Ordinance 17-30 Adjusting Fees To Sell Lot 1 Harry Feyer Subidivsion

CITY OF HOMER
HOMER, ALASKA

City Manager

ORDINANCE 17-30

AN ORDINANCE OF THE HOMER CITY COUNCIL APPROVING A  CONTRACT WITH HOMER REAL ESTATE FOR REAL ESTATE SERVICES TO MARKET AND SELL LOT 1 HARRY FEYER SUBDIVISION, SECTION 14, TOWNSHIP 6 SOUTH, RANGE 13 WEST, SEWARD MERIDIAN, KPB PARCEL NO. 179-110-05 AND AUTHORIZING THE CITY MANGER TO ADJUST THE SALES PRICE, THE BALANCE OF THE ASSESSMENTS, AND THE REALTOR’S COMMISSION TO FACILITATE A SALE.

WHEREAS, HCC 18.12.020 provides that real property that is no longer required for public purpose may be sold; and

WHEREAS, City Council determined that a public purpose did not exist for Lot 1 Harry Feyer Subdivision and designated the property for sale in the City’s 2015 and 2016 Land Allocation Plans adopted by Resolution 15- 030(A) on April 27, 2015, by Resolution 16-043 on April 25, 2016; and

WHEREAS, The Land Allocation Plan clarifies that Lot 1 Harry Feyer Subdivision is a small triangular sliver of land with  water and sewer assessments and development constraints that leave only a portion of the land developable; and

WHEREAS, Ordinance 16-17(S) Section 5, further authorizes the sale of Lot 1 Harry Feyer Subdivision for less than fair market value in consideration of its development constraints and  water and sewer assessments.  In addition, Section 5 declares that it is in the best interest of the City to convey the property for nominal consideration to an adjacent property owners; and

WHEREAS, When combined, the water and sewer assessments are $34,141.80, almost equivalent to the assessed value of $34,200.00; and

WHEREAS, The property was offered through sealed bids and advertised on the City of Homer website from March 17, 2017 through March 31, 2017, and one bid was received for one dollar, and

WHEREAS, Resolution 17-034 approved a sale, per the Invitation to Bid with the water and sewer assessments of $34,141.80; and

WHEREAS, Due to the water and sewer assessments the prospective buyer did not execute the final documents; and

WHEREAS, Flexibility on the balance of the assessments may help sell the property; and

WHEREAS, Pursuant to Homer City Code 18.12.020(d), the Council finds that reasonable time and effort has passed without the City receiving an acceptable bid, so it is advantageous to the City for the City Manager to contract for real estate services; and  

WHEREAS, Resolution 16-053 affirmed a three-year contract with Homer Real Estate for the City’s real estate services and compensating the broker a 10% commission fee; and

WHEREAS, A real estate professional can contact adjacent property owners and help to facilitate a replat of the parcel, and negotiate a sale that takes into consideration access issues and the assessments; and

WHEREAS, Due to the probability of selling Lot 1 Harry Feyer Subdivision for nominal consideration, the 10% commission to be based on the combined sales price and the value of the assessments; and

WHEREAS, In the event the sale, including assessment balances, deviates by more than $5,000.00 from previously accepted purchase agreements, the City Council will approve the final terms of the sale.

NOW, THEREFORE, THE CITY OF HOMER ORDAINS:

Section 1. City Council of Homer approves a contract with Homer Real Estate for real estate services to market and sell Lot 1 Harry Feyer Subdivision, Section 14, Township 6 South, Range 13 West, Seward Meridian, KPB Parcel No. 179-110-05 and authorizes the City Manager to adjust the sales price by no more than $5,000.00.

Section 2. This Ordinance is not permanent in nature, and shall not be codified.

ENACTED BY THE CITY COUNCIL OF HOMER, ALASKA this ____ day of                    , 2017.

CITY OF HOMER

________________________

BRYAN ZAK, MAYOR

ATTEST:
_________________________________________

MELISSA JACOBSEN, MMC, CITY CLERK

YES:
NO:
ABSTAIN:
ABSENT:

First Reading:
Public Hearing:
Second Reading:
Effective Date: 

Reviewed and Approved as to form and content:

______________________________                                                _____________________________

Mary K. Koester, City Manager                                                              Holly Wells, City Attorney

Date: _________________________                                                Date:_________________________

Fiscal note:  Water and Sewer assessments of $34,141.80 less closing costs.