Ordinance failed.
CITY MANAGER
CITY OF HOMER
HOMER, ALASKA
ORDINANCE 01-11(A)
AN ORDINANCE AMENDING TITLE 18 OF THE HOMER CITY CODE TO REQUIRE AN INVENTORY AND CLASSIFICATION OF CITY REAL PROPERTIES, TO CREATE A HOMER LAND BANK AND DESIGNATE REAL PROPERTY CLASSIFIED FOR DISPOSAL AS HOMER LAND BANK PROPERTY, AND TO DELETE THE LEASE NEGOTIATING COMMITTEE AND ESTABLISH A LAND MANAGEMENT COMMITTEE; AND FURTHER AMENDING CHAPTER 3.05 OF THE CITY CODE TO CREATE IN THE GENERAL FUND A LAND BANK FUND TO RECEIVE PROCEEDS FROM THE SALE OF HOMER LAND BANK PROPERTIES AND REQUIRING THAT SUCH FUNDS ARE TO BE USED ONLY FOR THE ACQUISITION , IMPROVEMENT, OR ENHANCEMENT OF CITY REAL PROPERTY OF REAL PROPERTY OR IMPROVEMENTS NECESSARY TO PROTECT THE PROPERTY OR ITS VALUE.
WHEREAS, the City owns many parcels of real property that are used or held for a wide variety of purposes, but which are not currently identified and managed in the most efficient manner; and
WHEREAS, inventorying and classifying the City properties and the creation of a Land Management Committee will improve the City's ability to manage and utilize the City properties for the benefit of the present and future citizens of the City, for the promotion of orderly development in the City, and for the achievement of the goals of the comprehensive plan; and
WHEREAS, the citizens would benefit if the proceeds from the disposal of parcels of unneeded City property are reserved for the acquisition, improvement, and enhancement of other City real property for the health, welfare, and benefit of the citizens, now, therefore,
THE CITY OF HOMER HEREBY ORDAINS:
Section 1. The Homer City Code is hereby amended by enacting a new Chapter 18.04, entitled Homer Land Bank, to read as follows:
18.04.010 Homer Land Bank Established. There is established the Homer Land Bank. The Homer Land Bank will consist of the city real property classified by the city council for sale according to this chapter.
18.04.020 Land Management Committee Appointed by City Manager. The city manager shall appoint a Land Management Committee comprised of employees of the city. There must be at least three members, and the city manager may be one of the members. The Land Management Committee is a unit of the Department of Administration. It will have the duties described in this chapter and other applicable provisions of the code, and additional duties as may be assigned by the city manager.
18.04.030 Inventory of City Real Property; Exemption. a. Except as provided in subsection (c), the Land Management Committee will establish and maintain an inventory of all city real property. The inventory must identify all real property and interests in real property owned by the city, including those properties used for recreation, preservation, or government purposes. The Land Management Committee will collect and maintain records regarding each parcel of city real property, including a copy of the deed or other instrument of conveyance, its location, size, current and historical use, planning and zoning status, the identification of valid existing rights and encumbrances, reports of environmental investigations, if any, and such other information that may be useful for proper land management.
b. The inventory must be kept current by noting any changes in the status of a parcel of property. The inventory will should be reviewed and updated annually by the Land Management Committee.
c. City-owned easements, rights-of-way, and other similarly limited interests in real property are exempt from the requirements of this chapter. However, the Land Management Committee may, in its discretion, include one or more of such interests on the city's inventory of real property.
18.04.040 Classification of Real Property. a. Following the procedures of section 18.04.050, the city will classify each parcel of city real property for recreation, preservation, government use, or disposal, or another classification recommended by the Land Management Committee and approved by resolution of the city council. Parcels classified for disposal will be further classified for sale or for lease.
b. The classification of a parcel may be based upon or reflect its current use, a reservation for future use, or other factors deemed appropriate by the Land Management Committee and the city council.
c. Different interests in a parcel may be given different classifications. For example, the fee simple interest in a building may be classified for government use while units within the building may be classified for disposal by leasing.
d. Classification of a parcel of property for disposal by sale constitutes a city council finding that the property is not needed for public purposes.
18.04.050 Classification of Real Property -- Procedure. a. After soliciting recommendations from the commissions and departments of the city concerning the classification of each parcel of real property on the city inventory, the Land Management Committee will submit to the city council a compilation of such recommendations along with the Land Management Committee's own recommendations for formal classification of the parcels.
b. After conducting at least one public hearing concerning the classification of the parcels, the city council will by resolution make the final classification of each parcel.
c. Once a parcel is classified, it will remain in that classification until changed by the city council. The entire inventory of city real property should be reviewed and classified annually. One or more specific parcels may, upon the initiative of the Land Management Committee or the city council, be reviewed and classified or reclassified at any time by following the procedures set forth in this section.
18.04.060 Management -- Real Property Classified for Non-disposal Purposes. a. Parcels of real property classified for recreation, preservation, government use, or other non-disposal purposes will be managed by the city manager or other officer of the city according to law or established practices. The Land Management Committee will not manage such parcels unless such duties are assigned to the committee by the city manager.
b. Real property classified for recreation, preservation, government use, or other non-disposal purposes shall be used and maintained in a manner consistent with the classification. Such properties are not available for disposal unless reclassified for disposal; provided, however, that the city council may approve the leasing of a parcel of such property (or a limited interest in such parcel) without a reclassification upon making findings that (i) the property will not be needed for the classified purpose during the term of the lease, (ii) the leasing will be compatible with the property's classification, (iii) the leasing will not impair the future usefulness of the property for its classified purpose, and (iv) the leasing will be in the overall best interests of the city.
18.04.070 Management -- Real Property Classified for Disposal By Sale or Lease. a. Parcels of real property classified under this chapter for disposal by sale constitute the Homer Land Bank. Homer Land Bank properties will be managed by the Land Management Committee.
b. Homer Land Bank property may be sold, exchanged, or otherwise disposed of on terms proposed by the Land Management Committee, subject to applicable requirements of this code or other law, including city council approval when required.
c. Parcels of real property classified under this chapter for leasing are not part of the Homer Land Bank. Such properties will be managed by the Land Management Committee. The properties may not be sold unless first reclassified for sale.
18.04.080 Proceeds From Disposal of Homer Land Bank Property. a. Except as provided in subsection (b) and unless otherwise provided by ordinance, the net proceeds from the sale or other disposal (not including leasing) of Homer Land Bank property shall be appropriated to and deposited in the Land Bank Fund established under section 3.05.042 of the code.
b. The disposition of proceeds from the sale of Homer Land Bank property acquired by foreclosure for nonpayment of taxes or assessments is subject to section 18.12.055. Any net proceeds remaining after compliance with section 18.12.055 shall be appropriated to and deposited in the Land Bank Fund.
18.04.090 Regulations. a. The city manager may adopt written regulations, policies, or procedures to implement this chapter. Prior to adopting such regulations, policies, or procedures the city manager will should seek the recommendations of the Land Management Committee. Such regulations, policies, or procedures will be effective upon the date indicated by the city manager. The city manager will should promptly submit such regulations, policies, or procedures to the city council for its approval. but the failure to do so will not affect their validity.
b. The city clerk will make copies of all adopted regulations, policies, or procedures available to the public.
Section 2. A new section 3.05.042 of the Homer City Code is hereby created to read as follows:
3.05.042 Land Bank Fund. a. There is established in the general fund of the city a Land Bank Fund. The net proceeds from the sale of Homer Land Bank property under title 18 of this code shall be appropriated to and deposited in the Land Bank Fund. The city council may appropriate additional sums to the fund.
b. Any earnings from investment of monies accumulated in the Land Bank Fund shall accrue to the Land Bank Fund.
c. Except for appropriations for capital expenditures, all unexpended and unencumbered appropriations from the Land Bank Fund shall lapse at year end back into the Land Bank Fund. An appropriation from the Land Bank Fund for a capital expenditure shall continue in force until the purpose for which it is made has been accomplished or abandoned, and then any remaining unexpended or unencumbered appropriation shall lapse back into the Land Bank Fund. The purpose of an appropriation for a capital expenditure shall be deemed abandoned if three years pass without disbursement or encumbrance of the appropriation.
d. Monies in the Land Bank Fund are available for appropriation and expenditure only for the acquisition , improvement, or enhancement of city real property of real property or improvements necessary to protect the property or its value.
Section 3. Homer City Code Section 3.05.035 is hereby amended to read as follows:
a. Except as provided otherwise in this section and in section 3.05.040 and 3.05.043 of this code, appropriations shall lapse at the end of the fiscal year to the extent that they have not been fully expended or fully encumbered.
b. An appropriation for a capital expenditure shall continue in force until the purpose for which it is made has been accomplished or abandoned; the purpose of such appropriation shall be deemed abandoned if three years pass without disbursement or encumbrance of the appropriation.
Section 4. Section 18.02.010 of the Homer City Code is hereby amended to read as follows:
18.02.010 Purpose. Chapter Chapters 2, 4, 6, 8, 12, 16, and 28 of this title govern the acquisition, management and disposal of City real property.
Section 5. Section 18.02.020 of the Homer City Code is hereby amended to read as follows:
18.02.020 Definitions. For the purposes of this title 18 of this code, the following words and phrases shall have the meaning set forth below unless a different meaning is specifically defined for the purposes of any chapter of this title:
a. "Fair market value" means the highest price estimated in terms of money, which the property would bring if exposed in the open market for a reasonable time, from a purchaser, who is willing, but not obliged, to buy the property from an owner willing, but not obliged, to sell it, both being fully informed of all the purposes for which the property is best adapted or could be used.
b. "Fair rental value" means that rental, estimated in terms of money, for which the property would rent, if exposed for rent for a reasonable time in the open market for the uses permitted by and under the terms required by the City.
c. "Homer Land Bank" has the meaning given in section 18.04.010.
d. "Land Management Committee" means the committee established under section 18.04.020.
c.e. "Real property" includes any estate in land, easement, right-of-way, lease, future interest, building, fixture, or any other right, title or interest in land or buildings.
Section 6. Section 18.02.020 of the Homer City Code is hereby amended to read as follows:
18.08.020 Lease Negotiating CommitteeLand Management Committee. The City Manager shall establish a Lease Negotiating Committee, subject to the approval of the City Council, to The Land Management Committee will negotiate terms and conditions of leases, permits, and agreements for use of city land and facilities for, subject to approval or disapproval by the City Council. Generally, the committee shall include the City Planner, Port and Harbor Director, and Director of Finance or their designees, but its composition may be altered by the City Manager.
Section 7. Section 18.08.030 of the Homer City Code is hereby amended to read as follows:
18.08.030 Approval of Lease. a. No lease shall be binding upon the city or executed by the city executed until the City Council has approved the lease, with or without modifications, after receiving the Land Management Committee's recommendation. the Lease Negotiating Committee's recommendation.
b. Except as provided in ' 18.08.175, the City Council may approve a lease of city land for less than fair rental value only if the motion approving the lease contains a finding that the lease is for a compelling public purpose or use, and a statement of the facts upon which the finding is based.
Section 8. Section 18.08.040 of the Homer City Code is hereby amended to read as follows:
18.08.040 Property available for leasing. Unless otherwise provided by this code or ordinance or resolution of the city, or unless dedicated or reserved to another purpose, all City real property including tide, submerged or shorelands to which the City has a right, title and interest as owner or lessee, or to which the City may become entitled classified under chapter 18.04 for disposal by sale or lease, may be leased as provided in this chapter. In the case of any conflict between this chapter and any regulations or other ordinances or state law specifically governing the leasing of city tide and submerged lands, the latter shall prevail.
Section 9. Section 18.08.070 of the Homer City Code is hereby amended to read as follows:
18.08.070 Terms of lease. a. The Land Management Committee will recommend the terms of the lease shall be recommended by the Lease Negotiating Committee.
b. Terms of leases shall be negotiated taking into consideration the following factors:
1. nature of the proposed use;
2. type and cost of improvement to be placed upon the premises;
3. period of time required to amortize the improvements;
4. benefit to the City;
5. whether improvements are consistent with the comprehensive plan, Homer zoning ordinances and other city codes;
6. public needs and benefits;
7. other factors deemed relevant by the Lease Negotiating CommitteeLand Management Committee; and
8. date of commencement and completion of improvements.
c. Determination of rent shall take into consideration the following factors:
1. appraisal or tax assessed valuation;
2. highest and best use of land;
3. development (existing and planned);
4. economic development objectives;
5. the location of the property; and
6. alternative valuation methodologies as negotiated by both parties.
d. All leases or memorandums of leases shall be recorded.
e. The lessee and the Lease Negotiating CommitteeLand Management Committee may negotiate all lease terms except those required by law.
Section 10. Section 18.08.080 of the Homer City Code is hereby amended to read as follows:
18.08.080 Appraisal. a. An appraisal of the fair market value or fair rental value of the property will be required before the original approval of a lease and at the time of review and renewal. The appraisal can be made by an independent contractor or the Kenai Peninsula Borough Assessor as negotiated in the lease agreement.
b. The requirement of an appraisal may be waived at the discretion of the Lease Negotiating CommitteeLand Management Committee for leases of six months or less.
Section 11. Section 18.08.090 of the Homer City Code is hereby amended to read as follows:
18.08.090 Requirements of the lessee. A proposed lessee shall provide, at its sole expense, the following unless waived by the Lease Negotiating Committee Land Management Committee in its discretion:
a. Property improvement plan. The proposed lessee shall submit a property improvement plan that includes a schedule for commencement and completion of proposed improvements.
b. Survey. The lessee shall submit a survey of the land lease after Homer City Council approval of the lease.
c. Plat. If only a portion of a lot is to be leased, the lessee shall cause a subdivision plat to be filed in accordance with Kenai Peninsula Borough subdivision requirements within ninety days after Homer City Council approval of the lease.
Section 12. Section 18.08.100 of the Homer City Code is hereby amended to read as follows:
18.08.100 Improvements. a. Construction of improvements. Construction of improvements shall take place only after review and approval of the construction plans by the Lease Negotiating CommitteeLand Management Committee for consistency with the lease agreement and after all applicable permits and legal requirements are secured.
b. Construction of improvements not consistent with the lease agreement. Any improvements not consistent with the lease agreement shall be constructed only after having been reviewed and approved by the City Council after review and comment by the Lease Negotiating CommitteeLand Management Committee, the port and harbor commission, the planning commission, and any other advisory commission determined to be appropriate by the Lease Negotiating CommitteeLand Management Committee.
c. Removal of improvements upon termination. Unless otherwise provided in the lease, or agreed to by the parties, the lessee shall remove all improvements made on the property by lessee within sixty days after termination of the lease. Unless otherwise provided in the lease, or agreed to by the parties, the lessee shall restore the property to the same conditions it was in at the time the lease was executed by the lessee.
Section 13. Section 18.08.110 of the Homer City Code is hereby amended to read as follows:
18.08.110 Lease option. The City may grant an option to lease property. The option shall contain the specific duration and terms as set forth in a request for proposal or as negotiated by the Lease Negotiating CommitteeLand Management Committee and approved by the City Council. The City may charge a non-refundable fee for the option and said fee may be equal to the fair rental value.
Section 14. Section 18.08.120 of the Homer City Code is hereby amended to read as follows:
18.08.120 Sublease. a. City property may be subleased only if the lease agreement so provides and only with the consent of the City Council.
b. A sublease of city property shall be subject to Homer City Council approval and shall be in writing and executed by the
parties. Any amendments to a sublease shall also be in writing
and subject to City Council approval prior to becoming effective.
A lessee shall be assessed additional rent, as determined recommended by the Lease Negotiating CommitteeLand Management Committee and approved by the City Council, upon approval of a sublease or amendments thereto.
Section 15. Section 18.08.140 of the Homer City Code is hereby amended to read as follows:
18.08.140 Competitive bidding. The Lease Negotiating CommitteeLand Management Committee or the City Council may elect to require the submission of sealed bids to lease city property or facilities. The competitive bidding process shall be administered by the Lease Negotiating CommitteeLand Management Committee. The apparent successful bidder shall be selected to negotiate the terms of a lease, but shall have no right to a lease or any other property right until a lease is successfully negotiated, approved by the City Council, and signed by the parties.
Section 16. Section 18.12.010 of the Homer City Code is hereby amended to read as follows:
18.12.010 Public sale--Resolution and notice required. Unless otherwise provided in this chapter, code or by ordinance or resolution of the city council, real property no longer required for public purposes Homer Land Bank property classified for disposal by sale may be sold to the highest responsible bidder at a public auction sale or by sealed bids as set forth in ' 18.12.040. The City Council shall have the authority to determine by resolution at a regular meeting when said property is no longer required for public purposes and to authorize the sale thereof; except However, no property acquired by the City through a foreclosure proceeding shall be sold unless an ordinance retaining the property for public purpose or classifying it for sale shall previously have been adopted pursuant to ' 18.06.042. Unless otherwise provided herein, notice of a proposed public sale of real property shall be published at least once in a newspaper of general circulation within the City and shall be posted in at least three public places within the municipality. Both commencement of publication and posting shall be accomplished not less than thirty days prior to the date fixed for public sale.
Section 17. Section 18.12.030 of the Homer City Code is hereby amended to read as follows:
18.12.030 Procedure. After receiving a recommendation from the Land Management Committee, if the city council approves a public offering of real property for sale it shall adopt a resolution setting forth The Council in the resolution authorizing the sale of real property shall set forth the terms and conditions of the public sale offering, including whether the sale shall be by sealed bids or public outcry auction. The Council may reserve the right to reject any and all bids received. The resolution shall provide if the sale is for cash, or a cash deposit and installment purchase agreement. The Council shall approve or disapprove confirm or reject all public sales of real property at the next regular meeting following the public sale and shall further approve or disapprove any purchase sale agreement prior to its execution by the City. The approval confirmation of any a public sale and the approval of the sale agreement by the Council authorizes the City Manager to take all steps and execute all instruments to complete and close the sale. The City Manager or his designee shall conduct the sale and shall give to the bidder at the auction a receipt for all moneys received by the City. A successful bidder who does not timely comply with any of the terms and conditions in the resolution of the Council authorizing the sale shall forfeit any cash deposit paid to the City, unless return of all or any portion of such cash deposit is expressly authorized by the Council.
Section 18. This ordinance is of a permanent and general character and shall be included in the City code.
ENACTED BY THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA, this ____ day of ___________, 2001.
CITY OF HOMER
______________________________
Jack Cushing, Mayor
ATTEST:
___________________________
Mary L. Calhoun, CMC, City Clerk
AYES:
NOES: six no votes
ABSTAIN:
ABSENT:
First Reading: 03/12/01
Public Hearing: 03/27/01
Second Reading: 04/09/01 failed
Effective Date:
Reviewed and approved as to form:
_____________________________ ___________________________
Ron Drathman Gordon J Tans
City Manager City Attorney