MEMORANDUM 05-129

TO: Mayor Hornaday and Homer City Council

FROM: Walt Wrede

DATE: August 3, 2005

SUBJECT: Proposed Land Purchase in Bridge Creek Watershed

It has come to the City’s attention that a property owner who owns land within the Bridge Creek watershed is looking to sell it. The parcel contains 5.93 acres and has a 639 square foot cabin. It is located just off Skyline Drive a short distance to the west of the Water Treatment Plant. The owner has given the City first priority on this property because he is aware that it is within the watershed protection district. He is willing to sell the parcel to the City at the Borough’s appraised price ($63,500) provided that it is a cash deal. The property is now listed with Coastal Realty at $70,000.

We have looked at this property and strongly recommend that the City make every effort to purchase it. It is located close to the reservoir and almost immediately uphill from the water treatment plant. The parcel contains a small stream that carries significant amounts of water during the rainy season and during storm events. Much of this water comes from the road and activities near the road. The stream drains directly into the reservoir. This is not a parcel that we would want to see a whole lot of subdividing, clearing, and road building on. It is relatively steep but it would be possible to subdivide.

Acquiring land within the Bridge Creek Watershed is a priority on the City’s CIP list. This lot seems particularly important because of its characteristics and location. We still have $67,000 remaining in our account that contains the money received from the Exxon Valdez Oil Spill Council for land acquisition. It has been understood in the past that this money would probably be used for acquisitions in the watershed. Some of it already has.

So, in order to keep the City’s options open and not lose out on this opportunity, I made an offer on the property. I offered to pay the assessed value in cash. The effect of this is that we now have a “sale pending” situation. The owner understands that this transaction will need formal approval by the Council through adoption of an ordinance. I plan to have an emergency ordinance before you for consideration at the next meeting.

RECOMMENDATION: Authorize Manager to Purchase Property

Fiscal Note: $63,500 plus closing costs / Land Fund

City of Homer

City Manager

491 East Pioneer Avenue

Homer, Alaska 99603

907-235-8121, X-2222