HomeMy WebLinkAboutORDINANCE 1290-1988Suggested By: Administration
CITY Of KENAI
ORDINANCE 1290-86
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AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA,
AMENDING KMC 21.10.035 AND KMC 22.05.040 TO PROVIDE THAT
APPLICANTS TO LEASE OR PVRCHASE CITY LANDS SHALL PAY THE
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COSTS OF SURVEYING AND APPRAISAL OF SUCH LANDS.
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WHEREAS, the current City policy is that the City pays for
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surveying and appraisal costs when leasing or selling lands, and
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WHEREAS, these costs are more appropriately deemed to be the
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responsibility of applicant lessees and purchasers, and,
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WHEREAS, higher deposits will help ensure that monies are
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available to reimburse the City for these costs.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
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KENAI, ALASKA, that:
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Section 1 KMC 31 10,035 and Section a MC 32 05 040 are
hereby amended as defined on the following pages.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day
of October, 1988.
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OHN ILLIAMS, MAYOR
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ATTEST:
First Reading: October 5, 1988
Second Reading: October 19, 1988 j
Effective Date: November 19, 1988
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3ECTIgM 1:
21.10.035 'i,ina Fee and Deposit: (a) A filing fee in the
amount of $20 shall be paid on filing of an application for lease
of lands.
(b) On filing of application for lease of lands, the
applicant will make a deposit to show good faith and secure the
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City in payment of any costs in the following amounts:
(1) If the property sought to be leased has already
been subdivided, the amount of the deposit will be ($500]
62,000.
(2) if the property sought to be leased has not been
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subdivided, then the amount of the deposit will be ($1,000]
If
(c� ) the City refuses to lease the desired property to
the applicant through no fault of the applicant or failure of
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applicant to comply with directions of the Kenai Advisory
Planning & Zoning Commission, then the deposit will be returned
to the applicant. If the applicant complies with all of the
requirements of the ordinances and of the Kenai Advisory Planning
& Zoning Commission and secures a lease to the land, then the
deposit will be applied to the Citv�s gopta o9 survey, a nraisal.
and any related reviews, with -any _excessdeposit appliefl to rent
and shortaae billed to the applicant (ON THE FIRST RENTALS TO
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-any
BECOME DUE]. If the applicant refuses to comply with any
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requirements of the ordinances or the Kenai Advisory Planning &
Zoning Commission and either causes inordinate delay or otherwise
refuses to secure a lease to the property, then any expenses
incurred by the City will be reimbursed from said deposit and the
balance thereof, if any, shall be returned to the applicant.
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22.05.040 sale roce fie: (a) The City Manager will
obtain such an appraisal for a determination of the minimum price
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on said land.
(b) Where any party, hereinafter called "Applicant,"
requests that a tract or tracts of land be sold for which an
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appraisal will be required, which will require subdividing,
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platting, or surveying and staking, or which will require
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advertising or incurring any other expenditures by the City prior
to sale,
(1) No actions in preparation for sale will be taken
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by the City until an agreement to purchase shall be properly
executed and filed with the City Manager for the purchase of
such -land with payment of sufficient good faith deposit,
which shall consist of cash or its equivalent deposited with
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the Finance Officer of the City of Kenai, as may be
determined by the City Manager, to cover all expenses of the
City IIF THE APPLICANT SUBSEQUENTLY FAILS TO BID OR BUY THE
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LAND AND THE LAND IS NOT SOLD,] and such agreement to
purchase shall further contain the agreement by applicant to
pay any additional costs if said good faith deposit is
insufficient to pay all costs incurred by the City.
(2) if at any time during the process of preparing for
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sale, the applicant gives notice to the City Manager of
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withdrawal of the request for sale, the City Manager shall
incurred to
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stop all procedures, shall pay expenses prior
termination of sale procedures, and shall reimburse
applicant for any good faith deposit advanced in excess of
all expenses incurred. (However, if another party desires
the sale to proceed, files an application for sale, executes
and files an agreement to purchase, and advances sufficient
funds therefor, then the prior applicant will be reimbursed
for expenses charges which can bo attributed to the
subsequent applicant.)
(3) If all actions necessary for preparation for Bale
have been accomplished, and if neither the applicant nor any
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other party purchases said land when first offered for sale
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after such request, then all expenses incurred
preparation for the sale will be paid from the good -faith
deposit, and the balance, if any, shall be returned to the
applicant. If the sums advanced as good faith deposit are
insufficient to pay all of the costs, the applicant will be
billed for the balance due and normal collection procedures
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followed.
(4) if the land applied for is sold on public sale set
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in response to such request to anyone other than applicant,
then on closing of said sale, the good -faith deposit will be
refunded in total to the applicant. 1bg,CItv's expenses
-will.-be . firAr.. dedt+cted- from the deposit of the successful
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(5) If the land in question is sold to applicant, the
good -faith deposit advancedj,,afteer dedUStina the C 'p.
pagnses, will be applied or. this payment due at closing.,
(6) If the land in question is to be sold by sealeA
bit: and the applicant has submitted a valid bid, but said.
applicant is not the high bidder, he may purchase the land
by tendering the City a bid equal to the high bid withi�t
five days of the bid opening. If the land sale is initiated
in accordance with KMC 21.10.06O(a), the applicant shall be
defined as that party submitting the initial lease
application.
(c) If the tract of land (airport or otherwise) proposed to
be sold is leased land where the lease sets forth a development
schedule, the lessee may, at his request, negotiate the sale of
said land at not less than the fair market value. The current
lessee obtains this right to negotiate a sale only after he has
leased the land for the two-year period immediately preceding the
sale or the lessee has to the satisfaction of the City Manager,
completed development as detailed in the development schedule
which has been incorporated into the lease agreement (this
condition applies to Airport Lands leased after June 1, 1986).
(Ord. 1134)
(d) If the tract of land proposed to be sold is not leased
land, or is leased land without substantial improvements, then
the tract of land may only be sold by outcry auction or by
competitive sealed bids. If the tract is to be put up for such
competitive auction or sealed bid sale, notice of sale and the
manner in which the land is to be sold shall be published in a
newspaper of general circulation within the City once each week
for two successive weeks not less than 30 days prior to the date
of sale; such notice shall also be posted in at least three
public places within the City at least 30 days prior to the date
of sale, and such other notice may be given by such other means
as may be considered advisable by the City Manager. Such notice
must contain:
(1) the legal description of the land,
(2) a brief physical description of the land,
(3) the area and general location of the land,
(4) the minimum acceptable offer for the land (which
shall be its appraised fair market value),
(5) the terms under which the land will be sold,
(6) any limitations- on the sale of said land,
(7) the time and place set for the auction or bid
opening,
the amount of deposit to be submitted with�,ach
[(8)] 1 L any other matters concerning the sale of
which the City Manager believes the public should be
informed.
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(e) If no offers are submitted meeting the minimum
acceptable offer (or appraised valuation), the City Manager may
negotiate,for sale of said tract or tracts of land with a
modification of proposed terms or for less than the appraised
valuation provided that no such negotiated sale for less than
appraised value shall be binding upoli the City unless the terms
and price thorein are approved by resolution of the City Council.
- (f) Where a real. estate agent furnishes a buyer for City
land, the closing agent shall be authorized to pay said agent a
real estate commission of five percent (5%) of the purchase price
for the land or five percent (5%) of the appraised fair market
value of the land, whichever is lower, under the following terms
and conditions:
(1) The City Manager shall provide a non-exclusive
listing of lands available for sale. -
(2) No commission shall be paid to an agent where said
agent is a party, or in privity with a party, to said sale.
(g) Closing of sale of City lands shall be handled by a
title or escrow company within the city which specializes in
closing of real estate sales.
(h) Conveyance of City lands shall be by quit claim deed
furnished by the City, and buyers are advised that all such
conveyances are subject to all liens, encumbrances, restrictions,
and covenants of record and are specifically, without being
limited thereto, subject to any unreleased restrictions contained
in the deed or deeds by which the City received title to the
land.
(i) If a buyer desires to obtain a preliminary commitment
for title insurance or title insurance to the land, then it shall
be the responsibility of the buyer to obtain such commitment or
insurance and to pay for the same.
(j) If the tract or tracts of land are sold under terms by
which the -City is to accept a note as a portion of the purchase
price, the note and accompanying deed of trust must be prepared
by an attorney, but must be approved by the City Attorney prior
to closing.
(k) Said note shall be placed for collection with a bank
selected by the City Manager, which may be changed from time to
time, and which shall be the bank in which City funds are
deposited. The set-up fee to initiate collection may be
negotiated as specified in KMC 22.05.040(i-), and the buyer shall
pay the annual collection fees for such bank collection.
(1) To enable the City to compete on an equal basis with
private enterprise in lands disposal, the City Managor is hereby
authorized to negotiate a division of the costs of sale listed in
KMC 22.05.040(g)(h)(i)(j) and (k) to a maximum of fifty percent
(50%) of the required costs being borne by the City, provided
however that no costs of sale will be paid by the City where a
sale is negotiated at a price below appraised Fair Market Value.
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