22.05.095 Methods of Sale or Disposal.
(a) Lands to which the City of Kenai holds title which are not restricted from sale by the deed of conveyance to the City or which have been released from such restrictions and that the City Council has determined are not required for a public purpose may be listed for sale by the City Manager. The decision whether or not to sell the land rests in the sole discretion of the City Council.
(b) The City Council may by ordinance authorize the City Manager to dispose of such properties in accordance with the intent of this chapter as follows:
(1) Noncompetitive Process.
(i) Conveyance to encourage new enterprises where it is found that encouragement of a new commercial or industrial enterprise would be in the best interest of the City; one (1) or more parcels of City land may be sold upon such terms as to price, conditions of conveyance, and with such contingencies as may be set forth in the ordinance.
(ii) Property sale to adjacent owners for the conveyance of a parcel of City property at fair market value to the owner of adjacent land whenever, in the judgment of the City Council, the parcel of land is of such small size, shape, or location that it could not be put to practical use by any other party.
(iii) Grant or devotion of real property to the United States, the State of Alaska, a local political subdivision of the State of Alaska, or any agency of any of these governments or a nonprofit corporation, for a consideration agreed upon between the City and grantee without a public sale if the grant, devotion or lease is in the best interest of the City.
(iv) Conveyance of land to resolve a land use conflict.
(2) Competitive Process.
(i) Public outcry auction to the highest responsible bidder.
(ii) Sealed bid to the highest responsible bidder.
(iii) Over-the-counter sale after a public outcry auction or sealed bid process on a first-come basis, provided minimum development requirements are met within two (2) years of sale and the land is sold for fair market value. An appraisal to determine fair market value must be completed within a one (1) year period prior to the date of sale.
(iv) Leased land in which the lease was subject to competition through the lease application review process and which contains an option to purchase once the minimum development requirements have been met for the fair market value of the land excluding permanent improvements made by the lessee. An appraisal to determine fair market value must be completed within a one (1) year period prior to the sale.
(3) Property Exchange. Property exchanges for the conveyance and exchange of a parcel of City-owned property, including lands held for the use and benefit of the airport for property owned by another individual or legal entity subject to such conditions as Council may impose on the exchange, whenever the City Council makes findings it is in the best interest of the City to make the property exchange.
(c) Any sale of land owned by the City of Kenai and held by it for the use or benefit of the Kenai Municipal Airport must include in any instrument conveying title to the property restrictions accepted by the City under the terms of the 1963 Quitclaim Deed from the United States of America recorded at Book 27, Page 303, at the Kenai Recording District, Kenai, Alaska, or any other land owned by the City and acquired with airport funds which may include similar restrictions. Additionally, any sale or disposal of the aforementioned lands for less than fair market value or exchange for less than equal value shall require a deposit in the amount of the difference to the Airport Land Sale Permanent Fund for the benefit of the Kenai Municipal Airport.
(d) An eligible veteran is entitled to a discount of twenty-five percent (25%) off the purchase price of certain City land intended for the principal use as a single-family dwelling.
(1) The City Manager or City Council must designate land prior to offer as available for this discount and the discount cannot result in costs incurred by the City due to restrictions on the property, including but not limited to properties restricted in use or sale by the Federal government.
(2) To be eligible for a discount, a veteran must submit proof that the veteran is at least eighteen (18) years old, has been a State resident for a period of not less than one (1) year immediately preceding the date of sale and has served in the Alaska Territorial Guard for at least ninety (90) days unless the service was shortened due to a service connected disability or on active duty in the U.S. Armed forces at least ninety (90) days, unless the tenure was shortened due to a service connected disability or due to receiving an early separation upon return from a tour of duty overseas, and has received an honorable discharge of a general discharge under honorable conditions.
(3) A veteran is only entitled to one (1) discount under this section during the veteran’s lifetime.
(Repealed and Reenacted Ord. 3072-2019 (Substitute); Ord. 3380-2023)