HomeMy WebLinkAboutOrdinance No. 3305-2022Nallff
CITY OF KENAI
ORDINANCE NO. 3305-2022
Sponsored by: Administration
AN ORDINANCE CONDITIONALLY GRANTING CERTAIN FORECLOSED CITY -OWNED
PROPERTIES DESCRIBED AS LOTS 8 & 11, BLOCK 9 AND LOT 4, BLOCK 10, MOMMSEN'S REPLAT
OF ADDITIONS NO. 1 & 2 (PARCEL NUMBERS 03910211, 03910208 AND 03910304) TO CENTRAL
PENINSULA HABITAT FOR HUMANITY, INC. FOR CONSTRUCTION OF HOUSING.
WHEREAS, Kenai Municipal Code 22.05.095(b)(iii) allows the Council, by Ordinance, to grant or devote
a piece of real property to a nonprofit corporation; and,
WHEREAS, Central Peninsula Habitat for Humanity, Inc. is a nonprofit charitable housing organization
and has identified Lot 8 & 11, Block 9, and Lot 4, Block 10, Mommsen Subdivision Replat Addition No. 1
& 2, (parcel Numbers 03910211, 03910208 and 03910304) as properties meeting the needs of their
organization; and,
WHEREAS, the above -referenced properties were acquired through tax and special assessment
foreclosures (judgement year was 1987); and,
WHEREAS, Ordinance 1414-91 declared the properties were not needed for a public purpose and could
be sold; and,
WHEREAS, the recently adopted City of Kenai Land Management Plan reestablished the properties are
not needed for a public purpose and recommends disposal; and,
WHEREAS, Ordinance 2942-2017 authorized the City Manager to transfer these lots to Habitat for
Humanity, Inc. at less than fair market value for the sole purpose of construction of single-family
residences subject to conditions; and,
WHEREAS, due to COVID-19 pandemic workplace guidance procedure as issued by the Center for
Disease Control, the outlined schedule of construction in Ordinance 2942-2017 could not be met; and,
WHEREAS, it is advantageous to the City of Kenai to grant these lots to Central Peninsula Habitat for
Humanity, Inc. to provide needed safe affordable low income housing over the next few years, which will
produce tax revenue for the City of Kenai, rather than having these lots remain vacant; and,
WHEREAS, the lots are zoned and of appropriate size for the intended development; and,
WHEREAS, The Imagine Kenai 2030 Comprehensive Plan outlines goals, objectives, and action items
for the City, including the following supporting this application: Objective Q- 4 - Promote the siting and
design of land uses that are in harmony and scale with surrounding uses: Objective ED -1 - Promote the
infill of existing, improved subdivision lots, and;
WHEREAS, at their regular meeting of June 22, 2022 the Planning and Zoning Commission
recommended donation of the above lots to Habitat for Humanity, Inc.
ii NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
Ly FOLLOWS:
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Ordinance No. 3305-2022
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Section 1. That the Kenai City Council herby authorizes the City Manager to execute the transfer of
title of certain foreclosed City -owned real properties described as Lot 8 and 11, Block 9, and Lot 4, Block
10, Mommsen's Replat of Addition No. 1 & 2 (Parcel Numbers 03910211, 03910208 and 03910304) to
Habitat for Humanity, Inc. for less than market value and for sole purpose of the construction of single-
family residences, subject to the following conditions:
1. Central Peninsula Habitat for Humanity, Inc. shall pay the sum of taxes and assessments owed to
the Kenai Peninsula Borough and the City of Kenai upon transfer of ownership to Central Peninsula
Habitat for Humanity, Inc.
2. Up to three parcels will be granted for construction to Central Peninsula Habitat for Humanity, Inc.
Upon timely completion of the first project, a second parcel may be conveyed. Upon completion of
the second project, a third parcel may be conveyed. All projects must be completed by December
31, 2028.
Section 2. That the Kenai City Council further finds the disposal of the subject parcel to be in the best
interests of the citizens of the City of Kenai and the public interest shall be served by disposing of the
property interest for less than fair market value, in accordance with the recitals above which are
incorporated herein.
Section 3. Severability: That if any part or provision of this ordinance or application thereof to any
person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall
be confined in its operation to the part, provision, or application directly involved in all controversy in
which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder
of this title or application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days
after enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 7TH DAY OF SEPTEMBER,
2022.
Brian Gabriel Sr., Mayor
Michelle San M , City Clerk
Approved by Finance: d` —
Introduced: August 17, 2022
Enacted: September 7, 2022
Effective: October 7, 2022
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KENAI
— -1 _...enai 1210 Fidalgo Ave, Kenai, AK 99611-77941907.283.75351 www.6naixity
MEMORANDUM
TO:
Mayor Gabriel and Council Members
THROUGH:
Paul Ostrander, City Manager
FROM:
Max Best, Interim Planning Director
DATE:
August 17, 2022
SUBJECT:
Donation of Lots to Central Peninsula Habitat for Humanity, Inc.
Ordinance 3305-2022
On February 6, 1991 the Kenai City Council passed Ordinance No. 1414-91 declaring certain
foreclosed properties were not needed for a public purpose and could be sold.
r On January 21, 2009, the Council passed Ordinance 2373-2009, approving the donation of
certain foreclosed City -owned lots in Mommsens Subdivision Replat of Additions 1 & 2 to Habitat
for Humanity for construction of housing, so long as the sum of taxes and assessments owed to
the Kenai Peninsula Borough and the City of Kenai are paid at the time of transfer. Five homes
were constructed by 2015 under Ordinance 2373-2009 with a collection of water and sewer
service fees and a taxable value of over one million dollars.
Subsequently, on April 5, 2017 the Council passed Ordinance 2942-2017 approving the donation
of five additional lots in Mommsens Subdivision to Habitat for Humanity with similar transfer
conditions and timelines as required in Ordinance 2373-2009. Due to COVID-19 pandemic
workplace guidance procedures as issued by the Center for Disease Control the timeline in the
ordinance for additional projects was not met and only one house was completed.
On May 30, 2022, staff received a letter form the Central Peninsula Habitat for Humanity, Inc.
requesting to continue construction of housing on Second Street parcels as agreed to in
Ordinance 2942-2017 for conditional donation, which has expired.
After public notification, Amy Fisher an adjoining property owner submitted a requested for
purchase of a Habitat for Humanity selected lot adjacent to her residence on Second Avenue.
After discussions with Amy Fisher, Habitat for Humanity agreed to withdraw 1107 Second Street
from the request for conditional donations for construction of housing. The proposal is now for
three parcels: Lots 8 & 11, Block 9, and Lot 4, Block 10 Mommsens Subdivision Replat of
Additions 1 & 2.
It is advantageous to the City to donate the lots in accordance with timelines and conditions
contained in the Ordinance to Habitat for Humanity, Inc. and have residences constructed on the
lots over the next few years. Having residences on the lots as opposed to vacant lots would
provide revenue from payment of property taxes levied by the Kenai Peninsula Borough. In
addition, the City will receive water and sewer payments of the services provided to the
homeowners.
Thank you for your consideration.
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The City of Kenai I www.kenaixity
KENAI
- -1 -
..enai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 907.283.7535 1 www.kenai.city
MEMORANDUM
TO: Planning and Zoning Commission
FROM: Ryan Foster, Planning Director
DATE: June 17, 2022
SUBJECT: Action/Approval: Recommending the City Council Approve Ordinance
No. XXXX-2022 — Approving the Conditional Donation of City Owned
Parcels to the Central Peninsula Habitat for Humanity, Inc.
On May 30, 2022, staff received a letter from the Central Peninsula Habitat for Humanity, Inc.
requesting to continue with the construction of housing on Second Street parcels agreed to in
Ordinance 2942-2017 for a conditional donation, which has expired. In the letter, it was noted that
Habitat for Humanity has not built homes for the past two years due to COVID-19. After
discussions with Amy Fisher, Habitat for Humanity agreed to withdraw 1107 Second Street from
their request for conditional donations for construction of housing. The proposal is now for:
1109 Second Street (#03910208)
• 1106 Second Street (#03910304)
• 1103 Second Street (#03910211)
The parcels are within the Suburban Residential (RS) Zone. Pursuant to KMC 14.20.065, the
purpose of the RS Zone is intended to provide for medium density residential development in
areas which will be provided with common utility systems. The construction of single family homes
would be consistent with this zoning district. Both City sewer and water services are located
adjacent to the subject properties.
The Imagine Kenai 2030 Comprehensive Plan outlines goals, objectives, and action items for the
City, including the following supporting this request:
Objective Q- 4: Promote the siting and design of land uses that are in harmony and scale
with surrounding uses.
Objective LU -2: Promote the infill of existing, improved subdivision lots.
Please review the attached materials.
Does the Commission recommend Council approve the conditional donation of City owned
parcels to the Central Peninsula Habitat for Humanity, Inc.?
Attachments:
Letter Requesting Conditional Donation to Habitat for Humanity
Email Withdrawing 1107 Second Street from Their Request
Ordinance 2942-2017
Requested Second Street Parcels Map
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The City ai I www kenai.city
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Page 69
J
KENA
1109 Second Street (#03910208)
1106 Second Street (#03910304)
1103 Second Street (#03910211)
Sponsored by: City Manager
CnT OF KENAI
ORDINANCE NO. 2942 •2017
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA,
CONDITIONALLY DONATING CERTAIN FORECLOSED CITY -OWNED PROPERTIES
DESCRIBED AS LATS 8, 9, AND 11, BLOCK 9, AND LOTS 4 AND 5, BLOCK 10,
MOMMSENS SUBDIVISION REPLAT OF ADDN. 1 & 2, ADDN, NO. 2, (PARCEL
NUMBERS 03910208; 03910209; 03910211; 03910304 AND 03910305) TO CENTRAL
PENINSULA HABITAT FOR HUMANITY, INC. FOR CONSTRUCTION OF HOUSING.
WHEREAS, Kenai Municipal Code 22.05.125 allows the Council, by Ordinance, to
donate foreclosed real property no longer needed by the City for public purpose to a
non-profit corporation, for consideration agreed upon between the City and Grantee
without a public sale, if it is advantageous to the City; and,
WHEREAS, Central Peninsula Habitat for Humanity, Inc. is a non-profit charitable
housing organization and has identified Lots 8, 9, and 11, Block 9, and Lots 4 and 5,
Block 10, Mommsens Subd. Replat Addn. No. 1 & 2, Addn. No. 2 (Parcel Numbers
03910208; 03910209; 03910211; 03910304; and 03910305) - (See Attachment B) as
properties meeting the needs of their organization; and,
WHEREAS, the above -referenced properties were acquired through tax and special
assessment foreclosures (judgement year was 1987); and,
WHEREAS, Ordinance No. 1414-91 declared the properties were not needed for a public
purpose and could be sold; and,
WHEREAS, the subject properties have been included in public foreclosure sales in
2005 and 2007 where no bids to purchase were received; and,
WHEREAS, it is advantageous to the City of Kenai to donate these lots to Central
Peninsula Habitat for Humanity, Inc. to provide needed safe affordable low income
housing over the next few years, which will produce tax revenue for the City of Kenai,
rather than having these lots remain vacant; and,
WHEREAS, at their regular meeting of March 22, 2017 the Planning and Zoning
Commission reviewed the subject Ordinance and recommends the Council of the City
of Kenai enact this Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that:
Section 1. Form: That this is a non -code ordinance.
Section 2. That the Kenai City Council hereby authorizes the City Manager to execute
the transfer of title of certain foreclosed City -owned real properties described as Lots 8,
9, and 11, Block 9, and Lots 4 and 5, Block 10, Mommsens Subd. Replat Addn. No. 1
& 2, Addn. No. 2 (Parcel Numbers 03910208; 03910209; 03910211; 03910304; and
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Ordinance No. 2942-2017
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03910305), to Habitat for Humanity, on a form approved by the City Attorney, for less
than fair market value and for the sole purpose of the construction of single-family
residences, subject to the following conditions:
1. Central Peninsula Habitat for Humanity, Inc. shall pay the sum of taxes
and assessments owed to the Kenai Peninsula Borough and the City of
Kenai, upon the transfer of ownership to Central Peninsula Habitat for
Humanity, Inc. from the City of Kenai.
2. Up to five parcels will be granted for construction to Central Peninsula
Habitat for Humanity, Inc. The grants will be according to the following
timeline: One parcel will be granted for the 2017 construction season.
Construction must be complete on the parcel by the end of 2()18. Upon
timely completion of that project, the second parcel may be granted. The
second project must be completed by the end of 2020. Upon timely
completion of the second project, a third parcel may be granted. The third
project must be completed by the end of 2022. Upon timely completion of
the third project, a fourth parcel may be granted. That project must be
completed by the end of 2024. Upon timely completion of the fourth
project, a fifth parcel may be granted. The fifth project must be completed
by the end of 2026.
Section 3. That the Kenai City Council further finds the disposal of the subject parcel
to be in the beat interests of the citizens of the City of Kenai and that the public interest
shall be served by disposing of the property interest for less than fair market value, in
accordance with the recitals above which are incorporated herein.
Section 4. Severability: That if any part or provision of this ordinance or application
thereof to any person or circumstances is adjudged invalid by any court of competent
jurisdiction, such judgment shall be confined in its operation to the part, provision, or
application directly involved in all controversy in which this judgment shall have been
rendered, and shall not affect or impair the validity of the remainder of this title or
application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part,
provision, or application.
Section b. Effective Date: That pursuant to KMC 1. 15.070(f), this Ordinance shall
take effect 30 days after adoption.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of April,
2017.
BRIAN GABRIEL, SR., MAYOR
Approved by Finance -Introduced: March 15, 2017
" Adopted: April 5, 2017
Effective: May 5, 2017
Attachments: A - C
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