HomeMy WebLinkAboutOrdinance No. 2553-2011�c*/
KENAI. SNA
Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2553 -2011
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, WAIVING A
SALE RESTRICTION IMPOSED BY KENAI MUNICIPAL CODE SECTION 21.05.010(B)
WITH RESPECT TO LOT 2, BLOCK 1, GUSTY SUBDIVISION (11472 KENAI SPUR
HIGHWAY) LOCATED WITHIN THE AIRPORT RESERVE; AUTHORIZING THE SALE OF
LOT 2, BLOCK 1, GUSTY SUBDIVISION TO THE CURRENT LESSEE, MA & PA
ALASKAN TREASURES, INC.; AND DETERMINING THAT LOT 2, BLOCK 1 GUSTY
SUBDIVISION IS NOT NEEDED FOR A PUBLIC PURPOSE.
WHEREAS, the City of Kenai received Quitclaim Deed through the Federal Aviation
Administration (FAA) on December 1, 1963, to nearly 2,000 acres of land subject to
certain restrictions, including that no property shall be used, leased, sold, salvaged, or
disposed of for reasons other than for airport purposes; and,
WHEREAS, on August 20, 1970, the FAA executed a Deed of Release for an area of
land subject to the Quitclaim Deed allowing for the lease, sale, or disposal of certain
airport lands by the City; and,
WHEREAS, Lots 1, 2, and 3 located in Gusty Subdivision were subject to that Deed of
Release; and,
WHEREAS, on August 20, 1970, the City entered into a lease with James A. Adkins
and Edward A. Ferguson for City -owned lands identified as Lots 1., 2, and 3, Gusty
Subdivision, Kenai, Alaska (the Property); and,
WHEREAS, since August 20, 1970, the rights under the Lease have been assigned or
transferred to various lessees and the current lessee of Lot 2, Block 1, Gusty
Subdivision, located at 11472 Kenai Spur Highway, is Ma & Pa Alaskan Treasures,
Inc.; and,
WHEREAS, the Property is located within the City's Airport Reserve; and,
WHEREAS, on January 27, 2011, Ma & Pa Alaskan Treasures, Inc. submitted a
request to purchase the Property; and,
WHEREAS, KMC 21.05.010(b) states that no City -owned land within the Airport
Reserve shall be sold or otherwise conveyed out of City ownership for any purpose,
except as provided in a lease executed by the City before the effective date of the
ordinance codified in that section; and,
WHEREAS, the lease of Ma & Pa Alaskan Treasures, Inc. does not include a purchase
right of the lessee; and,
Ordinance No. 2553 -2011
Page 2 of 3
WHEREAS, City employees made representations to the shareholders of Ma & Pa
Alaskan Treasures, Inc. that it had a right of purchase in its lease, upon which
representations it claims to have relied; and,
WHEREAS, although the Property is within the City's Airport Reserve, the City has
studied the Property, the Airport Layout Plan, and the existing and future land needs
of the Kenai Municipal Airport and has determined that the Property is not identified
as needed for aviation purposes or for future expansion of the Kenai Municipal
Airport; and,
WHEREAS, the FAA has informed the City that it has no objection to the City's sale of
this property; and,
WHEREAS, the Airport Commission unanimously recommended the sale of the
Property to Ma & Pa Alaskan Treasures, Inc. subject to certain conditions contained in
documents of title governing the City's use and ownership of the Property.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, as follows:
Section I. Classification: This is a non -code ordinance.
Section 2. Statement of Ownership: The City of Kenai is the owner of Lot 2, Block 1,
Gusty Subdivision (the Property).
Section 3. Public Purpose and Best Interest Findings: The Property is not needed for
future public municipal or airport purposes. Under the Airport Layout Plan, the
Property is designated for non - aviation commercial or light - industrial uses. The sale
of the Property is in the best interests of the City as it serves a purpose of continuing
commercial growth and investment in the City and preserves confidence in the public's
dealings with the City and municipal government by recognizing a local business's
investment - backed expectations.
Section 4. Waiver of Ordinance Requirements: The Kenai City Council waives the
following provision of the Kenai Municipal Code as it pertains to Ma & Pa Alaskan
Treasures, Inc. only: KMC 21.05.010(b), Airport Reserve, otherwise prohibiting the
sale of city -owned land within the Airport Reserve except as provided in certain lease
agreements executed by the City.
Section 5. Authorization of Sale: The Kenai City Council hereby authorizes the City
Manager to negotiate and enter into a sale of the City -owned lands described as Lot 2,
Block 1, Gusty Subdivision, under the procedures and terms established for the sale
of airport Lands and otherwise the Manager shall follow the procedures set for the sale
of airport lands outside of the Airport Reserve as set forth in KC 21.15.180 et seq. and
subject to the following additional essential terms and conditions of sale:
(a) The sale will be made through a negotiated sale to the current lessee only; and,
Ordinance No. 2553 -2011
Page 3 of 3
Section 6. Title: Title shall be conveyed by quitclaim deed. Any instrument
conveying title to the Property shall include the following restrictions, promises,
and /or covenants:
(a) that the City of Kenai reserves unto that the grantee expressly agree for itself
and its heirs, executors, administrators, successors, transferees, and assigns, for the
use and benefit of the public a right of flight for the passage of aircraft in the airspace
above the surface of the Property, together with the right to cause in said airspace
such noise as may be inherent in the operation of aircraft, now known or hereafter
used, for navigation of or flight in the said airspace, and for use of said airspace for
landing on or at and for taking off from or operating on Kenai Municipal Airport; and,
(b) that the grantee expressly agree for itself and its heirs, executors,
administrators, successors, transferees, and assigns to restrict the height of
structures, objects of natural growth, and other obstructions on the Property to a
height of not more than 242 feet above mean sea level; and,
(c) that the grantee expressly agree for itself and its heirs, executors,
administrators, successors, transferees, and assigns to prevent any use of the
Property which would interfere with landing or taking off of aircraft at the Kenai
Municipal Airport, or otherwise constitute an airport hazard; and,
(d) that all covenants heretofore stated shall run with the land and shall inure to
the benefit of, and be binding upon the heirs, executors, administrators, successors,
transferees, and assigns of the parties to the contract for sale and conveyance.
Section 7. Proceeds of Sale: Should a sale of the Property be finalized, all revenues
from the sale shall be deposited in the Airport Land Sale Permanent Fund for use in
the development, improvement, and operation of the Kenai Municipal Airport and as
otherwise required in that Deed of Release recorded on November 19, 1973 at Book
74, Pages 325 -327, Kenai Recording District.
Section 8. Effective Date: Pursuant to KMC 1.15.070(f), this ordinance shall take
effect one month after adoption.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ASKA, this fourth day of May,
2011.
ATTEST:
Carol L. Freas, City Clerk
PAT PORTER, MAYOR
Introduced: April 20, 2011
Adopted: May 4, 2011
Effective: June 4, 2011
\thee q/
Ke Abs ALASKA
MEMO:
"Village with a Past, y with a Future"
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: (907) 283 -7535 / FAX: (907) 283 -3014
www.ci.kenai.ak.us
TO: City Council
FROM: Rick Koch, City Manager
DATE: April 28, 2011
SUBJECT: Ordinance No. 2553 -2011
The purpose of this correspondence is to recommend approval of Ordinance No. 2553 -2011
for the sale of Lot 2, Block 1, Gusty Subdivision to the current lessee, Ma & Pa Alaskan
Treasures, Inc.
Ma & Pa Alaskan Treasures, Inc. has submitted a request to purchase the Property for not
less than Fair Market Value as determined by an appraiser with terms as allowed by the City of
Kenai. In response to a question received by a Council Member, the Ordinance authorizes the
City Manager to follow the procedures set for the sale of airport lands outside of the Airport
Reserve, which includes restrictions on terms for financing' and requires that a note secured
by a deed of trust subordinate to an existing security interest may only be issued if the amount
of the note secured is within the difference between the fair market value of the land with
improvements, and the sum of all prior security interests.
The City received the attached Deed of Release from the FAA allowing for the sale of the
referenced property. Although Administration confirmed that the FAA has no objection to the
sale, the attached formal response from the FAA confirms that the Deed of Release is still
binding.
Administration recommends moving forward with an Ordinance that would waive the
provision of the leasing code that does not permit a sale of land within the reserve to allow
for a negotiated sale.
Attachments
cc: Ma & Pa Alaskan Treasures, Inc.
KMC 21.15.200(a)(1)
Rick Koch
From: gabriel.mahns @faa.gov
Sent: Wednesday, April 27, 2011 11:04 AM
To: Mary Bondurant
Cc: Rick Koch; byron.k.huffman @faa.gov; Craig.Black @faa.gov; eric.g.helms @faa.gov;
john.lovett @faa.gov
Subject: Fw: Ma & Pa Treasures property - Lovealls
Attachments: Deed of Release.pdf
Mary,
We do not know if John sent a letter concerning this Deed.
However, please take this email as a formal response from our Office to your inquiry.
The attached Deed of Release (Book 74, page 325, Kenai Tract C -2) signed by the FAA Alaskan Airport Division Chief in
8/20/1970 is still binding and there is no need for further consideration from our office.
Thank you, Gabriel.
Gabriel Mahns, AAL -615
Airport Planner & Compliance Officer
FAA Airports Division, Alaska Region
907 - 271 -3665, Fax 907 - 271 -2851
Forwarded by Gabriel Mahns /AAL/FAA on 04/27/2011 10 :53 AM
Forwarded by Eric G Helms /AAUFAA on 04/27/2011 10:42 AM
From: "Mary Bondurant" <mbondurantt& ci.kenaLak.us>
To:
Cc:
Date:
Subject:
Eric G Helms /AAL /FAA @FAA
"Rick R Koch" <rkoch@ci.kenai.ak.us>
04/27/2011 10:14 AM
FW: Ma & Pa Treasures property - Lovealls
Eric — Below is the email I sent to John. His phone message today is that he is again out until May 5th. Could you please see what
you can find on this, thank you.
:Mary Bon dit ran t
Airport Manager - Kenai Municipal Airport
305 N. Willow St., Suite 200
Kenai, AK 99611
(907) 283-7951
Kees
2014
NI- Ameraca Gttpfinalist
From: Mary Bondurant [ mailto :mbondurantci.kenai.ak.us]
1
Sent: Thursday, April 14, 2011 5:29 PM
To: john.lovett@faa.gov
Subject: Ma & Pa Treasures property - Lovealls
Hi John — The City Manager seems to think he had received a letter from you confirming the approval and release on the above
mentioned property. He thinks it was over the last 3 months. Was a letter sent to Mr. Koch? If so, could I get a copy?
Thank you
.(ary Bon.durant
Airport Manager
Kenai Municipal Airport
305 N. Willow St., Suite 200
Kenai, AK 99611
(907) 283-7902
vrIOIC nr >cE3:24
R rding Di
KENAI - TRACT C -2
DEED OF RELEASE
This instrument, a Deed of Release, made by the United States of America,
acting by and through the Chief, Airports Division, Alaskan Region, Federal
Aviation Administration, under and pursuant to the powers and authority contained
in the provisions of Public Law 81 -311 (63 Star. 700), as amended, to the City
of Kenai, a body politic under the laws of the State of Alaska, Witnessth
WHEREAS, The United States of America, acting by and through the Administrator
of General Services under and pursuant to the powers and authority contained in
the provisions of the Federal Property and Administrative Services Act of 1949
(83 Stat. 377) and the Surplus Property Act of 1944 (58 Stat. 765), as amended,
and regulations and orders promulgated thereunder, by instrument entitled
"Quitclaim Deed" and dated December 1, 1963, did remise, release, and forever
quitclaim to the City of Kenai, its successors and assigns, all rights, title
and interests of the United States in and to certain real property located near
Kenai, Alaska, under and subject to the reservations, exceptions, restrictions,
and conditions contained in the Deed; and
WHEREAS, the City of Kenai has requested the Administrator of the Federal
Aviation Administration to release an area of land hereinafter described from
all conditions, reservations, and restrictions contained in said "Quitclaim
Deed" to permit sale or long term lease of the property for non - airport use,
and has by appropriate resolution No. 70 -5 dated March 18, 1970, obligated itself
to devote the revenues received from the lease or sale of the hereinafter •
described property exclusively for the development, improvement, operation, or
maintenance of the Kenai Airport; and
WHEREAS, The Administrator or authorized delegee of the Federal Aviation
Administration, under and pursuant to the powers and authority contained in
Public Law 81 -311 (63 Stat. 700) is authorized to grant a release from any of
the terms, conditions, reservations, and restrictions contained in, and to
convey, quitclaim, or release any right or interest reserved to the United States
by, any instrument of disposal under which surplus airport property was conveyed
to a non- Federal public agency pursuant to Section 13 of the Surplus Property
Act of 1944 (58 Stat. 765); and
WHEREAS, the Administrator of the Federal Aviation Administration has determined
that said land no longer serves the purpose for which it was transferred; and,
that such property can be used, leased, sold; or disposed of by the City of
Kenai for other than airport purposes without materially and adversely affecting
the development, improvement, operation, or maintenance of the Kenai Airport; and
WHEREAS, the City of Kenai covenants and agrees as follows: (1) to use the
revenues received from the sale or lease of the hereinafter described property,
exclusively for the development, improvement, operation of the Kenai Airport;
(2) to restrict the height of structures, objects of natural growth and other
obstacles on the hereinafter described real property to a height of not more
than 242 feet above mean sea level; (3) to prevent any use of the real property
hereinafter described which would interfere with the landing or taking off of
aircraft at the Kenai Municipal Airport or otherwise constitute an airport hazard;
NOW, THEREFORE, for and in consideration of the above - expressed recitals and
of the benefits to accrue to the United States and to civil aviation, the
United States of America, upon inclusion by the City of Kenai in a Lease or
Instrument of Transfer conveying title to the hereinafter described real property
of provisions as follows:
(1)
That the City of Kenai reserves unto itself, successors, transferees,
and assigns, for the use and benefit of the public a right of flight
for the passage of aircraft in the airspace above the surface of the
real property hereinafter described, together with the right to cause
in said airspace such noise as may be inherent in the operation of
aircraft, now known or hereafter used, for navigation of or flight
in the said airspace, and for use of said airspace for landing or
taking off from or operating on Kenai Municipal Airport,
Krnsi Recording Disciict
(2) That the Grantee expressly agrees for itself, heirs, executors, admin-
istrators, successors, transferees, and assigns to restrict
the height of structures, objects of natural growth and other
obstructions on the hereinafter described real property to a height
of not more than 242 feet above mean sea level.
(3) That the Grantee .expressly agrees for itself, heirs, executors, admin-
istrators, transferees, and assigns to prevent any use of the herein-
after described real property which would interfere with landing or
taking off of aircraft at the Kenai Municipal Airport, or otherwise
constitute an airport hazard.
(4) All covenants heretofore stated shall run with the land and shall
inure to the benefit of, and be binding upon the heirs, executors,
administrators, successors, transferees, and assigns of the parties
hereto.
hereby releases the said real property from the conditions, reservations, and
restrictions as contained in the above - mentioned Instrument of Transfer from
the United States of America to the City of Kenai dated December 1, 1963, which
real property is described as follows:
Commencing for reference at the section common to Sec. 5 and Sec. 6,
T5N, R11W, Sec. 31 and Sec. 32, T6N, R11W.; proceed S 0 °55'43" W
along the section line 2107.01 feet to a point which is the true
point of beginning of this description:
Proceed S 0 °55'43" W 47.03 feet to a point; thence N 89 °53'00" E
563.15 feet to a point; thence N 3 °31'00" W 233.46 feet to a point;
thence N 28 °42'15" E. 430.30 feet to a point; thence N 61 °17'45" W
30.00 feet to a point; thence along a curve to the right of 1549.86
feet radius whose tangent at that point bears N 59 °20'58" W 376.49
feet to a point; thence S 44°34'08" W 260.00 feet to a point; thence
S 22 °28'00" W 645.42 feet to the point of beginning; contains 7.94
acres, more or less.
By its acceptance of this Deed of Release the City of Kenai convenants and agrees
for itself, successors, transferees, and assigns, to comply with and observe all
of the conditions and limitations hereof, which are expressly limited to the above -
described real property.
IN WITNESS WHEREOF, the United States of America has caused this Deed of Release
to be executed as of the 20th day of Aligns
Accepted
CITY OF
KENAI
UNITED STATES OP AMERICA
By
G. 0. Kemp
Chief, Airp.rts ivision
Alaskan Region
y
Ormond Robbins
City Manager
'yTf.td.n
CITY OF K N> I�
H. 71
1.970.
(' HOOK
PAGE,3 3 ?
?erarnina 1)istrict
THIS IS TO CERTIFY than on this 7'7 day of , 1973, before me, a
Notary Public In and for the State of Alaska, duly commissioned and sworn, personally
appeared George A. Navarre, City Manager of the City of Kenai and he acknowledged
to me that he signed the same freely and voluntarily and he confirmed that the foregoing
Instrument was signed and accepted by and for the City of Kenai for the purposes
therein stated.
IN WITNESS WHEREOF, I have hereunto set my hand and seal the day and year first
hereinabove written.
Notary Public in and for Alaska ` /Jf
My commission expires 3.- 1 -7s
73- Ci fJ
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SUBSCRIBED ENO 54ORN SCrORE MC 1 ..15 77# DAY
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NOTARY I'UBL1C IBA ALASKA
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G U S T Y S U B O I V I S I O N
TRACT G -2
Commencing for reference at the section common to Sec. 5 and Sec. 6,
T5N, R11W, Sec. 31 and Sec. 32, TUN, R11W.; proceed S 0 °55'43" W
along the section line 2107.01 feet to a point which is the true
point of beginning of this description: -
Proceed S 0 °55'43" W 47.03 feet to a point; thence N 89 °53'QQ" E
563.15 feet to a point; thence N 3 °31'00" W 233.46 feet to a point;
thence N 28 °42'15" E 430.30 feet to a point; thence N 61 °17'45" W
30.00 feet to a point; thence along a curve to the right of 1549.86
feet radius whose tangent at that point bears N 59 °20'58" W 376.49
feet to a point; thence S 44 °34'Q8" jd 260.00 feet to a point; thence
S 22 °28'00" W 645.42 feet to the point of beginning; contains 7.94
acres, more or less.