BACKGROUND

The Homer City Council determined that the parcel referenced above was not needed for a public purpose and designated it for resale via Ordinance 91-27. The Council reaffirmed that it wanted to offer this parcel for sale during its discussion and adoption of the City Land Allocation Plan in 2006. Resolution 06-23 authorized the City Manager to conduct an appraisal of this parcel and to solicit bids for its disposal.

After looking into the proposed sale in some detail, the City Manager informed the Council, via Memorandum 06-115, that he did not think it was in the best interest of the City to dispose of this property at this time for a variety of reasons, including, but not limited to, the fact that the parcel had to legal access, an appraisal could not be obtained, and the number of bidders would necessarily be limited. The Council agreed and it was decided that this parcel would not be disposed of until either a) legal access was obtained or b) a trade was consummated with an adjoining landowner.

The City administration has made no progress obtaining legal access. However, it has been negotiating the terms of a possible trade with Mr. Mike Gordon, an adjacent landowner who is very interested in obtaining the 10 acres. Mr. Gordon has an access easement obtained from another landowner that would allow him to access the 10 acres from the West, most likely from Miller Lane.

The City and Mr. Gordon have come very close to agreeing on a proposed trade that we believe is in the mutual interest of both parties. There are still a number of details that need to be worked out. However, the fundamental elements and basic framework of the trade are in place.

The purpose of this memorandum is to inform the Council about the direction these discussions are going in. I would like to know if the Council approves of this proposed trade in concept and if it wants us to keep working, hammer out the details, and bring a final trade proposal to it for approval. Please keep in mind that this memo simply contains an executive summary. If we move forward, final approval of this transaction would be completed by ordinance. We hope to have the modified appraisal by sometime in May and the ordinance would follow shortly.

BASIC ELEMENTS OF THE PROPOSED TRADE

The City Agrees To:

Sell the ten acre parcel to Mike Gordon at a modified appraisal value. An appraiser has agreed to develop a formula whereby he can determine what this parcel might be worth given the fact that it does not have legal or constructed access.

Mike Gordon Agrees To:

Purchase the 10 acre parcel for cash at the modified appraisal value.
Relinquish the access easement he current has through Karen Hornaday Park, put the existing road to bed, and barricade it as soon as he has constructed access from the West.
Consider conducting limited restoration and re-vegetation activities on the lower section of the existing road where the potential for erosion and slope sloughing is most pronounced. The extent and specifics of this work are yet to be finalized and this is still under very active discussion.
Provide a hiking trail easement along the stream in the canyon to connect Karen Hornaday Park with other public lands and existing and proposed trail systems. Note: The City prefers another trail alignment.
Place almost the entirety of the Woddard Creek Canyon located on his property into a conservation easement administered by the Kachemak Heritage Land Trust. The purpose of the easement would be flood control, erosion and landslide prevention, and to protect the wildlife travel corridor.
Allow the City access to the creek if maintenance is needed to prevent flooding.

Why is This in the City’s Interest?

The City would receive cash that will be placed in the land fund.
The ten acres will be placed on the tax rolls
The access easement through Karen Hornaday Park is relinquished. This reduces traffic through the park and slows erosion caused by vehicle use.
Some restoration work on the most erosion and sloughing prone areas on the lower road may occur.
The conservation easements helps the City with flood control and landslides.
The trail easement could provide a major link in the trail system that will become more important over time.
The deal sets the stage for the City to apply for title to the 40 acres of BLM / DNR land which encompass the upper reaches of the canyon.

Some Arguments Against

The City would likely obtain far more money for this parcel if it waiting until it had legal access and could maximize the number of bidders. It could also make more if it subdivided and developed the parcel itself.
The land is very beautiful and has an excellent view of the City. It could be set aside as a park and reserved for future generations. This will become increasingly important and valuable as the surrounding area develops.

RECOMMENDATION

I recommend that the Council give preliminary and conceptual approval to this proposed trade and authorize the administration to work out the details and come back with an ordinance for final consideration.