Loading...
HomeMy WebLinkAboutORDINANCE 0612-1980ORDINANCE NO. 612-80 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REPEALING KMC 22.05.060 AND AMENDING KMC 21, KMC 22.05, AND KMC 7.30 TO PROVIDE FOR THE SALE OF CITY LANDS, TO ALLOW NEGOTIATED SALES AT APPRAISED MARKET VALUE, PROVIDING FOR TERMS AND CONDITIONS OF SAID SALES, PROVIDING FOR CITY FINANCING OF SAID SALES BY ACCEPTING NOTES SECURED BY DEEDS OF TRUST FOR A PORTION OF THE SALES PRICES THEREOF, AND PROVIDING FOR INVESTMENTS OF THE PRINCIPAL PROCEEDS FROM THE SALE OF AIRPORT LANDS. WHEREAS, the City has airport lands not devoted to airport uses which may be sold and other lands which may be sold in addition to lands received from tax foreclosures, and WHEREAS, it is desirable to sell these lands so they can be put to private use, so that the tax roles of the City will be expanded, so that the City will obtain funds to advance City projects, and also so that funds from the sale of airport lands �� can be devoted to investments to secure income for airport 6 development and operations, and WHEREAS, it is desirable to provide by ordinance for a program of land sales so that such sales can be promoted and the above purposes accomplished, and WHEREAS, in order to facilitate such sales and advance the program, it is felt desirable that terms be provided for the sales of such lands so that the City will carry notes secured by Deed of Trust for a portion of the purchase price thereof, and WHEREASp the City Council desires to set policies to initiate a program to encourage the sales of all City lands not set aside for a public purpose, NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: SecU.on it KMC 22.05.060 is hereby repealed. section 2.: That KMC 22.05.010 is hereby amended as follows: 022.05.010 Power to Dispose of Real Property: The City may sell, convey, exchange, transfer, donate, dedicate, direct or assign to use, or otherwise dispose of City -owned real property, including property acquired, held for or devoted to a public use, only in accordance with this chapter, and, with respect to properties acquired through foreclosure for taxes, in compliance with those terms and provisions of AS 29.53.360-385 which home -rule municipalities are required to comply with. Disposal or sale of lands shall be made only when, in the judgment of the City Council, such lands are = [NO LONGER] required for a public [MUNICIPAL] purpose[S]." Section 3s That KMC 22.05.030 is hereby repealed and re-enacted to read as follows: *22.05.030 fiAla: (a) All 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 for A [MUNICIPAL OR OTHER] public purpose[S], shall be listed for sale by the City Manager, except that lands which have been leased and have substantial improvements constructed thereon shall not be sold unless the Lessee has made a written request to the City to place the land for sale. "(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 within six months prior to the date of filing of application for sale or the date of the offer or advertisement for sale (whichever first occurs), either, at the option of the City Managers "1. By negotiated sale, or "2. By outcry auction to e e highest responsible bidder, or "3. By competitive sealed bids to the highest responsible bidder." "(c) Tax -foreclosed lands not previously set aside for public use shall be sold without regard to, or obtaining, appraised fair market value, either by outcry auction or by competitive sealed bids, at the option of the City Manager, to the highest responsible bidder. Such sale and proceeds thereof shall be subject to the rights of the former record owner and the Kenai Peninsula Borough as contained in KMC 22.05.090, KMC 22.05.100, AS 29.53.370, AS 29.53.375, and AS 29.53.380, Section 41 That KMC 22.05.040 is repealed and re-enacted to read as follows: '22.05.040 Sale Procedures (a) If the land to be sold has not been appraised by a qualified appraiser within six months of application for sale or the date of the offer or advertisement of land for sale (whichever first occurs), then the City Manager will obtain such an appraisal for a determination of the minimum price on said land. " (b) Where any party, hereinafter caned "Applicant," requests that a tract or tracts of land be sold for which an appraisal will be required, which will require subdividing, platting, or surveying and staking, or which will require advertising or incurring any other expenditures by the City prior to sale, "(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 (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 is not sold, and such agreement to purchase shall further contain the agreement by applicant to pay any additional costs if said good faith depc«:.t is insufficient to pay all costs incurred by the City. "(2) If at any time during the process of preparing for sale, the applicant gives notice to the City Manager of withdrawal of the request for sale, the City Manager shall stop all procedures, shall pay expenses incurred prior to 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 charged which can be attributed to the subsequent applicant.) 3 "(3) If all actions necessary for preparation for sale have been accomplished, and if neither the applicant nor any other party purchases said land when first offered for sale after such request, then all expenses incurred in 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 followed. "(4) If the land applied for is sold on public sale set 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. "M If the land in question is sold to applicant, the good faith deposit advanced will be applied on the payment due at closing. "cc) If the City Manager knows of no competitive interest in the purchase of the tract of land proposed to be sold and if said tract is not leased land upon which substantial improvements have been made, he may negotiate the sale of said land only after a one time publication in a newspaper of general circulation within the City of a notice that it is his intent to sell said tract (giving the legal description thereof) by negotiated sale unless he receives notice of interest to purchase said tract from other parties within seven days after the date of publication of said notice. "(d) If it appears to the City Manager that more than one party might be interested in the purchase of the tract proposed to be sold wr.,:' if said tract is not leased land i upon which substantial improvements have been made, or if after publishing notice of negotiated sale, the City Manager receives notice from other parties of interest therein, then ! the City Manager shall put the tract or tracts of land up for sale, at his option, either by outcry auction or by competitive sealed bids. If the tract or tracts are to be put up for su:n 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 weeke not less than 30 days prior to the date of i 4 sale; such notice (shall also be posted in at least 3 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. Said notice must contains "(1) "(2) "(3) the legal description of the land, a brief physical description of the land, 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, fW "(7) opening, any limitations on the sale of said land, the time and place set for the auction or bid "(S) any other matters concerning the sale of which the City Manager believes the public should be informed. "(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 upon the City unless the terms and price therein are approved by resolution of the City Council. "(f) where a real estate agent furnishes a buyer or grantee for City lands the closing agent shall be authorized to pay to said agent a real estate commission not to exceed 10% of the purchase price for the land or 10% of the appraised fair market value of the land, whichever is higher, under the following terms and conditionss "(1) The City Manager my grant exclusive listings of one or more parcels of land to one or more real estate brokers with the real estate commission set forth to be divided in accordance with normal practices of real estate brokers in the event that sale or conveyance is consummated. 5 "(2) If a parcel of land not subject to exclusive listing as set forth above is sold to a buyer furnished by a real estate agent, whether on negotiated sale or after a public sale, then the authorized real estate commission will be paid to the real estate agent furnishing said buyer by the closing agent on closing the transaction. If the parcel is subject to an exclusive listing and is sold to a buyer furnished by a real estate agent not holding such listing, then the authorized real estate commission will be divided equally between the agents." "(3) If a parcel of land not subject to an exclusive listing as set forth above is sold at public sale, and the applicant who instigated procedures for such public sale was furnished by a real estate agent, and the buyer at said ipublic sale was a different party furnished by a different real estate agent, then on closing of the transaction the �! closing agent shall be authorized to pay the real estate commission set herein to the real estate agents concerned, divided in accordance with normal real estate practice as though the real estate agent furnishing the applicant had been granted a listing to the property and the real estate agent furnishing the ultimate buyer had furnished the buyer of the property. If the parcel is subject to an exclusive listing and neither of the agent-- as set forth herein holds such listing, then the authorized commission will be divided and paid one-half to the agent holding the exclusive listing and one-fourth to each of the other two agents." SI ' "(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 rotate sales. "(n) Conveyance of City lands shall be by gait 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 an yy unreleased restrictions ountained in the deed or deeds by which the City received title to the land. " M 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. 6 "(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 (1), 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 Manager is hereby authorized to negotiate a division of the costs of sale listed in 22.05.040(g) (h) (i) (j) & (k) to a maximum of 50% of the required costs being borne by the City, provided however that no costs of sale will be pui6 by the City where a sale is negotiated at a price below appraised Fair Market Value." Section Ss That the Kenai Municipal Code is hereby amended by adding a new section to be numbered KMC 22.05.045 which shall read as f of lows s *22.05,045 Terms For Financing, Sale of City Lands: (a) In order to expedite and facilitate the sale of City 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 purchased price thereof except as follows: "(1) if the sale is to a lessee who has placed a lien for financing upon the land, then the City Manager is not authorized to sell the land except for total cash payment unless the party holding the lien upon the land agrees to subordinate said lien to the Note and Deed of Trust to be taken by the City for sale of the land, and "(2) Prior to making a determination to except 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 7 the local recording district, and no credit will be advanced on such sale if there are .any liens or unpaid Judgments found in the title company report until any such judgments or liens are paid and releases therefor have been filed. "In the event of a credit sale, the down payment required shall be determined by the City Manager, but shall not to less than 15% of the sales price." "(3) The City Manager is not authorized to accept terms for the sale of tax -foreclosed lands unless the down payment to be received thereunder, or other sums 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 29.53.380.0 "(b) If the City Manager determines that it is in the City's interest to accept a note for partial payment for sale of lands, such note shall be secured by a deed of trust to the lands purchased, and shall carry terms as follows: "(1) The term of such note may be set by the City Manager, but it shall 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 determined by the City Council by resolution." section b That KMC 7.30.030 is hereby amended as follows: 07.30.030 Airport Land Revenue Fund Account: JAI That there be and is hereby created a special account of the City to be known as the Airport Land Revenue Fund Account (hereinbefore defined as the "Land Fund Account.") ",!],1, The City hereby covenants and agrees that all income and revenues arising from the rental, lease, or interest on notes from sale of the lands in the Airport Land System shall be deposited to the credit of said account and held in the custody of the Treasurer of the City separate and apart from all other funds. Such Land Fund Account shall be maintained [FOR AS LONG AS ANY OF THE BONDS AND ANY PARITY BONDS ARE OUTSTANDING] in a bank which is a member of 8 the Federal Deposit insurance Corporation for as long as an of the Bonds and any parity Bonds are outstanding and shal be expended and used by the City only for the purposes and in the order hereinafter specified. "(2) Current expenses of the Airport Land System shall be payable as a first charge from the Land Fund Account as the same become due and payable. Current expenses of the Airport Land System shall include all necessary operating expenses, current maintenance charges, expenses of reasonable upkeep and repairs, and all other expenses incident to the operation of the Airport Land System, but shall exclude depreciation and all general administrative expenses of the City. 10--ol—w-MIUM MY TM ;= 11 "Section 7s That KMC 22.05.090 (b) is hereby amended as fol lows$ "(b) [TAX FORECLOSED PROPERTIES] Properties conveyed to the City by tax -foreclosure and not required for public purpose shal]. [MAY] be sold pursuant to the provisions of this section. KMC 22,05_030, 045. and 100, and AS 29,53=370 -"j. Before the sale of tax -foreclosed property held for a public purpose, Council, by ordinance, shall determine that a public need does not exist. The ordinance shall contain the information required in (a) of this section," section 8s That the Kenai Municipal Code is hereby amended by adding a new section to be numbered KMC 22.05.025 which shall read as follows: 022.05.025 Conveyance to Encourage New InduotXJAJ Enterprises: (a) Notwithstanding any other provisions of this chapter, where it is found that encouragement of a new industrial enterprise would increase the economic stability of the City of Kenai and would be beneficial to the City of Kenai, the City Council by resolution so finding may direct con-rcrance of one or more parcels of City land by the City Manager to such industrial enterprise upon such terms as to price, conditions of conveyance, and with such contingencies as may be set forth in said resolution. "(b) In the event the land directed to be conveyed under sub -section (a) above consists in part or in whole of airport lands, then the resolution ordering its conveyance will not be effective until the City Council by ordinance has appropriated from the general fund to be dedicated to the Airport Investment Reserve the difference between the appraised fair market value of said al& vrt lands and the purchase price, if any, set forth in said resolution." PASSED BY THE COUNCIL OF THE CITY of January, 1980, 10 OF KENAI, ALASKA, this 7th day VINCENT O'REILLrAY R ATTE$Ts J et Whelan, City Clerk ME 11 First Readings Second Readings Third Readings Fourth Readings Effective Dates September 17, 1980 November 5, 1980 December 3 , 1980 January 7, 1981 February 71 1981