HomeMy WebLinkAboutORDINANCE 1001-1984;
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Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 1001-84
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA,
PROVIDING TERMS FOR FINANCING THE SALE OF CITY LANDS BY REPEALING
& RE-ENACTING KMC 22.05.045.
WHEREAS, the City of Kenai owns, leases, and sells land owned by
the City to private individuals, and
WHEREAS, such disposition of City -owned land is in the public
interest by promoting the economic growth and well-being of the
City of Kenai and by promoting the enhancement of the basis for
taxation, and
WHEREAS, the efficiency of the land disposal procedure and the
security position of the City would be improved through the
exclusive use of notes secured by trust deeds in the transaction
of all land sales, and
WHEREAS, the promotion of economic growth and development in the
City of Kenai would be served by allowing the City to subordinate
its security interests so long as the City's note remains secured
by the fair market value of the property in question.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
KENAI, ALASKA, as follows:
Section 1: KMC 22.05.045 is hereby repealed and re-enacted
as folio we :
22.05.045 Terms for Financing Sale of CitX Lands:
(a) In order to expedite and acilitotc the cn c of Cit,
lands, the City Manager is hereby authorized to accept terms for
said sales and may accept a note secured by a deed of trust for a
portion of the purchase price thereof, subject to the following
restrictions:
(1) if the sale is to a lessee who has placed a lien for
financing upon the land or improvements, then the City
Manager is not authorized to sell the land except for total
cash payment, provided, however, that the City Manager may
accept a note secured by a deed of trust subordinate to the
existing security interest if the amount of the note thereby
secured is within the difference between the fair market
value of the land with improvements, and the sum of all
1
prior security interests. The sale documents shall be
subject to the same restrictions contained in the lease as
the lease provides at the time of sale.
(2) Prior to making a determination to accept a note and
deed of trust from a prospective purchaser, the City Manager
shall secure a grantee index covering the party desiring to
purchase the land from the title company in the recording
district in which said party resides and also in the local
recording district, and no credit will be advanced on such
sale if there are any delinquent liens or unpaid judgments
found in the title company report until any such judgments
or liens are paid and releases therefor have been filed.
(3) in the event of a credit sale, the down payment
required shall be determined by the City Manager, but shall
,iot be less then 15e of the sales price.
(4) The City Manager is not authorized to accept terms for
this sale of tax -foreclosed lands unless the down payment to
be received thereunder, or other stems appropriated for the
purpose, are sufficient to make immediate payment to the
Kenai Peninsula Borough and the former record owner of the
sums which are, or may become, due to them pursuant to the
provisions of AS 29.53.380.
(b) If the City Manager determines that it is in the City's
Interest to sell City lands, the sale shall be either a cash
transaction or by a note secured by a deed of trust, subject to
paragraph (a) above, and by no other means. The note and deed of
trust shall tarry terms as follows:
(1) The term of such note may be set by the City Manager,
but it shall provide for monthly payments and not exceed 20
years unless a longer period for a specific sale of land is
approved by resolution of the City Council.
(2) Such note shall bear interest at a rate to be deter-
mined by the City Council by resoltition.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day
of January, 1985.
TOM W GO E , M
ATTEST:
et Whelan, y lerk
First Reading: December 19, 1984
Second Reading: January 2, 1985
Effective Date: February 2, 1985