Chapter 13.17
SALE OR LEASE OF PUBLIC LANDS
Sections:
13.17.010 Authority of sale or disposal.
13.17.020 Qualifications of applicants or bidders.
13.17.040 Methods of disposal and fees.
13.17.080 General sale procedures.
13.17.085 Over-the-counter sales.
13.17.100 Negotiated sales and exchanges.
13.17.115 Leases for space in City buildings.
13.17.120 Disposition, redemption and sale of foreclosed property.
13.17.130 Revenue and proceeds of tax sale.
13.17.010 Authority of sale or disposal.
The City may sell, convey, exchange, transfer, donate, dedicate, direct or assign to use, or otherwise dispose of City-owned real property by any lawful means or conveyances subject to the provisions of this chapter. (Ord. 05-14 § 4, 2005; Ord. 15-02 § 5, 2015)
13.17.020 Qualifications of applicants or bidders.
A. An applicant or bidder for a lease or purchase must be:
1. A citizen of the United States and 18 years of age or over;
2. A permanent resident who has filed a declaration of intention to become a citizen and be 18 years of age or over; or
3. A group, association or incorporation which is authorized to conduct business under the laws of Alaska.
B. A person acting as an agent for a qualified bidder must independently meet the requirements of this section and must file with the Mayor, 24 hours before the published date of the sale, a proper power of attorney or a letter of authorization creating such agency. The agent shall represent only one principal, who must meet the qualifications of this section.
C. A person is not a qualified applicant or bidder if:
1. He or she has failed to pay a deposit or payment due to the City in relation to City land in the previous five years and full payment, including interest at the legal rate, is not made;
2. He or she is currently in breach or default on any contract or lease involving land in which the City has an interest;
3. He or she has failed to perform under a contract or lease involving City land in the previous five years and the City has acted to terminate the contract or lease or to initiate legal action; or
4. The City has other good cause to believe that the person is unlikely to make payment or responsibly perform under the lease or other contract. (Ord. 05-14 § 4, 2005; Ord. 15-02 § 5, 2015)
13.17.030 Appraisal required.
No lands or any interest in land shall be sold or exchanged unless the same has been appraised by a qualified appraiser within six months prior to the date fixed for the sale or exchange. The Mayor shall be responsible for having such appraisal made and it shall reflect any restrictions on the use of the land as offered for sale. Alternatively, the latest available Matanuska-Susitna Borough assessed value may be used. No land shall be sold or exchanged for less than the approved minimum appraised or assessed value. (Ord. 05-14 § 4, 2005; Ord. 15-02 § 5, 2015)
13.17.040 Methods of disposal and fees.
Land or any interest in land may be disposed of under one of the following procedures as approved by the City Council:
A. By public auction or sealed bid to the highest qualified bidder.
B. By negotiated sale, lease or exchange.
C. By over-the-counter sales.
D. Through the use of real estate brokers.
E. By any other means permitted by law. (Ord. 05-14 § 4, 2005; Ord. 15-02 § 5, 2015)
13.17.050 Public notice.
A. The public procedure set forth by subsections (B) and (C) of this section are not intended to apply to “temporary use permits,” as defined and set forth in HMC 13.17.060.
B. Sale or Lease of Land. Except as otherwise provided in this chapter, public notice shall be given of any sale of lands or any interest therein. Notice shall be published once a week for three consecutive weeks preceding the time of sale or lease stated in the notice in at least one newspaper of general circulation in the vicinity in which the land or interest therein is to be sold or leased. In no event shall the sale or lease be held less than nine days nor more than three weeks following the last date of publication. In addition to the newspaper publications a notice of sale or lease shall also be posted in three public places. Such notice shall set forth a description of the land and the interest therein to be sold or leased and the time, place and general terms of the sale or lease and limitations.
C. Negotiated Sales, Leases and Exchanges. If disposal of land or interest in land is authorized by negotiated sale or lease, or by exchange of lands, public notice or the ordinance approving the disposal shall be given in the same manner as for other ordinances and a public hearing shall be held. (Ord. 05-14 § 4, 2005; Ord. 15-02 § 5, 2015)
13.17.060 Council approval.
A. “Temporary use permits,” as defined by this subsection, are not subject to the formal lease requirements specified by the terms of HMC 13.17.050 nor are temporary use permits subject to the requirements of Council approval as stated in HMC 13.17.090(B), (C) and (D). Similarly, the lease procedures provided for by HMC 13.17.090 and 13.17.110 are not intended to apply to temporary use permits. The Mayor is granted the authority to exercise his or her discretion to permit the use of City-owned land and/or improvements thereon for temporary use if the Mayor, in his or her discretion, finds the following conditions have been met:
1. The land and/or improvements are not needed or necessary during the anticipated term of use for the normal and ordinary activities of the City;
2. The temporary use is not anticipated to exceed six months;
3. The purpose of the temporary use permit is for an activity or purpose of nonprofit character;
4. The temporary use will be compatible with the conduct of regular and ordinary City business and the use of other City offices and property;
5. The activities contemplated by the temporary use occupant will be nondiscriminatory and based upon principles of equal opportunity;
6. The temporary use occupant will provide liability insurance and agree to hold the City harmless in the event of claims for injury or damage; and
7. The temporary use occupant shall agree to pay a permit fee in an amount to be established by the discretion of the Mayor, intended to assist the City in the costs related to provision of utilities, maintenance, repairs and management and other such similar costs incurred by the City in maintaining such land and/or improvements thereon.
B. Any sale, lease or exchange of City land shall be approved by the Council by ordinance. The ordinance shall identify the parcels for sale, lease or exchange, the manner of disposition and any special terms and conditions thereof. Any other disposition of an interest in City land shall be approved by City resolution.
C. No public auction, deed or contract purporting to dispose of or convey any interest in City land is valid or binding unless the disposal has been approved by the Council or as otherwise provided within this title. (Ord. 05-14 § 4, 2005; Ord. 15-02 § 5, 2015)
13.17.070 Conditions of sale.
Any sale or other disposition of City lands or any interest in lands shall be subject to terms and conditions as set forth in this chapter and in the City ordinance or resolution approving the disposition. The Mayor may impose additional conditions, limitations and terms for the protection of the interest of the City and the public. (Ord. 05-14 § 4, 2005; Ord. 15-02 § 5, 2015)
13.17.080 General sale procedures.
A. All applications for purchase or lease of City land shall be filed with the City on appropriate forms provided by the City. The filing of an application for purchase shall not in any way vest any right in the applicant to the land or to the use of the land applied for.
B. Public auctions shall be held by the Mayor or his or her representative. At the completion of the auction of each tract of land, the Mayor or his or her representative shall indicate the apparent high bidder. The Mayor may reject all bids in the best interest of the City.
C. The apparent high bidder shall concurrently deposit with the City not less than 10 percent of the high bid, or in case of a lease offering, an amount equal to the annual rent. Lands to be purchased for a principal sum of $500.00 or less will not be sold on contract but will be paid for in full.
D. Upon deposit of the required sum by the apparent high bidder, the Mayor or his or her representative shall immediately issue a receipt containing a description of the land or interest therein sold, the price bid and the terms of the sale, which receipt shall be acknowledged in writing by the bidder. Upon completion of the final payment on the contract of purchase, the City Clerk will issue to the purchaser a quitclaim deed. A contract of sale or lease in a form approved by the City Attorney shall be signed by the purchaser or lessee.
E. The Mayor may reject any and all bids in the best interest of the City. The contract of sale or lease shall be signed by the Mayor and City Clerk on behalf of the City. (Ord. 05-14 § 4, 2005; Ord. 15-02 § 5, 2015)
13.17.085 Over-the-counter sales.
A. Lots or parcels of land offered for sale pursuant to this chapter for which no responsive bids were received may, upon ordinance of the Council, be offered for over-the-counter sales.
B. Such lots shall be offered by the City Clerk over the counter on a first-come, first-served basis and be sold for the minimum bid value in accordance with this chapter. (Ord. 15-02 § 5, 2015)
13.17.090 Lease procedures.
A. General Regulations. In addition to the regulations governing leasing as set forth within sale procedures above, the additional regulations and procedures set forth below shall apply specifically to leases.
B. Expiration. Unless the lease is renewed or sooner terminated as provided herein, the lessee shall peaceably and quietly leave, surrender, and yield up unto the lessor all of the leased land on the last day of the term of the lease.
C. Renewal. If, at the expiration of any lease of any lands hereunder, the lessee desires a renewal lease on the land, properties, or interests covered thereby, he or she shall, not sooner than 180 days prior to the expiration, make application for a renewal lease in writing on forms provided entitled “Application for Renewal of Lease” certifying under oath as to the character and value of all improvements existing on the lands, properties or interests therein, the purpose for which he or she desires to renew the lease, and such other information as the Mayor may require. The applicant shall deposit with the Mayor an amount equal to the annual rent. The Mayor shall upon direction of the Council issue a renewal of the lease to the lessee. The date that the application for renewal of the lease is presented to the office of the Mayor, as evidenced by the date stamped thereon, whether delivered or forwarded by regular, certified or registered mail, shall be binding.
D. Subdivision – Regulations. Leases for terms longer than 10 years shall comply with the Matanuska-Susitna Borough subdivision regulations. (Ord. 05-14 § 4, 2005; Ord. 15-02 § 5, 2015)
13.17.100 Negotiated sales and exchanges.
A. The Mayor may, with the approval of the City Council by ordinance, negotiate a sale or exchange of City land without public auction or sealed bid if the following conditions exist:
1. The application to purchase or exchange City land is:
a. By an owner of property contiguous on a side with the City land applied for and the purchase is necessary for the proper utilization of the owner’s contiguous property;
b. By the United States, the state or a political subdivision;
c. By a public utility for facilities serving the general public;
d. For a beneficial new industry; or
e. For a particular, stated purpose in the best interests of the City, and the Council approves the sale with appropriate findings and conditions;
2. The land so sold or exchanged shall not be used by the purchaser, his or her heirs or assigns for any purpose other than that for which it has been classified by the City Council at time of sale or unless otherwise zoned subsequent to sale;
3. No such sale or exchange shall be made if the result of such sale or exchange were to hinder or prevent the utilization of a larger parcel of City land to its best advantage;
4. Such sale or exchange is in the best interest of the City.
B. Negotiated sales shall be subject to all other requirements and conditions applicable to sales under this chapter. (Ord. 05-14 § 4, 2005; Ord. 15-02 § 5, 2015)
13.17.110 Negotiated leases.
A. The Mayor may, with the approval of the Council by ordinance, negotiate a lease of City land without public auction or sealed bid and without voter ratification under one or more of the following conditions:
1. The lease is for property the fair annual rental value of which is $2,500 or less for a term not exceeding 10 years and an annual rental value not less than eight percent of the appraised value; or
2. The lease is for a beneficial new industry, subject to the terms of this chapter; or
3. The lease is for a public purpose, to a governmental agency or not-for-profit corporation formed for the purpose of carrying on the public service; or
4. The lease is to a public utility, for a site for public utility facilities, in which case no appraisal of the leased property is required.
B. Leases approved under this section shall be subject to all other requirements and conditions applicable to leases under this chapter.
C. Leases for Public Purpose. Application for a lease for public purposes shall be made in the same manner as other applications and shall contain a plan for development and use of the property requested. The Council shall, in each case, determine that the proposed usage of City property is for a worthwhile public service, that there will be no discrimination in providing service, and the usage is nonprofit. The City may, from time to time, make such other requirements as it deems proper before the issuance of such leases. Failure to carry out such plan as submitted and agreed upon may result in revocation of the lease. (Ord. 05-14 § 4, 2005; Ord. 15-02 § 5, 2015)
13.17.115 Leases for space in City buildings.
Notwithstanding any other provisions of this chapter, the Mayor may, subject to the approval of the City Council by resolution, award a lease for space in a building owned by the City either by negotiation or to the person that submits the best proposal in response to a request for proposals. Any such leases shall be restricted to the following uses:
A. Government agencies or nonprofit organizations providing a public service.
B. The provision of goods or services, on either a for-profit or nonprofit basis, that support or complement the public uses or functions for which the building is used.
C. Provide revenue to the City from the productive use of building space that would otherwise not be required for any public purpose during the lease term. (Ord. 18-07 § 5, 2018; Ord. 17-16 § 5, 2017)
13.17.120 Disposition, redemption and sale of foreclosed property.
A. In accordance with AS 29.45.400, properties transferred to the City are held by the City for at least one year.
B. In accordance with AS 29.45.460, the City shall determine by ordinance whether foreclosed property deeded to the City by the Matanuska-Susitna Borough shall be retained for a public purpose. The ordinance must contain:
1. The legal description of the property; and
2. The address or a general description of the property sufficient to provide the public with notice of its location; and
3. The name of the last record owner of the property as the name appears on the assessment rolls.
C. Tax foreclosed property deeded to the City by tax foreclosure through the Matanuska-Susitna Borough and not required for a public purpose may be sold.
D. Before the sale of the property held for a public purpose, the City shall determine by ordinance that a need does not exist. The ordinance must contain subsection (B) of this section.
E. The Clerk shall send a copy of the published notice in the local paper of the public hearing to consider a determination under subsection (B) or (C) of this section by certified mail to the former record owner of the property that is the subject of the ordinance. The notice shall be mailed within five days after its first publication and shall be sufficient if mailed to the last record owner as the name appears on the Matanuska-Susitna Borough assessment rolls.
F. The provisions of subsection (E) of this section do not apply with respect to property that has been held by the City for a period of more than 10 years after the close of the redemption period.
G. The record owner at the time of tax foreclosure of property acquired by the City or the assigns of that record holder, may, within 10 years and before the sale of the tax foreclosed property by the City, repurchase the property. The City shall sell the property for the full amount applicable to the property under the judgment and decree plus:
1. Interest not to exceed 15 percent a year from the date of entry of the judgment of foreclosure to the date of repurchase; and
2. Delinquent taxes assessed and levied as though the property had continued in private ownership; and
3. Costs of foreclosure and sale incurred by the City; and
4. Costs of maintaining and managing the property incurred by the City including insurance, repairs, association dues, legal, administrative and management fees that exceed amounts received by the City for the use of the property.
H. After adoption of an ordinance providing for the retention of tax foreclosed property for a public purpose, the right of the former record owner to repurchase the property ceases. (Ord. 15-02 § 5, 2015)
13.17.130 Revenue and proceeds of tax sale.
A. All revenue from the sale, lease, or use of lands to which the City has title or which the City has selected shall be deposited in the capital account fund.
B. Any proceeds from a tax sale shall be in accordance with state and local laws. (Ord. 15-02 § 5, 2015)