HomeMy WebLinkAbout2019-09-03 Council Minutes - Work SessionKENAI CITY COUNCIL WORK SESSION
LAND SALE AND LEASING ORDINANCE
SEPTEMBER 3, 2019 — 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
MAYOR GABRIEL, PRESIDING
NOTES
Council present: Mayor Gabriel, J. Glendening, H. Knackstedt, G. Pettey, B. Molloy, T.
Navarre
Others present: City Manager P. Ostrander, City Attorney, S. Bloom, City Clerk J. Heinz,
Assistant to City Manager C. Cunningham
A. Call to Order
Mayor Gabriel called the work session to order at 6:00 p.m.
B. Introduction — Mayor Gabriel
Mayor Gabriel introduced Council and staff members present.
C. Discussion on Ordinance No. 3072-2019 — Land Sale and Leasing Policies and
Procedures
City Manager, Paul Ostrander, noted the Ordinance had been introduced and reviewed by
certain commissions and the work session was being conducted to discuss the ordinance in
depth.
It was suggested the listed of types of improvements made on properties, which would be
purchased, may not include items that could come up in the future. Clarification was provided
that the intent was any improvement made on the property that stayed with the property but
the decision was ultimately up to Council and stating the intent and providing examples was
the best way to portray what was meant.
There was concern with a Bill of Sale included as a part of the lease renewal for confidentiality
reasons. Clarification was provided the Bill of Sale was proposed to prevent inflation of sale
prices; it was suggested a purchase agreement with a future closing date could be utilized.
Clarification was provided the definition of Fair Market Value was different than before and
had been run by an appraiser.
There was discussion regarding the forms being submitted to the City versus City Manager
given "City" was defined as including elected officials, officers, employees, or agents. It was
noted alternatives would be provided in a substitute ordinance to indicate that applications
were submitted to the City Manager and reviewed by City staff.
Clarification was provided that, in the case a lease applicant chose the option to purchase,
the applicant would be required to meet minimum commitments for title insurance and
associated costs. Clarification was also provided that the decision whether or not to lease
was a Council legislative decision and not subject to appeal.
Clarification was provided that provisions for conveyance of land in a non-competitive sale or
disposal process were put into the ordinance for cases such as someone accidentally building
a portion of their house across their property line and on City property, the City could sell the
homeowner a portion of City land rather than force the house torn down or moved; title
disputes were also suggested.
It was noted that in the case of a negotiated sale below fair market value where grant funds
were being utilized or the sale was to a non-profit, the City Manager had authorization to divide
the costs of the sale to a maximum of 50%
There was discussion regarding different standards throughout the document such as "in the
best interest of the City," "best interests," "advantageous to the city," "anticipated to best serve
the City," etc. It was noted those standards could be minimized and a report would be
provided.
There was discussion regarding the one-year requirement for an appraisal and what flexibility
there might be; clarification was provided the intent was one year from the date of application
because that was what the price was being set on.
Clarification was provided that the ordinance was written with as much objectivity as possible
and if Council saw a perceived subjectivity, it could be questioned. It was also noted that if
Council wanted to make something subjective, they could by including findings.
It was pointed out that the intent of the deposit required to cover subdivision costs in the case
of a lease, the intent was just the subdivision, not the construction of the subdivision.
It was noted there was an assumption there would be conversations before an application
was submitted and a timeframe for an application to be withdrawn for failsafe measures.
The uses of, "public use" and "public purpose" were discussed and it was decided the term
would be changed to "public purpose" throughout the ordinance.
It was noted flight path restrictions on certain parcels needed to be retained even if the
property was sold. It was also noted that clarification would be added for situations where the
decision was made to release Airport Fund property, the general fund needed to make the
airport fund whole.
There was discussion regarding financing terms and down payment requirements; suggested
the City shouldn't be in the business of financing if a bank wouldn't. It was also suggested that
there should be flexibility to lend to a business to entice them to locate in the City. It was
noted these were policy decisions and worth discussions.
It was noted sales and rehabilitation incentive options was what administration planned to
review next.
Clarification was provided that the lease form was different than the application form; that the
procedure section specified what was required on the application forms and the lease form
was a boilerplate document approved by Council. Clarification was also provided that use of
appraisers was dependent on price, that sometimes quotes from appraisers was needed, and
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that sometimes appraisers couldn't comply with the insurance requirements in our
procurement code.
D. Public Comment
Fred Braun thanked the Council and staff for the time spent on development of the regulations;
anxious to put to use.
E. Adjournment
The work session adjourned at 7:48 p.m.
Notes were prepared b
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