01/28/19760 1 1? 1 ? 9 n
KODIAK ISLAND BOROUGH ASSEMBLY MEETING
JANUARY 28, 1976 - SPECIAL
I CALL TO ORDER
The Special Meeting was called to order by Presiding
Officer Betty Wallin at 7:07 p.m. in the Borough
Meeting Room, Borough Building, Kodiak, Alas.a
II ROLL CALL
Present
Absent
Mayor Bob Craig
Betty J. Wallin Presiding Officer Anderson (excused)
Hal Lincoln, Deputy Presiding
James Peotter
Sandra Kavanaugh
Frank Peterson
Also Present: Mr. Royal V. Large and his attorney
Mr. Ben Hancock.
III ITEM OF BUSINESS
A. Review of Pro osal by Mr.
Property p rese nt unr r for Purchase of
v being el un er ive
Year lease.
Dr. Emmick moved to consider the offer to urchase by
Mr. Lar•e or the •ro ert , more s•
eci
as t at ortion o Be s F ats Tract A ica 1 cresri ed
presently under lease to Mr. Large see 2 acres
Kavaug on a by Mrs
an
Mr. Ben Hancock, legal counsel for Mr. Large, indicated
that neither he nor his client had called this meet:n;
and they were present at the request of the assembly.
Mrs. Wallin stated for the record and for Mr. Hancock
that this was a new assembly and that the previous
action had been done under the old assembly and prier
mayor. The assembly members did feel that this matter
should be taken care of as soon as possible and at t-:s
point read information received from the Borough Attorney
indicating that the land if sold would be sold at less
than fair market and this would be in direct conflict
with state laws.
Mr. Hancock indicated that Mr. Large had accepted the
purchase price as listed in the former Mayor's letter
and all that needed to be negotiated at that time was
the mode of payment. Because it now appears that the
present assembly cannot negotiate a sale, Mr. Large has
accepted the terms of the letter from Mr. Terry and has
given to the borough a cashier's check in the about of
$10,500 and cash of $50.00 in good faith for the purchase
of this land. Mr. Hancock further stated that the next
correspondence would be Royal Large vs. Kodiak Island
Borough for Specific Performance and this would be the
same situation that would exist between private indiv::_,.;,
whether or not this was a good bargain.
Mr. Lincoln read letters from the Borough Appraiser,
dated September 24, 1975, setting out the appraisal ° •
the land only and the letter of February, 1975 for the
appraisal of both land and building. It was asked if
Mr. Large paid on the appraised portion for the land,
could the building be removed. Mr. Hancock pointed o
that the building is part of that property.
KIB SPECIAL ASSEMBLY MEETING - JANUARY 28, 1976
Page 2
Dr. Emmick stated that based on the fact that the sale
was not completed by the previous assembly and on the
appearance of reasonable values of property in the area,
and based on advise received from the attorney, he could
not condone errors that were made by the previous
assembly.
Mr. Hancock stated that he would be filing a law suit
very shortly and would appreciate that any further
correspondence be conveyed through the Borough's attorney.
Mr. Frank Peterson stated that he was once again bringing
up the question of the legal status of this land. Did
the Borough have the right to sell the land? A patent
has been received for this particular land, however Mr.
Peterson stated that he thought this was after the land
freeze had gone into effect and the status would still be
in question.
Mr. Hancock, stated that he would suppose that the Borough
could only sell what rights or interest they have and we
are demanding that the Borough sell whatever right that
they have, however in order from Mr. Large to have a valid
title that he could convey and mortgage he will have to
make peace with the other individual or individuals
involved. Mr. Hancock went on to say that they were aware
they would not be getting a clear title, however Mr. Large
feels that he can make peace with the native group, feels
that they are reasonable people and that he can obtain
clear title. The Borough is not in any position to give
a warranty deed to this property.
Mrs. Kavanaugh voiced concern over the fact that the
appraisal did not include the building and did not feel
that she could justify the sale of the warehouse on this
basis of the appraisal. The borough assembly is now in a
position to correct what is felt to be an error made by
the previous assembly.
Mr. Hancock stated that if the assembly did not execute the
contract today, then the court has the right to execute it.
He further stated that the assembly is not really in a
position to set down and negotiate the sale, but rather
- would be in a position to accept settlement after suit has
been filed. Mr. Hancock noted that their position was
that the sale has been made and accepted.
The assembly commented further that they did not feel that
the letter by Mr. Terry was a final instrument of sale
and they did not have to sell anything that is against the
laws of the borough.
Mrs. Wallin asked to have the comments of Mr. Anderson
read into the record as he was unable to attend the meeting.
Mr. Hancock suggested that this should not be done as the
member was not present to speak for himself nor vote on
the matter.
) 0 1 1 2 1 ?. 1 '
KIB SPECIAL ASSEMBLY MEETING - JANUARY 28, 1976
Page 3
The uestion was called and
ro c o to motion failed b unanimous
IV ADJOURNMENT
There being no further business before the assembly,
the meeting was adjourned at 7 :40 p.m.
ATTEST:
Boroug C er
APPROVED:
t %d.
Borough Mayor