PARCEL NOTES

Lot 18, Mattox Subdivision

Borough Parcel Number 1790610100

Corner Lot, East End Road and Mattox Road

Zoned Office Residential

Sale Authorized by Ordinance 96-04 and Land Allocation Plan

.9 Acres / .6 acres usable

Appraisal / Estimated Market Value / $55,000

The City Council reaffirmed that it wanted to offer this lot for sale when it adopted the Land Allocation Plan early this year. In view of that action, I commissioned an appraisal from a qualified appraiser pursuant to HCC 18.12.020. The appraiser concluded that the estimated market value of this lot was $55,000.

The next step under the Code would be for the Council to adopt a resolution setting the terms and conditions of the land sale. However, before you do that, I wanted you to know that the City already has an offer on the table to buy this parcel at appraised value from Kenai Peninsula Housing Initiatives (KPHI) Inc.

As you may recall, the City donated the adjacent lot (Lot 19) to KPHI two years ago so that it could construct eight supported housing units (Resolution 03-74A). Since that time, KPHI has successfully completed construction of the Brookside facility there. It has also acquired the adjacent lot to the south (Lot 20). The Birch Terrace facility has been constructed there and Terrace View (a new four-plex for mobility impared adults and families) is 30 % complete.

KPHI has expressed an interest in acquiring Lot 18 for several years. Last year the organization made an offer to purchase the property and paid for its own appraisal. If acquired, the property would be used primarily for office and meeting space. KPHI is particularly interested in this property because it would like to consolidate its assets and services in Homer and because it has a vested interest in management of the stream hich flows through both Lots 18 and 19. KPHI has already invested a great deal of money and resources to address drainage, flood control, and water quality issues on Lot 19. In short they did it right and complied with all of the City’s requests in that regard. They would like to do the same on Lot 20 and I think it would be in the City’s interests to have them do that.

KPHI has proven to be a good partner with the City. They have a good track record and have done everything they said they would do. They are providing a very important service in Homer and are addressing an identified need for affordable housing for Homer special needs residents. They are willing to pay for this lot at fair market value and enter into an PILT Agreement (Payment In Lieu of Taxes) for property taxes like they did on Lot 19. I recommend that the Council enter into a sale agreement with KPHI pursuant to HCC 18.12.060 which allows the City to sell land to an agency of this type without a public sale or competitive bidding.

RECOMMENDATION

Adopt a resolution authorizing the City Manager to enter into a sale agreement for Lot 18 with Kenai Peninsula Housing Initiatives under the provisions of HCC 18.12.060. The resolution should state that the sale shall be for the appraised value ($55,000), that a PILT Agreement shall be negotiated, that all development on the Lot shall comply with zoning requirements, that the stipulations regarding stream management applicable to Lot 19 shall also apply on Lot 18, and that the proceeds of the sale shall be placed in the Alternative Depreciation Fund established by Ordinance 05-11 (S) and codified at HCC 18.04.