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HomeMy WebLinkAboutOrdinance No. 2524-2010the c y a/ KENAI. CITY OF KENAI ORDINANCE NO. 2524 -2010 Suggested by: Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $23,000 IN THE GENERAL AND AIRPORT FUNDS FOR THE PURCHASE OF APPROXIMATELY 20 ACRES OF PROPERTY DESCRIBED AS E 1 /2 NE NE 1 /4, SECTION 31, T6N, RI 1W, SEWARD MERIDIAN, THIRD JUDICIAL DISTRICT, KENAI, ALASKA TO BE RETAINED BY THE CITY AND RESERVED FOR PUBLIC USE, AND FOR AIRPORT PURPOSES. WHEREAS, the total purchase price for 20 acres is $46,000 of which the General Fund and Airport Fund will each pay $23,000 and receive approximately half +/-10 acres) of the property to be subdivided at a later date; and, WHEREAS, the purchase of the property would preserve a natural drainage -way at the perimeter of a residential area and provide for a potential future site of a City trail system; and, WHEREAS, the purchase would provide the City's Airport additional property reserved for Airport purposes; and, WHEREAS, it is in the best interest of the City of Kenai and its Airport to purchase the above described property to be retained by the City and reserved for public use, and for Airport purposes. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Appropriation of Fund Balance $23,000 Increase Appropriations: Non Departmental Land $23,000 Airport Fund Increase Estimated Revenues: Appropriation of Fund Balance New Text Underlined; [DELETED TEXT BRACKETED] $23,000 Increase Appropriations: Other Buildings Areas Land $23,000 Ordinance No. 2524 -2010 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fifth day of January, 2011. ATTEST: Carol L. Freas, City Clerk y Approved by Finance: G PAT PORTER, MAYOR New Text Underlined [DELETED TEXT BRACKETED] Introduced: December 15, 2010 Adopted: January 5, 2011 Effective: January 5, 2011 h ecipf KENAI, ALASKA MEMO: Kti'aye with a Past, Ct y with a Future /7 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 283 -7535 FAX: 907 283 -3014 hIll� 1992 TO: City Council FROM: Rick Koch DATE: December 9, 2010 SUBJECT: Ordinance No. 2524 -2010, Purchase of Real Property from Greta and Robert Cox The purpose of this correspondence is to submit for your consideration of Ordinance No. 2524- 2010 to appropriate funding for the purchase of real property described as E1/2 NE1 /4 NE1 /4, T 6 N, R 11 W, S.M., Alaska consisting of 20 acres, more or less, and to recommend Council approval. This property is located west of Float Plane Basin Road and the Kenai Municipal Airport. The property's topography consists of a drainage /wetland and well graded uplands. In the past the City has purchased properties though which natural drainages are located to protect environmentally sensitive areas and possibly provide public access through future trail systems. Future development of the Kenai Municipal Airport in the specific area of the float plane basin will locate airport improvements near the existing Airport property boundary in this area. Purchase of this property will provide additional property for airport use. The agreed upon purchase price is $46,000, and the value has been verified through an appraisal. Administration proposes to utilize funding in equal amounts from the General Fund and Airport Fund to purchase the property. Subsequent to purchase, a subdivision will be accomplished to delineate General Fund Property and Airport Property. Sufficient reserves are available in the General and Airport Funds for this purchase. Attached, please find an aerial photograph identifying the property and the approximate subdivision. If you have any questions, please contact me at your convenience KPB Parcel #04301023 Owners Greta Robert Cox KPB Parcel #04301023 Owners Greta Robert Cox 1 HIP 04 wan R 9 HE 111 M Q NUT AV Ills Iir oE- 0 0 0 RFUOUBTFAT= Sit WI a FOURTHAVE rag El 'VW RIROA C 4301023 iso 11 ES u 0. MN SECOND AVE Subject Property 4 e Y oy OPTION TO PURCHASE This Option to Purchase is made on this 14 day of Dfl Mrr., 2010 between the City of Kenai, 210 Fidalgo, Kenai, Alaska 99611 (the "Buyer and Greta Cox and Robert L. Cox, a husband and wife, of 509 Pine Avenue, Kenai, Alaska 99611 (the "Sellers. WHEREAS, the Sellers are the owners of certain real property described as E2 NE4, Section 31, T6N, R11W, Seward Meridian, a parcel consisting of approximately 20 acres located in Kenai, Alaska with a Kenai Peninsula Borough Parcel Number of 043 010 -23. WHEREAS, the Buyer wishes to purchase said property and the Sellers wish to sell said property to the Buyer. NOW THEREFORE, in consideration of the covenants and obligations contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Sellers hereby grant the Buyer an exclusive option to purchase the above described property. 1. OPTION TERM. The option to purchase shall begin on the L day of and expire at 11:59 PM on the J'te day of 1 ;d MU. 2014). slito 2010 2. NOTICE REQUIRED TO EXERCISE OPTION. To exercise the Option to Purchase, the Buyer must deliver written notice to Robert L. Cox either in person or via mail of Buyer's intent to purchase. Notice shall be delivered prior to the expiration of the Option Term and shall specify a proposed closing date consistent with the time set forth in paragraph 7 below. Deposit of the notice in the mail to Greta Cox and Robert L. Cox, at 509 Pine Avenue, Kenai, Alaska 99611 shall be presumed to be valid delivery of the notice on that date. 3. OPTION CONSIDERATION. In consideration for this Option to Purchase, the Buyer shall pay a non refundable fee of $500.00 (Five Hundred Dollars and No Cents), receipt of which is hereby acknowledged by the Sellers. This amount shall be credited to the purchase price at closing if the Buyer timely exercises the Option to Purchase and closes on the conveyance of the Property. The Sellers shall not refund the fee if the Buyer fails to exercise the Option to Purchase or fails to close on the property through no fault of the Sellers. 4. PURCHASE PRICE. The total purchase price for the Property is $46,000.00 (Forty Six Thousand Dollars and No Cents). 5. 2010 PROPERTY TAXES. The 2010 Kenai Peninsula Borough and City of Kenai Property taxes on the property shall be prorated between the Buyer and the Sellers as of the date of closing. 6. EXCLUSIVITY OPTION. The option to purchase is exclusive and is not assignable and exists solely for the benefit of the name parties above. Should the Buyer attempt to assign, convey, delegate or transfer this Option to Purchase without the express written permission, any such attempt shall be deemed null and void. OPTION TO PURCHASE Page 1 of 4 7. CLOSING AND SETTLEMENT. If Buyer timely exercises its option granted hereunder, closing shall occur within b(9 days of the end of the Option Term at a title company or at a mortgage company or bank in the Kenai area, as determined by Buyer. Buyer shall inform the Seller of this the location for closing in writing. Buyer shall be responsible for all closing costs except Seller's pro -rated share of the 2010 Kenai Peninsula Borough and City of Kenai property taxes. At the time of Closing, Seller shall deliver to Buyer a statutory warranty deed for the subject property, properly executed and acknowledged in proper form for recording, so as to convey to Buyer good and marketable title to the subject property free and clear of all liens, leases, encumbrances, mortgages, easements, reservations, limitations, covenants, conditions, restrictions, encroachments, Native allotments or claims thereto, deeds and tenancies, except for permitted exceptions identified on a title report. Seller shall further deliver to Buyer such other instruments and documents as may be reasonably required and customarily given by a seller to consummate the sales transaction herein contemplated, and as may be reasonably required by the Title Company. 8. REMEDIES UPON DEFAULT. If Buyer or Sellers default under this Option to Purchase, the non defaulting party is entitled to all remedies included in this agreement and /or any and all remedies at law or it equity. 9. COMMISSION. No real estate commission or any other commissions shall be paid in connection with this transaction. 10. RECORDING THIS AGREEMENT. Buyer shall not record the Option to Purchase on the Public Records of the State of Alaska without the express written consent of the Sellers. 11. ACKNOWLEDGEMENTS. The parties are executing this Option to Purchase voluntarily and without any duress or undue influence. The parties have carefully read this Option to Purchase and have asked any questions needed to understand its terms, consequences and binding effect and fully understand them. The parties will be given an executed copy of this agreement. The parties have had the option to consult an attorney of their respective choosing if so desired prior to the signing of this Option to Purchase. 12. TIMING. Time is of the essence in this Option to Purchase. 13. GOVERNING LAW AND VENUE. This Option to Purchase shall be governed, construed and interpreted by, through and under the Laws of the State of Alaska. The parties further agree that the venue for any and all disputes related to this agreement shall be in the State of Alaska, Third Judicial District at Kenai. 14. ENTIRE AGREEMENT; MODIFICATION. This document sets forth the entire agreement and understanding between the parties relating to the subject matter herein and supersedes any prior discussions between the parties. No modification of or amendment to this Option to Purchase or any waiver of the rights under this Option to Purchase will be effective unless in writing signed by the parties to the Agreement. OPTION TO PURCHASE Page 2 of 4 State of Alaska Third Judicial District OPTION TO PURCHASE Page 3 of 4 ss SELLERS BY: Greta Cox a husband and wife CITY OF k(ENAI if By: Ric R. Koc Its: City Manager The foregoing instrument was acknowledged before me this bTlf day of PPDA Eg, 2010 by Greta Cox. Notary Public of Alaska My Commission Expires: VQ113 OFKE State of Alaska ss Third Judicial District The foregoing instrument was acknowledged before me this 6a day ofDE(EMV)C- 2010 by Robert L. Cox, State of Alaska Third Judicial District The foregoing instrument was acknowledged before me this ha day of DEkfA Ei_ 2010 by Rick R. Koch, City Manager for the City of Kenai. OPTION TO PURCHASE Page 4 of 4 ss Notary Public of Alaska My Commission Expires: Wt1't3 ©CF Notary Public of Alaska My Commission Expires: W p C,C;