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Home My WebLink AboutNon-CodeOrd2017-003Sponsored by: Hunt Introduction Date: September 25, 2017 Public Hearing Date: October 9, 2017 Enactment Date: October 9, 2017 CITY OF SEWARD, ALASKA NON -CODE ORDINANCE 2017-003 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, RESCINDING SECTION 4 OF NON -CODE ORDINANCE 2013- 012 WHICH AUTHORIZED SOLE SOURCE NEGOTIATION FOR DISPOSAL OF THE PROPERTY DESCRIBED AS THE WEST % OF LOTS 19 AND 20, BLOCK 30, ORIGINAL TOWNSITE OF SEWARD; WITH TAX PARCEL ID NUMBER 14813010, LOCATED AT 408 MADISON, AND INSTEAD AUTHORIZE DISPOSAL BY SEALED BID AT A MINIMUM BID OF $36,700 WHEREAS, the Seward City Council approved Non -Code Ordinance 2013-012 on August 26, 2013, authorizing foreclosure on the above -named property for delinquent property taxes and because the property was vacant and had become a public safety hazard, and authorizing the disposal by sole source negotiation with the adjacent property owner who had agreed to provide for the full demolition, removal and clean-up of the parcel; and WHEREAS, at the time of enactment of Non -Code Ordinance 2013-012, the 50 foot x 60 foot parcel 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, since enactment of Non -Code Ordinance 2013-012, the adjacent property owner decided not to acquire the property by sole source negotiation, and the parties ceased to negotiate; and WHEREAS, the City obtained title to the property from the Kenai Peninsula Borough in accordance with Section 2 of Ordinance 2013-012, has completed the process of removing structures from the property and cleaning up the property and is proceeding to dispose of the parcel; and WHEREAS, Seward City Code §7.05.210 establishes that the sale of real property be by public auction or sealed bid and the administration recommends sale of this parcel for cash deposit and a purchase agreement by sealed bid at a minimum bid of $36,700 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 507486\1002\00642238 CITY OF SEWARD, ALASKA NON -CODE ORDINANCE 2017-003 order made payable to the city, and this sale will require a bid deposit equal to 20% of the amount bid; 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 purchaser fail to meet the terms of the purchase agreement at any time after award by Council, purchaser shall forfeit bid deposit and the next highest bidder shall be considered the successful bidder, upon approval by the Seward City Council. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Section 1. This is a Non -Code Ordinance. Section 2. The City has determined by Non -Code Ordinance 2013-012 that it has no public purpose for West''/2 of Lots 19 and 20, Block 30, Original Townsite of Seward. Section 3. The Seward City Council hereby rescinds Section 4 of Non -Code Ordinance 2013-012 which authorized sole source negotiations for disposal of the property described as the West '/z of Lots 19 and 20, Block 30, Original Townsite of Seward, with tax parcel ID number 14813010 located at 408 Madison, and instead authorizes disposal by sealed bid at a minimum bid price of $36,700. 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 this parcel for a minimum bid of $36,700 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. 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 ordinance shall take effect ten days following its enactment. ENACTED by the City Council of the City of Seward, Alaska, this 90' day of October, 2017. CITY OF SEWARD, ALASKA NON -CODE ORDINANCE 2017-003 1 THE CITY OF SEWARD, ALASKA can Bardarson, Mayor AYES: Keil, Squires, McClure, Slater, Bardarson NOES: Casagranda ABSENT: Altermatt ABSTAIN: None ATTEST: '66sallass", * .•'y 4F Sew!** (City Se�L"'� ..••~o...,•q,Q •. G =• SEAL `••= ' F ` f .•. 4 p, OF •A�P. , 1 Agenda Statement Meeting Date: September 25, 2017 To: City Council Through: Jim Hunt, City Manager From: Kristin Erchinger, Finance Director OW Agenda Item: Disposal by Sealed Bid of DE Wood Property, 408 Madison BACKGROUND & JUSTIFICATION: The Seward City Council passed a non -code Ordinance on August 26, 2013, authorizing the foreclosure of a real property parcel located at 408 Madison (tax parcel 14813010), previously owned by DE Wood (deceased). The property was identified as a public hazard and the City intended to foreclose on the property, conduct clean-up, and then sell the property. At the time of the foreclosure, the parcel was too small to be developable according to the City's then -existing development standards. Therefore, the Council agreed to a sole -source negotiation with the adjacent property owners, to purchase and clear the property. The property owners have since declined to purchase the property, and the City's development standards were modified in Ordinance 2016-009 passed January 23, 2017, authorizing the development of smaller lot sizes, making this 50 foot x 60 foot parcel a developable parcel. The City has incurred costs associated with foreclosure, demolition and clean-up of the property, and is prepared to sell the parcel. The administration recommends selling the property at a minimum bid of $36,700 which reflects the assessed valuation as determined by the Kenai Peninsula Borough, for 2017. The assessed value is considered to be below market value, but State law requires the City return any surplus proceeds from the sale to the estate of the former property owner, and the amount of $36,700 is sufficient to cover the City's costs incurred in property foreclosure and clean-up. The disposal of City -owned real property is addressed in Seward City Code §7.05 which requires the sale be by public auction or scaled bid. The administration recommends sale by sealed bid for cash deposit of 20% plus purchase agreement, for a minimum bid price of $36,700. INTENT: To modify Non -Code Ordinance 2013-012 to remove Section 4 which authorized sole source negotiation for disposal of the West 1/2 of Lots 19 and 20, Block 30, Original Townsite of Seward, and instead allow for the sale of the property by competitive sealed bid. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan (2020): 3.9.2.1 Encourage citizens, as well as the City to take an active role in beautifying... the community. " Page 30 X 2. Strategic Plan (1998): "Promote a safe community" Page 18 X Other ('list): Ordinance 2013-012 and Ordinance 2016-009. Numerous 3 sections of Title 9, Seward City Code Health and Safety, support this X action. Municipal Lands Management Plan tax lien/foreclosure, page 3. FISCAL NOTE: The City has incurred costs of approximately $33,733 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 RECOMMENDATION: Council approves Non -Code Ordinance 2017- to rescind Section 4 of Non -Code Ordinance 2013-012 which authorized sole source negotiation for disposal or 408 Madison and instead authorize disposal by sealed bid.