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HomeMy WebLinkAboutResolution No. 2025-67KENAI CITY OF KENAI RESOLUTION NO. 2025-67 Sponsored by: Administration A RESOLUTION AUTHORIZING THE PURCHASE OF PROPERTY INTERESTS FROM THE KENAI NATIVE ASSOCIATION FOR THE WILDWOOD DRIVE REHABILITATION PROJECT AND DETERMINING THAT THE PUBLIC INTEREST WILL NOT BE SERVED BY AN APPRAISAL. WHEREAS, the City of Kenai has authorized the Wildwood Drive Rehabilitation Project in the Fiscal Year 2026 budget in the amount of $1,200,000; and, WHEREAS, the Wildwood Drive Rehabilitation Project is a high priority for the City, having been identified in prior Capital Improvement Plans and listed as the number one project in the FY2026-2030 Capital Improvement Plan; and, WHEREAS, the project requires acquisition of certain property interests from the Kenai Native Association, Inc. (KNA) to construct and maintain an outfall sewer and access road; and, WHEREAS, pursuant to Kenai Municipal Code 22.05.135 (a), the City may acquire property needed for a public use on such terms and conditions as the Council determines; however, no purchase shall be made until a qualified appraiser has appraised the property and given the Council an independent opinion as to the full and true value, unless the Council, by resolution, finds that the public interest will not be served by an appraisal; and, WHEREAS, the property underlying the Wildwood Drive and Cook Inlet Drive rights -of -way was appraised in 2011 by MacSwain Associates, LLC, with a market value estimate of $395,000; and, WHEREAS, the negotiated purchase price for the required right-of-way interests is $200,000 and the public interest will not be served by an appraisal; and, WHEREAS, a draft Quitclaim Deed, attached as Exhibit A, includes the legal description of the property interests to be conveyed; and, WHEREAS, the City has completed design plans and is coordinating with the Alaska Department of Transportation & Public Facilities to identify funding sources and align construction with the contractor's schedule for the Kenai Spur Highway project, positioning Wildwood Drive improvements for construction during the 2026 season; and, WHEREAS, acquiring the required property interests from KNA is necessary for the completion of the project during the 2026 construction season and is in the best interests of the City. 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 execute a purchase agreement with the Kenai Native Association, Inc., in a form approved by the City Attorney, for the acquisition of the property interests required for the Wildwood Drive Rehabilitation Project. Section 2. That the City Manager is further authorized to execute a Quitclaim Deed and any other documents necessary to complete the transfer of those property interests, in a form approved by the City Attorney. New Text Underlined; [DELETED TEXT BRACKETED] Resolution No. 2025-67 Page 2 of 2 Section 3. That the Kenai City Council finds that acquisition of the subject property interests is in the best interests of the City, that the public interest will not be served by an appraisal, and that the City may acquiring the property for $200,000 plus any necessary closing costs. Section 4. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THI DAY OF M 2025. Ma ATTEST:( \ 6 f / / ichellk M. Saner,) MIMIC, City Clerk Approved by Finance: New Text Underlined; [DELETED TEXT BRACKETED] K[r Al City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.kenai.city MEMORANDUM TO: Mayor Knackstedt and Council Members FROM: Terry Eubank, City Manager DATE: November 21, 2025 SUBJECT: Resolution 2025-67 — Acquisition of Property Interests from the Kenai Native Association for the Wildwood Drive Rehabilitation Project This resolution authorizes the City to purchase property interests from the Kenai Native Association, Inc. (KNA) needed for the Wildwood Drive Rehabilitation Project and finds that obtaining a new appraisal is not in the public interest. The Wildwood Drive Rehabilitation Project is the City's top priority in the FY2026-2030 Capital Improvement Plan, with $1,200,000 appropriated for this project in the FY2026 budget. As part of the project design, it was determined that the City must acquire specific right-of-way interests from KNA. Without these property interests, the project cannot proceed to construction utilizing available funds during the 2026 construction year. Kenai Municipal Code 22.05.135(a) requires an appraisal before the purchase of property unless the Council finds it would not serve the public interest. In this case, the underlying property was previously appraised in 2011 by MacSwain Associates, LLC, for $395,000. Based on that prior valuation and the limited nature of the required interests, the Administration and KNA negotiated a proposed purchase price of $200,000. The City Attorney will review the final documents for form and legal compliance prior to execution. Project design is complete, and staff are coordinating with the Alaska Department of Transportation & Public Facilities to identify funding opportunities and align construction with the Kenai Spur Highway project. This coordination positions Wildwood Drive improvements for construction during the 2026 season. Acquisition of the property interests are necessary for the completion of the Wildwood Drive Rehabilitation Project and is in the City's best interest. Given the prior appraisal and negotiated price, obtaining a new appraisal would not serve the public interest and would delay the project. Passage of this resolution will allow the City Manager to move forward with execution of the purchase agreement, Quitclaim Deed, and associated documents, with a total acquisition cost not to exceed $200,000 plus any necessary closing costs. Thank you for your consideration. QUITCLAIM DEED The Kenai Native Association, Inc. (hereinafter GRANTOR), an Alaska Native Village Corp. organized under the laws of the State of Alaska, whose address is 215 Fidalgo Street, Suite 204B, Kenai, Alaska 99611, for and in consideration of the sum of TEN DOLLARS ($10.00) and other valuable consideration does hereby convey and quitclaim all right, title and interest to the City of Kenai, (hereinafter GRANTEE), whose address is 210 Fidalgo Ave., Kenai, Alaska 99611, for a road and outfall sewer right-of-way known as Wildwood Station Road, Wildwood Drive, Wildwood Road, Wildwood Extended, U.S. Military Right -of -Way, Military Reservation Road, Sanitary Outfall Sewer Line Right of Way, and Cook Inlet View Dr., including all water and sewer lines and improvements contained thereon extending as shown on Tract 4, Wildwood Corrections Plat KN 92-73, to the Cook Inlet, all within the Kenai Recording District, Alaska, more particularly described as follows: An 80-foot right-of-way for construction of and outfall sewer, being 40 feet each side of the centerline of manholes and more particularly described as: Starting from the center quarter corner of Sec. 25, T6N, R12W, Seward Meridian, thence North 74 feet along center section line to the centerline of outfall sewer which is the point of beginning , thence South 45 degrees 05 minutes West 1,290 feet to the center of Manhole No. 15; thence South 44 degrees 53 minutes West 1,161 feet to the centerline of the Kenai Spur Road; thence South 45 degrees13 minutes West 1,279 feet to the West line of sec. 25; thence South 45 degrees 11 minutes West 113 feet to the South line of Sec. 26; and, A 40 foot strip of land for an access road lying southeasterly and adjacent to the 80 foot right-of-way, extending from the military boundary at the quarter section corner of Sec. 25, T6N, R12W, Seward Meridian, to the easterly edge of Kenai Spur Road. Said right-of-way was conveyed to the Kenai Native Association Inc. by the United States of America in U. S. Patent 50-74-0109 dated March 28, 1974. Additionally, any interest conveyed by dedication or vacation of the following platting actions: Carl F. Ahlstrom Subdivision K-216, Black Gold Estates Subdivision Amended K-1399, Black Gold Estates Subd. No.2 KN-84-76, and any express easements of record.