (zip), in the Kenai
8 Recording District, State of Alaska, described as:
9 2270 Royal Street (Address)
10 Dragseth Sub 2016 Addn Tract A (Legal) (the Property).
it
12 2) Purchase Price:
13 Eight Hundred Twenty Five Thousand 0o/1o0 Is 825,000 (Dollars
14
15 Minimum Down Payment (including earnest money shown above)..... .................. $ or % 123,750
16
17 3) Terms:
is Buyer 0 does U does not intend to occupy Property as Buyers primary residence.
19
20 Property Type (check one): Q Single Family 0 Condominium 0 PUD 0 Duplex 0 Triplex 0 Fourplex
21 0 Other
22 Check one below.
23
24 a) 0 All Cash Offer:
25 No loan is needed to purchase the Property; Buyer shall provide Seller written third -party documentation verifying
26 sufficient funds to close no later than (date) (time). Seller shall have three (3)
27 business days after receipt of documentation to notify Buyer, in writing, if the verification of funds is not acceptable. If
28 Buyer fails to provide such documentation, or 9 Seller finds verification of funds unacceptable, Seller may terminate
29 this Purchase Agreement. Failure of Seller to provide Buyer written notice of objection shall be considered ac -
30 ceptance of verification of funds.
31
32 b) 0 New Financing: Recording is contingent upon Buyer obtaining financing as follows:
33 Check the appropriate block(s) below:
34 0 Conventionalos
35 0 FHA — (Attach Required Addendums)
Form 70753. Origireted 11104. Revmed 07115. _zI / /
o zo15 Alaska Multiple Listing Service, Inc. (AK MLS) All rights reserved. Page 1 of a 51-10 Sellers) Initials
DocuSign Envelope ID: E1EDF990-0421-4DDC-AOE6-AOB780AFIBFC
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Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As::! ,
Address: 2270 Royal Street
Legal (the Property): nraaseth Ruh 2016 Addn Tract A ALABKA
MLS
This form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, Inc.
0 VA— (Attach Required Addendums)
0 Alaska Housing Finance Corporation under the following program
0 RD - Rural Development
O Other
i) On or before (date) the Buyer will provide the Seller a letter from
(Lender) verifying the following items:
(1) a satisfactory credit report,
(2) acceptable income,
(3) source of down payment,
(4) availability of funds to dose, and
(O that ban approval O is or 0 is not contingent on the lease, sale or recording of a sale of any property.
ii) Buyer agrees to make a complete loan application with Lender, and provide verification to the Seller from the
Lender by (date).
iii) If Buyer does not reveal a fad or contingency to the Lender and this purchase does not record because of that
nondisclosure after initial application, the Buyer shall be in default.
tv) In the event Buyer fails to provide Seller with documentation required in O and (i) by the respective dates
above, this Purchase Agreement may be terminated at the election of the Seller. If the Seller terminates this
agreement, Seller to provide written notice to Buyer within _ (3 business days if not filled in) days from the
dates noted in (t) and (i) above.
v) Buyer must obtain Seller's approval in writing of any change in Lender, type of financing or allocation of dosing
costs.
vi) Buyer agrees to pay all fees and satisfy all conditions, in a timely manner, required by the Lender for pro-
cessing of ban application. Buyer agrees the interest rate offered by Lender is not a contingency of this Pur-
chase Agreement, so long as Buyer qualifies for the financing herein agreed. Availability of any financing pro-
gram may change at any time. Brokers and Licensees are not responsible for representations of guarantees as
to availability of any loans, project and/or property approvals or interest rates.
o& 13 Seller Financing:
701,250 yable, at $ 3,347.87 or more, per month InGuding 4 %interest per annum
I / for p years. � ce' to ne: rte. the O portent to C?V f se jS, t2ACJt'now, \o to d'l esu ) t
l r' ti) The parties are encouraged to negofiaie the'ihlportent terms of seller financing now, and to include such teens
in Paragraph 25, or in a separate addendum. Important terms may include form of financing documents (con-
tract note and frust deed or mortgage), due on sale louse, prepayment option or penalty, remedies upon de-
fault, etc., if any.
iii) Buyer shall provide Seller with documentation, as required by Seller, verifying Buyer's ability to purchase ac-
cording
ocording to the price, terms and conditions of the Purchase Agreement by . (date).
iv) Seller Financing is contingent upon the Seller's approval of the alcove documentation on or before
, (date). In the event Buyer fails to obtain Sellers approval, this Purchase Agreement
shall automatically terminate.
4) Costs:
The costs shall be paid by Buyer (B) or Seller (S) as indicated below_ Costs payable by both Buyer and Seller to be
shared equally. Buyer to pay for any fees due to requirements of the lender not covered below.
ITEM R S ITEM B S ITEM B S ITEM B s
Lender Ori ination Fee
Croda Ra ort
Owner Title lnurance
A I Smoke Detectors
Commitment Fee
Raserve6
ALTA Title Insurance
I CO Detector[
Dkcount Perms
Prepaid lmemst
Recorcling Fee A
A I As -Built S."Y IRe rL
MIPIPlilde6u11 insurance
Escrow closing Fee
VA Rumfing Fee
sales Tax
Annual Escrow Fee
Tests tar Heanb Autlw'AK Proval:
Rural Dev. Loan Fee
Leder Doc. PrepFee
Remle Certificate /
Pubac Offer Stelemerd
Bank Set -Up Fee
AssumerTransfar Fee
ua
Qual'
HOA Transfer Fees
Assessmanes Levied
Fkwd Certification
HOA Assessments
Assessments Pending
Water Test
Wl"diNt:mte
Tax R istm ion
HOA Questioneim
Aftom Doc Pre FeeTeetHome
Warran
A raker
Broker Fee
tionl
Fees
w
Form 70753. originated 11104. Revised 7115.
0 2015 Alaska Multiple Listing Service. Inc. (AK MLS) All rights reserved. Page 2 of 8 itiais Sellers) inklale
DocuSIgn Envelope ID: EtEDF99DC421.40OC-ADE5-AOB780AF1BFC
Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As:
Address: 9970 an al Street
Legal (the Property): Dranseth Suh 9016 Addn Tract A ALASKA
This form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, Inc. MLS
1 5) Funds At Recording:
2 Seller and Buyer agree before recording can take place, funds provided to the Closing Agent shall be in the following
3 form: cash; interbank electronic transfer; money order; a certified check or cashier's check drawn on a financial institu-
4 tion located in the state; or any above combination that permits the Closing Agent to convert the deposit to cash not lal-
5 er than the next business day (AS 34.60.040).
6
7 6) Proration:
8 Property taxes, interest on loans being assumed, prepaid rents, and HOA fees, if applicable, shall be prorated as of the
9 date of recording.
10
11 7) TitierSurvey:
12 a) The Seller shall convey title by statutory warranty deed or
13 b) The Property may be subject to restrictions contained on the Plat; in the Deed; in covenants, conditions, and re -
14 strictions; or other documents noted in the preliminary title report.
15 c) On or before (date), Seiler will, at Sellers sole expense, order
16 the report and exceptions from First American Title (Title Company) and furnish them to Buyer.
17 d) Upon receipt of the report and exceptions, Buyer shall have business days (three (3) if not filed in)
Is within which to notify Seller, in writing of any matters disclosed in the report, which are unacceptable to Buyer. Buy -
19 ens failure to timely object, in writing shall constitute acceptance of the report.
20 e) If, within business days (three (3) if not filled in) following receipt of the objections, Seller fails to re -
21 move or coned the matters identified in the objections, or does not give written assurances reasonably satlsfactory
22 to Buyer that they will be removed or corrected prior to the recording date this transaction shall automatically termi-
23 nate. After recording, Buyer shall receive an owners standard form policy of title insurance insuring marketable title
24 in the Property to Buyer in the amount of rine purchase price, free and clear of the objections and all other title ex -
25 ceptions agreed to be removed as part of this transaction.
26 f) Mineral rights may not pass with title to the Property.
27 g) Neither Seller nor Sellers licensee make any representation as to the location of the lot corners or boundary lines.
28 Buyer accepts sole responsibility for identifying and locating the comers and boundary lines of the lot.
29 h) Survey, as -built survey. or recertification of survey shall be dated on or after (date) OR
30 ❑ as required by Lender.
31
32 8) Documents/Disclosures Required By Law:
33 a) Lead -Based Paint Warning: Unless exempt, if the improvements on the Property include one or more residential
34 dwelling(s) constructed prior to January 1, 1978, the Buyer shall not be obligated under the terms of this Purchase
35 Agreement unless a completed Lead -Based Paint Disclosure form is signed by Seller and the Seller's real estate It -
36 mnsee(s), which must occur before the parties sign this Purchase Agreement. (See EPA pamphlet Protect Your
37 Family From Lead in Your Home for more information.) If applicable, Buyer acknowledges receipt of the lead -
38 based paint disclosure signed by the Seller prior to signing this offer.
39 b) Buyer ® has ❑ has not received a copy of the State of Alaska Residential Real Property Transfer Disclosure
40 Statement.
41 c) Buyer M has ❑ has not received a copy of the Alaska Real Estate Commission Consumer Disclosure.
42 d) Sex Offenders: The State of Alaska requires the registration of sex offenders residing within the State of Alaska
43 (AS12.63.010). The Alaska Department of Public Safety is charged with maintaining the registry created. For more
44 information, contact the Alaska State Trooper Past, Municipal Police Department or on-line at the State of Alaska
45 /Department of Public Safety (http://www.dps.state.ek.us) Internet site by clicking on the Sex Offender Registry. As
46 a buyer, it is your responsibility to independently investigate and verify for yourself the acceptability of a property
47 with respect to these issues. (AS34.70.050). If Buyer elects to terminate this agreement based upon this in -
48 vestigation, Buyer must provide Seller with written notice on or before NIA
49 e) The State of Alaska maintains a list of properties that have been identified by Alaska law enforcement agencies as
50 illegal drug manufacturing sties, including meth labs. For more information on this subject and to obtain a list of
51 these properties, go to htgr.//www.dec.state.ak.us If Buyer elects to terminate this agreement based upon this
52 investigation, Buyer must provide Seller with written notice on or before N/A
53 f) If a Resale Certificate or a Public Offering Statement is required by law for the transfer of this Property, it is hereby
54 agreed that the time for the Buyer to review these documents begins on the date the Buyer acknowledges in writing
55 the receipt of these documents. In the event that this Purchase and Sales Agreement terminates and Buyer
56 has received a Resale Certificate or Public Offering Statement, the Buyer agrees to deliver the Resale Cer-
57 tificate or Public Offering Statement to Seller or Seller's Licensee.
58
Ds
Form 70763.OdgVWW 11/04. Revised 7115. r I
0 2015 Alaska ML90* Listing Service. Inc. (AK MLS) All rights reserved. Page 3 018 itiaic Solbns) IntOals
DocuSign Envelope ID: EIE0F990-0421-40DC-AOE5•AOB780AF1BFC
Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: ✓:.,
Address: ? 72 A Royal Street�� •,
Legal (the Property): DD= mseth Sub 9016 Addn Tract A MLS This form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Walliple Listing Service. Inc. , Y, LS
1 9) Property Condition:
2 a) Until the date of possession or recording, whichever is earlier, Seller agrees to maintain the Property in its current
3 condition, subject to ordinary wear and tear.
4 b) Buyer and Seller understand that Brokers and/or Licensees are not experts in the areas noted below and Buyer and
5 Seller should rely solely on experts who are qualified in these areas. Brokers and/or their Licensees make no rep -
6 resentations regarding the Property, including whether the residence or other improvements meet current building
7 codes, safety or other requirements; and assume no duty to investigate or verify any disclosures made by Seller.
8 c) In the event the improvements on the Property are destroyed or materially damaged prior to recording, then, at the
9 Buyers option, this Purchase and Sale Agreement shall terminate upon Buyers written notice to Seller.
10
11 10) Appraisal:
12 a) 17 Buyer O Seller agrees to advance funds for the appraisal fee to Lender by (date) and
13 authorizes the Lender to order by (date).
14 b) The completion of Purchase U is 0 is not contingent upon the appraisal of the Property being equal to or greater
15 than the agreed upon Purchase Price.
16 c) If the completion of Purchase is contingent upon the appraisal, and the Property does not appraise for the Purchase
17 Price or greater, the parties shall have business days (three (3) if not filled in) from receipt of appraisal to re -
18 negotiate the Purchase Price. In the event the parties do not reach agreement on the Purchase Price within this
19 time, the Purchase Agreement shall automatically terminate. (In the event of FHANA loans, the FHA/VA Amends -
20 tory Clause shall supersede).
21 d) in the event the appraisal generates Lender -required repairs, repairs to be negotiated between Seller and Buyer.
22 e) If Seller and Buyer have not reached an agreement regarding Lender -required repairs, within business
23 days (three (3) if not filled in) of Sellers receipt of the appraisal, this Purchase Agreement shall automatically terni-
24 nate.
25 f) If repairs/remedies are subject to re -inspection and approval prior to the recording date. Buyer shall pay for first re -
26 inspection. Thereafter, Seller to pay for all additional re -inspection fees.
27
28 11) Recording/Possession:
29 a) This sale shall be recorded on 06/21/2017 , (date) or earlier by mutual agreement. Prior to recording,
30 Buyer and Seller agree to sign all reasonably necessary closing documents and to perform the reasonable condi-
31 tions required by the Closing Agent and Buyers Lender.
32 b) If obtaining new financing, and:
33 1) If Buyer is unable to obtain a loan commitment from agreed Lender by Recording Date, through no fault of
34 Buyer, Buyer to provide written notice to Seller immediately upon Buyer leaming of their inability to obtain loan
35 commitment from Lender. This Purchase Agreement shall terminate automatically unless Seller and Buyer
36 agree to modifications by Amendment to this Purchase and Sale Agreement.
37 ii) If Buyer fails to provide notice of inability to obtain ban commitment by such date (11 a), or as modified by
38 Amendment, and this transaction does not record, through no fault of the Seller, Buyer shall be in default.
39 c) Seller shall deliver possession of the Property to the Buyer upon confirmation of recording or
40 ❑ under attached occupancy agreement or O other
41 d) Unless otherwise agreed in writing, Seiler shall remove all debris, personal property not sold to Buyer, and leave
42 the Property in dean condition. Seller shag provide keys and/or means to operate all locks, including but not limited
43 to: mailboxes, security systems, alarms, garage door openers and any portable control devices for accessing the
44 Property upon confirmation of recording.
45 e) Buyer may walk through the Properly prior to recording to determine there have been no material changes to the
46 condition of the Property.
47 f) If Property is a unit in a condominium or other common interest community, Buyer may be required to pay a deposit
48 to the homeowners' association (HOA) to obtain access to HOA facilities.
49
50 12) Tenant Occupied Property:
51 Seller to provide rentalAease agreement(s) including lead based paint disclosures(s) (if applicable) within three (3) busi-
52 ness days of fully executed Purchase Agreement which are subject to Buyer's approval within the time set forth in Par -
53 agraph 1 of the Kenai Peninsula Right and Duty of Inspection Addendum. Seller and Buyer shall comply with the regu-
54 lations contained in the Alaska Landlord/Tenant Act. All refundable deposits shall be transferred to the Buyer at record -
55 Ing. Seller to provide Estoppels Certificate(s) prior to dosing.
56
57
os
Fond 70763. Originated 11104. Revised 7/15.
0 2015 Alaska Multiple Usling Service. Inc. (AK MLS) All right, reserved. Page 4 cf 8 nitlals aollcr(sl Inlnais
DoouSign Envelope ID: EtEDFe9D-0427<WC-AOE5-AOB780AFIBFC
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Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: ✓:�,
Address: 2270 Royal Street
Legal (the Property): Dragseth Sub 2016 Addn Trani A ALASKA
+�
M form authorized for use ONLY byactive Real Estate Licensee Subscribers of Alaska fM11tiple Listing Service, Inc. MLS
a L.7
13) Insurance:
it is the Buyers' responsibility to determine whether homeowners' or property owners' insurance can be obtained for this
property on or before as new wore dosing and provide evidence of availability
of same as may be required prior to recording.
14) Carbon Monoxide Detectors.
Carbon Monoxide (CO) is a colorless, odorless, and potentially fatal gas produced by the burning of fossil fuel. You are
advised to use CO detectors in your property and have heating systems inspected and serviced regularly. Alaska
Statute AS 18.070.095(x),
15) Home Warranty Protection Plans:
Home warranty protection plans (HWPP) may be available to buyers and/or sellers for residential properties, including
multi -family units, during and after recording of this transaction. However, the HWPP does not replace the need for an
independent home inspection. The Real Estate Brokerages do not warrant or provide any product or service in connec-
tion with the HWPP. In the event Buyer and/or Seller choose not to purchase a HWPP prior to recording, this
paragraph shall serve as acknowledgement Buyer and/or Seller wish to waive their right to purchase the plan.
16) Brokerage Notice Regarding Earnest Money Deposits & Refunds:
Under Alaska law (12 ACC 64.250(7)), earnest money must be deposited into the Real Estate Brokerage trust account
in a timely manner. Alaska Statutes and Regulations also require real estate brokerages to ensure the bank has
cleared the earnest money deposit before funds can be released. If an offer is not accepted, or Purchase and Sale
Agreement terminates, there may be up to fourteen (14) business days delay in refunding the earnest money to the
Buyer, to allow the Buyer's check to dear the Real Estate Brokerage Trust Account. If Buyer provides written documen-
tation from their bank showing funds have been deposited in Broker's Trust Account. Alaska Statutes & Regulations
require the Broker refund the earnest money to the Buyer not more than one business day after the Buyer's check has
cleared.
17) Termination:
In the event this Purchase Agreement is terminated as provided for in this Purchase Agreement, absent a default by the
Buyer, all earnest money shall be retuned to the Buyer and all parties shall be relieved of their obligations as set forth
herein.
18) Time of the Essence and Remedies:
Seller and Buyer understand that time is of the essence. If any obligation is not performed or waived as provided. or it
any note or check received as earnest money or any other payment is not paid, honored or tendered when due, there
shall be the following remedies:
a) If Buyer is in Default: Except as provided in Paragraphs 3, 10c, 10e, 11b, 19 and 20, Seller's remedies shall be
limited to liquidated damages in the amount of the earnest money set forth in Paragraph 1 above. It is agreed that
such payments and things of value are liquidated damages and are Seller's sole and only remedy for Buyer's failure
to perform the obligations of this contract. The parties agree that Seller's actual damages in the event of Buyer's
default would be difficult to measure, and the amount of the liquidated damages herein provided for is a reasonable
estimate of such damages.
b) If Seiler is in Default Buyer may elect to treat this Purchase Agreement as canceled, in which case all earnest
money paid by Buyer hereunder shall be returned and Buyer may recover such damages as may be proper, or
Buyer may elect to treat this Purchase Agreement as being in full force and effect and Buyer shall have the right to
specific performance or damages, or both.
19) Earnest Money Dispute:
Notwithstanding any termination of this Purchase Agreement, Buyer and Seller agree that, in the event of any contra
versy regarding the earnest money held by Broker, the Broker may:
a) Make the determination as to the cause of the failure of this Purchase Agreement and distribute the earnest money
accordingly after giving notice to Cooperating Broker, or
b) Require the parties to execute an agreement for the release of the earnest money, in which case the earnest mon-
ey shall be distributed in accordance with such agreement. if the parties are unwilling to execute an agreement for
the release of earnest money, the parties shall submit the matter to mediation as provided below, and if mediation
fails, the broker may file an interpleader action in a court of competent jurisdiction requesting the court to determine
the distribution of the earnest money. Broker shall be entitled to an award from the earnest money of full reasona-
ble attomeys' teas and costs.
os
m
FpM753 Originated 11100. Revised 7115. (_Zw1 1
® service, Masks Multiple Dsling sece, Inn (AK MLS) Ali fights reserved. Page 5 e18 ` nitials Selior(s) in)aels
D=Sign Envelope ID: EtEDF99D-0421.4000-AOE5-AOB78Wl BFC
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Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: !29k ,:�[_n
Address: 2270 Royal Street �
Legal (the Property): Draaseth Sub 2016 Addn Tract A ALASKA
This form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, Inc. MLS
c) In the event the Broker makes a determination as to the cause of the failure of the Purchase Agreement and dis-
tributes the Earnest Money accordingly, the parties hereto agree to indemn'dy and hold the Broker harmless from
any and all claims, liabilities or losses that either party may incur as a result of the Broker's decision.
20) Metllation:
If a dispute adses relating to this Purchase Agreement, between or among Buyer and Seller, and is not resolved prior to
or after recording, the parties shall first proceed in good faith to submit the matter to mediation. Costs to be shared by
mutual agreement between or among the parties. Unless otherwise agreed in mediation, the parties retain their rights to
proceed to arbitration or litigation. If the parties have not agreed to mediation within 30 days from dale of original dis-
pute, it will be assumed that they do not wish to mediate the dispute and the Broker will act accordingly.
21) Costs and Expenses:
In the event of any arbitration or litigation refining to this Purchase Agreement, the arbitrator or court shall award to the
prevailing party all reasonable costs and expenses, including attorney fees.
22) Broker.
a) it is mutually agreed by all parties that the Brokers and/or their Licensees shall not be held liable in any manner
whatsoever for damages arising from defaults or acts by or omissions of Buyer or Seller.
b) Both Buyer and Seller acknowledge Brokers are participants of the Alaska Multiple Listing Service, Inc., (AK MLS)
and are authorized to report details of the sale to AK MLS.
23) Authorization to Release Information to Brokers:
Buyer and Seller authorize any Lender, escrow agent, closing agent, appraiser, home inspector, surveyor and any other
related party to this sale to furnish and provide any and all information and copies of documents related to this sale to
both the Listing and Selling Brokers and their Licensees.
24) Foreign Investment in Real Property Tax Act:
The Foreign investment in Real Property Tax Act ('FIRPTA") requires every person who purchases real property local -
ed within the United States from a 'foreign person" to deduct and withhold from the Seller's proceeds ten percent (10%)
of the gross sales price, with certain exceptions, and to pay the amount withheld to the internal Revenue Service. A
'foreign person" includes a non-resident alien individual, foreign corporation, foreign partnership, foreign trust, and for-
eign estate. Seller and Buyer agree to execute and deliver, as appropriate, any instrument, affidavit or statement, and
to perform any ads reasonable or necessary to comply with FIRPTA.
26) Attachments:
The following attachments are hereby made part of this Purchase Agreement:
see attached addendum
26) Additional Terns and Conditions:
Sales price to be $825,000
Down payment to be 15% ($123,750.00)
Seller Financing:
$701,250.00 payable at $3,347.87, or more. per month including 4% interest per annum with balloon payment due
in 6 months or until December 31 whichever is earlier.
Due on sale clause, prepayment option and remedies upon default to be included in documents.
Offer Contingent upon special use permits to be put in place for professional office, lodging, restaurant, airport,
assemblies on mansion, also contingent on agreement of purchase of acreage for dirt runway from tax parcels
1104910128 and 04910051 and permit for Airport.
Insurance on property naming City of Kenai as additional insured to be provided by buyer before closing.
Offer subject to Council Approval
O See attached addendum for additional terms and conditions.O5
Foran 70753, Originated 11/04. Rovioed 7115. � / r
0 2015 Alaska MWliple Listing Service, Inc, (AK MLS) All rights reserved. Paqe 6 of 8 rials Sellena) Initials
DocuSign Envelope ID: E1EDF99D-C421-4000-AOE5-AOB780AF1BFC
Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As:
Address: 2270 Royal Street
Legal (the Property): Dragseth Sub onto Add„ Tract A ALASKA
Thus form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, Inc. 1 r � L B
1 27) Acceptance/Notice of Acceptance/Delivery:
2 This offer may be accepted by being signed, or electronically signed, by the other party with no changes, and such ac -
3 ceptance shall be effective when a complete copy of the fully signed agreement is delivered to the other party by any
4 one of the following methods:
5 a) Hand delivery to the other party or the other party's licensee or the other party's Brokerage;
6 b) Via email to the other party or the other party's licensee, but only if the person transmitting the email receives elec-
7 tronic confirmation that the email was received by the intended recipient; or
8 c) Via facsimile to the other party or the other party's licensee, but only if the transmitting fax machine prints a confir-
9 mation that the transmission was successful.
10
I l This Purchase Agreement may be signed In multiple counterparts with the same effect as it all parties signed the same
12 documents.
13
14 Delivery of a photocopy, telefax, electronic, carbon or carbonless copy of a signed, or electronically signed, original of
15 this Purchase Agreement or any other documents referred to herein shall be treated the same as delivery of the origi-
16 nal.
17
18 28) Entire Agreement,.
19 This Purchase Agreement, the Residential Real Properly Transfer Disclosure Statement, and any attached addenda
20 constitute the whole agreement between the parties. No warranties, including any warranty of habitability, agreements
21 or representations have been made or shall be binding upon either party unless herein set forth. This document may
22 not be modified except in writing and signed by the Parties.
23 a) Buyer agrees to purchase and pay for the above-described Property on the terms and conditions herein stated.
24 Receipt of a copy of this Purchase Agreement is hereby acknowledged. Buyer understands this is a legally binding
25 contract.
26 b) Buyer agrees that recording of the sale will constitute an acknowledgment that the premises and its sys-
27 tems are acceptable at the time the sale is recorded.
28
29 In the event the Seller or Seller's Licensee has failed to notify Buyer or Buyer's Licensee, of the Seller's signed ac -
30 cepta rice prior to May 17 2017 , (date) _ a.m. 5 p.m. (time), this offer shall terminate.
31
32 This Purchase Agreement has significant legal and financial consequences. You are advised to seek independent legal and
33 financial counsel, including lax advice from a tax attorney or CPA, before signing. The Brokers and Licensees cannot give
34 legal, tax or financial advice.
35
Buyer Sian tuure�lIs)
2. 3.
asseEnexeaee<ro._
Date 4/25/2017 Time a.m. p.m.
36 Print name(s) to be on documents
37
3S Address
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40 Phone
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42 Name of Selling Broker's Office
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44 Licensee Signature Licensee Signature
45 Selling Licensee #1 Fax Number: Selling Licensee #2 Fax Number:
46 Selling Licensee #1 Email:
Form 70753. Originated 11104. Revised 7115.
0 2015 Alaska Multiple Listing Service. Inc. (AK MLS) All rights reserved
Licensee #2 ErrMil:
r
Page 7 of 8 nitials
Sellerls) Initials
DocuSign Envelope ID: E7EDP99D-G42140OC-AOE5-AOB780AF7BFC
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Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As:�
Address: 2770 Royal Street
Legal (the Property): Draageth Sub 2016 Addn Tract A wAL/�ASKA
This form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, InY,c- , LS
Brokerage Fee:
A real estate broker may be compensated by any party to a real estate transaction, by a third party, or by one or more of the
parties to the transaction splitting or sharing the compensation. Seller and/or Buyer agree to pay forthwith at recording a
brokerage fee in cash as stated in the Personal Services Agreement. (i.e. Listing Agreement, Buyer's Agreement)
Seller Response: (sign only one!)
Seller accepts the foregoing offer as written. Seller agrees to sell and convey the Prop-
erty described on the terms and conditions herein stated. Seller understands this is a
legally binding contract.
Seller Signature(s)
1:
Date
2. 3.
Seller makes the attached Counter Offer
Seller Signature(s)
1:
Date
Time: _ a.m. _ p.m.
2. 3.
Time: _ a.m. — p.m.
• Seller hereby rejects the foregoing offer and declines to make a Counter Offer
Seller Signature(s)
1: 2
Date
18 Print name(s)
19 Address 2270 Royal Street
20
21 Phone E -Mail
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23 Name of Listing Brokers Office
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25 Licensee Signature
26
27 Listing Licensee #1 Fax Number:
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29 Listing Licensee #1 Email:
30
Signature
Listing Licensee #2 Fax Number:
Listing Licensee #2 Email:
a.m. p.m.
I/�.as
Forth 70753. a Multiple
71104. Service,
7175. / LH t /
C 2015 Alaska Multiplt Lisiinq Str>nm, InG. (AK MLS) All rights reservetl. Page 8 at ll-- nitials Seller(s) Inf ials
DocuSgn Envelope ID: E1EDF99D-C421-4000-AOE5-AOB780AF1BFC
Addendum or Amendment to the Purchase and Sale Agreement ALASKA=
This forth authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, Inc.
MLS
I Date nzln5nnn
2 In reference to the Purchase and Sale Agreement between:
3 PRL Logistic. INC , the Buyer(s), and
q City of Kenai the Seller(s), dated
5 04/2519017 . covering the real property commonly known as:
6 Address: 2270 Roval Street
7 Legal (the Property): Dragseth Sub 2016 Addn Tract A
8 the undersigned Buyer(s) and Seller(s) hereby agree to the following (check only one):
9 §d Addendum - to be used when more space is needed on the Purchase and Sale Agreement
10 ❑ Amendment -to be used only when charging an existing Purchase and Sale Agreement
II
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Escrow to be set at First National Bank
Dining room table and chairs , plus 3rd floor desk to remain
Seller to pay 3% brokerage fee
Buyer request city tum water back on in mansion before closing and repair leaks if any.
To the extent any provision of this Addendum/Amendment is inconsistent with the provisions of the Purchase and
Sale Agreement, the terms of this Addendum/Amendment shall control.
All other Terms and Conditions to remain the same.
This Addendum/Amendment shall expire unless the party making this Addendum/Amendment is nofdied of its
acceptance no later than 05/17/2017 (date) 5 ❑ a.m. U P.M. (time).
Notification of acceptance of this AmendmenVAddendum may be made only by one of the methods specified in the
paragraph titled 'Acceptance/Notice of Acceptance/Delivery' as contained in Purchase and Sale Agreement.
Date: 4/25/2017 oon,sl me: Time: ❑ a.m.0 P.M.
jd Buyer ❑ S Iter 1: 2: 3:
Brokerage - l - w<'QLUJ ttjoensee(,) ` CJ ly�nir �_ILk _J
c
The undersigned accepts the above AmendmenVAddendum
Upon execution by both parties, this agreement becomes an integral part of the referenced Purchase and Sale Agreement.
Date: Time:
U Buyer ❑ Seller 1: 2:
Brokerage Licensee(s)
Form 70718, Revised 03113. D 2015 Alaska Multiple Listing Service, Inc. (AK MLS) All rights reserved
❑ a.m. ❑ p.m.
3:
ay 'Wld a Past, el!f wit! a Fteve
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 1 Fax: (907) 283-3014
the dty o f www.kenai.city
KENAI`AL ALASKA
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Paul Ostrander, City Manage D
DATE: April 27, 2017
SUBJECT: Ordinance 2957-2017
Tract A, Dragseth Sudivision, 2016 Addition is a City -owned parcel which contains land and a
residence. The City acquired the parcel utilizing State grantfunds to improve access and facilities
on the South Beach. Tract A contains 6.303 acres of land, an approximately 7,500 square foot
residence, and several outbuildings not needed for a public purpose. The City has been
attempting to sell Tract A, whereby proceeds from the sale will go back into the grant for the
Cities use for South Beach related improvements.
PRL Logistics has made an offer to purchase Tract A with the condition that the purchase include
the adjacent airstrip to the north for the use of fixed wing aircraft and airships in support of their
business operations. Additionally, because Tract A is currently zoned Rural Residential, PRL
Logistics will be required to apply for a conditional use permit that would allow their intended
uses of office space, lodging, restaurant / bar, event hosting, and airport -related uses.
The offer by PRL Logistics is for a purchase price of $825,000, financing the sale for up to 6
months with an interest rate of 4% and a down payment of $123,750. If approved, closing on
the purchase is tentatively scheduled for June 19, 2017. The conditional use permit process for
both Tract A and for the airstrip should be completed prior to closing. If the conditions in those
permits do not sufficiently support their business needs or if they are not permitted to purchase
the airstrip from the City, PRL Logistics has the option of cancelling the closing and receiving
their earnest money payment back.
Your consideration of this ordinance is appreciated.
Kenneth Tarbox
33270 Community College Drive
Soldotna, Alaska 99669
9072627767
tarbox@ptialaska.net
May 2, 2017
Paul Ostrander, City Manager
City of Kenai
210 Fidalgo Avenue
Kenai, Alaska 99611
Dear Paul Ostrander, City Manager,
The purpose of this letter is to comment on the proposed sale of City of Kenai land to PRL
Logistics for use as an airstrip. During our conversations it has become apparent that a
number of questions need answering before one can make a reasonable assessment of
impacts of this proposed sale on the environment, recreational activities at the site, and
whether the benefits of sale outweigh the potential negatives.
Before 1 get into the specifics I would like to point out that the land in question is located in
one of the most environmentally productive areas on the Kenai Peninsula. Estuarine areas
are critical to fish and wildlife populations and the Kenai estuary provides resting, feeding,
and/or breeding habitat for thousands of birds. Over 180 species of birds have been
documented to use the Kenai River estuary. The gull colony located in and adjacent to the
proposed sale area has a breeding population of 20,000 birds at the start of April growing to
30,000 when the young hatch and fledge. In addition waterfowl and shorebirds numbering
in the tens of thousands pass through this area on their migration to northern breeding sites.
Because of this use pattern this area has been designated a Continental Important Bird Area
by the National Audubon Society. But birds are just part of the story. Plant material moves
from the estuary to the nearby Kenai River providing nutrients and energy to river flora and
fauna. In short, this is critical habitat by any measure.
I
The proposed sale from what I understand it to provide landing and takeoff area for hybrid
airships and fixed winged aircraft up to twin otters. Frequency of use has not been
determined at tl-ds point.
Reviewing the sale rationale it is hard for one to justify this sale when two major airports
(Kenai and Soldotna) are within 12 miles of the proposed ad hoc airstrip. These two airports
offer infrastructure, landing and takeoff space, safety standards and procedures that protect
the public and the environment. The proposed airstrip does not provide the same level of
service and protection and threatens a critical habitat area. Therefore this begs the question
- What is the rationale that would support putting the pubic and environment at risk given
the proximity of the existing airports? I have read or heard nothing that says the use of the
airport would threaten the viability of the hybrid airship project.
Assuming the sale goes through then there are a number of issues/ questions that need to be
discussed before a conditional use permit is given. 1 have listed these below:
1. What is the projected operational (not just start up) level of use by day and month
for all anticipated aircraft? The assumption is that the business will be successful so
what constitutes a successful operation and use? While the exact day of use may not
be known a rough approximation of use patterns is needed to assess impacts.
2. What is the flight path of the hybrid aircraft to the hanger location and other aircraft
to the airship? Does the flight path go over significant portions of the estuary?
3. Will there be any restrictions on public use (exclusion zones) that go beyond the sale
boundaries due to concerns for security or safety? For example, Homeland Security
put an exclusion zone around the Nikiski dock area. If military materials are loaded
at the airstrip or homeland security issues arise will that prompt additional security
measures?
4. Duck hunters use the area and will be shooting toward and over the airship? Will
an exclusion zone be implemented to restrict firearm use near the airstrip?
5. From April to November thousands of birds will be in the flight path of aircraft
landing and taking off. Will the owner of the airstrip seek USFWS permits for
hazing or controlling bird use in the area? What is the risk of an accident due to a
bird strikes when thousands of birds are present? Can a seasonal restriction on use
during April to November be implemented and at what level? What liability does
the City have for selling a property for a use that has a significant risk of accidents
due to bird strikes and high density of human use on the adjacent beach?
2
6. During the period April to November recreational use of the area by personal use
fisherman, bird watchers, and hunters will bring thousands of people in close
proximity to the airstrip. This creates a significant potential for the safety of these
individuals in the event of an accident. What measures are being taken to reduce
this potential? Does the owner- plan to fence any part of the airstrip to limit access?
If so what impact does that have on wildlife and the estuarine structure and
function?
7. Will the use of the airstrip require any additional mechanical work (clearing,
vegetation control...) beyond its existing condition for use with the hybrid airship or
other aircraft? The proposed sale is for a width of up to 400 feet which is beyond the
present disturbed area. Will mechanical clearing of this area or mowing of the grass
be done in this larger area? If so will restrictions be put on when this will happen to
protect nesting and migrating birds? Has any assessments been made of this project
on dune stability?
8. The area in question floods or is wet during the year. What type of protections will
keep the new land owner from filling in the area and trying to protect his airstrip by
channeling water away from the airstrip? Have hydrology studies been done to see
what impact changing this airstrip will have on the rest of the southern portion of
the flats or the existing infrastructures including roads?
9. What is the impact of an airstrip use (e.g. noise and human activity) on the area
beyond the airstrip? For example, adverse reactions to disturbance by birds may
eliminate or reduce current gull, waterfowl, tern, and songbird nesting areas? What
noise levels are anticipated and what impact will both wildlife and humans in close
proximity to the activity (for example during the personal use fishery) experience?
10. The airstrip crosses a public road paid for with State of Alaska funds. Will this road
be closed for use when the airstrip is being used? What safety measures will be put
in place to keep traffic from going on or across the airstrip? The new road cannot be
closed as the funding source is the State of Alaska. Does the City or owner plan to
ask for temporary closures during aircraft operations or loading of materials?
11. Are there any federal of state permits required for construction, operation, and
maintenance of this airstrip? Do any permits require an environmental assessment?
12. Has the City contacted any experts on this area or the Federal or State agencies for
comments on this project and/or nutigation measures?
Thank you for taking the time to consider my concerns about this project. In summary, the
preferred alternative from my perspective is to use the existing airports or at least
5�
seasonally. For example, from the month of April to November the airstrip is closed to use.
During this period the environmental and safety risks are significantly lowered given that
the other considerations are accommodated. Thus use during this time period may be
possible with potential mitigation measures. However, it will take time to discuss and
work out the details given the lack of information at this time for a proper evaluation and
discussion. I know I have not covered all the questions but hope this letter helps the
Council start the discussions. I am available for further discussion if the Council or you
desire.
Sincerely,
Kenneth Tarbox
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