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CITY OF SEWARD,ALASKA
RESOLUTION 2019-042
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE COMPLETION OF THE TAX
FORECLOSURE PROCESS AND THE SALE OF THE PROPERTIES
DESCRIBED AS LOTS 29, 30, 31 AND 32, BLOCK 27, ORIGINAL
TOWNSITE OF SEWARD; WITH TAX PARCEL ID NUMBERS OF
14805003 AND 14805004, LOCATED AT 516 THROUGH 522 FIRST
AVENUE BY SEALED BID AT A MINIMUM BID OF$17,500 PER LOT
WHEREAS,the Seward City Council approved Non-Code Ordinance 2012-005 on May
29, 2012 which authorized the foreclosure on the above-named properties for delinquent
property taxes, and because the property was vacant and had become a public safety hazard, also
authorized the disposal,demolition, removal,and clean-up of the parcel; and
WHEREAS, at the time of enactment of Non-Code Ordinance 2012-005, the 30 foot x
100 foot parcel 14805003 was a non-conforming undevelopable parcel due to its size, but since
that time, the Seward City Council enacted Ordinance 2016-009 on January 23, 2017, modifying
the minimum lot size to 3,000 square feet,making this parcel a developable parcel;and
WHEREAS,the City may now dispose of the parcels because the City has obtained title
to the properties from the Kenai Peninsula Borough in accordance with Section 2 of Ordinance
2013-012, and has completed the process of removing structures from the properties and
cleaning up the properties; and
WHEREAS, Seward City Code §7.05.210 establishes that the sale of real property be by
public auction or sealed bid and Administration recommends sale of these parcels for cash
deposit and a purchase agreement by sealed bid at a minimum of$17,500 per lot reflecting the
2017 Kenai Peninsula Borough property assessment on the land, considered to be lower than fair
market value,but covering the City's costs of property foreclosure and clean-up; and
WHEREAS, Seward City Code §7.05.220 provides that sealed bids shall be submitted in
a sealed envelope marked " Real Property Bid" and must be accompanied by a check or money
order made payable to the City of Seward,and this sale will require a bid deposit equal to 20%of
the bid amount;and
WHEREAS, upon successful receipt of bids, the City Council will approve the final
disposition of the real property based on the highest bid received, and shall approve any purchase
agreement prior to its execution by the City, and should the purchaser fail to meet the terms of
the purchase agreement at any time after award by Council,the purchaser shall forfeit bid deposit
and the next highest bidder shall be considered the successful bidder, upon approval by the
Seward City Council.
CITY OF SEWARD, ALASKA
RESOLUTION 2019-042
.1
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA that:
Section 1. The City Manager is hereby authorized to dispose of city-owned properties
listed below by sealed bid, subject to appropriate public utility and access easements being
executed prior to the transfer of any deeds. A twenty percent (20%) cash bid deposit must be
submitted with all bids with the balance due within thirty (30) days of the bid opening. The City
reserves the right to reject any and all bids received.
Section 2. The City has determined by Non-Code Ordinance 2012-005 that it has no
public purpose for Lots 29, 30, 31 And 32, Block 27, Original Townsite of Seward.
Section 3. The Seward City Council hereby authorizes disposal of the property described
as the Lots 29, 30, 31 And 32, Block 27, Original Townsite of Seward, with tax parcel ID
numbers 14805003, 14805004, 14805005 and 14805006, located at 516-522 First Avenue, and
instead authorizes disposal by sealed bid at a minimum bid price of$17,500 per lot.
Section 4. The City Manager and Finance Director are hereby authorized to conduct a
public sale by sealed bid advertised in a newspaper of local circulation. The agreement will be
subject to approval by the Seward City Council.
Section 5. The City Council hereby finds it to be in the public interest to sell each parcel
for a minimum bid of$17,500 which may be less than fair market value, recognizing that State
law requires that any amount received in excess of the City's cost to foreclose, demolish
structures, clear the property and prepare the property for sale shall revert to the last known
owner of record of the property prior to foreclosure. The City Council further finds that the
public interest will not be served by obtaining an updated appraisal of the properties.
Section 6. The recitals stated above are hereby adopted as findings of the City Council.
For these reasons, the City Council authorizes the sale and transfer of this property as is, where
is, with no warranties, and for less than fair market value.
Section 7. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
22" day of April, 2019.
CITY OF SEWARD, ALASKA
RESOLUTION 2019-042
THE CITY OF SEWARD, ALASKA
Davi uires, Mayo
AYES: Lane, Seese, McClure, Osenga, Horn, Towsley, Squires
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. Ballo r, MMC
City Clerk
(City Seal) .0..... SE •.•,
♦ G� •SRP oR
• I SEAL
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Other (list):
3. Ordinance 2013-012 and Ordinance 2016-009. Numerous sections of X Title 9, Seward City Code Health and Safety support this action.
Municipal Lands Management Plan tax lien/foreclosure, page 3.
FISCAL NOTE:
The City has incurred costs of approximately $70,000 associated with the foreclosure and clean
up of this property. The sale of this parcel at the KPB assessed value will reimburse the City for
its costs.
Approved by Finance Department: � �
ATTORNEY REVIEW; Yes _X__ No ___ N/A ___ _
RECOMMENDATION:
Council approve Resolution 2019- 042 Authorizing the completion of the tax foreclosure process
and the sale of the properties located at 516 through 522 First A venue
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