FY2021-25 Amending Chapter 18.20 Of The Kodiak Island Borough Code Regarding The Process For Disposition Of Tax Foreclosed PropertyIntroduced by: Mayor At Request Of The Manager
Drafted by: Borough Attorney
Introduced on: 12/17/2020
Public Hearing Date: 01/07/2021
Amended/Adopted on: 01/07/2021
KODIAK ISLAND BOROUGH
ORDINANCE NO. FY2021-25
AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING
CHAPTER 18.20 OF THE KODIAK ISLAND BOROUGH CODE REGARDING THE PROCESS
FOR DISPOSITION OF TAX FORECLOSED PROPERTY
WHEREAS, the Kodiak Island Borough periodically acquires property by clerk's deed through
tax foreclosure under AS 29.45.450; and
WHEREAS, AS 29.45.480 sets out the disposition of the proceeds from the sale of tax
foreclosed property, and provides that if the tax foreclosed property has been held for less than
ten (10) years the former record owner of the property may, within six (6) months of the sale,
claim any excess proceeds. Excess proceeds are amounts in excess of the unpaid taxes, the
amount equal to taxes that would have been assessed after foreclosure if it had remained in
private ownership, penalty, interest, and costs to the municipality of maintaining and managing
the property; and
WHEREAS, the Kodiak Island Borough Assembly finds that when property received by the
Borough through tax foreclosure under AS 29.45.450 which has been held by the Borough for
less than ten (10) years is to be disposed by sale, it is in the public interest to expedite the sale
to recover the amounts due the Borough; and
WHEREAS, the Kodiak Island Borough Assembly finds that a restriction that Borough property
be sold only for fair market value is more likely to slow the sale and delay the recovery of amounts
due the Borough in connection with property received by the Borough through tax foreclosure
under AS 29.45.450 which has been held by the Borough for less than ten (10) years; and
WHEREAS, the Kodiak Island Borough Assembly finds that the public interest in timely
recovery of funds due the Borough is served by permitting the sale of property received by the
Borough through tax foreclosure under AS 29.45.450 which has been held by the Borough for
less than ten (10) years by sale with a minimum price of the sum of the amount due for unpaid
taxes, the amount equal to taxes that would have been assessed after foreclosure if it had
remained in private ownership, penalty, interest, and the costs to the municipality of maintaining
and managing the property, which amount may be less than appraised fair market value.
Kodiak Island Borough, Alaska
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Ordinance No. FY2021-25
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NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH that:
Section 1: Classification. Sections 2, 3 and 4 of this ordinance are of a general and permanent
nature and shall become a part of the Code of Ordinances of the Kodiak Island
Borough. The remainder shall not be codified.
Section 2: That section 18.20.040 of the Kodiak Island Borough Code of Ordinances, entitled
Disposition and Sale of Tax Foreclosed properties, is amended to read as follows:
18.20.040, Disposition and Sale of Tax Foreclosed properties.
The assembly, by ordinance, shall provide for the disposition or sale of tax -
foreclosed land, including the retention of such property by the borough for a public
purpose, in accordance with AS 29.45.460. When the assembly determines that
tax -foreclosed land shall be sold, it shall be sold by sealed bids, public
auction, or any other method of disposal authorized by the assembly. The
proceeds from the sale of tax -foreclosed property shall be allocated as
provided in AS 29.45.480. If the property condition is in violation of the
borough code, the terms of sale shall include a requirement that the buyer
agree to remedy the violation within a time period which is reasonable for
the type of violation.
Section 3: That section 18.20.100 of the Kodiak Island Borough Code of Ordinances, entitled
Disposal for Fair Market Value, is amended to read as follows:
18.20.100, Disposal for Fair Market Value.
A. Except as otherwise provided by this title or another provision of law, all disposal
of borough land, other than land received through tax foreclosure under AS
shall be for the fair market value of the interest disposed of. The borough may
accept in exchange for borough land any consideration of sufficient value not
prohibited by law. Unless the assembly sets a different minimum sale price in
the ordinance authorizing the sale, land received by tax foreclosure under
B. The borough may dispose of borough land to the United States, the State of
Alaska, or any political subdivision thereof, or a nonprofit corporation or
association, for less than the fair market value of the interest disposed of, upon a
finding by the assembly that the disposal will allow the use of the land for a public
purpose beneficial to the borough. It may do so by direct negotiation with the
Kodiak Island Borough, Alaska
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Ordinance No. FY2021-25
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organization acquiring the land, without conforming to
KIBC 18.20.120 through 18.20.155, unless otherwise directed by the assembly.
C. Notwithstanding the other requirements of this section, the assembly may
authorize a 10 percent rebate (not to exceed $10,000) of the purchase price for
the land so long as, within 36 months of the sale date, the purchaser has
constructed a residential dwelling upon the property, and has obtained all legal
authorization required to occupy it.
D. For properties that are sold by the borough under the above provisions
which are believed to exhibit violations of adopted building safety or land
property taxes does not exceed the potential assessed value of the property
Section 4: That section 18.20.130 of the Kodiak Island Borough Code of Ordinances, entitled
Appraisal, is amended to read as follows:
18.20.130, Appraisal.
Borough land, other than land received through tax foreclosure under AS
29.45.450 held for less than ten (10) years, shall be appraised within 90 days
prior to the date fixed for its disposal. The appraisal shall be performed by the
assessor or a qualified appraiser and reflect the fair market value of the land and
borough improvements located thereon. Land received through tax foreclosure
under AS 29.45.450 which has been held by the borough for less than ten
(10) years will only be appraised under this section if required the assembly.
Effective Date: This ordinance shall become effective as provided in KIBC 1.10.040.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SEVENTH DAY OF JANUARY, 2021.
KODIAK ISLAND BOROUGH
Mayor
Kodiak Island Borough, Alaska
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Rice, Borough Clerk
Ordinance No. FY2021-25
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VOTES:
Ayes: Dvorak, Kavanaugh, Smith, Williams, and Arndt.
Noes: Turner.
Absent: Symmons.
Kodiak Island Borough, Alaska
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Ordinance No. FY2021-25
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