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Home My WebLink AboutResolution No. 2019-08V CITY OF KENAI RESOLUTION NO. 2019-08 Sponsored by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, AUTHORIZING THE PURCHASE OF REAL PROPERTY DESCRIBED AS LOTS TWO (2) AND THREE (3), BLOCK 5, EAST ADDITION TOWNSITE OF KENAI, FOR THE PUBLIC PURPOSE OF INCLUDING THE PROPERTY IN THE KENAI BLUFFS BANK STABILIZATION PROJECT AND DETERMINING THAT PUBLIC INTEREST WILL NOT BE SERVED BY AN APPRAISAL. WHEREAS, the subject real property is described as Lots two (2) and three (3), Block five (5), East Addition Townsite of Kenai, Seward Meridian, Kenai Recording District, State of Alaska; and, WHEREAS, the total purchase price for the subject parcel containing 0.3 acres is $2,200, plus estimated closing costs of $510; and, WHEREAS, pursuant to Kenai Municipal Code 22.05.135(a), the City may acquire property needed for a public use without an appraisal if the Council upon resolution determines the public interest will not be served by an appraisal; and, WHEREAS, an appraisal does not serve the public intent for this parcel as the purchase price is reasonable and an appraisal would add an unnecessary cost to the transaction; and, WHEREAS, the City Council has authorized the City Manager to enter into negotiations with property owners whose parcels have been identified by the United States Army Corps of Engineers as being needed for the construction of erosion -control structures or to provide permanent access to support the Kenai Bluffs Bank Stabilization Project; and, WHEREAS, the Lower Kenai River has eroded the bluff properties through the Original Town - site of Kenai at an estimated rate of three feet per year, causing the loss of public and private infrastructure, buildings, and lands; and, WHEREAS, the subject parcel will be included in the project to stabilize the erosion of the bluff at the mouth of Kenai River; and, WHEREAS, funds are available for the subject parcel purchase through Legislative Grant 12 -DC - 377. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the Kenai City Council hereby authorizes the City Manager to purchase the real property to be retained by the City for a public use known as Lots Two (2) and Three (3), Block Five (5), East Addition Townsite of Kenai (Kenai Peninsula Borough Parcel Number 04711503) for the total purchase price of $2,200 plus estimated closing costs of $510 on a form approved by the City Attorney. Resolution No. 2019-08 Page 2 of 2 Section 2. An appraisal does not serve the public interest as the purchase price is reasonable and the additional cost of an appraisal is unnecessary and would only add to the cost of the transaction. Section 3. That the Kenai City Council further finds the acquisition of the subject parcel to be in the best interests of the citizens of the City of Kenai and that the public interest shall be served by its acquisition. Section 4. That this resolution takes effect immediately upon adoption. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of February, 2019. EL SR., MAYOR ATTEST: SENA/ Jajmi4 Heinz, CMC, City Clepk Approved by Finance: 5;6 �ak i- O �'••« ENDED 711flaye w1d a Past, 0w1d a F tine ` 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 1 Fax: (907) 283-3014 the city of www.kenai.city M MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: January 29, 2019 SUBJECT: Resolution No. 2019-08 — Authorizing the Purchase of Real Property Resolution 2019-08 approves the purchase of real property described as Lots 2 and 3, Block 5, East Addition Townsite of Kenai, Seward Meridian, Kenai Recording District, Third Judicial District, State of Alaska (Kenai Peninsula Borough Parcel Number 04711503). This 0.3 acre parcel is located along the Kenai River bluff, and has been severely eroded. The United States Army Corps of Engineers identified this parcel as being necessary for the construction of erosion - control structures or to provide permanent access to support the Kenai Bluffs Bank Stabilization Project. The aerial imagery map attached to this memorandum shows the location of the parcel and the severe degree of erosion. The parcel is owned by Mrs. Honaker's, LLC. The agreed upon purchase price with Dr. Terri Elliott, D. O., a representative of Mrs. Honaker's, LLC, is $2,200 plus estimated closing costs of $510. Funding for the purchase will be provided through Legislative Grant 12 -DC -377. A copy of the Purchase and Sales Agreement is attached to this memorandum. If City Council approves the resolution, the City Manager will move forward to finalize the purchase. Thank you for your consideration. J � I I 00� ,1 Wtloik� r iT 411 A.M"-p 1 MUM qqtNI I co 0? j O I !W.l I t m C � d Y d N O W C) N 0 m m c L N N« cli0 U N C @ O O 6. N . d Q m N O J Q Lo Y R 1Vr7 O W J � I I 00� ,1 Wtloik� r iT 411 A.M"-p 1 MUM qqtNI I co 0? j O I !W.l I t r 908 lc�Luo�") N � d N O W C) N C w L N N« N W v 41 m E o CN U N m a Lo ° R 1Vr7 O Q O L N y 07 3 � @LYS u Erni oz c ,0 o U o Gc� ^ H O O F N E r 908 lc�Luo�") ML Gc� ^ EARNEST MONEY RECEIPT AND AGREEMENT P^,C k Received from City of Kenai hereinafter called PURCHASER, the sum of $0.00, in the form of a check payable to Professional Escrow Services, Inc., in trust for Mrs. Honaker's LLC, hereinafter called SELLER, as Earnest Money on N/A (date), in part payment of the purchase price of the following described real property: Legal Description: Lots 2 and 3, Block 5, East Addition Townsite of Kenai, (KPB Parcel No. 04711503) In the Kenai Recording District, Third Judicial District, State of Alaska. The total purchase price is $2,200.00, payable as follows: $ 0 earnest money ®balance due at closing OR ❑Bank loan with OR ❑ Owner Finance $_ payable at $_ or more per _ Including/plus interest at _%. Interest accrues from _ . First payment due _ Amortized years — ❑Due on Sale Clause Late fee of $ _ for _past due. ❑Full Coverage Insurance Required. Collect at _ Other terms: THE CLOSING COSTS are to be paid between Seller and Purchaser as follows: Indicate: (S) = Seller; (P) = Purchaser; (50/50) = Split equally between Seller and Purchaser P Owners Title insurance _ Lenders Insurance P Escrow Settlement/Closing Fee P Recording Fee _ Escrow Set Up Fee _ Escrow Annual Fee _ Attorney Doc Prep Fees _ Delinquent Property Taxes _ Pending/Levied Assessments _ Clear Existing Liens _ As -Built Survey Fee Appraisal _ Final Inspection on Appraisal Other Costs_ Origination Fee Commitment Fee Discount Points Tax Registration Fee Flood Certification Credit Report Document Preparation Fee MIP/PMI V.A. Funding Fee Establish/Replace Reserves on New Loan Interest to Closing Date New Loan WeIL Septic Testing (if required by lender) Home Inspection Fee Smoke Detectors WARNING: IT IS PURCHASER'S AND SELLERS' RESPONSIBILITY TO SEEK AND CONSULT WITH OWN INDEPENDENT LEGAL ADVISOR, TAX ADVISOR, BUILDING & SOIL INSPECTOR, LAND SURVEYOR, WATER & SEWER ENGINEER, OR OTHER APPROPRIATE ADVISOR FOR THIS TRANSACTION AND AT THE SOLE COST TO THE PARTY REQUESTING SUCH SERVICE(S) UNLESS OTHERWISE STATED ABOVE. SUCH SERVICE OR DILIGENT INQUIRY SHALL BE COMPLETED WITHIN 10 DAYS OF SELLER'S SIGNATURE HEREON OR ANY OTHER TIME FRAME AND MUTUALLY AGREED TO IN WRITING BETWEEN SELLERS AND PURCHASER. 1. The title is to vest and read: City of Kenai (❑husband and wife, ❑ married, ❑ unmarried,) 2. Sellers agree to furnish and deliver to Purchaser as soon as procurable a purchaser's policy of title insurance to be issued by Title Company. If the title cannot be made clear as aforesaid within 20 days from the issuance of a preliminary title report, Purchaser may cancel this agreement and Sellers must refund the earnest money. It is also agreed that the Purchaser may waive defects or require the price to be renegotiated to cover any defects or encumbrances at the Purchaser's sole discretion without loss of the earnest money refund. Purchase and Sales Agreement City of Kenai/Mrs. Honaker's LLC Parcel Number: 04711503 3. If title is made good on or before closing and the Purchaser neglects or refuses to complete the purchase, the earnest money may, at Sellers' sole option, be forfeited as liquidated damages, which shall not preclude any other remedy available at law or in equity,if any. 4. The property shall be conveyed by WARRANTY DEED free of encumbrances except for rights reserved in federal patents or state deeds, building or use restrictions general to the district, and building or zoning regulations and provisions shall not be deemed defects nor encumbrances. Any defects or encumbrances may be discharged at closing out of the purchase money. 5. Taxes for the current year, rents, interest, mortgage reserves, will be prorated as of the date of closing. 6. Possession will occur on recording. 7. Purchaser offers to purchase the property on the terms noted in its present condition and this agreement is issued subject to: a. Sub lect to aonroval of the Council of the Citv of Kenai 8. The sale shall be closed in the offices of Professional Escrow Services on or before 30 -Days after approval of the Resolution or Ordinance approving the purchase by the Council of the City of Kenai. "Closed" shall mean the day the deed of contact is recorded and funds are to be disbursed. 9. Purchaser and the Sellers will, on demand of either, deposit in escrow with the closing agent all instruments and monies necessary to complete the purchase. 10. There are no verbal or other agreements which modify or affect this agreement. Time is of the essence of this agreement. WHEREFORE the Sellers and purchaser being in accord do bind themselves hereto by their signature hereunder: PURCHASER: SELLER: 2 Mrs. H�l� LC City of Kenai Paul Ostrander, City Manager Dr. Terri Elliott, D. O., Member Telephone: (907) 283-8222 Telephone: (907)252-8908 or (907)252-9085 Fax: (907) 283-3014 Fax: 907- UI - 5_1 postrander@kenai.city SyE-mail: E-mail: ,n �Lo1 Address: 210 Fidalgo Ave. mon Address: 1500 Barabara Ili ve Kenai, AK 99611 Kenai, AK 99611 2