HomeMy WebLinkAboutResolution No. 2013-05Suggested by: Legal Department
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, RESCINDING
RESOLUTION 2006 -24 WHICH EXPRESSED AN 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, Resolution 2006 -24 expressed an intent on behalf of the City of Kenai to
donate up to 25 acres of a City owned 77 acre parcel near Mommsen Subdivision to
Frontier Community Services and Kenai Senior Connection upon certain conditions;
and,
WHEREAS, the projects for which the donation of land was intended have not come to
fruition; and,
WHEREAS, for purposes of clarity and any possible future land uses the City should
formally indicate that it no longer intends to donate up to 25 acres of a City owned 77
acre parcel near Mommsen Subdivision to Frontier Community Services and Kenai
Senior Connection.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA:
1. That the City of Kenai no longer intends to donate up to 25 acres of a City
owned 77 acre parcel near Mommsen Subdivision to Frontier Community
Services and Kenai Senior Connection.
2. That Resolution 2006 -24 is rescinded.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of
January, 2013.
PAT PORTER, MAYOR
ATTEST:
—QAJ'oTA&
Sand a o igh, CAy Clerk
New Text Underlined; (DELETED TEXT BRACKETED)
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TO: Mayor Porter and Members of the City Council
FROM: City Attorney, Scott Bloom
DATE: January 11, 2013
RE: Resolution No. 2013 -05 Revoking Intent to Donate Land to Frontier Community
Services and Kenai Senior Connection
Resolution 2006 -24 expressed intent on behalf of the City to donate up to 25 acres of a 77 acre
parcel owned by the City near Mommsen Subdivision to Frontier Community Services and Kenai
Senior Connection. The donation was intended to provide land for a new 14,000 square foot
program services complex in Kenai to be constructed by Frontier Community Services. It appears
the project lost funding and the City's administrative files reflect a lack of communication between
the City and the project sponsors since 2009. Since the City has no indication that the project is
contemplated to move forward as there has been no communication with regard to the same in three
years, it is recommended that the Council rescind Resolution 2006 -24 and its intent to donate the
subject land. Your consideration is appreciated.
Suggested by: City Council
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 S25, 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 50I(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
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 f program building, and a dayearefprogram 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 taxes, 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 taxes, and
water and server 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 - laving 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,
/11•
PAT PORTER, MAYOR
G�Ym�
Carol L. Freas, City Clerk
TO: Rick Koch, City Manager
PROM: Larry A. Semmens, Finance Directoe-
DATE: April 28, 2006
RE: Taxes and Assessments Owing on 77 Acre Mommsen Subdivision Parcel
Here is a breakdown of the taxes and assessments 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 judgment 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 city taxes of $20,232,08. While we would
initially pay the borough the entire $38,521.75 amount, it would disburse the city taxes of
$20,232.08 back to the city.
The amount owing for water and sewer assessments on the property as of May 1, 2006 is
$87,479.82. That breaks down to $23,526.96 for principal, $60,446.66 for interest and $3,506.20
for penalty. In my opinion the city could waive the interest and penalty, but should repay the
principal of $23,526.96 to the water and sewer fund.
Please let me know if you have any question or need any more information.