1978-07 Relating to the Acquisition and Disposal of Real Property and Interests in Real Propertyi
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sect
18.10.010 Generally.
A. The borough may acquire real property from
the State of Alaska or other governmental entities from time to
time as such real property becomes available to the borough.
B. Real property may be acquired by purchase
or lease for a valuable consideration.
C. Other real property or interest therein may
be acquired in such manner as the assembly may authorize.
18.10.020 Procedure.
Real property acquired under section 10 of this
chapter shall be acquired pursuant to a resolution of the
assembly. Such resolution may set the terms, conditions and
manner of acquisition of the real property or interest therein.
18.10.030 Review. Upon acquisition of any real
property, including real property acquired by tax foreclosure,
but excluding real property acquired for a specific purpose or
project, the planning commission shall review the newly acquired
land and make recommendations as to whether all or any portion
of the land should be devoted to public use, reserved for
future use to meet projected borough requirements or made
available for sale, lease or other disposition in conformance
to the borough comprehensive land use plan. The manager shall
review the planning commission action and make recommendations
to the assembly.
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CHAPTER 18.10
REAL PROPERTY ACQUISITION
18.10.010 Generally
18.10.020 Procedure
18.10.030 Review
18.10.040 Designation of Availability
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18.10.040 Designation of Availability.
A. The assembly shall review all recommenda-
tions made pursuant to section 30 of this chapter and by resolu-
tion may concur in modify or change the recommended real property
use•
B. The assembly may at any time on its own
motion, or upon recommendation of the manager, review the
status of any real property previously reviewed and change the
designation of availability in conformance with the borough
comprehensive land use plan.
C. Any resolution relating to real property
availablity may include such terms, conditions and procedures
as may be required to protect the borough's interest consistent
with this title.
Pa ge 2, Ordinance No. 78 - -
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CHAPTER 18.20
GENERAL PROVISIONS FOR DISPOSAL OF
REAL PROPERTY OR INTEREST THEREIN
18.20.010 Generally.
18.20.020 Disposition of Real Property.
18.20.030 Conveyance to Government.
18.20.040 Applications.
18.20.050 Qualifications of Applicants and Bidders.
18.20.060 Deposit Costs.
18.20.070 Appraisal.
18.20.080 Ordinance and Voter Ratification Required.
18.20.090 Method of Disposal.
18.20.100 Development Plans.
18.20.110 Form of Documents.
18.20.120 Public Notice.
18.20.130 Location on the Premises.
18.20.140 Warranty.
18.20.150 Assignment.
18.20.160 Modification.
18.20.170 Compliance with Laws.
18.20.180 Liens and Encumbrances.
18.20.190 Waste and Injury.
18.20.200 Non - waiver.
18.20.210 Notice or Demand.
18.20.220 Cancellation and Forfeiture.
18.20.230 Rights of Mortgagee or Lienholder.
18.20.240 Entry and Re- entry.
18.20.250 Appeals.
18.20.260 Inspection.
18.20.270 Extensions.
18.20.280 Approval of Other Authorities.
18.20.290 Definitions.
18.20.010 Generally. Unless otherwise provided in
this title the general provisions of this chapter shall be
used.
18.20.020 Disposition of Real Property.
A. Real property of the borough may be retained,
leased or otherwise disposed of under the terms and conditions
e stablished by this title.
B. Real property of the borough acquired by
tax foreclosure may be disposed of in the same manner as other
real property of the borough subject to the provisions of state
lava.
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C. Prior to the disposal of
real prop
as sembly, with the advice of the planning commission,
determine the real property or interests therein to be d
of or retained in borough ownership. This determination
be by resolution and the resolution may include such add
terms and conditions regarding the disposition.
18.20.030 Conve ante to Government. Real pr
or interest therein may be sold, leased or
donated to
United States, the State of Alaska, or any political sub
thereof for less than its appraised value. Said real p.
may be disposed of whenever, in the judgment of the ass
it is in the best interest of the borough and upon the
prescribed by borough resolution.
1 8.20.040 A lications.
All applications
purchase, lease or other acquisition of interests in
real property shall be filed with the clerk on fora
available at the clerk's office. Only forms complett
and accompanied by a non - refundable
accepted for filing. $25 filing fee
The filing of an application shall not ve
in the applicant to the real property or to the us
property applied for. Any such unauthorized use t
a trespass.
18.20.050 ualification of A
licants
a pplicant or bidder for the
tion o f an purchase, lease
n interest in borough land is qualifiv
or bidder is:
A. A citizen of the United
or over;
B. Has filed a declaratior
becom a citizen and is 18 years of age or
Year or age
P age 4,
O rdinance No.
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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 manager or his designee,
prior to the time set for the disposition, 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.
18.20.060 Deposit Costs.
A. Applications for sale, lease or other
interest in real property filed with the clerk will be for-
warded to the manager or other designated official for an
estimate of costs required to handle the application, including
but not limited to survey, appraisal and advertising of the
area designated in the application. An applicant required to
make a deposit shall be notified in writing of the cost estimate
and the applicant shall make a deposit with the borough in that
amount within 30 calendar days after the date of the notice.
If the applicant fails to make the deposit, the application
shall be cancelled. If the applicant does not accept a lease,
sale contract or other interest applied for within 30 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, if any, shall be returned to the
apPlicant. If the real property upon which a deposit for costs
has been made is conveyed to another, the person receiving the
conveyance shall be required to pay actual costs of application
Processing, survey, appraisal and advertising, and the original
deposit shall be returned to the depositor. Where the applicant
becomes the purchaser, he shall be required to pay any excess
Page 5, Ordinance No. 78 -7 -0
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o f costs over deposits, and where the deposit exceeds actual
the shall be credited to payments under the
co sts,
contract. All survey, appraisal and advertising shall be
per fonQed only under the authorization of the borough and any
excess
such wor performed without such authorization will not be
accepted
B. The manager may establish an application
processing fee schedule for applications having similar circum-
stances.
18.20.070 Appraisal.
A. No real property or interest in real prop-
erty may be sold, leased or otherwise disposed of unless it has
been appraised within 90 days prior to the date fixed for the
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.
B. Disposal to governmental entities as pro-
vided in section 30 of this chapter may be exempt from the
requirements of A of this section.
18.20.080 Ordinance and Voter Ratification Required.
The sale, lease or other permanent disposition of real property
not acquired from the state and valued at $25,000 or more shall
be in accordance with the procedure set forth in this title
and, in addition, shall be by an ordinance ratified by a majority
of voters voting at a regular election or special election at
whic the question of the ratification is submitted. The
election shall be conducted as required by AS 29.48.260.
18.20.090 Method of Disposal.
A. Disposal of real property or interest
herein exceeding the limits established for negotiated trans-
a ctions in this title shall be by public auction or sealed bid
Page 6 , Ordinance No. 78 - -
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a s directed in the borough resolution authorizing the disposal.
Both competitive and negotiated disposals shall require a
borou resolution authorizing the disposal action to take
place.
B. Disposals, other than authorized negotiated
transactions, shall be to the highest qualified bidder as
determined by auction or sealed bid. If there are no acceptable
offers, • the manager shall reject all bids and at the direction
of the assembly advertise the property for disposal again in
the same manner after waiting at least 60 days from the date
the previous bids were rejected. A reappraisal is required if
the date fixed for the disposal exceeds 90 days from the last
appraisal.
18.20.100 Development Plans.
A. To become a qualified bidder for disposals
requiring a development plan the prospective bidder shall
submit to the manager plans of the contemplated development
conforming to the proposed use.
B. The time for submitting development plans
shall be stated in the notice of proposed sale or lease.
C. Development plans not meeting minimum
standards will be returned to the applicant for revision and
r e - submission within 10 days after return to the applicant.
APPlicants submitting development plans failing to meet minimum
standards shall not be qualified to bid. Each applicant sub-
mitting a development plan shall be notified in writing of the
d ecision to accept or reject the individual's development plan.
D. Minimum standards of a development plan
1. A layout sketch to show reasonable use
of the area being offered and nature
of improvements to be constructed.
PaQe 7 , Ordinance No. 78 -7 -0
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2. The estimated value of the capital
improvements to be placed on the land
and type of construction.
3. A development schedule showing the
time frame in which the improvements
will be constructed.
4. The proposed development shall conform
to the zoning, building codes and all
applicable federal, state and local
laws.
5. Other requirements as may be stated in
an offer for disposal.
E. The manager may require proof of financial
capability of the applicant to finance the proposed development.
F. The development plan and schedule for
development may be incorporated into the sale or lease contract
for enforcement of its completion.
18.20.110 Form of Documents. All sale, lease, deeds
and other documents shall be in a form approved by the borough
attorney.
18.20.120 Public Notice. Notice of proposed disposals
of real property or interest therein shall, at a minimum, be
Published in a newspaper of general circulation within the
borough once each week for two successive weeks, not less than
20 days prior to the date of disposal and shall be posted in at
least three public places within the borough, one of which
shall be in the community nearest to the subject real property,
for at least 30 days prior to the disposal. Additional notice
may be given by any means determined to be reasonable by the
ma nager or assembly. The notice must contain a brief descrip-
tion of the land, its size and general location, the proposed
P a ge 8,
Ordinance No. 78 -7 -0
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use term, minimum offer, limitations, if any, and time and
plac set for the auction or bid opening.
18.20.130 Location on the Premises. It shall be the
res ponsibility of the purchaser, lessee or other permittee to
pr operly locate himself and his improvements on the purchased,
leased or permitted property.
18.20.140 Warranty. The borough does not warrant by
its zoning or disposal offering that the real property is
suited for the use authorized and no guaranty is given or
implied that it shall be profitable to employ the real property
to said use.
18.20.150 Assignment. A contract may be assigned in
whole or in part if the proposed assignment is first approved
by the manager. The assignee shall be subject to all of the
provisions of the original contract and this title.
18.20.160 Modification. A contract modification
will not be binding on either party unless reduced to writing
and signed by all parties involved or their respective suc-
cessors in interest.
18.20.170 Compliance With Laws. The purchaser,
lessee or permittee shall comply with all laws and ordinances
relating to the possession or occupancy of the real property or
relating to the construction, maintenance or alterations of any
improvements to the premises.
18.20.180 Liens and Encumbrances. The purchaser
shall keep the property free and clear from any liens or encum-
brances arising from construction, maintenance or repairs on
the property or from any other cause and shall at the purchaser's
sole cost and expense, promptly secure the removal of any lien
so.filed.
Page 9, Ordinance No. 78 -7 -0
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18.20.190 Waste and Injury. No person may wilfully
comm waste, trespass or other injury to or upon borough real
property. In addition to civil liability for damages and
penalties, a person convicted of violating this section is
guilty. of a misdemeanor.
18.20.200 Non - Waiver. The failure of the borough to
insist upon strict performance of any term, condition or covenant
of a contract or any deed, or to exercise any right or remedy
available on a breach thereof, or the acceptance of full or
partial payment during the continuance of any breach, shall not
constitute a waiver of such breach of any applicable term,
condition or covenant of the contract or deed unless so agreed
to in writing and signed by the borough.
18.20.210 Notice or Demand. Any notice or demand,
which, under the terms of a contract or under any statute, must
be given or made by the parties thereto, shall be in writing,
and be given or made by registered or certified mail, addressed
to the other party at the address of record. Either party
shall designate in writing such new or other address to which
the notice or demand shall thereafter be given, made or mailed.
A notice given hereunder shall be deemed. delivered when deposited '
in a United States post office enclosed in a properly addressed
1 egistered or certified mail prepaid wrapper or envelope.
18.20.220 Cancellation and Forfeiture.
A. A contract, if in good standing, may be
cancelled in whole or in part, at any time, upon
mutual written agreement by the purchaser and the
manager.
B. The manager may cancel the contract if the
property is used for any unlawful purpose.
Pa 10 , Ordinance No. 7+h - -
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C. If the purchaser defaults in the perfor-
mance or observance of any of the contract terms,
covenants or stipulations or fails to comply with any
of the provisions of this code, and the default
continues for 30 calendar days after service of
written notice from the borough stating the nature of
the default, or for such other period of time as
provided in this title, the borough may subject the
purchaser to appropriate legal action including, but
not limited to termination of the contract. No
improvements may be removed by the purchaser or other
person during any time the contract is in default.
D. If the purchaser fails, for a period of two
years, or for such shorter period as may be specified
in the contract, to commence construction of improve-
ments pursuant to an approved development plan, or
fails to make substantial use of the property within
one year after completion of required improvement
pursuant to a development plan, or within such
shorter time as may be specified in the contract, the
borough may terminate the contract.
18.20.230 Rights of Mortgagee or Lienholder. In the
event of cancellation or forfeiture of a contract for cause,
the holder of a properly recorded mortgage, conditional assign-
ment or collateral assignment may acquire the contract for the
unexpired term thereof, subject to the same terms and conditions
as in the original contract.
18.20.240 Entry and Reentry. If the contract is
terminated as herein provided, or by summary proceedings or
otherwise, or the demised lands, or any part thereof are
abandoned by the purchaser during the term, the borough may
Page 11, Ordinance No. 78 - -
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imme diately or any time thereafter, reenter and resume pos-
ges sion o f all or any portion of the land and remove all persons
and property therefrom either by summary proceedings or by a
suitable action or proceeding at law, without being liable for
an y resulting damages. A reentry by the borough shall not be
deeme an acceptance of a surrender of the contract.
18.20.250 Appeals.
A. An aggrieved bidder may appeal a manager's
decision to the assembly within a period of five days following
such decisions.
B. An aggrieved purchaser or permittee may
appeal a manager's decision to the assembly within a period of
30 days following such decision.
C. Appeals under A and B of this section shall
be filed in the borough clerk's office together with a $20
filing fee.
D. The assembly shall within 45 days of receipt
of an appeal, review the pertinent material together with any
written arguments submitted by the appellant and rule on the
appeal. The assembly's ruling shall be final but without
Prejudice to any other right or rights the aggrieved bidder may
have.
18.20.260 Inspection. An authorized representative
of the borough may enter upon and inspect real property subject
to a lease, contract or other agreement with the borough, at
anY reasonable time.
18.20.270 Extensions. The manager may, for good
Cause shown, grant a 30 day extension for a payment due in
regard to a contract. A request for an extension shall be in
"ing and shall be received 5 days prior to the due date.
Additional extensions shall require borough assembly approval.
Page 12, Ordinance No. 78 -7 -0
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18.20.2 Approval of Other Authorities. The issuance
by the borough of a contract under the provisions of this title
does not relieve the purchaser of the responsibility for obtaining
licenses or permits as may be required by the borough or by
duly authorized state or federal agencies.
18.20.290 Definitions. In this title, unless the
context otherwise requires,
1. "assembly" means the Kodiak Island Borough
Assembly;
2. "clerk" means the Kodiak Island Borough
clerk;
3. "contract" means a written document con-
taining terms for the sale, lease or other
use of borough real property or interests
therein;
4. "manager" means the Kodiak Island Borough
manager or his designee;
5. "purchaser" means one who acquires an
interest in borough real property by a sale
or lease contract;
6. "real property" means borough lands and the
improvements located thereon.
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P age 14, Ordinance No. 78 -7 -0
CHAPTER 18.30
SALE OF REAL PROPERTY
Sect'
18.30.010 Negotiated Sale of Real Property Valued at
One Thousand Dollars or Less.
18.30.020 Property Acquired by Tax Foreclosure.
18.30.030 Method of Sale.
18.30.040 Terms and Conditions of Sales.
18.30.050 Payment.
16.30.060 Commencement and Completion of Construction.
18.30.070 Quitclaim Deed.
18.30.080 Limitation on Warranty of Title.
18.30.090 Taxes Fees and Charges.
18.30.100 Clearing.
18.30.110 Conveyance by Conditional Warranty Deed.
18.30.120 Certificate of Completion.
18.30.130 Breach of Warranty Deed.
18.30.010 Negotiated Sale of Real Property Valued at
one Thousand Dollars or Less. The sale or other permanent dis-
position of real property acquired from the state and valued at
$1,000 or less, may be negotiated pursuant to terms established
by resolution of the assembly.
18.30.020 Property Acquired by Tax Foreclosure.
Real property of the borough acquired by tax foreclosures may
be disposed of in the same manner as other real property of the
borough subject to the provisions of state law.
18.30.030 Method of Sale. Sales under this title
shall be by contract. Upon payment of the contract price,
accrued interest and compliance with all other contract provis-
ions, a warranty deed shall be issued. Upon receipt of the
full purchase price and accrued interest, but prior to comple-
tion of all other contract provisions, a conditional warranty
deed shall be issued subject to designated conditions.
18.30.040 Terms and Conditions of Sales. In addition
t o any other applicable provisions of this code, the terms,
c onditions and covenants set forth in this chapter shall be
10
licable to all sales and are hereby incorporated as though
3rP
fort in full in the sales contract or deed of conveyance.
,et
_ sales contract or deed of conveyance shall contain such
additional restriction and reservations as the assembly deems
ecessary to protect the borough interests.
18.30.050 Payment.
A. At the time of sale or auction, the purch-
aser shall pay to the borough not less than ten percent of the
1inimum appraised value established for the parcel. The dif-
°erence between the ten percent minimum appraised value and ten
percent of the total price bid for the parcel shall be paid to
;he borough at the time the pruchase contract is executed.
Failure of the purchaser to execute the purchase contract shall
result in his forfeiture of the ten percent minimum appraised
value paid at the time of sale offering.
B. The remaining balance of the purchase price
shall be paid over a period not to exceed 10 years from the
date of execution of the sales contract, except purchasers of
r contracts exceeding $15,000 in value may elect to pay the re-
1
maiming balance of the purchase price over a period not to
exceed 20 years. Installment payments plus interest will be
set on the level payment basis over the payment period. Pay-
ments shall be made annually for contracts valued at $5,000 and
less. Payments for contracts valued greater than $5,000 shall
be made quarterly.
C. The interest rate charged on installment
Payments shall be the prevailing rate used in the conventional
mortgage market in Kodiak at the time the contract is signed
b ut in no case shall it be below 5% per year.
18.30.060 Commencement and Completion of Construction.
A. Construction of the improvements required
b y a development plan shall be commenced within two years after
ex ecution of the contract and shall be completed within five
Ye ars from the date of execution of the contract.
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B. The time for commencement and completion of
improvements may be extended by the borough for good cause upon
timely application by the buyer. The time of extension shall
no t exceed one year. Timely application, for the purposes of
this section, means an application for an extension of time
received by the borough on or before the date previously set
for commencement of construction or completion of construction,
whichever deadline is applicable. The borough shall not grant
an extension of time if the buyer is then in breach of any
term, condition or covenant of the contract or deed.
18.30.070 Quitclaim Deed. Upon execution of the
sale contract, the buyer shall execute and deliver to the
borough a quitclaim deed in proper form, relinquishing all
right, title and interest in and to the property sufficient for
clearing title to the property in the event of default by the
buyer.
18.30.080 Limitation on warranty of Title.
A. The title to be conveyed by the borough is
expressly subject to any claims asserted and established by any
village, regional or special corporation, under any provision
of the Alaska Native Land Claims Act; and all reservations,
restrictions and easements of record.
B. If it is determined, subsequent to the
execution of the sale contract or deed, that the borough had no
right, title or interest in the premises at the time of execu-
tion of the agreement because of claims asserted and estab-
lished by any village, regional or special corporation, under
anY provision of the Alaska Native Land Claims Act, and that
the conveyance to the Buyer did not establish a valid third -
p interest excepting the property from selection, the sale
c ontract shall terminate and be of no further force and effect.
Pa ge 16, Ordinance No. 78 - -
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A11 payments of principal and interest received by the borough
from the buyer under the agreement shall be returned to the
buyer and the buyer agrees to indemnify, hold and save the
boroug harmless, to the extent of such reimbursement, from any
claims or liability for damages based upon trespass or similar
actions brought by any village, regional or special corporation.
18.30.090 Taxes, Fees and Charges. Buyer shall pay
all taxes, ' fees, assessments and other charges levied by any
public or private authority against the premises and shall
timely file all notices or declarations relating to taxes,
fees, charges or assessments with the appropriate authority.
The borough shall promptly forward to buyer any and all notices
of taxes, fees, .charges or assessments relating to the property
received by the borough.
18.30.100 Clearing. Prior to full payment of the
purchase contract and completion of all required improvements,
buyer may clear and utilize for site development only so much
of the timber or other materials from the premises as may be
reasonably necessary to develop the site in conformance with
the stated purpose. Timber and materials removed from the site
shall be appraised for value and an amount equal to such value
sremovhall al. e paid by the buyer to the borough within 30 days after
The payment shall be applied toward the remaining
balance of the purchase contract.
18.30.110 Conveyance by Conditional Warranty Deed.
A. If the buyer desires to obtain conditional
title to the property pending construction of all improvements
the baleubal by the contract, the borough shall, upon receipt of
the of principal and interest due to the borough, and
pr °viding buyer is not then in default, convey title to buyer
by a c onditional warranty deed.
Page 17, Ordinance No. 78-7 -0
shall
be
B. The conveyance by conditional warranty deed
subject to the following conditions:
1. Grantee may pledge or encumber the
property for temporary or permanent
financing of improvements required to
be constructed by the contract of sale
and for additional funds, if any, in
an amount not to exceed the principal
payments made to the borough for the
property conveyed. The pledge or
encumbrance shall be subject to the
covenant running with the land requir-
ing the construction of improvements
specified in the contract for sale in
accordance with approved plans.
2. Grantee shall pay real property taxes
and assessments on the property when
due and shall not create, cause or
suffer any lien or encumbrance to
attach to the property, other than
authorized in subsection 1 above,
until the borough certifies that all
improvements required to.be constructed
have been completed by the Grantee.
3. The Grantee shall promptly commence or
continue construction of the improve-
ments required by the contract of sale
in accordance with the approved' plans
and shall diligently prosecute con-
struction of those improvements to
completion.
(Page 18, Ordinance No. 78 -7 -0
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4. Until the borough certifies that all
required improvements have been com-
pleted, the grantee shall have no
power to convey or transfer the prop-
erty or any part thereof without the
prior written consent of the borough
except to a mortgagee or trustee as
security to obtain financing as permit-
ted by subsection 1 of this section.
The conveyance or transfer prohibited
shall include transfer by any party of
ten percent or more of the stock in a
grantee or any similar significant
change in ownership of such stock or
the relative distribution thereof by
any means including, but not limited
to, increased capitalization, merger,
issuance of additional or new stock or
classification of stock.
C. The covenants set forth in subsection B of
this section shall run in favor of and enure to the benefit of
the borough for the entire period during which such covenants
are in force and shall be binding upon the owner of any land or
interest in land to which the covenants relate. In the event
of a breach of any such covenant, the borough may exercise all
rights and remedies available and may maintain any action in
law or equity to enforce the curing of such breach.
18.30.120 Certificate of Completion.
A. Upon completion of all required improve-
ments in accordance with the provisions of the'approved develop-
.,.
ment plans, the borough will furnish the grantee under a con-
Page 19, Ordinance No. 78 -7 -0
ditional warranty deed with a certificate of completion. The
certificate shall be a conclusive determination of satisfaction
of the conditions and covenants of the contract for sale and
conditional warranty deed. The certificate of completion shall
be in a form suitable for recording in the office of the district
recorder.
B. If the borough fails or refuses to provide
a certificate of completion, the borough shall, within 30 days
after written request by the grantee provide the grantee with a
written statement indicating in what respects the grantee has
failed to duly complete said improvements and what measures or
acts will be necessary, in the opinion of the borough, for the
grantee to take or perform in order to obtain such certification.
18.30.130 Breach of Warranty Deed.
A. At any time prior to certification by the
borough that improvements have been completed as required, the
borough may terminate the estate granted by the conditional
warranty deed if:
Page 20, Ordinance No. 78 -
1. The grantee, in violation of section
110 B 2, of this chapter, fails to pay
property taxes or assessments when due
or places an unauthorized lien or
encumbrance on the property and such
taxes or assessments are not paid or
the lien or encumbrances removed or
discharged, or provisions satisfactory
to the borough for such payment,
removal or discharge are not made,
within 90 days after written notice
from the borough.
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2. There is, in violation of section 110
B 4 of this chapter, a transfer of the
property or any part thereof or a
change in the ownership or distribu-
tion of the stock of the grantee, and
such violation is not cured within 60
days after written notice from the
borough; or
3. The grantee defaults in timely com-
mencement or completion of required
improvements in compliance with
approved plans, or abandons or
suspends construction work for any
substantial time, in violation of
section 110 B 3, of this chapter, and
such default relating to timely com-
mencement or prosecution of the work
is not cured within 60 days after
written notice by the borough, or, as
relates to timely completion in accord-
ance with plans, is not cured within
six months after written notice or
within any extended period of time
that may be granted by the borough for
good cause shown.
B. Upon termination of the grantee's estate,
title to the property shall be revested in the borough and
the borough may re -enter and take possession of the property,
subject only to those rights and interests as hereinafter set
forth in this section. It is the intent of this ordinance that
the conveyance of the property by conditional warranty deed
,Page 21, Ordinance No. 78-7-0
2 7 5
shall contain a condition subsequent providing that upon default
by grantee in performance of any covenant or condition required
by section 110 B of this chapter and the failure of the grantee
to remedy such default within times and in the manner as provided,
t he borough may at its option declare a termination in favor of
t he borough of all rights and interests in the property conveyed
by the deed, subject, however, to specified limited interests.
C. Following termination of the grantee's
interest, the property shall continue to be subject to and
limited by the lien or encumbrance of any mortgage or deed of
trust authorized by this chapter and any rights or interests
created by this chapter for the protection of holders of such
mortgage or deed of trust.
D. If title to the property or part thereof
shall revest in the borough in accordance with the provisions
of this chapter, the borough shall use its best efforts to
resell the property or part thereof, in a reasonably prompt
mariner and subject to any authorized encumbrance to a party or
parties, determined by the borough to be qualified and respon-
sible who will assume the obligation of making or completing
the improvements or such other improvements in their stead as
shall be satisfactory to the borough. Upon such resale of the
Property the proceeds thereof shall be applied as follows:
1. To reimburse the borough, for all net
costs and expenses incurred as a
result of grantee's breach including,
but not limited to, salaries of per-
sonnel in connection with the repos-
session, management and resale of the
property or part thereof; all taxes,
assessments, and water and sewer
Pa ge 22, Ordinance No. 78 -
7
Pa ge 23, Ordinance No. 7 -7 -0
charges with respect to the property
or part thereof; any payments made or
necessary to be made to discharge any
encumbrances or liens existing on the
property or part thereof at the time
of revesting of title thereto in the
borough or to discharge or prevent
from attaching or being made, any
subsequent encumbrances or liens due
to obligations, defaults or acts of
the grantee, its successors, or trans-
ferees; any expenditures made or
obligations incurred with respect to
the making or completion of the im-
provements or any part thereof on the
property or part thereof, and any
amounts otherwise owing the borough by
the Grantee and its successors or
transferees; and then
2. To reimburse the Grantee, its succes-
sors or transferees up to an amount
equal to the sum of the purchase price
paid by it for the property, or allo-
cable to the part thereof, and the
cash actually invested by it in making
any of the improvements on the property,
less any gains or income withdrawn or
made by it from this conveyance or
from the property. Any balance remain-
ing after such reimbursements shall be
retained by the borough.
Sect'
CHAPTER 18.40
LEASING OF REAL PROPERTY OR INTEREST THEREIN
18.40.010 Leasing Procedures.
18.40.020 Negotiated Leases.
18.4 .030 Term of Lease.
18.40.040 Terms and Conditions of Leases.
18.40.050 Minimum Acceptable Annual Rental.
18.40.060 Deposit and Receipt.
18.40.070 Payment of Annual Rentals.
18.40.080 Adjustment of Rent.
18.40.090 Use of Material.
18.40.100 Lease Utilization.
18.40.110 Subleasing.
18.40.120 Forfeiture of Rental.
18.40.130 Expiration of Lease.
18.40.140 Removal or Reversion of Improvements Upon
Termination of Lease.
18.40.150 Right -of -Way.
18.40.010 Leasing Procedures. The land leasing
procedures established by this title shall be utilized in the
leasing of any borough land.
18.40.020 Negotiated Leases. If the annual rental
value of the property acquired from the State is $500 or less
and no competitive interest is apparent, the assembly may
approve by resolution the issuance of a negotiated lease for a
period not to exceed five years.
18.40.030 Term of Lease. Leases may be issued for a
period not to exceed 55 years. The term of any given lease
shall depend upon the desirability of the proposed use, the
am ount of investment in improvements proposed and made, and the
nature of the proposed improvement with respect to durability
and time required to amortize the proposed amendment.
18.40.040 Terms and Conditions of Leases. The
pro visions of this chapter and all other applicable provisions
°f this code are binding as terms and conditions of any lease
o f b orough land. These terms and conditions, if not fully set
Page 24 , Ordinance No. 78 - -
7 7 5 /
Form in the lease, are hereby incorporated by reference as
,.sough fully set out in full in the lease. The lease shall
conta such additional terms, conditions and restrictions as
. borough determines to be in its best interest.
18.40.050 Minimum Acceptable Annual Rental.
A. Annual minimum rentals shall be computed at
the prevailing interest rate used in the conventional mortgage
narket in Kodiak based on the appraised fair market value for
the land and improvement rights being leased. This minimum
shall be the lowest acceptable bid in the event of an auction,
lease by sealed bid or negotiated leased.
B. No land shall be leased for less than the
approved, appraised, annual rental except as provided in section
18.20.030.
18.40.060 Deposit and Receipt. The apparent high
bidder shall deposit with the borough at the time of lease
offering the first year's rental or that portion of it as
provided in section .070 of this chapter together with the costs
of survey, appraisal and advertising as provided in 18.20.060.
Upon deposit of the required sum, the manager shall thereupon
issue to the apparent high bidder a receipt for the required
sum containing a description of land or interest leased and the
rental bid. The bidder shall acknowledge the receipt in writing.
Failure of the lease purchaser to execute the lease contract shall
result in the forfeiture of the purchaser's rental deposit.
18.40.070 Payment of Annual Rentals.
A. Annual rentals of $250 or less shall be
paid annually in advance.
B. Annual rentals exceeding $250 shall be
advance and may be paid in installments as follows:
1. Annual rentals exceeding $250 but less
than $500 may be paid in two equal
installments at six months intervals.
Paid in
Page 25, Ordinance No. 78 -7 -0
11
ti r 7 ,) "
2. Annual rentals of $500 or more but
less than $1,000 may be paid quarterly.
3. Annual rentals of $1,000 or more may
be paid monthly.
C. The effective date of the lease contract
shall determine the anniversary date for determining payment
dates.
18.40.080 Adjustment of Rental. The annual rent due
shall be reviewed and adjusted by the manager at the end of the
first five year term and at the end of every five year term
thereafter. Any changes or adjustments shall be based upon
changes in the appraised fair market value of the land and
improvements being leased, excluding land fill and other improve-
ments placed upon the land by the lessee; provided, however,
that the value of land fill and improvements placed by a lessee
and not removed on termination or expiration of the lease shall
be utilized in the calculation of rentals for subsequent leases
of the property with those improvements.
18.40.090 Use of Material. The lessee shall not
sell or remove for use off the premises any timber, stone,
gravel, peat moss, topsoil or any other material valuable for
building or other commercial purposes; provided, however, that
material may be used, if required, for the development of the
leasehold. Any removal of such material from the leasehold
shall require written approval from the manager and, if the
materials will be removed in a commercial quantity, the market
! value of the materials shall be paid to the borough.
18.40.100 Lease Utilization. Leased borough real
property shall be utilized for purposes within the scope of the
'application, the terms of the lease, and in conformity with the
'borough comprehensive plan. Utilization or development for
' 26, Ordinance No. 7H_7_n
7 5 S
offer than the allowed uses shall constitute a violation of the
lease and subject the lease to cancellation. Failure to com-
mence construction of the proposed improvements within two
years or failure to complete constructon of the proposed improve-
ments within five years of the date of lease shall be a breach
of lease and shall, at the borough's option, result in termina-
tion of the lease unless the borough has granted an extension
under the terms and conditions set forth in section 18.20.130.
18.40.110 Subleasing.
Lands or interest therein leased from the borough
maybe subleased upon receiving prior written approval of the
manager. This approval shall not be unreasonably withheld.
Utilization of constructed improvements shall be a substantial
reason for the sublease. Subleases shall be in writing and be
subject to all terms and conditions of the parent lease and
this title.
18.40.120 Forfeiture of Rental. If the lease is
terminated because of any breach by the lessee, as herein
provided, the rental payment last made by the lessee shall be
forfeited and retained by the lessor as partial or total damages
for the breach.
18.40.130 Expiration of Lease. Upon termination of
the lease, the lessee shall peaceably and quietly leave, sur-
render and yield up unto the borough all of the said leased
real property.
18.40.140 Removal or Reversion of Improvements Upon
Te e nation of Lease.
A. If the expiring leasehold is not to be
re offered for lease the following schedule shall apply:
1. Improvements owned by the lessee on
borough land shall be removed by the
Pa ge 27, Ordinance No. 78 -7 -0
•1 7 5 '
ge 28, Ordinance No. 78 -7 -0
lessee, within 90 calendar days after
the termination of the lease, provided,
such removal will not cause injury or
damage to the lands or improvements
demised and further provided that the
manager may extend the time for removing
such improvements in cases where
hardship is proven. All periods of
time granted the lessee to remove
improvements are subject to the lessee's'
paying to the borough pro rata lease
rentals for the period.
2. If any improvements or chattels not
owned by the borough which have an
appraised value in excess of $5,000 as
determined by the assessor or appraiser,
are not removed within the time allowed,
such improvements or chattels shall
upon due notice to the lessee, be sold
at public sale under the direction of
the manager. The proceeds of the sale
shall inure to the lessee if he placed
such improvements or chattels on the
lands, after deducting for the borough
rents due and owing and expenses
incurred in making such sale. If no
responsible bids are received, title
to such improvements or chattels shall
vest in the borough.
3. If any improvements or chattels having
as appraised value of $5,000 or less,
n I ri 2
as determined by the assessor or
appraiser, are not removed within the
time allowed, such improvements and
chattels shall revert to, and absolute
title shall vest in the borough.
Notwithstanding the foregoing, if the
improvements detract from, rather than
enhance the value of, the property,
the borough may after 60 days written
notice to the lessee, remove those
improvements at lessee's cost. Lessee
shall reimburse the borough for the
expenses of such removal within 30
days after billing.
B. If the expiring leasehold is to be reoffered
for lease or sale within one year of the lease termination, and
the improvements have been allowed to remain in place the
borough shall state when reoffering the real property:
1. the estimated value of the authorized
improvements remaining on the land
placed there by the former lessee;
2. that the purchaser or lessee will be
required, as a condition of the sale
or lease, to purchase the improvements
from the former lessee for an amount
equal to the value specified.
C. The borough may, at the termination of a
lease, compensate the lessee for the improvement located on the
leasehold at not more than the fair market value.
Page 29, Ordinance No. 78 -
18.40.150 Right -of -Way.
A. The borough expressly reserves the right to
reasonable ingress or egress over and across the leased premises
for the purposes of constructing, repairing, maintaining or
r eplacing
any utility or road right -of -way, which the borough
is authorized to construct or maintain and to grant to itself
r easonable easements over and through the leased premises for
these purposes. Annual rentals may be adjusted to compensate
t he lessee for loss of use of the leased premises
B. The borough reserves the right to grant
easements or rights -of -way over and across leased land if it is
determinated in the best interest of the borough to do so. If
the borough grants an easement or right -of -way across any of
the leased land, the lessee shall be entitled to damages for
all lessee -owned improvements or crops destroyed or damaged.
Damages shall be limited to improvements and crops only, and
loss shall be determined by fair market value. Annual rentals
may be adjusted to compensate the lessee for loss of use of the
leased premises.
P age 30, Ordinance No. 78 -7 -Q
se c tion s :
2 7 7 n
1. Roads.
2. Trails.
3. Ditches.
4. Communication and electrical lines.
5. Landfill and disposal sites.
6. Pipelines of all types (sewer, water,
petroleum, etc.)
7. Temporary use (not exceeding 45 days).
8. Exploration work involving vehicle use
of any type on the borough land.
B. Uses listed in A 5, 7 and 8 of this section
not increasing the value or utility of borough land shall be
charged a fixed fee of $250 per site or application area.
C. Uses listed in A 1 through 4 and 6 of this
section not directly increasing the value or utility of borough
land shall be charged a fixed fee of $250 per year or the fair
rental value of the land taken which ever is greater.
D. Uses listed in A of this section directly
increasing the value or utility of borough land may be negotia-
ted at a reduced rate.
18.50.010 Generally.
A. A negotiated permit, easement or right -of -way
is required for the following use and occupancy of borough real
property:
CHAPTER 18.50
PERMITS
18.50.010 Generally.
Page 31, Ordinance No. 73 - -
2 7 7
section 18.60 (Reserved)
P ages 32 through 34, Ordinance No. 78 -7 -0
Sec
n 7 7
P age 35, Ordinance No. 78-7 -0
CHAPTER 18.70
SALE OF TIMBER
18.70.010 Availibility.
18.70.020 Negotiated Sales.
18.70.030 Volume Determination.
18.70.040 Method of Payment.
18.70.050 Appraisal and Reappraisal.
18.70.060 Performance Bond.
18.70.070 Management Agreements.
18.70.080 Definitions.
18.70.010 Availibility. Timber on borough lands may
be offered for sale when the timber is:
1. Located in an area to be cleared for a
right -of -way or development site.
2. Salvage from windthrow, insect infestation,
fire or other causal agent.
3. Made available as part of or all of an
allowable cut as approved by the assembly.
18.70.020 Negotiated Sales. The manager may negotiate
sales of timber on property acquired from the State on terms
approved by the assembly. Not more than 250 thousand board
feet or equivalent other measure of timber may be negotiated to
one applicant in a 12 month period. Timber sales not exceeding
$250 shall be paid in full at the time the contract is executed.
No refund will be made if the contracted volume is not removed.
18.70.030 Volume Determination. Measurements to
determine the volume of timber sold may be by cubic volume or
Scribner decimal "C" log rule.
18.70.040 Method of Payment.
A. Except as provided in section 20 of this
Chapter, the apparent high bidder shall deposit not less than:
1. Ten percent of the purchase price for
contracts valued $10,000 or less, or
0
r ? 7 7
2. The equivalent value of three months
harvest, as prorated over a logging
season, for contracts exceeding $10,000.
B. Additional payments for the timber cut and
removed from the sale area shall be stipulated in the timber
sa je contract.
C. A minimum balance equivalent to two months
harvest, prorated over a logging season, shall be retained on
deposit by the borough for the life of the timber sale contract.
This balance may be applied to the final stumpage payments due
but may not be applied to payments accruing earlier for timber
harvested.
18.70.050 Appraisal and Reappraisal.
A. All timber to be sold shall be appraised
and in no case shall it be sold at less than the appraised
value.
B. Timber sale contracts extending more than
two years shall provide for an adjustment in the unit price at
the end of the second year and each two year period thereafter.
18.70.060 Performance Bond. The manager may require
the purchaser to provide a performance bond in an amount he
determines necessary to protect the borough's interest and
ensure satisfactory compliance of the contract stipulations.
18.70.070 Management Agreements. The borough may
contract for forest management services to manage its forest
resources.
18.70.080 Definitions. In this chapter:
"allowable cut" means that volume of timber
that may be harvested within the principals of
sustained yield management.
Page 36, Ordinance No. 7b -7 -Q
Page 37, Ordinance No. 78 - -
section:
? 7 7
CHAPTER 18.80
EXCHANGE OF REAL PROPERTY
18.80.010 Real. Property Subject to Exchange.
18.80.020 Procedure.
18.80.030 Agreements to Exchange Real Properties.
18.80.010 Real Property Subject to Exchange.
A. Real property acquired by the borough from
the state,' may be exchanged for real property of equivalent
value owned by a person.
B. A request to exchange real property or
interest therein shall not be authorized if it is not in the
borough's best interests.
18.80.020 Procedure.
A. Real property considered for exchange shall
be reviewed by the planning and zoning commission. The planning
and zoning commission shall make their recommendations regarding
the exchange to the assembly by resolution.
B. The resolution shall set out:
1. The value, or method for determining
value, of the real properties to be
conveyed by the borough and the real
properties to be received in exchange
by the borough.
2. Evidence of marketable title of the
real properties to be exchanged.
3. Recommended terms and conditions of
the exchange including the responsi-
bility
for costs of surveys, appraisals,
title search and agreement preparation.
4. Alternatives considered.
fl '? 1 2 7 7
in A and B of this
real property to be
purposes and direct
by terms established
to enter
planning
chapter.
ATTEST:
N
C. After receipt of the recommendations provided
section, the
exchanged is
the exchange
by resolution, notwithstanding other
provision of this title.
18.30.030 Agreements to Exchange Real Properties.
conceptual approval may be given to the manager by the assembly,
into exchange negotiations prior to receiving the
and zoning resolution required in section 20 of this
Any agreement reached in the negotiations shall be in
writing and then presented to the planning and zoning commission
as required in section 20 of this chapter for appropriate
action.
(7 7E.AL-
Boro C erk
Pa ge 38, Ordinance No. 78 -7 -0
KODIAK ISLAND BOROUGH
By:
assembly may find the borough
no longer required for municipal
be consummated in a manner and
Presid .6 -• fficer
First reading and approval date: April 6. 1978
Second reading, public hearing: May 4 and June 1, 1978
Effective date: June 1, 1978