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HomeMy WebLinkAboutOrdinance No. 3380-2023KENAI CITY OF KENAI ORDINANCE NO. 3380-2023 Sponsored by: Baisden AN ORDINANCE AMENDING KENAI MUNICIPAL CODE 22.05.095 - METHODS OF SALE OR DISPOSAL, TO PROVIDE A VETERANS LAND PURCHASE PRICE DISCOUNT FOR CERTAIN RESIDENTIAL LAND PURCHASES. WHEREAS, the City Council is appreciative of the service of veterans in the United States Armed Forces and Alaska National Guard; and, WHEREAS, offering a once in a lifetime discount to veterans on the purchase of certain City owned land for the intended use as a single-family dwelling demonstrates this appreciation and is intended to encourage veterans to make the City their home; and, WHEREAS, the City has significant resources of undeveloped land and recognizes current challenges in the local housing market; and, WHEREAS, this discount is similar to land purchase discounts offered by the State of Alaska to veterans and is in the best interest of the City and its residents. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Amendment of Section 22.05.095 of Kenai Municipal Code: That Kenai Municipal Code, Section 22.05.095. Methods of sale or disposal, is hereby amended as follows: 22.05.095 Methods of sale or disposal. (a) 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 and that the City Council has determined are not required for a public purpose may be listed for sale by the City Manager. The decision whether or not to sell the land rests in the sole discretion of the City Council. (b) The City Council may by ordinance authorize the City Manager to dispose of such properties in accordance with the intent of this chapter as follows: (1) Noncompetitive Process. (i) Conveyance to encourage new enterprises where it is found that encouragement of a new commercial or industrial enterprise would be in the best interest of the City; one (1) or more parcels of City land may be sold upon such terms as to price, conditions of conveyance, and with such contingencies as may be set forth in the ordinance. (ii) Property sale to adjacent owners for the conveyance of a parcel of City property at fair market value to the owner of adjacent land whenever, in the judgment of the City Council, the parcel of land is of such small size, shape, or location that it could not be put to practical use by any other party. (iii) Grant or devotion of real property to the United States, the State of Alaska, a local political subdivision of the State of Alaska, or any agency of any of these governments New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3380-2023 Page 2 of 3 or a nonprofit corporation, for a consideration agreed upon between the City and grantee without a public sale if the grant, devotion or lease is in the best interest of the City. (iv) Conveyance of land to resolve a land use conflict. (2) Competitive Process. (i) Public outcry auction to the highest responsible bidder. (ii) Sealed bid to the highest responsible bidder. (iii) Over-the-counter sale after a public outcry auction or sealed bid process on a first -come basis, provided minimum development requirements are met within two (2) years of sale and the land is sold for fair market value. An appraisal to determine fair market value must be completed within a one (1) year period prior to the date of sale. (iv) Leased land in which the lease was subject to competition through the lease application review process and which contains an option to purchase once the minimum development requirements have been met for the fair market value of the land excluding permanent improvements made by the lessee. An appraisal to determine fair market value must be completed within a one (1) year period prior to the sale. (3) Property Exchange. Property exchanges for the conveyance and exchange of a parcel of City -owned property, including lands held for the use and benefit of the airport for property owned by another individual or legal entity subject to such conditions as Council may impose on the exchange, whenever the City Council makes findings it is in the best interest of the City to make the property exchange. (c) Any sale of land owned by the City of Kenai and held by it for the use or benefit of the Kenai Municipal Airport must include in any instrument conveying title to the property restrictions accepted by the City under the terms of the 1963 Quitclaim Deed from the United States of America recorded at Book 27, Page 303, at the Kenai Recording District, Kenai, Alaska, or any other land owned by the City and acquired with airport funds which may include similar restrictions. Additionally, any sale or disposal of the aforementioned lands for less than fair market value or exchange for less than equal value shall require a deposit in the amount of the difference to the Airport Land Sale Permanent Fund for the benefit of the Kenai Municipal Airport. d An eligible veteran is entitled to a discount of 25% off the purchase price of certain City land intended for the principal use as a single-family dwelling. 1. The City Manager or City Council must designate land prior to offer as available for this discount and the discount cannot result in costs incurred by the City due to restrictions on the property, including but not limited to properties restricted in use or sale by the federal government. 2. To be elia ible for a discount, a veteran must submit proof that the veteran is at lest 18 vears old, has been a state resident for a period of not less than one year immediately_ preceding the date of sale and has served in the Alaska Territorial Guard for at least 90 days unless the service was shortened due to a service connected disability or on active duty in the U.S. Armed forces at least 90 days, unless the tenure was shortened due to a service connected disability or due to receiving an early separation upon return from a tour of duty overseas, and has received an honorable discharge of a general discharge under honorable conditions. 3. A veteran is only entitled to one discount under this section during the veteran's lifetime. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3380-2023 Page 3 of 3 Section 2. 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 3. 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 15T" DAY OF NOVEMBER, 2023. ATTEST: Michelle M. Saner, C, City Clerk ,25�e,^ Brian Gabriel Sr., Mayor Introduced: November 1, 2023 Enacted: November 15, 2023 Effective: December 15, 2023 New Text Underlined; [DELETED TEXT BRACKETED] City of Kenai 210 Ficlalgo Ave, Kenai, AK 99611-7794 907.283.7535 www.kenai.city MEMORANDUM TO: Mayor Gabriel and Council Members FROM: James Baisden, Council Member DATE: October 24, 2023 SUBJECT: Veterans Land Purchase Price Discount This Ordinance is intended to allow certain veterans a once in a lifetime opportunity to buy designated City owned land for residential uses at a 25% discount in recognition of their service to our Country. The Ordinance is modeled after a state program that allows veterans to purchase certain state land at a similar discount. Land available for purchase at a discount would need to be designated by the City Manager or Council for such purchase. The sale discount would not apply to commercially zoned properties, or properties restricted by federal or state grants or deed restrictions. It is anticipated at some point in the future, City land intended for residential use will be made available for purchase and this potential discount would be available to verterans. Your consideration is appreciated.