Chapter 3.28
DISPOSAL OF BOROUGH REAL PROPERTY
Sections:
3.28.010 Disposal authority by ordinance.
3.28.020 Assembly approval of instrument of conveyance.
3.28.030 Terms and conditions of disposal.
3.28.040 Disposal by lease at fair market value.
3.28.060 Land disposal methods--Section 3.28.030(A).
3.28.070 Land disposal methods--Section 3.28.030(B) and (C).
3.28.080 Effect of borough actions.
3.28.010 Disposal authority by ordinance.
Except where state statute or this code establishes a specific mandatory procedure for disposing of borough real property, the borough may dispose of borough real property in any manner not prohibited by law. Except as required by law, the borough may dispose of borough real property, or any interest therein, only by nonemergency ordinance. As used in this chapter, the word "disposal" shall include the sale or lease of real property or any interest therein. (Ord. 95-4 (part), 1995).
3.28.020 Assembly approval of instrument of conveyance.
Any instrument pertaining to the disposal of an interest in borough real property, and requiring execution by the borough, shall be approved as to substance and form by resolution of the assembly and thereafter be executed by the borough manager or his designee, and attested by the clerk. (Ord. 95-4 (part), 1995).
3.28.030 Terms and conditions of disposal.
A. Except as provided in subsections B or C of this section, each disposal of borough real property shall be at fair market value. The borough may accept in exchange for borough real property any consideration of sufficient value not prohibited by law.
B. The borough may dispose of borough real property to the United States, the state of Alaska, or any political subdivision thereof, or a nonprofit corporation or association, for less than the fair market value of the interest disposed of, upon a finding by the assembly that the disposal will result in the use of the real property for purposes sufficiently beneficial to the borough to offset the difference between the fair market value of the interest proposed for disposal.
C. The borough may dispose of borough real property at a rate less than fair market value where, for the construction and operation of a commercial or industrial facility or use to be established and/or maintained on the real property, if the assembly first finds:
1. The reduction in rental and/or sale price substantially increases the likelihood that the facility or use will be located or maintained in the borough and the terms and conditions upon which the disposal is authorized provide adequate assurance thereof;
2. The operation of the facility or use in the borough will confer a net economic benefit upon the borough or the citizens of the borough equivalent to or greater than the difference between the fair market value and the value at which the disposal will be made;
3. No equivalent benefit may be obtained by leasing or selling the real property at its fair market value;
4. Adequate provisions are included in the disposal agreement(s) to protect the interests of the borough in the event of default to otherwise assure timely performance of lessee/purchaser’s obligations.
D. Any disposal by sale or lease under the provisions of subsection B or C of this section shall include terms and conditions adequate to protect the borough in the event of default, including without limitation, lease termination, deed restrictions, reservations and reversion to the borough of any interest conveyed in the event of default of the purchaser’s obligations. (Ord. 95-4 (part), 1995).
3.28.040 Disposal by lease at fair market value.
In addition to the other provisions of this chapter, disposal by lease at fair market value pursuant to Section 3.28.030 (A) shall conform to the following requirements:
A. No lease may be assigned without the approval of the borough assembly.
B. No lease of borough real property may be for a term of more than thirty years, unless approved by the borough assembly upon a finding that the purpose of the lease, use of the premises and nature of the improvements to be placed thereon would be beneficial to the borough or the citizens of the borough.
C. A lease having a term of more than two years shall be subject to a rental adjustment at intervals of no more than two years, unless the lease specifies longer intervals. Unless specified otherwise by the terms of the lease, all rental adjustments shall reflect the appraised fair market value of the premises.
D. A lease may grant the lessee a right of renewal upon the expiration of the initial term, provided that the renewal, or any extension of the lease, shall be treated as a new lease, and shall be subject to all provisions of this code then in effect.
E. Every lease of borough real property, including leases granted pursuant to Sections 3.28.030 (B) and (C) shall provide that the borough retains the right to designate or grant rights-of-way or utility easements across the leased premises without compensation; provided, that the lessee shall be compensated for the taking or destruction of any improvements, and provided further that the rental rate for the leased property shall be equitably adjusted if the borough, in its sole discretion, determines that the right-of-way or easement designated or granted reduces the value of the leasehold interest. (Ord. 95-4 (part), 1995).
3.28.050 Valuation.
Prior to the disposal of an interest in borough real property, the fair market value of said interest shall be determined. (Ord. 95-4 (part), 1995).
3.28.060 Land disposal methods--Section 3.
28.030(A). A. For disposals of real property under Section 3.28.030 (A), enabling ordinance shall set forth sale procedures which may be either:
1. A public invitation for sealed written bids for disposal of all or part of any interest in borough real property, specifying the time and place for receiving bids and the minimum acceptable bid; or
2. Public auction, upon written notice specifying the minimum acceptable bid, terms and conditions of sale.
B. An ordinance authorizing disposal of real property at fair market value, shall require public notice of the proposed disposal. The notice shall describe the borough real property, terms upon which it may be disposed of, the method of disposal, and, in the case of disposal through subsections Al or A2 of this section, the time and place for submitting bids or proposals and the minimum acceptable price for the real property. (Ord. 95-4 (part), 1995).
3.28.070 Land disposal methods--Section 3.
28.030(B) and (C). A. For disposals of real property under subsection B or C of Section 3.28.030, the borough assembly may authorize the borough manager or his designee to enter direct negotiations with interested parties who seek to acquire an interest in or to purchase borough real property and to make recommendations to the borough assembly respecting the disposal and the terms and conditions thereof.
B. In the event the assembly determines that disposal of a particular interest in real property may appropriately be made at less than fair market value, the disposal shall be authorized by non-emergency ordinance. (Ord. 95-4 (part), 1995).
3.28.080 Effect of borough actions.
No action or inaction by the borough assembly, city manager or any other officer, agent or employee of the borough relating to or in furtherance of the development, preparation for disposal or disposal of borough real property or any interest therein shall be deemed to constitute an express or implied representation or warranty that such real property, or any interest therein, is suitable or usable for any specific purpose whatsoever. Any such action or inaction shall be deemed to be and constitute performance of a discretionary policy and planning function only and shall be immune and give no right of action as provided in AS 9.65.070, or any amendment thereto. (Ord. 95-4 (part), 1995).