MEMORANDUM 08-145

TO: Walt Wrede, City Manager

FROM: Carey Meyer, Public Works Director

DATE: October 15, 2008

RE: Land Purchase – Bridge Creek Watershed

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Earlier this year property within the Bridge Creek watershed was offered to the City of Homer. These properties are located on either side of Bridge Creek above the reservoir, just north of the Kelly Ranch Estates subdivision. Public Works considers these properties to be an important part of the watershed and deserving of protection from development.

The properties are shown on the attached map. Initially, all eight properties with the quarter section were offered, but only four are currently available for sale. These properties are native allotments and the Bureau of Indian Affairs (BIA) has been working with the owners and the City to organize a ownership transfer. The City has offered $8,500 per acre for the properties. The properties are being appraised to determine fair market value.

KPB Parcel ID: 173-66-010 Lot Size: 1.6 acres

KPB Parcel ID: 173-66-008 Lot Size: 9.1 acres

KPB Parcel ID: 173-66-007 Lot Size: 13.55 acres

KPB Parcel ID: 173-66-006 Lot Size: 6.95 acres

Total Acreage: 31.2 acres

The BIA has requested a formal indication that the City of Homer is interested in purchasing the properties so that approval from BIA can be finalized.

Recommendation: The City Council approve a Resolution expressing its interest in purchasing the four lots indicated herein and authorizes the City Manager to negotiate a purchase price and prepare final closing documents.