Chapter 18.20 DISPOSAL OF REAL PROPERTY

All lands lying and being within the city limits to which the city holds title or which it has selected, and which in the opinion of the council are not needed for or devoted to a public use, may be leased or sold as provided in this chapter, but only if the council determines that such sale would be in the best interest of the public. [Ord. 857, 1989]

18.20.020 Classification

Before accepting applications to lease or purchase city lands, the area involved shall have first been classified for permitted land uses and a land use plan of the area prepared by the planning and zoning commission and approved by the borough assembly. [Ord. 857, 1989]

18.20.030 Public use

(a) City lands may be donated, sold, leased, or exchanged for less than the minimum rental or sales price otherwise established by this title, or otherwise made available, to the United States, the state of Alaska, or a subdivision of the state if the council determines that the conveyance, lease, exchange, or permitted use would be in the best interests of the public.

(b) Notwithstanding any other provisions of this title governing the minimum rental price for city land, such land, wherever located, may be leased for less than one-tenth of its approved appraised market value per year to a public utility or a nonprofit corporation or association if the council determines that the lease would be for a public purpose and in the best interest of the public.

(c) City lands lying wholly within the area described in KCC 18.20.040(c) may be leased to any otherwise qualified party for less than one-tenth of its approved appraised market value per year if the council determines that the lease would be in the best interest of the public and the rental amount is the highest reasonably obtainable under the circumstances.

(d) The sale, lease, or exchange of city lands pursuant to subsection (a) or (b) of this section shall be exempt from all other requirements of this chapter. [Ord. 857, 1989]

18.20.040 Qualifications of applicants or bidders

An applicant or bidder for a lease or purchase is qualified if the applicant or bidder:

(a) Is a natural person of at least 18 years of age, or is a group, association, or corporation which is authorized to conduct business under the laws of Alaska; or

(b) Is acting as an agent for another, and has qualified by filing with the city clerk prior to the time set for the auction a proper power of attorney or a letter or authorization creating such agency. The agent shall represent only one principal to the exclusion of the agent.

(c) Notwithstanding any other provisions of this title, no applicant or bidder seeking to lease or purchase city lands or facilities within the area bounded by the westerly boundary of Tideland Tract 1 and the extension of said boundary to the southerly right-of-way of Rezanof Drive West, the southerly boundary of the Rezanof Drive West right-of-way westerly to the easterly boundary of Department of Highways tract MC 11-1-001-1, and the easterly boundary of said tract between the Rezanof Drive West right-of-way and the shoreline shall be considered qualified unless, in addition to the other requirements of this section, the applicant or bidder is also, or as a result of the proposed lease or purchase will become, a direct and substantial user of the city harbor and port facilities located within the foregoing area or immediately contiguous tidelands, and the intended use of the lands or facilities to be leased or purchased is directly related to the applicant’s or bidder’s use or proposed use of those city harbor and port facilities. [Ord. 857, 1989]

18.20.050 Application procedure

(a) Where the council determines that one or more parcels of real property to which the city holds title are not needed for or devoted to a public use and that it would be in the best interest of the public to sell or lease the same without requiring the purchaser or lessee to develop or use the property in a particular manner, the council may sell or lease the property at public auction without requiring prospective bidders to submit applications or development plans.

(b) In all other instances, a party wishing to lease or purchase city lands shall file an application with the city clerk on forms provided by the city clerk and available at the clerk’s office. Only forms completed in full and accompanied by any required fees established by resolution or motion of the city council will be accepted for filing. With every application the applicant shall submit a development plan showing and stating:

(1) The purpose of the proposed lease or purchase;

(2) The use, value, and nature of improvements to be constructed;

(3) The type of construction;

(4) The dates construction is estimated to commence and be completed; and

(5) Whether the intended use complies with the zoning provisions and comprehensive plan of the borough.

(c) Notice of the receipt of a properly filed application and development plan for city lands and an invitation to other prospective applicants for the sale or lease of all or any part of the lands in question shall be announced at a regular meeting of the city council and published in a local newspaper at least three times. Said notice shall describe the lands in question and the nature of their proposed use and shall specify a date not earlier than 45 days following the first publication of the notice by which any other qualified party wishing to rent or lease all or any part of the lands in question may submit an application and development plan. All duly filed applications shall be considered together and the council shall determine what property, if any, will be offered for sale or lease, the date upon which it will be offered, whether the property will be offered at public auction or by sealed bid, and which of the applications and development plans describe acceptable uses of the property. Only applicants who have submitted development plans which are deemed acceptable by the council will be permitted to bid.

(d) The council may permit applications and development plans to be modified or amended after first having been submitted in a timely manner so long as all applicants are given the same opportunity to do so and shall permit a reasonable opportunity for such modification or amendment with respect to any application which describes a parcel of property different from that which the council elects to offer for sale or lease. [Ord. 951 §16, 1993; Ord. 857, 1989]

18.20.060 Deposits for costs

All applications filed with the city clerk with respect to any particular parcel will be forwarded to the city engineer or other designated official to determine an estimate of costs required to handle the application, including but not limited to one or more of the following: survey, appraisal, and advertising of the area under application. Upon determination, the official will notify the applicant in writing of such costs and a deposit shall be made therefor within 30 calendar days after the date of notice. Failure of the applicant to pay the deposit shall result in the application being canceled. If the applicant does not accept a lease or sale offer within 30 calendar days after it is offered to the applicant, all deposit money spent or encumbered for survey, appraisal, or advertising shall be forfeited, and the balance, if any, shall be returned to the applicant. If the land applied for upon which deposit for costs is made is leased or sold to another, the latter shall be required to pay actual costs of the survey, appraisal, and advertising, and the original deposit shall be returned to the depositor. Where the applicant becomes the lessee or owner, the applicant shall be required to pay any excess of costs over deposits and where the deposit exceeds actual costs, the excess shall be credited to present or future rents under the lease, or to the purchase price. All survey, appraisal, and advertising shall be performed only under the authorization of the city and any such work done without such authorization shall not qualify. [Ord. 857, 1989]

18.20.070 Rights prior to lease or sale

No preference rights shall arise prior to the issuance of a lease or sales contract. The filing of an application for a lease or purchase shall give the applicant no right to lease or purchase or use the land applied for and the council may, in its discretion, rescind or cancel any proposed sale or lease at any time prior to the opening of sealed bids or the beginning of a public auction. When the council elects to do so, however, all deposits and application fees shall be refunded. Any use not authorized by lease or purchase constitutes a trespass against the city. [Ord. 857, 1989]

18.20.080 Term of lease

Leases may be issued for a period of up to, and including, 55 years by council action, but any lease for a term over five years shall be issued only after compliance with the requirements of Kodiak City Charter Section V-17. The term of any given lease shall depend upon the desirability of the proposed use, the amount of investment in improvements proposed and made, and the nature of the improvement proposed with respect to durability and time required to amortize the proposed investment. For the purpose of this section the term of any given lease shall be calculated by including any renewal periods which may be invoked at the sole option of the lessee. [Ord. 857, 1989]

18.20.090 Appraisal

No city lands shall be leased or sold, or a renewal lease issued unless the same has been appraised within six months prior to the date fixed for beginning of the term of the sale, lease, or renewal lease. Appraisals shall reflect the number and value of city services rendered to the land in question, its location, and other factors affecting its desirability. In the case of sales or leases to governmental entities or units or nonprofit corporations or associations, the most recent assessed valuation may be used in lieu of an appraisal. [Ord. 857, 1989]

18.20.100 Minimum rental or sale price

(a) Minimum annual rentals shall be one-tenth of the approved appraised market value, which shall be the lowest acceptable bid in the event of an auction. The minimum sale price shall be the approved appraised market value, which shall be the lowest acceptable bid in the event of an auction or sealed bid sale.

(b) The council, in order to make sites available for new industries which will benefit the municipality, may sell, lease, or dispose of any such sites, including real property, upon the terms and conditions as it considers advantageous to the civic welfare of the city, to persons who will agree to install, maintain, and operate a beneficial new industry, without regard to appraised market value.

(c) Any contract which by its terms will not be fully executed within five years and which cannot be terminated by the city upon not more than one month’s notice without penalty; and the sale or lease of any real property owned by the city or other disposal of any interest therein, the value of which real property, lease, or interest is more than $30,000 shall be made in accordance with the provisions of City Charter Section V-17.

(d) Neither the provisions of subsection (a) of this section governing minimum annual rentals nor the provisions of KCC 18.20.090 (Appraisal), 18.20.340 (Renewal of lease), or 18.20.350 (Re-lease and purchase rights) shall apply to a lease or license of city property adjacent to the municipal airport which is for less than five years and which restricts the use of that property to activities directly related to the parking and operation of aircraft utilizing the municipal airport. Such leases or licenses may be either negotiated or offered at public auction, at the discretion of the council. [Ord. 875, 1990; Ord. 857, 1989]

18.20.110 Leasing procedure

(a) Notwithstanding KCC 18.20.050 and 18.20.060, leases for a term of five years or less with computed annual minimum rental of $5,000 or less may be negotiated, offered by sealed bid, or offered at public auction at the discretion of the council. Applicants seeking a lease to be negotiated under this section are required to make a deposit for appraisal and other costs. Except for leases approved by ordinance as authorized by subsection (b) of this section, all leases having a term of more than five years or having a computed annual minimum rental of more than $5,000 shall be offered by sealed bid or at public auction. All sealed bid openings and public auctions of city lands shall be conducted by the city manager or an official designated by the city manager. At the completion of the bid opening or auction of each tract of land, the official conducting the auction shall indicate the apparent high bidder. In the event of a re-lease, the original lease holder may exercise the right to meet the bid of the apparent high bidder under the circumstances described in KCC 18.20.350. Failure to do so at this time shall void and cancel such right. The apparent high bidder, or the original lease holder bidding on a re-lease if the re-lease holder’s right is exercised, shall thereon deposit with the official conducting the bid opening or auction any portion of the annual rental then due, together with the unpaid costs of survey, appraisal, and advertising. All payments must be made in cash, money order, certified check, or a cashier’s check, or any combination thereof.

(b) Notwithstanding KCC 18.20.050 and 18.20.060 and any provisions of this chapter relating to advertising, competitive bids, public notice, public auctions, or appraisals, the council may, by ordinance, approve a negotiated lease in connection with an agreement for use of port and harbor facilities or in furtherance of economic development.

The ordinance approving any such lease shall comply with applicable requirements of Kodiak City Charter Section V-17. [Ord. 1381(SUB) §4, 2018; Ord. 1060 §11, 1998; Ord. 945, 1992; Ord. 857, 1989]

18.20.120 Payment of annual rentals

Annual rentals of $500.00 or less shall be paid annually in advance. Annual rentals of an amount between $500.00 and $1,000 shall be paid in two equal installments each of which shall fall due on the first day of the first and seventh months of each lease year. Annual rentals of $1,000 or more shall be paid in advance in monthly payments on the first of each calendar month. [Ord. 857, 1989]

18.20.130 Sale procedure

The sale shall be made at public auction or by sealed bid to the highest qualified bidder, as shall be determined by the city manager. The sale shall be conducted by the city manager or an official designated by the city manager, and at the time of sale the successful bidder shall deposit in cash or by certified check an amount equal to one-tenth of the purchase price. The balance of the purchase price shall be payable in accordance with such terms and conditions as the city may determine and may be secured in any manner found acceptable to the city. Nothing in this section shall be construed as precluding the city from disposing of real property pursuant to a land sales installment contract. [Ord. 857, 1989]

18.20.140 Public notice

Public notice of lease or sale of land is required to be given under the provisions of this chapter; such notice shall be published in a newspaper of general circulation in the city at least 30 days before the date of the sale, lease, or other disposition, and posted within that time in at least three public places in the city. The notice must contain an accurate legal description of the property, brief description of the land, its area and general location, proposed use, term, computed annual minimum rental, or minimum sales price, limitations, if any, and time and place set for: (a) the consideration of the ordinance authoring the lease or sale, (b) the public auction, or (c) the bid opening. [Ord. 1381(SUB) §5, 2018; Ord. 857, 1989]

18.20.150 Receipt of bid

Upon deposit of required sum by the apparent high bidder, or prior leaseholder bidding for a re-lease, the city manager shall thereupon issue to the successful bidder a receipt for the required sum, containing a description of the land or interest leased or sold, the price bid and terms of the sale or lease, the receipt whereof shall be acknowledged by the bidder in writing. [Ord. 857, 1989]

18.20.160 Council’s rejection

Prior to the signing of the formal lease or sales contract by the city, the council may reject any and all bids when it determines that the best interests of the city clearly justify such action. In such an event, however, notwithstanding any other provisions of this chapter, all deposits and application fees submitted by any qualified bidder who has submitted an otherwise valid bid which equals or exceeds the minimum lease or sales price shall be refunded. [Ord. 857, 1989]

18.20.170 Appeal

An aggrieved bidder may appeal the city manager’s determination of the apparent high bidder or the former leaseholder’s right to exceed the high bidder to the council within five days (excluding Saturday and Sunday) following determination. Such appeals must be in writing and contain a short statement of the grounds for appeal. The city shall promptly review the asserted grounds for appeal and rule thereon. The council’s decision shall be final, but without prejudice to any other right or rights the aggrieved bidder may have. [Ord. 857, 1989]

18.20.180 Completion of bid requirements

Following the appeal, or, if there is no appeal, following expiration of the deadline for filing an appeal, the city manager shall notify the successful bidder that the city is prepared to issue an appropriate lease, deed, or sales contract. Upon receipt of notice, the bidder is granted 30 calendar days in which to remit to the city manager any bid balance or any other sums that may be due, and in addition shall complete all necessary documents. Failure to do so may, at the option of the city, result in forfeiture of any and all rights previously acquired by the bidder in the proposed transaction, and in the forfeiture of any monies paid or deposited with the city. [Ord. 857, 1989]

18.20.190 Issuance of lease, deed, or sales contract

After expiration of the five-day appeal period, or after the ruling on any determination appealed to the council, the city manager shall cause a lease, deed, or sales contract to be issued and executed containing such terms as the council by its determination shall establish. Notwithstanding the foregoing, however, whenever the City Charter or any other provisions of this title requires the passage of an ordinance authorizing the lease, deed, or sales contract, the city manager shall not execute the same prior to the effective date of that ordinance. [Ord. 857, 1989]

18.20.195 Substandard parcels—negotiated sale

(a) Notwithstanding any provisions of KCC 18.20.130 through 18.20.180 relating to advertising and competitive bids, the council may, by resolution, authorize the city manager to negotiate the sale of any substandard or irregular parcel of city land to the contiguous property owner or owners at appraised value.

(b) The appraisal may be determined with reference to the substandard or irregular nature of the parcel. The appraised value may be reduced by the value of any utility easements or rights-of-way retained by the city which are not of direct benefit to the purchaser.

(c) The city shall retain such easements and rights-of-way through, across, or upon the parcel to be conveyed as are reasonably required to operate, maintain, repair, and replace existing utility facilities or which may be reasonably anticipated as necessary to the future construction and operations of such facilities.

(d) As used in this section, the term “substandard or irregular” means a parcel of land containing an area less than the minimum required for improvement of the parcel under existing or projected zoning or one which because of its shape could not reasonably be improved without violating setback or yard requirements of such zone or zones. [Ord. 857, 1989]

18.20.196 Negotiated sale after nonreceipt of bids

Notwithstanding any provisions of KCC 18.20.130 through 18.20.180 relating to advertising and competitive bids, the council may, by resolution, authorize the city manager to negotiate the sale of any parcel of city land having an appraised value of $30,000 or less so long as:

(a) The sales price is not less than the appraised value;

(b) The parcel was offered for sale at a public auction or pursuant to a solicitation for sealed bids and no valid bids were received; and

18.20.198 Property description

All leases shall contain an accurate legal description of the property being leased. [Ord. 1381(SUB) §6, 2018]

18.20.200 Location on premises

It shall be the responsibility of the lessee or purchaser to properly locate the boundaries of the leased or purchased land and to assure that all improvements are properly situated thereon. It is unlawful to encroach on lands of the city. [Ord. 857, 1989]

18.20.210 Lease utilization

Leased city lands shall be utilized for purposes within the scope of the application and the terms of the lease, in conformity with the Kodiak Island Borough Code, including the zoning provisions thereof, and in substantial conformity with its comprehensive plan. Utilization or development of leased property for other than the allowed uses constitutes a violation of the lease and subjects the lease to cancellation at any time. Failure to make substantial use of the land consistent with the proposed use, within one year at the discretion of the city manager, with the approval of the council, constitutes grounds for cancellation of the lease. [Ord. 857, 1989]

18.20.220 Adjustment rental

All leases shall contain the agreement of the lessee to an adjustment of the annual rental payment by the council every fifth year. Any changes or adjustments shall be based primarily upon the value of comparable land in the same or similar areas, exclusive of buildings, structures, appurtenances, equipment, landfill, except landfill wholly or partly placed by the city or other public authority, clearing, leveling, or roads owned by the lessee. [Ord. 857, 1989]

18.20.230 Subleasing

No lessee may sublease lands or any part thereof leased from the city without prior written permission signed by the city manager and approved by the council. Subleases shall be in writing and be subject to the terms and conditions of the original lease. [Ord. 857, 1989]

18.20.235 Insurance

Each lease or sales contract executed by the city shall contain a provision requiring the lessee or purchaser to obtain for the city’s benefit and protection such insurance coverage as the city deems appropriate. [Ord. 857, 1989]

18.20.240 Assignments

The rights of a lessee or purchaser under a lease or under contract of sale may not be assigned unless the assignment is first approved by the council. The assignee shall be subject to all of the provisions of the lease or sales contract. [Ord. 857, 1989]

18.20.250 Modification

No lease or sales contract may be modified orally or in any manner other than by an agreement in writing signed by all parties in interest or their successors in interest. [Ord. 857, 1989]

18.20.260 Cancellation—forfeiture

(a) Leases or sales contracts in good standing may be canceled in whole or in part, at any time, upon mutual written agreement by purchaser or lessee and the city manager.

(b) Any lease used for an unlawful purpose may be canceled.

(c) If the lessee shall default in the performance or observance of any of the lease terms, covenants, or stipulations, or shall violate any of the regulations now or hereafter in force, or any applicable provisions of the city or borough code, and should the default continue for 30 calendar days after the service of written notice by the city without remedy by lessee of the conditions constituting default, the city shall subject lessee to appropriate legal action, including, but not limited to, forfeiture of the lease. [Ord. 857, 1989]

18.20.270 Notice or demand

Any notice or demand, which under the terms of a lease or sale contract, or under any statute, must be given or made by the parties thereto, shall be in writing, and be given or made by registered or certified mail, addressed to the other party at the address of record. However, either party may designate in writing such new or other address to which such notice or demand shall thereafter be so given, made, or mailed. A notice given hereunder shall be deemed delivered when deposited in a United States general or branch post office, enclosed in a registered or certified mail prepaid wrapper or envelope addressed as hereinabove provided. [Ord. 857, 1989]

18.20.280 Rights of mortgagee or lien holder

In the event of cancellation or forfeiture of a lease or sale contract for cause, the holder of a properly recorded mortgage, conditional assignment, or collateral assignment which has been approved by the city will have the option to acquire the lease or sales contract for the unexpired term thereof, subject to the same terms and conditions as in the original instrument. [Ord. 857, 1989]

18.20.290 Entry and re-entry

In the event that the lease or sales contract should be terminated as hereinbefore provided, or by summary proceedings or otherwise, or in the event that the demised lands, or any parts thereof, should be abandoned by the lessee during the term, the city or its agent, servants, or representatives may immediately, or at any time thereafter, re-enter and resume possession of the land or any part thereof, and remove all persons and property therefrom, either by summary proceedings or by a suitable action or proceeding at law without being liable for any damages therefor. [Ord. 857, 1989]

18.20.300 Re-lease

In the event that a lease or sale contract should be terminated as herein provided, or by summary proceedings or otherwise, the council may offer the lands for lease or other appropriate disposal pursuant to the provisions of this chapter. [Ord. 857, 1989]

18.20.310 Written waiver

The receipt of rent by the lessor with knowledge of any breach of the lease by the lessee or of any default on the part of the lessee lease shall not be construed as a waiver of any provisions of the lease, nor shall any failure on the part of the lessor to enforce any covenants or provisions of the lease, or a waiver of any such covenants or provisions in any one instance, discharge or invalidate such covenants or provisions or affect the right of the lessor to enforce the same in the event of any subsequent breach or default. Unless expressly agreed to the contrary in writing, the receipt, by the lessor, of any rent or any other sum of money after the giving of a notice of termination shall not constitute or effect a withdrawal, cancellation, or modification of that notice. [Ord. 857, 1989]

18.20.320 Forfeiture of rental

In the event that a lease should be terminated because of any breach of the lessee, as herein provided, all rental payments made by the lessee shall be forfeited and retained by the lessor as partial or total liquidated damages for the breach. [Ord. 857, 1989]

18.20.330 Expiration of lease

Unless the lease is renewed or sooner terminated as provided herein, the lessee shall peaceably and quietly leave, surrender, and yield up unto the lessor all of the leased land on the last day of the term of the lease. [Ord. 857, 1989]

18.20.340 Renewal of lease

If, at the expiration of any lease of any land hereunder, the lessee desires a renewal lease on the lands, properties, or interests covered thereby, the lessee shall, not sooner than 60 calendar days prior to the expiration, and not later than 30 calendar days prior to the expiration, make application for a renewal lease in writing on forms provided entitled “application for renewal of lease,” certifying under oath as to the character and value of all improvements existing on the lands, properties, or interest herein, the purpose for which the lessee desires a renewal lease, and such other information as the city manager may require. The applicant shall deposit with the city clerk any required fees established by resolution or motion of the city council. The council may, but is not required to, thereupon lease the lands in compliance with all sections of this chapter with re-lease rights being allowed the former lessee if all other pertinent factors are substantially equivalent. For the purposes of this section, the date that the application for renewal of lease is presented to the office of the city clerk, as evidenced by the date stamped thereon, whether delivered or forwarded by regular, certified, or registered mail, shall be binding. [Ord. 951 §17, 1993; Ord. 857, 1989]

18.20.350 Re-lease and purchase rights

In the event that upon termination of an existing lease the city elects to offer the property for sale or re-lease, the lessee under the existing lease shall be allowed rights to re-lease or purchase the property if the lessee has constructed thereon improvements equal in value at the time of expiration of the lease to at least one-tenth of the then appraised value of the property. If the new lease does not require public auction, the existing lessee shall exercise the right within 30 days after the re-lease is offered by the city. Failure to do so shall result in forfeiture and cancellation of the re-lease right. In the event the property is offered for lease or sale at public auction, the existing lessee shall, at the close of the bidding, indicate the desire to exercise the right and meet the highest bid. If the existing lessee does so choose, the lessee shall meet all the requirements of this chapter. If the existing lessee does not choose to exercise the right at that time, or does not fulfill the requirements of this chapter, all rights under this section are then forfeited and canceled. No rights shall inure to a lessee whose lease has been canceled or terminated for cause or who is in default at the time of expiration of the lease. [Ord. 857, 1989]

18.20.360 Removal or reversion of improvements upon termination of lease

Improvements owned by the lessee shall, within 60 calendar days after the termination of the lease, be removed by the lessee; provided, such removal will not cause injury or damage to the land; and provided further, that the council may, but shall not be required to, extend the time for removing such improvements in cases where hardship is proven. The retiring lessee may, with the consent of the council, sell the improvements to the succeeding lessee. All periods of time granted lessees to remove improvements are subject to the lessees paying the city prorated lease rentals for the period.

If any improvements and/or chattels having an appraised value in excess of $5,000 as determined by the assessor are not removed within the time allowed, such improvements and/or chattels shall, upon due notice to the lessee, be sold at public auction under the direction of the city manager. The proceeds of the sale shall inure to the lessee preceding if the lessee placed such improvements and/or chattels on the lands, after deducting for all rents due and owing and expenses incurred in making such sale. In case there are no other bidders at any such sales, the city manager is authorized to bid, with concurrence of the council, in the name of the city, on such improvements and/or chattels. The bid money shall be taken from the fund to which lands belong and this fund shall receive all monies or other value subsequently derived from the sale or leasing of such improvements and/or chattels. The city shall acquire all rights, both legal and equitable, that any other purchaser would acquire by reason of the purchase.

If any improvements and/or chattels having an appraised value of $5,000 or less, as determined by the assessor, are not removed within the time allowed, then, at the option of the city, such improvements and/or chattels shall revert to, and absolute title shall vest in, the city. [Ord. 857, 1989]

18.20.370 Rental for improvements or chattels not removed

Any improvements and/or chattels belonging to the lessee or placed on the leased premises during the lessee’s tenure with or without the lessee’s permission, and remaining upon the premises after the termination date of the lease, shall entitle the lessor to charge a reasonable rent therefor. [Ord. 857, 1989]

18.20.380 Sanitation

The lessee shall comply with all federal, state and municipal regulations or ordinances which are promulgated for the promotion of sanitation or the protection of the environment. The premises of the lease shall be kept in a neat, clean, and sanitary condition and every effort shall be made to prevent the pollution of water. [Ord. 857, 1989]

18.20.390 Fire protection

The lessee will take all reasonable precautions to prevent, and take all necessary action to suppress, destructive or uncontrolled grass or brush or other fires on leased lands and comply with all laws, regulations, and rules promulgated and enforced by the city for fire protection within the area wherein the leased premises are located. [Ord. 857, 1989]

18.20.400 Building and zoning codes

Leased lands shall be utilized in accordance with the building and zoning rules and regulations. Failure to do so constitutes a violation of the lease. [Ord. 857, 1989]

18.20.410 Inspection

The lessee shall allow authorized representatives of the city to enter the leased lands for inspection at any reasonable time, according to the provisions set forth in KCC 1.08.010. [Ord. 857, 1989]

18.20.420 Reservations and restrictions

Each and every contract for the sale, lease, or conveyance of, and each deed to, city lands, properties, or interests therein made under the provisions of this chapter shall contain such reservations as the council may deem necessary or appropriate to protect the public interest, including but not limited to the reservation of coal, oil, and mineral rights on the properties, including all rights and powers reasonably necessary or convenient to render beneficial and efficient the complete enjoyment of such property rights so reserved. [Ord. 857, 1989]

18.20.430 Rights-of-way

The city expressly reserves the right to grant easements or rights-of-way across leased land if it is determined in the best interests of the city to do so. The lessee whose lands such easements or rights-of-way shall cross shall be entitled to damages for all improvements destroyed or damaged. Damages shall be limited to improvements only, and loss shall be determined by fair market value. Annual rentals may be adjusted to compensate lessee for loss of use. [Ord. 857, 1989]

18.20.440 Lease rental credit

When authorized in writing by the council prior to the commencement of any work, the lessee may be granted credit against current or future rent, provided the work accomplished on or off the leased area results in increased valuation to other city-owned lands. The authorization may stipulate type of work, standards of construction, and the maximum allowable credit for the specific project. [Ord. 857, 1989]

18.20.450 Approval of other authorities

The issuance by the city of deeds or leases under the provisions of this chapter does not relieve the grantee or lessee of responsibility of obtaining licenses or permits as may be required by duly authorized state or federal agencies. [Ord. 857, 1989]

18.20.460 Exchanges or trades by city

Notwithstanding anything contained herein, the city may exchange or trade interest in property if, in the discretion of the council, it is to the advantage to do so, and such transactions are exempt from the competitive bidding provisions of this chapter. [Ord. 857, 1989]

18.20.470 Chapter application

This chapter shall not apply to sales, leases, or other disposition of tidelands. [Ord. 857, 1989]