1971-02 Amending Chapter 6 To Provide for Negotiated Sales and 55 Yr Leasesi
- KODIAK ISLAND BOROUGH
ORDINANCE NUMBER 71 -2 -0
AN ORDINANCE AMENDING CHAPTER 6, SECTIONS 11, 14,
16 AND 39 OF THE KODIAK ISLAND BOROUGH CODE OF ORDINANCES
'AND RESOLUTIONS BY REPEALING AND RE- ENACTING THE SAME TO
PROVIDE FOR NEGOTIATED SALES AND FIFTY -FIVE YEAR LEASES OF
BOROUGH LANDS.
BE IT ORDAINED by the Kodiak Island Borough
Assembly that Chapter 6, Sections 11, 14, 16 and 39 of the
Kodiak Island Borough Code of Ordinances and Resolutions be
and the same are hereby repealed and re- enacted to read as
follows:
Section 11. TERM OF LEASE: Leases may be
issued for a period up
to fifty -five (55) years by Assembly
acction, however the term of any given lease shall depend
upon the desirability of proposed use, the amount of
investment in improvements proposed, and made, and the nature
of the improvements proposed with respect to durability and
time required to amortize the proposed investment.
Section 14. LEASING PROCEDURE:
II (A) Leases for a term of five (5) years or
Iless with computed annual minimum rental of FIVE THOUSAND
Iand No/100th' ($5,000.00) DOLLARS or less may be negotiated
ublic auction in the discretion of the
or offered at p
jBorough Assembly.
(B) All leases having a term of more than five
(5) years or having a computed annual minimum rental of
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DOLLARS
more than FIVE THOUSAND and No /100ths ($5,000.00)
Ishall be offered at public auction. All leases of fifty -five
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and the
(55) years shall be for commercial development only
annual lease price shall be not less than five percent (5$)
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f the leased land at
of the appraised price o the time the
option of the
lease is entered into or accepted with the op
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Lessee to purchase said land at its original appraised
price upon completion of the development planned. Each
applicant for a fifty -five (55) year lease shall submit a
.'development plan which shall provide for progressive
development beginning not later than the first year with
cancellation if no development is instituted, but with the
right of the applicant to re -apply for the same tract;
however, there shall be no right of extension. The development
plan shall further require fifty percent (50$) completion by
Ithe end of the third year of the lease and total completion
by the end of the fifth year of the lease, with the further
provision that the property and all improvements thereon
shall revert to the Borough if not purchased by the Lessee at
the end of the fifty -five (55) year period.
(C) All public auctions of Borough lands shall be
held by the Borough Chairman in the Borough Assembly meeting
room, and the Borough Assembly shall have the sole discretion
which development plan or plans would benefit the civic
welfare of the municipality and which development plans would
be most advantageous to the civic welfare of the community,
and are most in accord with future expansion and growth of
Ithe Borough and in weighing the relative merits of the applicants
for applications the Borough shall take into consideration the
ability of the applicant to carry out the proposed development.
!I (D) At the completion of the auction of each
tract of land the Borough Chairman shall indicate the
Inapparent high bidder to the Borough Assembly; however, in the
11event of a re -lease the original lease holder may exercise
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his right to meet the bid of the apparent high bidder.
!Failure to do so at this time shall void and cancel such
right. The apparent high bidder, or the original lease
holder, bidding on a re -lease if his right is exercised,
shall upon being notified by the Borough Assembly that his
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bid has been accepted, deposit with the Borough Chairman
a portion of the annual rental then due, together with any
l costs of survey, appraisal and advertising needed to make
up any deficit in the deposit made by that person at the
time of his application. All payments must be made in cash,
money order, certified or aashier's check, or any combination
thereof.
(E) Definitions.
(1) Commercial development as used herein shall
mean any business, commercial or industrial use carried on
for the purpose of profit.
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(2) Residence use shall mean a primary use for
establishment of a person's place of abode or dwelling and
such uses as are incidental or accessory thereto as set
forth in the Borough Zoning Ordinance.
Section 16. SALE PROCEDURE:
(A) The sale shall be made at public auction or
by sealed bid to the highest qualified bidder as shall be
determined by the Borough Chairman. However, the Borough
Chairman, when so authorized by the Borough Assembly, may
enter into negotiated sales for tracts of land of five (5)
acres or less directly with the applicant for such land.
Public sales shall be conducted by the Borough Chairman or
his representative and at the time of sale the successful
lbidder shall deposit in cash or by certified check, an amount
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equal to one -tenth (1 /10th) of the purchase price and the
I� balance of the purchase price shall be payable on delivery of
the Deed. However, a Contract of Sale may be entered into by
the Borough and the purchaser on a form approved by the
Borough Attorney and shall be signed by the purchaser and
following the approval of the Borough Assembly, shall also
be signed by the Borough Chairman and Presiding Officer, which
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contract provision shall provide for the payment of the purchase
i price in monthly installments with interest and for the deposit
''of a Deed to the property purchased, along with a copy of the
,'Contract of Sale in an Escrow Agreement.
!' Section 39. REMOVAL AND REVERSION OF IMPROVEMENTS
UPON TERMINATION OF LEASE OR FAILURE TO COMPLY
WITH DEVELOPMENT PLAN:
(A) The Lease shall provide that all improvements
owned by the Lessee shall, within ninety (90) calendar days
it
lafter the termination of the Lease, or in the event of a
fifty -five (55) year lease with a development plan, within
'I ninety (90) calendar days after the end of the third year, if
!the fifty percent (50 %) completion requirement has not been
met, or within ninety (90) calendar days after the end of
the fifth year, if the total completion requirement has not
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been complied with, all improvements owned by the Lessee shall
''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
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improvements in cases where hardship has proven. A retiring
or terminating Lessee may, with the consent of the Borough
Assembly, sell his improvements to a succeeding Lessee. All
periods of time granted Lessees to remove improvements are
subject to said Lessees paying through the Borough pro rata
lease rentals for said period.
(B) If any improvements and /or chattels have an
appraised value in excess of FIVE THOUSAND and No /100ths
($5,000.00) DOLLARS as determined by the Assessor, and are
not removed within the time allowed, such improvements and /or
chattels shall upon due notice to the Lessee, be sold at
public auction under the direction of the Borough Chairman.
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The proceeds of the sale shall inure to the benefit of the
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'',Lessee if he placed such improvements and /or chattels on
the lands, after deducting all rents due or owing and
!!expenses incurred in making such sale by the Borough. 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
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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 purchase.
(C) If any improvements and /or chattels having
an appraised value of FIVE THOUSAND and No /100ths (55,000.00)
DOLLARS or less, as determined by the Assessor, are not
removed within the time allowed, such improvements and /or
chattels shall revert to and absolute title shall vest in
the Borough.
KODIAK ISLAND BOROUGH
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BY I TON T. WHITE
Borou h Chairman
B
Y— ,�rGr�n. icer
r e
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FIRST READING AND APPROVAL DATE k'I� , 1971.
�I SECOND READING, PUBLIC HEARING AND PASSAGE DATE,
1971.
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