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HomeMy WebLinkAboutORDINANCE 0910-1983Suggested by: Administration CITY OF KENAI ORDINANCE. NO. 910-63 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING TITLE 22 OF THE KENAI MUNICIPAL CODE BY CHANGING PROCEDURES RELATIVE TO THE SALE OF CITY LANDS. WHEREAS, certain provisions of Title 22 of the Kenai Municipal Code are unclear in defining situations which call for negotiated sale of land or for sale by auction ov sealed bids, and ttiHEREAS,`CeX 22.05.030(s) specifies that only the lessee of land with substantial improvements constructed thereon may init-iat0 the sale of said land, and the Administrations believes that this protection should be provided to all lessees, and WHEP.EAS, the Administration also believes that any good faith deposit for the purchase of City lani should be deposited with the City, and not with a real estate broker. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that: Section 1: KMC 22.05.030(a) is hereby amended as follows: 22.05.030 Sale: (a) Lands, except tax -foreclosed lands, to which the City of Kenai holds title which are not restricted from sale by the Deed of Conveyance to the City, or which have been released from such restrictions, which the City Council has determined are not required or a public purpose, .ray be listed for sale by the City Manager, except that lands which have been leased [AND HAVE SUBSTANTIAL 1MPROVZ*MENTS CONSTRUCTED THEREON] shall not be sold unless the Lessee has made a written request to the City to p13ce the land for sale. Section 2: KMC 22.05.030(b) is hereby amended as follows: (b) Sales of lands pursuant to sub -section (a) above may be made at not less than the fair market value set by an independent appraiser withir. six months of [PRIOR TO] the date of filing of applicatioet for sale or the date of the offer or advertisement for sale 1 VI; t� in Q_' (whinhever first otJcurs), either, at the option of the City Manager ;n accordance rc:;h sale procedures set out in this Title: (1) By negotiated sale, or (2) By outcry auction to the highest responsible bidder, or (3) By competitive sealed bids to the hinhent responsible bidder. Section 3: KMC ZZ.U5.0400)(1) is hereby amended as follows: (1) No actions in preparation for sale will be taken 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.. HI which shall consist of cash or its equivalent deposited with [THE REAL ESTATE BROKER, IF ANY, AND IF NONE WITH) the Finance Officer of the City of Kenai, as may be determined by the City Manager, to cover all expenses of the City if the applicant subsequently fails to bid or buy the land and the land ic not sold, and such agreement to purchase shall further contain the ayrz?Pment by applicant to pay any additional costs if said good faith deposit is inbufficient to pay all costs incurred by the City. Section 4: KMC 22.05.040(c) is repealed and re-enacted as follows: If the trait of land proposed to be sold is leased land upon which substantial improvements have been made, the lessee may, at his request, negotiate the sale of said Iand at not less than the fair market value set by an independent appraiser within six months of the date of filing of application for sale. Section 5: KMC 22.05.040(d) is repealed and re-enacted as follows: If the tract of land proposed to be sold is not leased land, or is leased land without substantial improve- ments, 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 sole and the manner in which they land is to be sold shall be published in a news- paper 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 av the City Manager. Such notice mutt contain: (1) the legal description of the land, (2) a brief physical description of tie land, (3) the area .and general location of the land, ',4) the minimum acceptable offer for the land Iwhich shall be its appraised fair market value), (S) 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, (8) any other matters concerning the sale of which the City Manager believes the public should be informed. PASSED BY THE COUNCIL OF THE CITY Of KENAI, ALASKA, this 4th day of January, 1984. IAA J "�i TO WAGONER, MOM ATTEST:. 6 W 4.2 � I/ Z-'Z" anet helan, ity Clerk I i First Reading: December 21, 1983 Second Heading: January 4, 1984 Effective Date: February 4, 1984 3 MEMO TO: Kenai C i t •r Co•irsc i t FR04: Charles A. Brown, Finance Uirrcctrir SUBJECT: Ordinance on land sales DATE: Oec.mber 12, 1993 The administration is req+.esting amendments to Title 22 of the City Code. TheStr chan^t.a Teri- a result of nu -serous :aeYt ings of the Lan] Manager, the City Atrnrney, the City Manager, and nyself. Each proposed char.,,e is e%plained below. Section 1 KY.0 22,05.030 (a) gays that cnly the lessee of of load land that has zubstantial improvements on the property nay req+iest that the land be so1d, We believe thr.t the distinction of improved or unimprewod sho+ild be deleted. The proposed change would wean that only a lessee of leased land (with or without improvements) may initiate the the -7--le of the subject land, Section 2 Thin is just for clarification and does not change tb- intent of the ordinrtnLe. Section 3 K:;C 22 ,05 .040 (b) (1) is: he int•--montlod to 5a7 that ti.e pond faith de•+c•Rit must be deposited with the City, nr:t witit thr• real hrn{er. This has, at tisio•., eno,_,!d confusion upon closing when the City it, not curt- if a depo•:it was actually made. There appnarr• to be no reason why all depositu couldn't be mado uitls the City. Section. 4 "this is the ::.ast necc.s:9ry ch:►n:v! being requ.­sted. Y.:d(, 22,05.r140 (c) cssrr•nrl•, reads: "{r) if tisr_ City Man.sger snows of no comp^.t i t iv± inters.t in the prtrchase of th tract of land propnz,±d to be s.ol+: znd if vaid tract is wit iea• ._-(J 1.1nd ii:un which rubst ant s -il iaprovt•:a-!ntrs have- been iun,l+•+ 'it- nny tlevotiattt the Sale of said 1�fN1 oni•, ntf r a •+a✓ tim,' pt{i+lizaLit+ti in a newapapor of ;,�n+•sal circui-iti'ssi within the Cite of a n-,ti.',c th-IL it i•_ hi- int"ni to sell •said tract (;ivinq tiv• lc:,ai dei;criprinn tist•crnf) fly n• H ;ntix •i alt• -in I.- tip rves-iveq notice of int•-r••st+ to n+ircha4t! -;aid tract frn^s oriu•r •ri:hin a:••n <i:t.•% aft••r .ha .fat.. of otjbiit-tt►ll of IR� i� •r E There .-.re two rhin;�a wrong with the above paragraph; (1) It nayn 611 City !1ana�r•r !aay ;:.•; r_ iatre a nal:- of land if he known of no competitive interent . To s-f f •ar-t , he never knows thin, He may not be aware of any intere_nt, or he may be•lievr.- that ther.-f is no interest, but h:: r,:,,not absolutely know it. (2) It a13o nay-3 tliat in nr•l,r to nr:fotiate a sole of land, the land nuat ;e "not leaned land ,ipon which a ibntnatial. improvements have been wade". Everybody in the, City Adrminintration who vas here at the tine this section was written renembern the City Council inatractinq, the Ci:y Attorney to make it possible for a lesnr.e witlr a building on his lot to buy the land by negotiated sale. The ordinance that was adopted reall; did the opposite. It Days we can negotiate a naie of unimproved leaned land (and, the way I read it, probably wion unleanea lanf) . The lanp.uage quoted above in clearly wrong. We are that ii a lessee ban substantial improvements on bin land, then he may buy the land at fair market value by rogoti atr:d oale. fir, determination concerning competitive interent by the City Manager is required. Section 5 The first partirin of KMC 22.05.040 (d) reads, "(d) If it appears to the City Manager that more than one party miy,,rt be interested in the pu,�chaoe of the tract proposed to be sold and if said tract in not leanod land upon -A ich substantial improvements have been triad(,, or if after pirbliuhin?, notice of negotiated Dale, tier: City Manager receives notice from other parties of interest therein, then the. City Manager shall put the tract or tracts of land up for r.alc, at his option, either t)y o.rt.cry auction or by competitive sealed hidO." The above- lan;•aage if; being than„ od so that if land in either r:oi. Leaned or :.n leaned without •:nisi ant i a1 impr•,v.•ssrrrtt n on i t , then the, land can Only be •sold by .emery rurction or noaled bide. No ne�Ot iat�•! sates, will be allowed for these typen Of l,rOp•crt,• n - A twin, ,per re delot in^ .'a11 reference to the (; i t y 'i.,n:rr! r b.• i ng aware )f rnmpet i t ivn i nr,vrent . The City Adminintration I,eliw-s; that the ahoy changes will make the land '53ie ordinances, e-a;,i•rr to invi••m..nt and will .11nn make, thin clearer to the ad:ainiatr•rr inn and prbI ir.