FY1966-1 Establishing Procedure for Sale, Lease, Disposition of Real PropertyKODIAK ISLAND BOROUGH
ORDINANCE NUMBER 66-
AN ORDINANCE ESTABLISHING FORMAL PROCEDURE FOR THE SALE,
LEASE OR DISPOSITION OF REAL PROPERTYOWNED BY THE BOROUGH.
WHEREAS, Section 07.10.150, Alaska Statutes, authorizes
t
an organized Borough to select certain state -owned lands, which lief
within the Borough boundaries, and after the selectionof the lands
but before issuance of final patent permits the Borough to execute
conditional leases and make conditional sales of selected lands and
WHEREAS, Section 07.15.010 provides that a second -class
Borough has the power to acquire and dispose of real and personal
property in the manner provided for first -class cities under AS 29.,
10.130, except that the assembly may establish a formal procedure
Ifor acquisition from the State of land or rights in land and dispose
of those lands or rights in land, in which event the provisions of
IAS 29.10.130 (C), do not apply, and
WHEREAS, the KODIAK ISLAND BOROUGH is entitled to ten
percent (10%)of the lands within the Borough selected by the State,
and the State of Alaska has selected approximately ten thousand
(10,000) acres in the Borough, and the Borough would be entitled
to one thousand (1,000) acres of said land, some of which will be
disposed of by lease or sale, and the Borough Assembly is desirous
of establishing a formal procedure for the sale, lease or dispositibn
of real property or interests in real property owned by the Borough,
and
WHEREAS, the Borough does not at this time have the
financial ability nor the manpower to initiate and maintain an
efficient land management program, and
Page One, ORDINANCE NUMBER 66-
WHEREAS, the State, through the Division of Lands, does
(maintain the staff capability and is willing to enter into an agree-
!
;ment for the management of Borough selected lands,
NOW, THEREFORE, BE IT ORDAINED. by the Borough Assembly
the KODIAK ISLAND BOROUGH:
Section One: Lands available for lease or sale. All
lands lying and being within the limits of the KODIAK ISLAND BOROUGH
I to which the Borough holds title or which it has selected and which
l in the opinion of the Borough Assembly are not needed for or devoted
to a public use, may be leased or sold as hereinafter - provided for,
and only in such cases where it is clearly demonstrated that such
sale would be in the best interests of the public.
Section Two: Classification prior to lease or sale
required. Before accepting applications to lease or purchase Bor-
ough lands, the area involved shall have first been classified for
permitted land uses and a land use plan of the area prepared by
the Planning and Zoning Commission and approved by the Borough
Assembly.
Section Three: Public Use. The lease or permit to use
any Borough lands may be made to any State or Federal agency, polit
ical subdivision of the State, or public utility, for less than the
appraised value, as may be determined by the Borough Chairman with
the approval of the Borough Assembly to be in the best interests of
the public.
Section Four: The Borough Assembly is hereby authorized
and empowered to enter into a Land Management Agreement with the
State of Alaska, Department of Natural Resources, Division of Lands;
pursuant to which all leases, sales or other disposals which are
made by the State on behalf of the Borough pursuant to said agreeme4t
Page Two; ORDINANCE NUMBER 66-
shall be made only with the consent of the Borough and shall be con-
ducted in accordance with the Alaska Land Act (Title 38, A.S.), and
the regulations promulgated by the State pursuant thereto. And all
lands which are selected by the Borough and which the Borough may
wish to sell, lease or otherwise dispose of shall be sold, leased
or disposed of in accordance with the provisions of said agreement
for so long as the agreement shall remain in full force and effect.;
Section Five: Upon termination of the Land Management
Agreement with the State or when dealing with any lands not covered)
i
by the Agreement, the following sections shall be in force and effect:
Section Six: Qualifications of applicants or bidders.
An applicant or bidder for a lease or purchase is qualified if the
applicant or bidder is:
(A) a citizen of the United States and is over the age
of nineteen (19) years, or
(B) has filed a declaration of intention to become a
citizen and is over the age of nineteen (19) years, or
(C) is a group, association, or corporation which is
authorized to conduct business under the laws of Alaska, or
(D) is acting as an agent for another, and has qualified
by filing with the Borough Clerk prior to the time set for the auction
a proper power of attorney or a letter of authorization creating
such agency. The agent shall represent only one principal to the
exclusion of himself.
Section Seven: Applications. All applications for lease
or purchase of Borough lands shall be filed with the Borough Clerk
on forms provided by him and available at the Borough Office. Only
forms completed in full and accompanied by a ten dollar ($10.00)
iling fee will be accepted for filing. Filing fees arenot refund-
able. With every application the applicant shall submit a develop -)
ent plan showing and stating (1) the purpose of the proposed lease
r purchase, (2) the use, value and nature of improvements to be
onstructed, (3) the type of construction, (4) the dates construction
age Three, ORDINANCE NUMBER 66- /
filed with the Borough Clerk will be forwarded to the Borough Engin-
eer or other designated official to determine his estimate of costs
required to handle the application, including but not limited to
one or more of the following: survey, appraisal, and advertising
of the area under application. Upon'determination said official
'will notify applicant in writing of such costs anddeposit shall be
(made therefore within. thirty (30) calendar days after notice is
dated. Failure of applicant to pay deposit shall result in the
application being cancelled. If the applicant does not accept a
lease or sale offer within thirty (30) calendar days after it is
offered to the applicant, all deposit money spent or encumbered for
survey, appraisal or advertising shall be forfeited, and the balance,
1
is estimated to commence and be completed, (5) whether intended usEi
complies with the zoning ordinance and comprehensive plan of the
KODIAK ISLAND BOROUGH.
Section Eight: Deposits for Costs. All agiications
if any, shall be returned to the applicant. If the land applied
I
for upon which deposit for costs is made is leased or sold to anotht
er, the latter shall be required to pay actual costs of survey,
appraisal and advertising, and the original deposit shall be return
ed to the depositor. Where the applicant becomes the lessee or
owner, he shall be required to pay any excess of costs over deposit
land where the deposit exceeds actual costs, the excess shall be
credited to present or future rents under the lease, or to the pur-
chase price. All sur'r, appraisal and advertising shall be performed
my under the authorization of the Borough and any such work done
ithout such authorization shall not qualify.
Section Nine: Rights prior to lease or sale. No prefer -
nce rights shall pertain prior to the issuance of lease or deed.
age Four, ORDINANCE NUMBER 66- /
'The filing of an application for a lease or purchase shall give the
applicant the right to lease or purchase, or use of the land applied
for. Any use not authorized by lease or purchase shall constitute
atrespass against the Borough.
Section Ten: Review. No lease or sold land may be changed
in use nor may any renewal lease be issued until the proposed use
or renewal has been reviewed by the Planning and Zoning Commission
and approved by the Borough Assembly.
Section Eleven: Term of lease. Leases may be issued
for a period up to five (5) years by Assembly action but any term
over five (5) years shall be ratified by the voters at a special
election. The term of any given lease shall depend uponthe desira-
bility of the proposed use, the amount of investment in improvement
proposed, and made, and the nature of the improvement goposed with
respect to durability and time required to amortize the proposed
investment.
Section Twelve: Appraisal. No Borough lands shall be
leased or sold, or a renewal lease issued unless the same has been
appraised within ninety (90) days prior to the date fixed for begin
ping of the term of the sale, lease, or renewal lease. Appraisals
shall reflect the number andzalue of Borough services rendered to tie
nd in question, its location, and other factors affecting its des-
irability.
Section Thirteen : Minimum rental or sale prices.
Annual minimum rentals shall be computed as one -tenth (1 /10th) of
the approved appraised market value, and shall be the lowest accep-
table bid in the event of an auction. The minumum sale price shall
be the approved appraised market value and shall be the lowest accep-
table bid in the event of an auction or sealed bid sale.
Page Five, ORDINANCE NUMBER 66-
Section Fourteen: Leasing procedure. Leases for a termi
of five (5) years or less with amputed annual minimum rental of
!FIVE THOUSAND and No /100ths ($5,000.00) DOLLARS or less may be neg -1
otiated or offered at public auction in the discretion of the Bor-
ough Assembly. All leases having a term of more than five (5)
years or having a computed annual minimmanntal of more than FIVE
THOUSAND and No /100ths ($5,000.00) DOLLARS shall be offered at
public auction. All public auctions of Borough lands shall be held
by the Borough Chairman in the Borough Assembly meeting room. At
the completion of the auction of each tract of land, said official
shall indicate the apparent high bidder. In the event of a release,
Section Sixteen: Sale Procedure. The sale shall be mad
at public *auction or by sealed bid to the highest qualified bidder
Page Six, ORDINANCE NUMBER 66-
the original lease holder may exercise his right to meet the bid of
the apparent high bidder. Failure to do so at this time shall void;
and cancell such right. The apparent high bidder, or the original
lease holder bidding on a re -lease if his right is exercised, shall;
thereon cbposit with said official a portion of the annual rental
then due, together with the unpaid costs of survey, appraisal and
advertising. All payments must be made in cash,_ money order, certif-
ied check or a cahierts check or any combination thereof.
Section Fifteen: Payment of annual rentals. Annual
rentals of five hundred dollars ($500.00) and less shall be paid
annually in advance. Annual rentals of an amount between five hund
red dollars ($500.00) and one thousand dollars ($1,000.00) shall be
paid intwo equal installments every six (6) months. Annual rentals
in an amount in excess of one thousand dollars ($1,000.00) shall be
paid in advance in monthly payments on the first of each calendar
month.
as shall be determined by the Borough Chairman. The sale shall
be conducted by the Borough Chairman or his representative, and at
' time of sale the successful bidder shall deposit in cah or by
certified check, an amount equal to one -tenth (1 /10) of the purchasle
price and the balance of the purchase price shall be payable on
delivery of the deed /or a contract of sale on a form approved by
the Borough Attorney shall be signed by the purchaser and following
the approval of the Borough Assembly, the contract shall also be
'signed by the Borough Chairman and the Presiding Officer, which
(contract provisions shall provide for the payment of the balance
of the purchase price in monthly installments with interest and for
I '
ithe deposit of a deed to the property purchased along with a copy
j of the contract of sale in an escrow contract.
Section Seventeen: Public Notice. Public notice of
lease or sale of land is required to be given under the provisions
of this ordinance; such notice shall be published in a newspaper
of general circulation published in the Borough at least thirty
(30) days before the date of the sale, lease or disposition and
posted within that time in at least three (3) public places in the
Borough. The notice must contain a brief description of the land,
its area and general location, proposed use, term, computed annual
minimum rental, or minimum sale price, limitations if any, and
time and place set for the auction or bid opening.
Section Eighteen: Receipt of bid. Upon deposit of
required sum by apparent high bidder, or prior lease - holder biddin
for a re- lease, the Borough Chairman shall thereupon issue to the
successful bidder a receipt for the required sum containing a
description of the land or interest leased or sold, the price bid
and terms of the sale or lease, the receipt whereof shall be
PageSeven, ORDINANCE NUMBER 66-
acknowledged by the bidder in writing.
Section Nineteen: Borough Assembly's Rejection. Prior
to the signing of the formal lease or sales contract by the Borough
the Borough Assembly may reject any and all bids when the best
!interests of the Borough clearly justifies such action.
Section Twenty: Appeal. An aggrieved bidder may appeal
to the Bormigh Chairman's determination of the apparent high bidder,
the former leaseholder's right to exceed the high bidder, to the
Assembly, within five (5) days (excluding Saturday and Sunday)
following such determination. Such appeals must be in writing and
contain a short statement of the grounds for appeei and verified undjer
oath. The Assembly shall within thirty (30) days of receipt of a
timely appeal review the asserted grounds for appeal and rule therej-
on. The Assembly's decision shall be final, but without prejudice
to any other right or rights the aggrieved bidder may have.
Section Twenty -one: Completion of bid requirements.
Following the appeal, or the Assembly's ruling, the Borough Chair-
man shall notify the successful bidder that the Borough is prepared
to issue an appropriate lease, deed or sales contract. Upon receipt
of notice the bidder is granted thirty (30) calendar days in whch to
remit to the Borough Chairman any bid balance orany other sums that
may be due and in addition, shall complete all necessary documents.
Failure to do so shall result in forfeiture of any and all rights
previously acquimd in the proposed transaction, and in addition, an*
monies paid or deposited with the Borough shall be forfeited.
Section Twenty -two: Issue of lease, deed or sales contract.
After expiration of the five (5) day appeal, or after the ruling on
determination appealed to the Assembly, the Borough Chairman shall
cause a lease, deed or sale contract to be issued and executed
Page Eight, ORDINANCE NUMBER 66- /
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(containing such terms as the Assembly by its determination shall
) establish.
Section Twenty- three: Responsibility to properly located
on premises. It shall be the responsibility of the lessee or pur-
,!chaser to properly locate himself and his improvements on the leased
r purchased land. It shall be unlawful to encroach on other lands,
of the Borough or on lands owned or leased by another, and violations
shall constitute a misdemeanor.
Section Twenty -four: Lease utilization. Leased borough,
lands shall beutilized for purposes within the scope of the applica-
tion, the terms of the lease, and in conformity with the ordinances
of the Borough, including the zonng ordinance, and in substantial
conformity with its comprehensive plan. Utilization or development
for other than the allowed uses shall constitute a violation of the'
lease and subject the lease to cancellation at any time. Failure
to make substantial use of the land, consistent with the proposed 4e,
within one (1) year, shall in the discretion of the Borough Chair-
man with the approval of the Assembly constitute grounds for cancell-
ation.
Section Twenty - five:, Adjustment of rental. All leases
shall contain the agreement of the lessee to an adjustment of the
annual rental payment by the Borough Assembly every fifth (5th)
year, beginning with the rental for the year 1970, and every fifth
(5th) year thereafter. Any changes or adjustments shall be based
primarily upon the value of comparable land in the same or similar
areas, exclusive of buildings, structures, appurtenances, equipment,
land fill, except land fill wholly or partly placed by the Borough
or other public authority, clearing, levelling or roads owned by this
lessee.
Page Nine, ORDINANCE NUMBER 66-
Section Twenty -six: Subleasing. Any lessee may sublease
lands or any part thereof leased to him, provided, that the proposed
lessee first applies to the Borough Chairman for a permit therefore,
and further provided that the improvements on the leased lands are
1
the substantial reason for the sublease. Leases not having reprove
'ments thereon shall not be subIt. Subleases shall be in writing
and be subject to the terms and conditions of the original lease.
Section Twenty- seven: Assignments. Lands leased or
under contract of sale may be assigned, provided that the proposed
assignment shall be first approved by the Borough Assembly. The
assignee shall be subject to all of the provisions of the lease
or sales contract.
Section Twenty - eight: Modification. No lease or sales
(contract may be modified orally or in any manner other than by
agreement in writing signed by all parties in interest or their
successors in interest.
Section Twenty -nine: Cancellation- forfeiture.
(A) Leases or sales contracts in good standing may be
!cancelled in whole or in part, at any time, upon mutual written
'agreement by purchaser or lessee and the Borough Chairman.
elled.
(B) Any lease used for an unlawful purpose may be canc-
(C) If the lessee shall default in the performance or
reservance of any of the lease terms, covenants, or stipulations
hereto, or of the regulations now or hereafter enforced, or any of
he ordinances of the Borough, and should said default continue for
hirty (30) calendar days after the service of written notice by th4
orough without remedy by lessee of the conditions warranting default,
he Borough shall subject lessee to appropriate legal action, inclu4-
n g, but'not limited to forfeiture of the lease. No improvements m
age ten, ORDINANCE NUMBER 66- /
y
(ever) be removed by a lessee or other person without the written
consent of the lessor, Borough.
Section Thirty Notice or demand. Any notice or demand
which under the terms of a lease or sale contract, or under any sta
ute, must be given or made by the parties thereto, shall be in writ-
ing, and be given or made by registered or certified mail, address-
ed to the other party at the address of record. However, either
party may designate in writing such new or other address in which
such notice or demand shall thereafter be so given, made' or mailed.,
A notice given hereunder shall be deemed delivered when deposited
in a U.S. general or branch post office enclosed in a registered
t-
or certified mail pepaid wrapper or envelope addressed as herein
above provided.
Section Thirty -one: Rights of mortgagee or lien holder.
In the event of cancellation or forfeiture of a lease or a sale
contract for cause, the holder of a properly recorded mortgage,
conditional assignment or collateral assignment will have the
option to acquire the lease or sales contract for the unexpired
term thereof, subject to the same terms and conditions as in the
original instrument.
Section Thirty -two: Entry and re- entry. In the event tiat
the lease or sales contract should be terminated as herein before
provided, or by summary proceedings or otherwise, or in the event
that the demised lands, or any parts thereof, should be abandoned
by the lessee during the said term, the Borough or its agents,
servants or representatives, may,immediatiy or at any time thereafter,
re -enter and resume possession of said landsor such part thereof,
and remove all persons and property therefrom either by summary pro
ceedings or by a suitable action or proceeding at law without being
Page Eleven, ORDINANCE NUMBER 66-
liable for any damages therefore.
Section thirty- three: Re- lease. In the event that a
,lease or sale contract should be terminated as herein - provided, or
by summary proceedings, or otherwise, the Borough Assembly may offer
said lands for lease or other appropriate disposal pursuant to the
provisions of this ordinance.
Section Thirty -four: Forfeiture of rental. In the event
that a lease should be terminated because of any breach of the less,
ee, as herein provided, all rental payments made by the lessee shall
be forfeited and retained by the lessor as partial or a total liqui1-
ated damages for said breach.
Section Thirty -five: Written Waiver. The receipt of
rent by the Lessor with knowledge of any breach of the lease by they
lessee or of any default on the part of the lessee in observance orj
performance of any of the conditions or covenants of the lease, shall
not be deemed to be a waiver of any provision of the lease. No
failure on the part of the lessor to enforce any covenant or provis-
ion therein contained, nor any waiver of any right thereunder by
the lessor unless in writing, shall discharge or invalidate such
covenants or provisions or afect the right of the lessor to enforce
the same in the event of any subsequent breach or default. The
receipt, by the lessor, of any rent or any other sum of money after
the termination, in any manner, of term therein demised, or after
the giving by the lessor of any notice thereunder to effect such
termination, shall not reinstate, continue, or extend the result-
ant term therein demised, or destroy, or in any manner impair the
efficacy of any such notice of termination as may have been given
thereunder by the lessor to the lessee pursuant to the receipt of a1ny
such sum of money or other consideration, unless so agreed to in
writing and signed by the lessor.
Page Twelve, ORDINANCE NUMBER 66- /
Section Thirty -six: Expiration of lease. Unless the
`lease is renewed or sooner terminated as provided herein, the less-
ee shall peaceably and quietly leave, surrender and yield up unto
the lessor all of the leased land on the last day of the term of the
'lease.
Section Thirtpseven: Renewal of lease. If at the expir-
ation of any lease of any lands hereunder, the lessee desires a
renewal lease on the lands, properties, or interests covered thereby,
he shall not sooner than sixty (60) calendar days prior to the expir-
ation, and not later than thirty (30) calendar days prior to the
expiration make application for a renewal lease in writig on forms
provided entitled "Application for Renewal of Lease, ", certifjing
under oath as to the character and value of all improvements exist-
ing on the lands, properties or interests herein, the purpose for
which he desires a renewal lease and such other information as the
Borough Chairman may require. The applicant shall deposit with
said official twenty -five dollars ($25.00) if the lease does not
require public auction, or fifty dollars ($50.00) if the lease
does require public auction, under the provisions of this ordinances
The Borough Assembly may thereupon lease said lands in compliance
with all sections of this ordinance with re- -lease rights being
allowed the former lessee if all other pertinent factors are sub-
stantially equivalent. For the purposes of this section, the date
that the application for renewal of lease is presented to the office
of the Borough, as evidenced by the date stamped thereon, whether
delivered or forwarded by regular, certified, or registered mail,
shall be binding.
Section Thirty - eight: Re -lease rights. A lessee under
an existing lease shall upon the expiration or the termination by
Mutual agreement of said lease, be allowed rights to re -lease those
lands previously leased by him if all other factors are substantiall
i� n Th i rt n nr nnTT\ ivcr OTT *MFR FF. _
equivalent. If the lease offered the re -lease right holder does
not require public auction, the re -lease right holder shall exercise
his right within thirty (30) days after said lease is offered by the
official. Failure to doso shall result in forfeiture and cancella-
the re -lease right. In the event the lease is offered at
auction, the re -lease right holder shall at the close of the
bidding indicate if he wishes to exercise his right and meet the hi0-
est bid. If he does so choose, he shall meet all the requirements ,
of this ordinance. If the re -lease right holder does not choose
to exercise his right at this time, or if he does not fulfill the
requirements of this ordinance, his release right is then forfeited:
and cancelled. No re -lease right shall inure to a lessee whose
lease has been cancelled or terminated for cause.
Section Thirty -nine: Removal or reversion of improvements
I tion of
public
upon terminatim of lease. Improvements owned by the lessee shall
within sixty (60) calendar days after the termination of the lease
be removed by him; provided, such removal will not cause injury or
damage to the land; and provided further, that the Borough Assembly;
may extend the time for removing such improvements in cases where
The retiring lessee may, with the consent of thle
sell his improvements to the succeeding lessee.
All periods of time granted lessees to remove improvements are sub-
ject to said lessees paying through the Borough pro -rate lease
rentals for said period.
If any improvements and /or chattels having an appraised
value in excess of five thousand dollars ($5,000.00) as determined
by the assessor are not removed within the time allowed, such
improvements and /or chattels shall upon due notice to the lessee
Page Fourteen, ORDINANCE NUMBER 66
'hardship is proven,
Borough Assembly,
be sold at public auction under the direction of the Borough Chair -j
1 , 1 man. The proceeds of the sale shall inure to the lessee preceding
if he placed such improvements and /or chattels on the lands, after
deducting for the Borough all rents due and owing and expenses in-
curred in making such sale. In case there are no other bidders at
';any such sales, the Borough Chairman is authorized to bid, with
concurrence of the Borough Assembly in the name of the Borough, on ;
!such improvements and /or chattels. The bid money shall be taken from
!the fund to which lands belong and the said fund shall receive all
!monies or other value subsequently derived from the sale or leasing
'of such improvements and /or chattels. The Borough shall acquire
all rights, both legal and equitable, that any other purchaser would
!acquire by reason of said purchase.
If any improvements and /or chattels having an appraised
,value of five thousand dollars ($5,000.00) or less, as determined
by the assessor, are not \emoved within the time allowed, such imp-
!rovements and /or chattels shall revert to, and absolute title shall
;vest in, the Borough.
Section Forty: Rental for improvements or chattels not
`removed. Any improvenults and /or chattels belonging to the lessee
or placed on the leased premises during the lesseets tenure with
'or without his permission and remaining upon the premises after the
;termination date of the lease shall entitle the lessor to charge a
!reasonable rent therefore.
with all regulations or ordinances of the Borough which are promulgt
f ated for the promotion of sanitation. The premises of the lease
shall be kept in a neat, clean and sanitary condition and every
Section Forty -one: Sanitation. The lessee shall comply
effort shall be made to prevent the pollution of water.
;Page Fifteen, ORDINANCE NUMBER 66- ir
Section Fortytwo: Fire protection. The lessee will tape
t all reasonable precaution to prevent, and take all necessary action
I to suppress destructive or uncontrolled grass, or brush or other
fires on leased lands and comply with all laws, regulations and
I l rules promulgated and enforced by the Borough for fire protection
'within the area wherein the leased premises are located.
Section Forty - three:Building and zoning codes. Leased
lands shall be utilized in accordance with the building and zoning
ordinances and rules and regulations of said authority. Failure
to do so shall constitute a violation of the lease.
Section Forty -four: Inspection. The lessee shall allowi
authorized representatives of the Borough to enter the leased lands)
for inspectin at any reasonable time.
Section Forty -five: Reservations and restrictions.
Each and every contract for the sale, lease or conveyance of, and
each deed to Borough lands, properties or interests therein, made
under the provisions of this ordinance, shall contain such reserva-
tions as the Borough Assembly may deem necessary or appropriate to
protect the public interest, including but not limited to the reserG-
vation of coal, oil and mineral rights on said properties, includ-
ing all rights and powers reasonably necessary or convenient to
render beneficial and efficient to complete enjoyment of such prop-
erty rights so reserved.
Section Forty -six: Damages. No rights shall be exer-
cised under the foregoing reservation by the Borough, its lessees,
successors or assigns, until provision has been made by the Borough,
its lessees, successors or assigns, to pay to the owner of the land,
upon which the rights, herein reserved to the Borough, its lessees,
successors or assigns, are sought to be exercised, full payment for
all damage sustained by said owner, by reason of entering upon said
age Sixteen ORDINANCE NUMBER 66- /
land; provided, that if said owner for any cause whatever refuses
or neglects to settle said damages, the Borough, its lessees, succ
assigns or any applicant fora lease or a contract from the
Borough, for the purpose of prospecting for valuable minerals, or
option contract or lease for mining coal, or lease for extracting
petroleum or natural gas shall have the right, after posting a sur-
ety bond with the Borough Chairman in a company qualified to do
,business in Alaska and in a form as determned by the Borough attorn+
l ey, after due notice and opportunity to be heard, to be sufficient
in amount and security to seare the said owner full payment for all
such damages, to enter upon the land in the exercise of said reserv-
ed rights, and have the right to institute such legal proceedings
in a court of competent jurisdiction wherein the land is situated,
as may be necessary to determine the damages which the surface
lessee of such lands may suffer.
Section Forty- seven: Rights of way. The lessor express=
ly reserves the right to grant easements or rights of way across
leased land if it is determined in the best interests of the Boroug$
to do so. The lessee whose lands such easements or rights of way
shall cross shall be entitled to damages for all improvements, des-
troyed or damaged. Damages shall be limited to improvements only,
and loss shall be determined by fair market value. Annual rentals
may be adjusted to compensate lessee for loss of use.
Section Fortyeight: Lease rental credit. When authoriz
ed in writing by the Borough Assembly prior to the commencement of
any work, the lessee may be granted credit against current or futur re
rent, provided, said work accomplished on or off the leased area
results in increased valuation tocther Borough owned lands. Said
authorization may stipulate type of work, standards of construction
Page Seventeen ORDINANCE NUMBER 66- /
and the maximum allowable credit for the specific project.
Section Forty -nine: Approval of other authorities.
The issuance by the Borough of deeds or leases under the provisions
of this ordinance does not relieve the grantee or lessee of respons-
'iibility of obtaining licenses or permits as may be required by duly
authorized state or federal agencies.
Section Fifty: Penalties. Any person violating any of
the provisions of this ordinance shall be deemed guilty of a mis-
demeanor and upon conviction thereof shall be fined in an amount
not exceeding three hundred dollars ($300.00) or be imprisoned in
the jail for a period not to exceed thirty (30) days or both by
such fine and imprisonment. Each day such violation is committed 1
1
or permitted to continue shall constitute a separate offense and
shall be punishable as such hereunder.
Section Fifty -one: Severability Clause. If any sec-
tion, subsection, sentence, clause, phrase or portion of this ordinf.
ance is for any reason held invalid or unconstitutional by any court
f competent jurisdiction, such portion shall be deemed a separate,
stinct and independent provision and such holding shall not affect'
the validity of the remaining portions hereof.
Section Fifty -two: Re- appealing Clause. All ordinances'
and parts of ordinances in conflict with the provisions of this
ordinance are hereby repealed.
First Reading and Approval Date:. January ,Z d , 1966
Second Reading and Approval and Public Hearing Date: I
96 6
,196k.
PASSED AND APPROVED this 3`4 day of
KODIAK ISLAND BOROUGH
BY: �. i - �1
CHAIRMAN
Page Eighteen, ORDINANCE NUMBER 66- t