HomeMy WebLinkAboutOrdinance No. 2525-2010the ett of
KENAI. ALASKA
General Fund
Increase Estimated Revenues:
Appropriation of Fund Balance
Airport Fund
Increase Estimated Revenues:
Appropriation of Fund Balance
CITY OF KENAI
ORDINANCE NO. 2525 -2010
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Suggested by: Administration
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $80,000 IN THE GENERAL AND
AIRPORT FUNDS FOR THE PURCHASE OF APPROXIMATELY 40 ACRES OF
PROPERTY DESCRIBED AS SE 1/4 NE 1/4, T6N, R11 W, SECTION 31, 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 40 acres is $160,000 of which the General
Fund and Airport Fund will each pay $80,000 and receive approximately half -20
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 a 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:
$80,000
Increase Appropriations:
Non Departmental Land $80,000
$80,000
Increase Appropriations:
Other Buildings Areas Land $80,000
Ordinance No. 2525 -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:
PAT PORTER, MAYOR
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Introduced: December 15, 2010
Adopted: January 5, 2011
Effective: January 5, 2011
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 d
Telephone: 907 283 -7535 FAX: 907 -283 -3014
the 4#Gt 1992
KEINAI, ALASKA
MEMO:
Village with a Past, a with a Future"
TO: City Council
1,k FROM: Rick Koch
DATE: December 9, 2010
SUBJECT: No. 2525 -2010, Purchase of Real Property from Clint D. Hall
The purpose of this correspondence is to submit for your consideration of Ordinance No. 2525-
2010 to appropriate funding for the purchase of real property described as SE1 /4 NE1 /4, T 6 N,
R 11 W, S.M., Alaska consisting of 40 acres, more or less, and to recommend Council approval.
This property is located immediately to the north of Fifth Avenue, and immediately 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 $160,000, and the value is to be verified through an
appraisal. The Option to Purchase releases the City from any obligation to purchase should the
appraisal be less than $160,000. Additionally, should the appraisal be in excess of $160,000 the
seller remains obligated to sell for the agreed upon purchase price.
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 #04301008
Owners Clint D. Hall
KPB Parcel #04301008
Owner Clint D. Hall
UT AVE
pouRTA
THIRD AV
4301008
COND AVE
Subject Property
OPTION TO PURCHASE
This Option to Purchase is made on this 2 day of 4,, Ay- 2010 between the City of
Kenai, 210 Fidalgo, Kenai, Alaska 99611 (the "Buyer and Clint D. Hall, of P.O. Box 2829,
Kenai, Alaska 99611 (the "Seller.
WHEREAS, the Seller is the owner of certain real property described as T6N R, 11W Section
31, Seward Meridian, a parcel consisting of approximately 40 acres located in Kenai, Alaska
with a Kenai Peninsula Borough Parcel Number of 043 010 -08.
WHEREAS, the Buyer wishes to purchase said property and the Seller wishes 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, Seller hereby grants the Buyer an exclusive option to purchase the above
described property.
1. OPTION TERM. The option to purchase shall begin on the day of /Vt
and expire at 11:59 PM on the 7.6 day of Cth 20 0
2. NOTICE REQUIRED TO EXERCISE OPTION. To exercise the Option to Purchase, the
Buyer must deliver written notice to Clint D. Hall 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 Clint D. Hall at P.O. Box 2829, 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 the a non refundable fee of $500.00 (Five Hundred Dollars and No Cents),
receipt of which is hereby acknowledged by the Seller. 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 Seller 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 Seller.
4. PURCHASE PRICE. The total purchase price for the Property is $160,000.00 (One
Hundred Sixty Thousand Dollars and No Cents). The purchase price is subject to an
independent appraisal to be performed at the Buyer's expense, and, in the event the
appraised value is determined at less than $160,000.00, the Buyer is not obligated to
purchase under the terms of the Option to Purchase. If the appraisal value is determined
to be $160,000.00 or greater, the Seller is obligated to sell the Property to the Buyer for
a total purchase price of $160,000.
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 Seller as of
the date of closing.
OPTION TO PURCHASE
Page 1 of 3
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.
7. CLOSING AND SETTLEMENT, If Buyer timely exercises its option granted hereunder,
closing shall occur within q0 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 Seller defaults 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 Seller.
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 execued copy
of this agreement. The parties have had the option to consult an attorney of there
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 3
State of Alaska
Third Judicial District
ss
OPTION TO PURCHASE
Page 3 of 3
State of Alaska
ss
Third Judicial District
Clint D. Hall
CI
By:
Rick
Its: City Manager
The foregoing instrument was acknowledged before me this 21 day of NI VR/166K,
2010 by Clint D. Hall.
The foregoing instrument was acknowledged before me this
2010 by Rick R. Koch, City Manager for the City of Kenai.
Notary Public of Alaska
My Commission Expires: fyrin offu'k
21
Notary Public of Alaska
My Commission Expires
day of NiVH.450c
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