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Home My WebLink AboutOrdinance No. 2300-2008Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2300-2008 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, DONATING CERTAIN FORECLOSED CITY-OWNED PROPERTIES DESCRIBED AS LOTS 1 - 5, BLOCK 10, MOMMSENS SUBDIVISION REPEAT OF ADDN. 1 8v 2 (PARCELS 039-103-01 THROUGH 039-103-OS), TO AMUNDSEN EDUCATIONAL CENTER FOR CONSTRUCTION OF HOUSING. WHEREAS, KMC 22.05.125 allows the Council, by ordinance, to donate foreclosed real property no longer needed by the City for public purpose to anon-profit corporation, for a consideration agreed upon between the City and grantee without a public sale if it is advantageous to the City; and, WHEREAS, Amundsen Educational Center is anon-profit vocational training educational institution and has identified Lots 1 - 5, Block 10, Mommsens Subdivision Replat of Addn. 1 8r, 2 (Parcels 039-103-01 through 039-103-05 -see attachments) as properties meeting the needs of the center; and, WHEREAS, the referenced properties were acquired through tax and special assessment foreclosures (judgment 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 properties have been included in several public foreclosure sales where no bids to purchase were received. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that certain foreclosed city-owned properties described as Lots 1 - 5, Block 10, Mommsens Subdivision Replat of Addn. 1 Sv 2 (Parcels 039-103-01 through 039-103-OS), be donated to Amundsen Educational Center for construction of housing, subject to the following conditions: 1) Amundsen Educational Center is willing to pay the sum of taxes owed to the Kenai Peninsula Borough, and the City of Kenai assessments owed, at the date of closing of the sale to the new owner; and, 2) Up to three parcels will be granted for construction in the 2008 - 2009 school year and once the dwellings are completed (or near completion), and taxes and assessments are paid, a deed for the remaining parcels will be granted, with the stipulation that dwellings be constructed on the properties by December 31, 2011, or the properties will be returned to the City. Ordinance No. 2300-2008 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this seventh day of May, 2008. PAT PORTER, MAYOR ATTEST: ~~~ Carol L. Freas, City Clerk Introduced: April 16, 2008 Adopted: May 7, 2008 Effective: June 7, 2008 Attachments ~~~ '\ Approved by Finance (3/28/08)kh ~mu~ldsen ~! Educational Center 1~~ ~ ~ S`c>trttfcar:af Trcainin~ to a C'hri.cxzun C'carmyaraaxxit,7 fnr tfae 1'~ta~Pc vf'Rurut Alaska I'ecational Trazning in a Christcan ComTnunity f'or the f eexple of Rural Alaska Feb 6, 2008 _._. _ ruary ~ i,_ ~..i.. City of Kenai ~ l Attn: Mr. Rick. Koch ~, 6 ~ 2tQ Fidalgo Ave Kenai, AK 99611 ____.. _.... .-, t, ~., Subject: Foreclosed City Properties-Mommsen Subdivision Dear NIr. Koch, First, please accept my apologies far not getting back to you sooner. A matter such as this had to funnel through multiple channels before we were prepared with a response. We are stilt working to improve our administrative processes to handle issues such as this in a more expedient manner. Next, allow me to express my appreciation for your correspondence and consideration related tQ the property in the Mammsen 5ubdivisian. The prospect of acquiring same of this land has generated considerable discussion for our Program Advisory Committee. I am sure you can understand that building here versus our last two locations (Inlet Woods and Bighorn Circle} would cause us to completely rethink. some of our strategy. As an educational institution, AEG needs to be building smaller homes in order to allow us to complete multiple homes in the same school year. From this perspective, the Mommsen ptraperties would be quite useful to us. I am sure it is no surprise that our concerns about this property relate to its proximity to Wildwood and the general condition of the neighborhood. In that we rely heavily on the proceeds from the sale of our spec homes to finance our nonprofit social enterprise, we are concerned about selling new construction in this subdivision. hlevertheless, we recognize the value of this opportunity and the generosity of your consideration to get these properties at a price below accessed value. Below are answers that address questions raised in your previous letter: 1. Amundsen Educational Centeris a vocational training school specializing in the education of studers from rural Alaska. We have developed a residential construction program that fosters a culturally relevant Learning environment and provides quality vocational instruction. AEC's course offerings are authorized through the Alaska. Commission of Postsecondary Education to provide graduates with a l st year Certificate in Residential Construction, and a 2nd year Advanced Certificate in Residential Construction. The program is designed t€r equip students with the aptitude necessary to build a complete house together, to provide them with the tools to deal with life's hurts, and to became gainfully employed upon commencement. P.Ck_ SQx ~i)(16 SaIdotzra. Alaska ~t9GE~x3 • fS67;- ZGE2-aO~I muia ~ (9S?91 Zbst-&t}.S-2 fs~s wratix.aec.~~.oc~ The home construction projects of the past three years represent much more than the sum of their parts far our students; they represent the prospect of a brighter future. These homes are considered "Reuses of Hope" because they represent an infusion of hope into the lives of each student that participates in the construction process_ By equipping young Alaska Natives with work-ready trade skills, AEC is preparing graduates to become economically viable and employable members of their communities. Moreover, we are seeing an increase of aw graduates desiring to stay on the Central Peninsula for employment. Attached you will find a proposed schedule far the construction of the first two homes during the 2008-2004 school year. Construction of the other 3 homes will be scheduled far 2009-2011. 2. In that it is in ow best interests to ensure clean and orderly properties far the safe of futwe projects, I am confident that in cooperation with year office we can agree upon appropriate cavena~s that would satisfy both of ow interests. I suggest that we meet to outline these covenants. 3. Amundsen Educational Center is interested in the following free properties on Second St: 1100, 1102,1104,1105, '1108 (parcel numbers 3910301 through 3910305)_ Regarding the second set of questions in yow letter: 1. AEC is requesting a donation of the above named properties. This move would be extremely beneficial to us in aw pursuit of reaching self-sustainability in the next five to seven years. Z & 3, We recognize that $22,908.76 is the sum of what is due on these 5 properties. If the Gity is unable to accommodate a full. donation including paying Borough taxes and waiving city assessments, perhaps the city would require us to pay the KPB taxes but waive the past due assessments or some combination thereof. If it is necessary far us to cover the amounts due far each property (KPB andlor COK}; we would request the opportunity to subordinate these casts until we sell the hams built an each let According to our proj~~ted construction schedule, this would provide the COK these funds by 201 t. I trust that we can agree upon a legal strru:twe for the transfer of property and payment of past due amounss that will satisfactorily address the pertinent issues. Once again, we greatly appreciate the cooperation of the City of Kenai to discuss these issues and present this opportunity. AEC has greatly appreciated working with the city on aw recent projects. If given the chance with these tats, we look forward to helping getting them back onto the tax rolls over the nerd few years. Sincerely, ~A - ~ G f ~;'«~F~C s'" %~ z Mark Hill Executive Director P.~. $ax 4096 Sa(dotna. Alas6a 49669 (9t77) 26(1.5042 main {9833} 260-804ry fax wwc~~.aecak. or¢ Construction Pian for Houses of Hope 2009 Project House A Keith HOUSe B Jordan Date Started Date Completed Responsible Party Lot cleared 1-Jun 14-Jun Volunteer / AEC Staff Excavation 6-Au 10-Au Hall /Zubeck !Other ? Footin s !Foundation 11-Au 18-Au AEC Students Framin 19-Au 10-Sep AEC Students Roofin 11-Se 9-Oct AEC Students Dried in N(A 1D-Oet AEC Students Sidin 10-Oct AEG Students Electrical 10-Nov Contractor / AEC Students Plumbing 10-Nov Contractor / AEC Students Insulation 1-Dec AEC Students Dry WaII 15-Dec Contractor / AEC Students Painting 10-Jan AEC Students Finish /Floorin 1-Feb Contractor / AEC Students Prep ed for Sate 1-Mar AEC Students For Sale Apr1I 01 2009 Lot cleared 1-Jun 14-Jun Volunteer / AEC Staff Excavation 15-Jun 1-Aug Hall !Zubeck /Other ? 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