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Chapter 7.05.Acquisition and Disposal of Real Property
Chapter 7.05. Acquisition,and Disposal and Assignment of Real Propertyl
Article 1. Generally2
7.05.110 Adoption of provisions and statutory authority.
These regulations are adopted by the City Council pursuant to authority vested in that body by the charter of
the city and by the Alaska Land Act,AS 38.05.820,as amended.
(Ord.98-04)
7.05.115 Definitions.
For purposes of this chapter,the following terms defined have the meaning provided below unless the
context requires otherwise.
Acquisition means to obtain ownership or interest in and to hold real property within or outside the city
boundaries by purchase,gift,donation,grant,dedication,exchange,redemption,purchase or equity of
redemption,operation of law,tax or lien foreclosure,adverse possession,condemnation or declaration of taking,
annexation,lease or by any other lawful means of conveyances.
Assignment means the transfer of one party's entire interest in and obligations under a lease to another
party.
City means the city of Seward,Alaska.
Disposition means the transfer of city interest in real property by warranty or quitclaim deed,easement,
grant,permit,license,deed of trust,mortgage,contract of sale of real property,plat dedication,lease,tax deed,
will,or any other lawful method or mode of conveyance or grant.
Encroachment means any obstruction in,or intrusion into a delineated floodway,right-of-way,easement,or
public land or associated airspace.
Essential terms and conditions means a description of the real property involved;the length or term of a
lease;the sale,purchase or lease amount;any special deed restrictions or covenants;and any special development
requirements.
Fair market value means the highest price,described in terms of money,which the property would bring if
exposed for sale for a reasonable time in the open market,with a seller,willing but not forced to sell,and a buyer,
willing but not forced to buy,both being fully informed of all the purposes for which the property is best adapted
or could be used.
'State law reference(s)—See AS 29.35.010(8)for state provisions allowing a municipality to sell,own,etc.,real
property;see AS 29.35.030 for state provisions allowing municipalities to exercise the powers of eminent
domain;see AS 29.71.010 as to adverse possession.
2Prior ordinance history:Ord.520, 1984;Ord. 610, 1988;Ord.92-05.
Seward,Alaska,Code of Ordinances Created: 2022-12-16 15:15:46 [EST]
(Supp.No.25-1,Update 3)
Page 1 of 9
Public interest for the purposes of this chapter,means to determine to the extent necessary to ascertain
whether the decision has a reasonable basis and to ensure it was not arbitrary,capricious,or prompted by
corruption.
Real property interest means any estate in land,including tide and submerged lands,or improvements
thereon. Rights-of-way,encroachments or easements wherein no warranties are made and title is not transferred
are regarded as not involving the disposal of a party's interest in real property;thus,the execution of such
documents are exempt from provisions of charter section 12.3(b)and section 7.05.110,et seq.of this chapter.
Structure means any improvement,constructed or erected on or attached to the ground or another
structure,including,but not limited to,awnings, refuse container racks,towers,sheds,signs and fences.
Submerged lands means those lands covered by tidal waters between the line of mean low water and
seaward to a distance of three geographical miles,or as may hereafter be properly claimed by the city.
Tidelands means those lands which are periodically covered by tidal waters between the elevation of mean
high water and mean low water or are contained within a recorded Alaska Tideland Survey.
(Ord.98-04;Ord.98-05)
7.05.120 Alternative means of real property acquisition,assignment or disposition.
The City Council may acquire or dispose of an interest in real property by negotiation,public auction,or
sealed bid.
(Ord.98-04)
7.05.125 Public hearing and notice.
Prior to dispositionL assignment or acquisition of a real property interest by negotiation,public auction or
sealed bid,a public hearing shall be held. Notice of the public hearing shall be published in a newspaper of general
circulation in the city and shall be posted in at least three public places within the city. Both posting and
publication shall be done at least ten days prior to the hearing.
(Ord.98-04)
7.05.130 Terms and conditions to be made available.
The notice of public hearing shall indicate where the public may obtain the essential terms and conditions of
the proposed acquisition,assignment or disposition.A copy of the terms and conditions shall be maintained for
inspection at the office of the city clerk for at least ten days prior to the hearing.
(Ord.98-04)
7.05.135 Authorizing resolution to approve terms and conditions.
At any time after the hearing required in section 7.05.125,the council shall make a finding in an authorizing
resolution that the essential terms and conditions and the method of acquisition,assignment or disposition are in
the public interest.
(Ord.98-04)
Created: 2022-12-16 15:15:46 [EST]
(Supp.No.25-1,Update 3)
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7.05.140 Denial or refusal to renew or transfer, in the public interest.
(a)The City council may consider the following factors in determining whether it is in the public interest to deny or
refuse to renew or transfer a lease:
(1) The applicant's,the applicant's affiliates',the transferee's,or the transferee's affiliates'shall operate a year-
round business;
(2)The applicant's,the applicant's affiliates',the transferee's,or the transferee's affiliates'shall hire a minimum of
40%local hires;
(3)The applicant's,the applicant's affiliates',the transferee's,or the transferee's affiliates'shall provide their
employees with insurance benefits,proper bonuses and a competitive wage and/or salary;
(4)The applicant's,the applicant's affiliates',the transferee's,or the transferee's affiliates' shall operate with an
overall online rating or 3.7 stars or higher;
(5)The applicant's,the applicant's affiliates',the transferee's, or the transferee's affiliates'must not be a
cruiseship company;
(6)The applicant's,the applicant's affiliates',the transferee's,or the transferee's affiliates'is required to build
housing for year round locals not employed with said applicant and must also supply housing for applicant's
employees that is to code and inspected by the City, annually;
(7)The applicant's,the applicant's affiliates',the transferee's,or the transferee's affiliates'shall have ownership or
direct or indirect control of less than 25%of similar operations within a 1 mile radius of subject property;
(8)The applicant's,the applicant's affiliates',the transferee's, or the transferee's affiliates' must be well respected
by a majority of the community;and
(9)all other factors the council in its discretion determines relevant to the public interest.
7.05.140 Posting copy of resolution.
Upon adoption of a resolution approving an acquisition,assignment or disposition,the city clerk shall cause a
true copy of same to be posted for at least 30 days in at least three public places within the city.
(Ord.98-04)
7.05.145 Effectiveness of resolution.
Objections to a resolution approving a real property acquisition, assignment or disposition may be made at
any time until the resolution becomes effective. Unless rescinded or amended, any resolution adopted under this
chapter automatically becomes effective 30 days after passage and posting.
(Ord.98-04)
7.05.150 Appraisal.
(a) The city shall not sell any real property interest without first making an appraisal of the fair market value of
that interest, unless the City Council finds that the public interest will not be served by an appraisal.
(b) If an appraisal is made,the property interest shall not be disposed of for less than the appraised fair market
value,unless the City Council finds by resolution that public interest will be served by disposing of the
property interest for less than the appraised fair market value.
Created: 2022-12-16 15:15:46 [EST]
(Supp.No.25-1,Update 3)
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(Ord.98-04)
7.05.155 Notice of foreclosure sale.
Before property obtained through a foreclosure may be sold,notice of such sale must be sent by registered
or certified mail to the last known address of the record owner at the time the foreclosure action was initiated.
The notice shall be mailed at least 30 days prior to the effective date of sale. It shall contain the following
information:
(1) The time and date of sale;
(2) The manner of sale;
(3) The place of sale;and
(4) Notice that until the effective time of sale the record owner has the right to repurchase the property as
provided by AS 29.45.
(Ord.98-04)
7.05.160 Adjustment to fair market value.
(a) Except as provided in(b)of this section,the rent under each lease of city property shall be adjusted on July 1,
1995,and on July 1 of every fifth year thereafter during the term of the lease,to the fair market rental value
of the property as of the date of adjustment. For each leased property subject to rent adjustment under this
section,the city shall obtain a fair market rental value appraisal as of the date of each rent adjustment.
(b) Subsection(a)of this section shall not apply to any lease of city property:
(1) Authorized before the effective date of this section,except to the extent that the rent adjustment
described in subsection(a)of this section has been incorporated in the terms of the lease;
(2) For which the Council finds that the public interest will be served by leasing the property for less than
appraised value;or
(3) Whose terms provide for adjustment of rent to fair market value more frequently than every five
years.
(c) Nothing in this section extends the term of any lease of city property.
(Ord.98-04)
Article 2. Disposition of Real Property by Public Auction or Sealed Bid3
7.05.210 Terms and conditions of sale.
(a) The resolution authorizing the sale of real property by public auction or sealed bid shall set forth the terms
and conditions of the public sale.The Council shall reserve the right to reject any and all bids received.The
resolution shall provide if the sale is for cash,or cash deposit and a purchase agreement. If the sale is for a
'Prior ordinance history:Ord.520, 1984;Ord.610, 1988;Ord.92-05.
Created: 2022-12-16 15:15:46 [EST]
(Supp.No.25-1,Update 3)
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