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HomeMy WebLinkAboutORDINANCE 1413-1991~ ~`~ ~ ~ u Suggested by: City Council SUBSTITUTE City of Kenai NO. 1413-91 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $987,500 FOR CONSTRUCTION AND LAND ACQUISITION FOR A NEW CAPITAL PROJECT FUND"ENTITLED "MARATHON ROAD 1991 STREET AND UTILITY IMPROVEMENTS". WHEREAS, the City desires to make street and utility improvements to Marathon Road, including paving, water, sewer, drainage, natural gas, electricity, and telephone, for the purpose of encouraging industrial development in the area, and WHEREAS, these properties are airport lands and the improvements may be financed by airport monies, and WHEREAS, the General Fund, in accordance with the deed from the United • States Government and KMC 22.05.025(b), is obligated to pay the airport the fair market value of the property, if it is conveyed for such industrial purposes. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: Airport Land System ~____.__ Increase Estimated Revenues: Appropriation of Fund Balance 5 00 Increase Appropriations: Airport Land - Transfers out $77 General Fund Increase Estimated Revenues: Appropriation of Fund Balance ;~~,~ Increase Appropriations: Land Department - Land 2 00 • e =' ~' t' :.-:.:. ~s .. .. .. .. ~ 1 ,~ . , • Marathon Road 1991 Street and Utility, Improvements Increase Estimated Revenues: Transfer from Airport Increase Appropriations: Administration Engineering design and inspection) Construction Ordinance No. 1413-91 $ 5,000 103,000 66 ~, 5 ~Q Airport Land Sale Trust Fund (Memo On1Y) Increase Estimated Revenues: Land Sales 500 Increase Appropriations: Reserved Fund Balance 12 5 0 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of February, 1991. • ATTEST: Carol L. Frees, City Clerk Introduced: Adopted: Effective: Approved by Finance :,,~~ (1/8/91) kl • ~.. January 16, 1991 February 6, 1991 February 6, 1991 ,: ... ... .. „ , .: . .. .... ... • ... _ FRYRHOLM & 3CHAAFSMA APPRAISAL 189 South 8lnkely, Suite 101 Soidotna, Alaska 99889 282.5822 i08i7 Kenai Spur Hwy., Suite 201 Kenai, Alaska 99611 283~5~22 January 31, 1991 City of Kenai 210 Fidalgo street Renal, Alaska 996].1 Attention: Kim Howard, Administrative Assistant Rcpt Appraisal o! Traot A~-1 8AR4N PARK 8[iBDIVISION, ~7 A PrapoBed Reoubdivieion of Tract A Baron Park Subdivision, ~5 Per City of K+~nai Purchase Order No. 32038 Dear Kiwi: Ae you x~aquested, 2 have made an inspection and valuation of the above referenced property. The purpose of this appraisal report ie to estimate the current market value of the fee simple estate of the subject property for sales purposes. ~~ Based on the inspection of the aubjeot pr*.aperty and the inveg~igation and analysis and®rtaken, and subject to the assumptions and limiting Conditions set forth in this report, x lave formQd the opinion th:st as of January 25, 1991, the current market va3.uo of the subject is: TWO HvNDRED '1K~LVE TiiOiJ6AND FIVE HUND1tED DOLL~tB ~ $212, 5U0 ~ The ®sria-ate of value is based on an inspection of the proparty, an investigation anr3 analysis ae set fortYi in the attached appraisal report, and ie subject to the aesuml~tione and limiting conditions 0et Borth in the report. This report contains the l.dentific.~tion of the proparty, all assumptions and limiting conditions, partin:~nt facts concerning thc~ area and the subject property, comparable data, the results o! my investigation and attalysie, and the reasoning l®acling to the aonclua;_on of values set forth herein. Thank you fox• the oprortunity to be of service. Reep®ctfully submitted, A~-PF11IS.~L Jo F Cr Ap ra er ir~.r~o 0 i s 5 F . ~~ f ~ ~ I ~ ... StIMMARY Otr &nI.I~NT FACTS i.. Cirxld'iNT ANO QWNEAs City of Kenai 210 Fidalgo Street Kenai, Alaska 99611 2. DAT$ GF INSPECTION & VALUE: January 25, 1991 3. PvRPOSB 05' REPORT AND 08JECTIVtt OF THE APPRAxSALs The City o! Kenai proposes to lease the subject property to the University of Alaska !or development of the site for an indoor fire training faoility. The pus:poee o! the appraisal ie to estimate the current market value of the oubjoat property to appropriate money from the general fund to purchase the site lrom the airport land system. 4. PROPERTY RIOKTB APPRAISED: The fee simple estate 5. IDENTIFICATION OF THB SUBJECT PROPERTY: Le ag~l_ Description: Tract A-1 BARON PARK SUHDxViSxON, !7 A Proposed Resubdivieion of Tract A Baron Park Subdivision, ~S Lot_____~atio„~„ns They subject ie located approximately 1500' north of the intersection of the Kenai Spur Highway and Marathon Road in Kenai Alaska. The property ie locat®d withln the E1/2, of Section 33, T5N, aiiw, sB&rs Tax Parcel No.: Not Aeeiyned Assessed Value - 1990: Not Aeeignod Taxes - 1990: Not Assigned Lot Dimensions: The subject of th© appraisal is an irreg~:lar shaped site with dimensions of approx. 1235• x 1265• X 1241.61• X 1538•. Lo_ t,ei~e: 40 scree +/- To~graP~s Lev®1 - at road grade. Th®re ie a small man made pond, located in the southwest quart®r of the site, approximately 5 scree in size. tltilitiess Electricity And telephone are along Marathon Road on the west aide of the subject Bite. It ie proposed that Natural gee, water and eewor are do b9 exte»ded along Marathon Road also to the site. Ac, cese~ Presently there ig gravel road access along Harathon Road to the site. It ie propQged that Marathon Raad la to be pav©d from the Kenai Spur Highway to the site. Faye 1 F~tYKHOL~I'~ & SCI~AAFSMA APPRAISAL ..,: _ .~: .. . .;. { .. ,. .. .... . ~~~. , _, A _ ,.. a • Zoning The eubjQCt is to be coned TL-light industrial. Current zoning is R9 - suburban Residential. Easeaaent Restz'ictions: Presently there is only a preliminary plat for the wr wr.r..~.r ~ .w~.~.~ subject. The surveyor indicates typical utility easements will be inolud®d. No known restrictions oth©r than Zoning exist. Improvements= None Highest & Beet Use: The highest and best use oP the subject alto would ba for resubdiviaion into smaller lots for future development into a industrial park. Ae there has been limit©d market demand for oomaaeraial or industrial uses along Marathon Road this ie viewed se a future highest ac-d beet use. 6. DEFINITIONSt Market Value: The moat probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each eating prudently, knowledgeably and assuming the price fe not affected by undue stimulus. Implicit in this deFinition is th® consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. Buyer and seller are typically motivated b. Both parties are well informed or well advised and each acting in what they consider their own beat interest. c. A reasonable time is allotrc3d for exposur® in the open market. d. Payment is made in t~+rms of cash in U.S. dollars or in terse: of financial arrangements comparable thereto and/or its equivalent. e. The price represents the normal consideration for the property sold unaffected by special or creative financing or pales concessions granted by anyone aseociatc~d with the sale Fee Simple Estate ._ An absolute feed a fee without limitations to any particular class3 0! heirs or restrictions, but subject to the limitations of eminent domain, Qecheat, police power, ar~d taxation. An inheritable net ate. 7. i0 Xear Title Delineati.an: The subject in ,~ d0 acre portion of a large tract of ground cosaveyQd to thn City of Ke:i3i by ttie USA uy dQed on U~~cea~ber 1, 1963, recorded in the t;Qnai Recording District, on pages 303 through 312 of ~3ook 27 under eesrial #64-528, April Z0, 196.1. PJo historic sales of the ' property exist with.tsz the p.~sat 10 yp~..rn. ~n~~e 2 ~I.: FRYICHOLM 1t SCHAAFSAfA APPRAISAL • r 1 s FINAL CONCLUSION AND CORRELATION OF VALUES After adjuatmer:te tha f ive comparables salsa used indicate a range of value From $5,900/Ac to $8,600/Aa (R). The low end of the range of value set by C-4 which is a 1983 sale of a 12.65 acre light industrial acne site along Bridge Access Road. The high end of the range of value ie set by comparable 5 which ie a 1986 sale which oocurred prior to the recession, of a 32 acre unzoned commercial/industrial use site located along Halifonsky Beach Road. In the final analysis of the comparables, after all adjuetsa®nte are shade, each comparable is rank~ad as being overall superior to the subject site. Each ie located in a commercial/industrial area which had experienced moderate to strong market activity while the subject is located in area which experienced no demand during the growth period in the early to raid 1980s. Also the subjeot Bite is reported to have a relatively high water table approximately 3.S to 5 feet below grade. Although the shallow water table depth is not seen ae a lixssitinq factor to the sites highest and best use and no adjustment was made in the sales comparison analysis each of the cosnparables ie believed to have superior soils with a lower water table. As each sale is ranked superior to the subject the lower end of the range of value is emphasized and a $6,000/Ac value is concluded. It was stated previously that the subject has approximately 5 acres of land included in a man made pond in the swi/4 of the site. This factor was not adjusted for the sales comparison analysis. In terms of a light industrial or commercial development of the 40 acre site, this 5 acre pond would be viewed ae wet unusable ground. There is a limited recent market information from which to extract a unit value adjustment for wet unusable ground. Several historic sales from the early to mid 1980s were analyzed to arrive at a co:iclusion of value for this 5 acre wet unusable portion of the subject site. These sales included a 40 acre treat which was 100 wet and sold at $3T5/acre, a 40 acre treat which was 50~ wet and the buyer indicated "0" value to the unusable 20 acres, a 4C acre tract which was 1/3 wet and ref lected approximately $475/acre for the unusable ground and a 35.54 acr® site along the Kaeilof River which was i00~ wet and sold far $732/acre. This sales data reflects that one buyer paid nothing for the excess wet unusable ground while another paid up to $732/acre. Two of the comparables analyzed reflected values from $375/acre to $475/acre for excess, wet unusable ground. A $450/acre value for the wet ground on the subject is concluded or: $450/Ac X 5 Acres = $2,250 The eAtimated market valu® of the unable 36 acrQS of tt~e subject site ia: $6,040/Ac X 35 Acres $210,000 The est3.mated market value of the total 40 acr© Bite ia: 35 ~acxas @ 5 ~tLrarya @ $210, UOt7 2 $212,500 (R} Pay: 36 F1tXKHOLM & SCHAAFSMA APPRAISAL -ST. . . . . :.. ~':i •. .~?:' -.... • ~ 5 ~