FY2017-30 Authorizing Land Sale Number Nineteen And Establishing Terms And Conditions.1
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Introduced by: Borough Manager
Drafted by: Resource Manager
Introduced on: 03/09/2017
Adopted on: 03/09/2017
KODIAK ISLAND BOROUGH
RESOLUTION NO. FY2017-30
A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AUTHORIZING
LAND SALE NUMBER NINETEEN AND ESTABLISHING TERMS AND CONDITIONS
WHEREAS, Kodiak Island Borough Code (KIBC 18.30.020) requires the Borough Assembly
to set the terms and conditions of sale for the disposal of public lands; and
WHEREAS, The Planning and Zoning Commission has recommended and the Borough
Assembly has determined that certain lands are surplus to the Borough's need.
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH that:
Section 1: The Kodiak Island Borough Assembly, in accordance with Title 18 of the Kodiak
Island Borough Code, authorizes the Manager or his designee to offer the
following lots for disposal by public outcry auction on Saturday, May 6, 2017 at
1:00 P.M. in the Borough Assembly Chambers:
1. Lot 1, Raven Hills Subdivision
2. Lot 2, Raven Hills Subdivision
3. Lot 5, Block 5, Monashka Bay Subdivision
4. Lot 7A, Block 2, Monashka Bay Subdivision
Section 2: Parcels sold at Land Sale Number Nineteen shall be subject to the following
terms and conditions:
1. The parcels shall be appraised at fair market value as determined by the
Borough Assessor and the minimum acceptable bid at the auction shall be
the appraised market value.
2. A deposit of ten percent (10%) of the winning amount will be required to be
deposited with auction staff at the auction. The deposit shall be verified funds
in the form of a cashier's check or money order or any form acceptable to
auction staff and approved by the Borough Finance Director. No credit card
transactions are allowed. The deposit shall be credited to the down payment
at the closing of the land sale and kept by the seller should the transaction
not be completed as required by this resolution.
3. The term of the contract for the unpaid balance shall be ten (10) years.
Kodiak Island Borough, Alaska
Resolution No. FY2017-30
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4. The interest rate on the unpaid balance shall be ten percent (10%).
5. Payments on the unpaid principal shall be made on a monthly basis. The
Borough Finance Department will calculate equal payments amortized
monthly, with the uneven payment, if any, being the last payment due. All
payments are due beginning thirty (30) days following the date of recording
with any additional late penalties calculated pursuant to KIB ordinances.
There is no penalty for prepayment of all or part of the deed of trust, but any
prepayments shall be credited first to outstanding interest and then principal.
Prepayment of the loan is allowed as long as it is made in conjunction with a
regular monthly payment. Prepayments will not affect the amount of the
monthly payment, but will reduce the loan term accordingly.
6. The purchaser shall execute a deed of trust for the unpaid balance plus
interest to secure payment of the note. The Borough Finance Department
shall hold the deed of trust unless the buyer desires it to be held as an
escrow account by a third party trustee acceptable to the buyer and seller. In
that event, the buyer shall be responsible for all costs associated with the
trustee and the escrow account. The time and place of closing will be set by
the Borough manager or the manager's designee, but shall be not less than
ten (10) and not more than twenty (20) working days after the signing of the
purchase commitment. The seller and buyer shall evenly split the expense of
normal closing and recording fees.
7. Any remaining unsold parcels shall be offered for sale "over-the-counter"
beginning at 9:00 A.M. on May 16'" at Room #104, Cashier's Office of the
Borough Building at 710 Mill Bay Road, Kodiak Alaska 99615, on a first-
come, first -serve basis. The minimum sales price shall be the appraised
value.
8. Any remaining unsold parcels not disposed of within six (6) months of the
sale date shall be withdrawn pending future evaluation and action.
9. All parcels will be conveyed by Quit Claim Deed subject to easement,
reservations, and restrictions of record.
10. Each entity (entity is defined as an unmarried individual, married couple, or a
corporation) is limited to the purchase of one (1) lot at the public outcry
auction. Any entity wishing to buy more than one (1) lot will be allowed to do
so "over-the-counter' not sooner than May 18, 2017. At that time, any entity
may purchase any or all lots offered on a first-come first-served basis
beginning at 9:00 A.M. May 18, 2017 at Room #104, Cashier's Office of the
Borough Building at 710 Mill Bay Road, Kodiak 99615, with a minimum sales
price of the appraised value.
Kodiak Island Borough, Alaska
Resolution No. FY2017-30
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11. Special circumstances apply to some properties as follows:
a. Parcels #1 and #2 (Lots 1 and 2, Raven Hills Subdivision) are provided
with a shared driveway easement as shown on Plat 2004-9.
Development of driveway access to both lots is subject to the approval of
the State of Alaska, Department of Transportation & Public Facilities,
which owns the right-of-way that fronts both lots. Both lots will require the
development of a well for potable water and a septic system that is
compliant with applicable regulations of the Alaska Department of
Environmental Conservation. It is incumbent upon the potential
purchaser to determine the closest point at which electrical service can
obtained from the Kodiak Electric Association.
b. Parcel #3, (Lot 5, Block 5, Monashka Bay Subdivision) will require the
development of a well for potable water and may require an engineered
septic system that complies with the applicable regulations of the Alaska
Department of Environmental Conservation. It is incumbent upon the
potential purchaser to determine the closest point at which electrical
service can be obtained from the Kodiak Electric Association.
c. Parcel #4 (Lot 7A, Block 2, Monashka Bay Subdivision) will require the
development of a well for potable water and may require an engineered
septic system that complies with the applicable regulations of the Alaska
Department of Environmental Conservation. It is incumbent upon the
potential purchaser to determine the closest point at which electrical
service can be obtained from the Kodiak Electric Association.
12. In accordance with KIBC Section 18.20.100.C, a 10% rebate of the auction
purchase price will be granted so long as, within 36 months of the sale date,
the purchaser has constructed a residential dwelling upon the purchased
property, and has obtained all legal authorization required to occupy it.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS NINTH DAY OF MARCH, 2017.
KODIAK ISLAND BOROUGH
Daniel A. Rohrer, Mayor
ATTEST:
t
7 1"
Nova M. Javier, MM Clerk
UNANIMOUS VOTE: Smiley, Symmons, Townsend, Van Daele, Crow, LeDoux, and Skinner.
Kodiak Island Borough, Alaska
Resolution No. FY2017-30
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