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HomeMy WebLinkAboutResolution No. 2006-24Suggested by: City Council CITY OF KENAI RESOLUTION NO. 2006-24 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, EXPRESSING INTENT TO DONATE UP TO 25 ACRES OF A 77-ACRE PARCEL NEAR MOMMSEN SUBDIVISION TO FRONTIER COMMUNITY SERVICES AND KENAI SENIOR CONNECTION UPON CERTAIN CONDITIONS. WHEREAS, the City of Kenai is the owner of a 77-acre tract of land near Mommsen Subdivision, which address is 2300 Redoubt Avenue, and described as KN T06N R12W 525, that portion of the SE 14 lying east of Mommsen Subdivision, Addition No. 2, Borough parcel number 039-010-18, which the City acquired by foreclosure for overdue taxes and water and sewer assessments; and, WHEREAS, the City of Kenai may by ordinance retain that property for a public purpose upon payment of the amounts owing for property taxes, and water and sewer assessments; and, WHEREAS, KMC 22.05.080 allows donation of real property to IRS Section 501(c)(3) non-profit corporations for an agreed-upon consideration if the donation is advantageous to the City; and, WHEREAS, KMC 22.05.025 allows conveyance of City land to encourage a new industrial enterprise upon such terms, conditions and contingencies as may be set forth by the City; and, WHEREAS, to ensure the property is used for the intended purposes, the deed to Frontier Community Services would provide that the property to be conveyed to Frontier Community Services would revert to the City of Kenai if it is used for other than non-profit support services for people at risk of or experiencing a disabling condition or if Phase I of the project and master plan for development of an administration/program building, and a daycare/program building, are not substantially completed within three years of the date of the conveyance; and, WHEREAS, to ensure the property is used for the intended purposes, the deed to the Senior Connection would provide that the property to be conveyed to the Senior Connection would revert to the City of Kenai if it is used for other than non-profit senior assisted-living facilities or if the assisted living portion of the project and a master plan for development of an independent senior housing project are not substantially completed within three years of the date of the conveyance; and, WHEREAS, Frontier Community Services and Kenai Senior Connection should pay a yet-to-be-established share of the amounts owing for property taYes, water and sewer assessments, and surveying and re-platting costs. Resolution No. 2006-24 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that (1) Resolution No. 2005-33 is hereby rescinded; and, (2) The City of Kenai intends to donate up to 25 acres of the '77-acre parcel near Mommsen Subdivision owned by the City to Frontier Community Services and to the Kenai Senior Connection, in separate parcels by separate deed, for use of non- profit support services for people at risk of or experiencing disabling conditions and for non-profit senior assisted-living facilities; upon satisfactory arrangements to pay a yet- to-be-established share of the costs of surveying and re-platting, property tases, and water and sewer assessments owing, and upon such other terms, conditions and contingencies as the City Council may require. To ensure that the property that may be conveyed to Frontier Community Services is used for the intended purposes, the deed to Frontier Community Services would provide that the property to be conveyed to Frontier Community Services would revert to the City of Kenai if it is used for other than support services for people at risk of or experiencing a disabling condition or if Phase I of the master plan for development is not substantially completed within three years of the date of conveyance, unless otherwise extended by the Kenai City Council. To ensure the property that may be conveyed to Senior Connection is used for the intended purposes, the deed to the Senior Connection would provide that the property to be conveyed to the Senior Connection would revert to the City of Kenai if it is used for other than non-profit senior assisted-living facilities or if the assisted living portion of the project and a master plan for development of an independent senior housing project are not substantially completed within three years of the date of the conveyance, unless otherwise extended by the Kenai City Council. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this third day of May, 2006. ~ ~ ~ PAT PORTER, MAYOR ATTEST: ~~-fiv~~ ~J/Gl,~~C~-~ Carol L. Freas, City Clerk MEMORANDUM TO: Rick Koch, City Manager FROM: Larry A. Semmens, Pinance Directo~' ~ DATE: Apri128, 2006 RE: Taxes and Assessments Owing on 77 Acre Mommsen Subdivision Parcel Here is a breakdown of the taxes and assessrnents owing on the 77 acre parcel near Mommsen Subdivision as of May 1, 2006. According to the borough, the property taxes that would need to be paid are from 1979 until ~ 1986 (the judgmcnt year). The total amount of city and borough property taxes is $38,521.75. ~~ That breaks down to borough taxes of ~ 18,289.67 and ciYy taxes of $20,232,08. While we would initially pay the borough the entire $38,521.75 amount, it wouid disburse the city t~es of $20,232.08 back to the city. Tbe amount owing for water and sewer assessments on the property as of May 1, 2006 is $87,4'79.82. That breaks down to ~u23,526.96 far principal, $60,446.66 for interest and $3,506.20 for penalty. In my opinion the city could waive the inYeresY and penalty, but should repay the prineipal of $23,526.96 to the water and s~wer fund. Please leY me know if you have any question or need any more information.