FY2026-16 Authorizing Land Sale Of A Portion Of Uss 3465 Lot 1a-4 And Establishing Terms And Conditions1
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KODIAK ISLAND BOROUGH
RESOLUTION NO. FY2026-16
A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AUTHORIZING
LAND SALE OF A PORTION OF USS 3465 LOT 1A-4 AND ESTABLISHING TERMS AND
CONDITIONS
WHEREAS, the Assembly approved Resolution No. FY2025-24, which accepted a
recommendation from the Borough Lands Committee to dispose of a portion of USS 3465 Lot 1A-
4 as depicted in Exhibit A of the resolution for a land sale; and
WHEREAS, the Planning & Zoning Commission on August 20, 2025, approved Planning &
Zoning Commission Resolution No. FY2026-05, in accordance with Title 18 of the Kodiak Island
Borough Code, recommended disposal of a portion of Lot 1A-4, USS 3465 to the Assembly; and
WHEREAS, Kodiak Island Borough Code (KIBC 18.30.020) requires the Borough Assembly to
set terms and conditions of sale for the disposal of public lands; and
WHEREAS, the Borough Assembly has determined that Lot 1A-4, USS 3465 is surplus to the
Borough's needs.
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 her designee to initiate
subdivision of Lot 1A-4, initiate rezoning of the four lots created by the subdivision,
and offer the four lots created by the subdivision, for disposal through sealed bid
auction once the following steps have been completed:
1. Complete the platting process in accordance with Title 16 of the Kodiak Island
Borough Code as depicted in Exhibit A; and
2. Initiate a change in zoning from PL — Public Use Land District to R2 Two -Family
Residential District in accordance with Title 18 and amend the future land use
map from public use to urban residential for the four lots depicted in Exhibit A.
Section 2: The sealed bid auction process shall be in accordance with Title 18 of the Kodiak
Island Borough Code. The following requirements and/or restrictions are
established for the sealed bid auction:
1. Timeframe and location of sealed bid auction shall be designated by the
Borough Assembly once the rezoning and subdivision processes are
completed. The Assembly may revise this resolution to establish the required
timeframe and location for submitted sealed bids.
Resolution No. FY2026-16 Page 1 of 6
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2. The four (4) parcels to be disposed 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.
3. A single entity (entity is defined as a unmarried individual or married couple;
corporations or partnerships are not considered an entity for this land sale)
may submit bids on multiple lots; however, no bidder shall be awarded more
than one (1) lot. In the event a bidder is the apparent high bidder on more than
one (1) lot, the Borough will notify the bidder and require the bidder, within
forty-eight (48) hours of notification, to designate in writing the single lot the
bidder elects to purchase. Upon such designation, all other bids submitted by
that bidder shall be rejected. If the bidder fails to make a timely designation,
the Borough reserves the right to select which lot will be awarded to the bidder
or to reject all bids submitted by that bidder.
4. A certified deposit of ten percent (10%) of the appraised market value shall be
submitted with the sealed bid. This deposit must be in the form of a cashier's
check or money order payable to the Kodiak Island Borough. No personal
checks or credit card transactions are allowed. Deposits of unsuccessful
bidders will be returned. The successful bidder's deposit shall be applied
toward the purchase price.
5. Only qualified bidders may submit a bid in accordance with KIBC 18.20.070;
6. Notice of sealed bid process shall be in accordance with KIBC 18.20.140.
7. Award of Bid shall be made to the highest responsive and responsible bidder,
subject to the Borough's reservation of rights. The Borough's determination of
the successful bidder shall be final. The Borough shall notify the successful
bidder within twenty-four (24) hours of the determination of the Award of Bid.
The successful bidder shall:
a. Pay the balance of the purchase price within thirty (30) days of notice
of award. Payment must be made in certified funds acceptable to the
Borough; or
b. The term of contract of the unpaid balance shall be ten years. The
interest rate on the unpaid balance shall be ten percent (10%).
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 MIB 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
payments but will reduce the loan term accordingly. 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 the 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
Resolution No. FY2026-16
Page 2 of 6
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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.
8. Failure to complete payment within the required time shall constitute default
and the certified deposit shall be forfeited as liquidated damages.
9. The Borough may award the property to the next highest bidder or reoffer the
property for sale.
Section 3: The four (4) parcels as outlined in Exhibit A shall be subject to the following terms
and conditions:
1. Any conveyance of these properties is made pursuant to applicable provisions
of the Alaska Statutes Title 38 (Alaska Land Act) and, if applicable, Alaska
Statutes Title 29 (Municipal Government), and Title 18 Kodiak Island Borough
Code, which authorizes the Borough to dispose of land subject to conditions,
covenants, and restrictions in order to protect the public interest.
2. The purchaser shall:
a. Commence the construction of a residential dwelling on the Property
within 24 months after execution of the purchase contract or
acceptance of title; and
b. Substantially complete construction and obtain a certificate of
occupancy (or equivalent authorization required by applicable borough
or municipal code) within thirty-six (36) months after construction
commences; and
c. All construction shall comply with applicable State, borough, and local
permitting requirements, including but not limited to land use, platting,
and building regulations.
3. Primary Residency Covenant:
a. Upon completion of the dwelling, the Purchaser shall occupy the
Property as their primary residence for a continuous period of not less
than five (5) years ("Residency Period"). If the property consists of two
dwelling units (as defined by KIBC 17.25.050) then the Purchaser shall
occupy one of the two units as their primary residence.
b. For purposes of this Section:
i. "Primary residence" means the Purchaser's true, fixed, and
permanent home to which the Purchaser intends to return and
remain, consistent with Alaska residency indicators (including
but not limited to Permanent Fund Dividend eligibility, voter
registration, and tax filings, where applicable).
c. This Primary Residency Requirement shall constitute a covenant
running with the land, binding upon the Purchaser and all successors
and assigns during the Residency Period. This covenant may be
recorded in the Kodiak Island Recording District and shall be
enforceable consistent with Alaska law and governing covenants.
Resolution No. FY2026-16
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d. During the Residency Period, the Purchaser shall not, without prior
written approval of the Kodiak Island Borough:
i. Sell, convey, lease, or assign any interest in the Property;
ii. Permit use of the Property as a secondary residence, seasonal
cabin, or short-term rental; or
iii. Change the primary residential use of the Property.
iv. If the property contains two dwelling units (as defined by KIBC
17.25.050), this restriction shall only apply to the dwelling unit
occupied by the Purchaser as their primary residence.
e. The Purchaser shall, upon reasonable request, provide documentation
demonstrating compliance, which may include:
i. Alaska Permanent Fund Dividend filings
ii. Voter registration records
iii. Utility usage records
iv. Any other documentation reasonably required by the Kodiak
Island Borough
f. Failure to comply with this Section constitutes a material breach. Upon
breach, the Kodiak Island Borough may:
i. Declare a forfeiture and revest title to the Property;
ii. Exercise a right of reentry or repurchase at the original sale
price (less administrative costs);
iii. Record or foreclose a lien;
iv. Seek specific performance or injunctive relief; or
v. Pursue any other remedy available at law or equity.
g. The Kodiak Island Borough may grant temporary waivers or
modifications for demonstrated hardship, including:
i. Medical necessity
ii. Military service
iii. Employment relocation within Alaska or beyond
iv. Any waiver must be submitted in writing and consistent with the
public interest.
h. This requirement is in addition to, and not in lieu of, any applicable
borough or municipal land use regulations, zoning ordinances, or
subdivision requirements.
4. Property Tax Abatement: Seller represents and warrants that it has the
authority to grant a property tax exemption for the Property and agrees that the
Property shall be exempt from property taxation until a Certificate of
Occupancy is received from the building department or the property becomes
the owners primary residence and permanent place of abode, not to exceed
thirty-six (36) months after construction commences. Seller shall take all
actions necessary to effectuate such exemption prior to or promptly following
closing.
5. Any remaining unsold properties not disposed of within this sealed bid auction
shall be withdrawn pending future evaluation and action.
6. All parcels will be conveyed by Quitclaim Deed subject to any and all
easements, reservations, covenants, and restrictions of record.
Resolution No. FY2026-16
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ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS FOURTH DAY OF JUNE, 2026
KODIAK ISLAND BOROUGH
ed Griffin,%Yku
ATTEST:
A�al m , Q2�'
Nova M. Javier, MMC, Borq gh Clerk
VOTES:
Ayes: Gardner, Johnson, Roberts, Smiley, Whiteside, Woods, and Ames
Noes: None
Resolution No. FY2026-16
Page 5 of 6
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Exhibit A
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Resolution No. FY2026-16
Page 6 of 6