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HomeMy WebLinkAboutResolution No. 2022-70KENAI CITY OF KENAI RESOLUTION NO. 2022-70 Sponsored by: Administration A RESOLUTION AUTHORIZING CHANGES TO THE PAYMENT TERMS OF THE SET NET DRIVE STREET IMPROVEMENT SPECIAL ASSESSMENT DISTRICT, THE ALIAK, MCCOLLUM, JAPONSKI STREETS IMPROVEMENT SPECIAL ASSESSMENT DISTRICT, THE THOMPSON PARK, BEAVER CREEK ALASKA, MACK, VALHALLA HEIGHTS AND SUNSET RIM SUBDIVISIONS STREET IMPROVEMENT SPECIAL ASSESSMENT DISTRICT, THE SOUTH AMES ROAD LID STREET IMPROVEMENT DISTRICT, AND THE JAMES STREET AND KIANA LANE IMPROVEMENT SPECIAL ASSESSMENT DISTRICT IN AN EFFORTTO RESOLVE THE REMAINING DELINQUENT ACCOUNTS OF THE DISTRICTS. WHEREAS, confirmation of the assessment role and the repayment terms of the Set Net Drive Street Improvement Special Assessment District were adopted by Resolution 2008-14; and, WHEREAS, confirmation of the assessment role and the repayment terms of the Aliak, McCollum, Japonski Streets Improvement Special Assessment District were adopted by Resolution 2008-15; and, WHEREAS, confirmation of the assessment role and the repayment terms of the Thompson Park, Beaver Creek Alaska, Mack, Valhalla Heights and Sunset Rim Subdivisions Streets Improvement Special Assessment District were adopted by Resolution 2008-71; and, WHEREAS, confirmation of the assessment role and the repayment terms of the South Ames Road LID Street Improvement Special Assessment District were adopted by Resolution 2009-58; and, WHEREAS, confirmation of the assessment role and the repayment terms of the James Street and Kiana Lane Improvement Special Assessment District were adopted by Resolution 2012-65; and, WHEREAS, nine accounts remain from these five different special assessment districts all of which are in delinquency status; and, WHEREAS, the repayment term of each district varied based upon the size of the district but the penalty and interest terms were the same at 10% annual interest and 10% penalty on delinquent balances; and, WHEREAS, the City has perfected its interest by filing a lien on the subject parcels to ensure payment to the City in the event the parcels are sold or the owners seek financing using the property as collateral; and, WHEREAS, additional legal action seeking a judgement against the owners or foreclosure are not desirable options of the City at this time; and, WHEREAS, the City is seeking additional flexibility in its attempts to secure repayment and resolve the delinquencies; and, WHEREAS, for the eight properties who's assessed value, as determined by the Kenai Peninsula Borough, are in excess of the accrued balance of the special assessment district, the City shall amend the repayment terms of the district to allow repayment of the balance as of the date of this Resolution, including any outstanding principle, accrued interest and accrued penalty, interest and penalty free for a period not to exceed ten years subject to the following conditions: New Text Underlined; [DELETED TEXT BRACKETED] Resolution No. 2022-70 Page 2 of 2 1. The property owner shall sign a confession of judgement for the balance as of the date of this Resolution. 2. Payment terms shall require monthly payments for a period of time not to exceed 120 months. 3. The terms of the new payment plan, for those individuals who violate its terms, shall revert to the original payment terms of its improvement district. WHEREAS, for the one property who's assessed value, as determined by the Kenai Peninsula Borough, is less than the accrued balance of the special assessment district, the City shall accept the proceeds from sale of the property, for which a purchase offer in the amount of $19,500 currently exists, less fees, real estate commissions, and less $1,000 as payment and in addition, once the net proceeds are received the City shall release its lien on the property and will not attempt to collect the remaining balance from the estate of the former owners of the property. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to negotiate and amend the repayment terms of the special assessment districts for parcels 04941024, 04509028, 04509035, 04908421, 04909214, 04927015, 04927015, and 04513060 pursuant to the terms of this Resolution. Section 2. That the City Manager is authorized to negotiate and amend the repayment terms of the special assessment district for parcel 04513061 pursuant to the terms of this Resolution. Section 3. The original repayment terms of each district will remain in effect for those parcels for which new payment terms are not agreed to or for those parcels for which the terms of the new payment plan are violated. Section 4. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF OCTOBER, 2022 Brian Gabriel Sr., Mayor ST: Michell S e , MMC, City Clerk New Text Underlined; [DELETED TEXT BRACKETED] KENAI _, _. ,enai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1 907.283.75351 www 6nai.ciky MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: September 29, 2022 SUBJECT: Resolution 2022-70 Authorizing Amendment to the Payment Terms of Various Special Assessment Districts of the City. The purpose of this memo is to recommend adoption of Resolution 2022-70 which will amend the payment terms of the Set Net Drive Street Improvement Special Assessment District, the Aliak, McCollum, Japonski Streets Improvement Special Assessment District, the Thompson Park, Beaver Creek Alaska, Mack, Valhalla Heights and Sunset Rim Subdivisions Street Improvement Special Assessment District, the South Ames Road LID Street Improvement District and the James Street and Kiana Lane Improvement Special Assessment District. Remaining from these special assessment districts are nine properties which are in delinquency to the City. The term of repayment varies by district and was dependent upon the amount of the original assessment. The interest and penalty rate for each district is the same at 10% annual interest on principle and a 10% penalty on delinquent balances. The City's has protected its interest by placing liens on each property. In an effort to resolve the delinquencies with no forgiveness of accrued interest or penalty it is recommended the payment terms of each district be amended as follows: 1. For the eight properties who's assessed value, as determined by the Kenai Peninsula Borough, are in excess of the accrued balance of the special assessment district, the City shall amend the repayment terms of the district to allow repayment of the balance as of the date of this Resolution, including any outstanding principle, accrued interest and accrued penalty, interest and penalty free for a period not to exceed ten years subject to the following conditions: a. The property owner shall sign a confession of judgement for the balance as of the date of this Resolution. b. Payment terms shall require monthly payments for a period of time not to exceed 120 months. c. The terms of the new payment plan, for those individuals who violate its terms, shall revert to the original payment terms of its improvement district. 2. For the one property who's assessed value, as determined by the Kenai Peninsula Borough, is less than the accrued balance of the special assessment district, the City shall accept the proceeds from sale of the property, for which a purchase offer in the amount of $19,500 currently exists, less fees, real estate commissions, and less $1,000 as payment and in addition, once the net proceeds are received the City shall release its lien on the property and will not attempt to collect the remaining balance from the estate of the former owners of the property. Properties who refuse these new terms will remain subject to the original payment terms of each special assessment district. Your support is respectfully requested. Page 2 of 2 The City of Kenai I www.6nai.city