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HomeMy WebLinkAboutRes1987-056 . . . Sponsored by: Garzini CITY OF SEWARD, ALASKA RESOLUTION NO. 87-056 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REAFFIRMING THE PURCHASE AGREEMENT AND REAPPROPRIATING FUNDS FOR THE PURCHASE OF LOTS 23 AND 24, BLOCK 16, ORIGINAL TOWNSITE OF SEWARD WHEREAS, on April 27, 1987, the Seward City Council approved Resolution No. 87-027 authorizing the purchase and appropriating funds for the purchase of Lots 23 and 24, Block 16, Original Townsite of Seward, from Jon Andrews; and WHEREAS, a public hearing was held and the Council affirmed that it was in the public interest to acquire this property for future community needs; and WHEREAS, Mr. Andrews was not able to have the lot cleared of the existing buildings prior to the end of the fiscal year as was originally agreed upon; and WHEREAS, the funds appropriated for the purchase of this land lapsed back into the General Fund-Fund Balance at midnight on June 30, 1987, leaving the city without funds to complete the purchase transaction; and WHEREAS, Mr. Andrews has agreed to sell the property at the previous agreed upon appraised motivated seller value of $104,000, with the city paying him $62,000 cash, the seller giving the city a $1,000 credit for the cost of the ap- praisal, and the seller donating $41,000 in land value to the city for public needs; and WHEREAS, Mr. Andrews further agrees that, should he not be able to remove the buildings within 30 days from the date he signed the Earnest Agreement, attached and incorporated herein by reference, he will accept the "as is" appraised motivated buyer value of $89,000, with the seller receiving $47,000 in cash from the city, the seller giving the city a $1,000 credit for the cost of the appraisal, and the seller donating $41,000 in land value to the city for public needs; and WHEREAS, based on this agreement, the city must reap- propriate funds for the purchase of the property; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: -1- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 87-056 Section 1. The sum of $63,000 is hereby appropriated from the General Fund-Fund Balance Account No. 101-000-271- 00-00 to the General Services Account No. 101-118-518-10-91 for the purpose of purchasing Lots 24 and 24, Block 16, Original Townsite of Seward, and to cover closing costs associated with that land transaction. Section 2. This resolution reconfirms the intent of the city to purchase Lots 23 and 24, Block 16, Original Townsite of Seward, based on the terms and conditions outlined in Resolution No. 87-027 and further refined in this resolution. Section 3. This resolution shall take effect immedi- ately upon its adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 13th day of July , 19 87 . THE CITY OF SEWARD, ALASKA ~t:J<~ HARR . GIESELER, MAYOR AYES: NOES: ABSENT: ABSTAIN: BOOHER, DUNHAM, GIESELER, HILTON, MEEHAN & SIMUTIS NONE NOLL NONE ATTEST: APPROVED AS TO FORM: HUGHES, THORSNESS, GANTZ, POWELL & BRUNDIN, Attorneys for the City of Seward, AK 7~ /lI~ Fred B. Arvidson City Attorney (City Seal) -2- . . . ATTACHMENT "A" - Resolution No.87-056 CITY OF SEWARD . Main Office (907) 224-3331 . Police (907) 224-3338 . Harbor (907) 224-3341 . Telecopier (907) 224-3248 P.O. BOX 1&7 SEWARD, ALASKA 99664 ..., July 7, 1987 Mr. Jon L. Andrews P.O. Box 1034 Seward, Alaska 99664 EARNEST AGREEMENT FOR PURCHASE OF LOTS 23 AND 24, BLOCK 16 ORIGINAL TOWNSITE OF SEWARD Let me review the situation regarding tbe City's purchase of Lots 23 and 24, Block 16, Original Townsite. As you are aware, the City Council previously approved the purchase of this property. Unfortunately, we did not mutually act fast enough to complete the sale prior to July 1st. On that date, all of our appropriated funds lapsed back into the General Fund. He now need to reappro- priate those funds. That can be done by resolution at our next City Council meeting on July 13th. Prior to going back to Council for approval, I would like to have a signed agreement from you regarding the terms of the sale. This can be handled by your acknowledgement at the end of this letter. Based on our discussions today, you are willing to sell the property at a buyer motivated value of $104,000. The City will pay you $62,000 in cash; you will give the City $1,000 credit for the cost of the appraisal; and the City will receive a value donation of $41,000 for the public needs of the community. This price includes having all the buildings removed and the property filled to grade with clean gravel fill. You further agree that this will be done within thirty (30) days from this date. Should you not be able to have the buildings removed within this time frame, you ,,,ish to sell the property in an "as is" condition for $89,000. In this case the City will pay you $47,000 in cash; you will give the City a $1,000 credit for the cost of the appraisal; and the City will receive a value donation of $41,000 granted to the City of Seward for the public needs of the Community. In either instance described above, the City will assume responsi- bility for closing costs such as recording fees, litigation reports, title insurance, etc. . . . ATTACHMENT "A" - Resolution No. 87-056 PAGE nw ANDREWS PROPERTY Please review the enclosed Warranty Deed, and if you see any problem with names, addresses, description, etc., please let me know. In the meantime, accept this letter as an Earnest Agreement between the City of Seward and yourself for the 9urchase of Lots 23 and 24, Block 16, Original Townsite of Seward. If you accept these terms, please sign and return a copy of this letter for our files. Also, please be aware that the final aP9roval of the sale and the reappropriation of the necessary funds lies solely with the City Council. I will make a recommendation to them to reaffirm the purchase of the property as stated in this letter. CITY OF SEWARD, ALASKA !;.;71 di~ A~~~t~TRATIVE ASSISTANT Enclosure: Warranty Deed ACCEPTANCE: I hereby accept the terms and conditions of this letter the sale of Lots 23 and 24, Block 16, Original Townsite ~~c2~, ~ JON LEE ANDRE1-JS regarding of SevJard 7-~-1!7 (date)