Chapter 16.02
APPRAISAL
Sections:
16.02.010 Appraisal requirements.
16.02.010 Appraisal requirements.
A. No lands and/or improvements shall be leased, sold, purchased, exchanged or a renewal lease issued therefor, unless the same has been appraised at its market value within the prior six (6) months. No land and/or improvements shall be leased, sold, purchased, exchanged or a lease renewal issued for at less than market rent or market value except as determined in subsections (B) and (C) of this section. Facilities for supplying utility services shall not be considered as such improvements.
B. The borough assembly has determined that there is benefit to the municipality in having tracts of land in cultivation to protect the heritage of gardening in Skagway, as well as to beautify the community. The borough assembly, at its sole discretion, may establish conservation easements for municipally owned lands leased for purpose of commercial agriculture. The lease amount for such lands shall be fifty percent (50%) of market rent. This shall apply only to the portion of those leased lands under cultivation. Those lands within a lease not under cultivation, or not directly auxiliary to cultivation, shall be subject to lease at the full market value.
C. The borough assembly has determined that there is benefit to the residents and businesses of the community in keeping the cost of utilities offered to the public at minimum. The borough assembly may, at its sole discretion, offer adjusted lease rates for municipally owned lands used for the delivery of utilities to local subscribers of utilities as defined in Section 16.01.030(I). The lease amount for such lands shall be fifty percent (50%) of market rent. This shall apply only to the portion of those lands necessary to the provision of these utility services, including all required setbacks. All lands within municipally leased property not directly necessary to the offering of these utilities, or ancillary to the offering of these utilities, shall be subject to lease at the full market value.
D. Client. The municipality of Skagway is the sole client for all appraisals requested, commissioned, or contracted for by the assembly or borough manager, regardless of who contracts for, or pays for, the appraisal.
E. Appraiser Contact. Any appraiser preparing a report for use by the municipality of Skagway is required to contact the borough manager before beginning work so that the borough manager may issue supplemental appraisal requirements or additional information specific to the assignment.
F. Appraisal Standards. All appraisals must be prepared in accordance with the standards and requirements set out in this section and with all applicable standards in the current edition of Uniform Standards of Professional Appraisal Practice (USPAP) published by the Appraisal Foundation. For specific projects, the borough manager may issue supplemental instructions. In case of conflict, USPAP prevails.
G. Purpose of the Appraisal. The purpose of the appraisal is to estimate the market value for purchases, sales or exchanges. The purpose of the appraisal for leases will be to estimate market rent based on the market rental rate for the land and/or improvements.
H. Intended Use and Intended Users of the Appraisal. The municipality of Skagway will use the appraisal to establish the market value for a purchase, sale, or exchange. The municipality of Skagway will use the appraisal to establish market rent for lands or lands and improvements to be leased, including initial lease rent, renewal rent, and rent adjustments.
I. Appraisal Review. The appraisal may be subject to review by an independent review appraiser. The appraiser will respond to the appraisal review within ten (10) days in writing.
J. Applicant or Lessee Contact. The appraiser shall contact the applicant or lessee and offer an opportunity to discuss the appraisal and inspect the property with the appraiser. The contact with the lessee or applicant must be described in the report.
K. Required Number of Copies. The appraiser shall provide two (2) hard copies and a PDF copy of the appraisal report.
L. Requirement for an Appraisal. No property or interest in property shall be leased, sold, acquired, exchanged or a lease renewal issued, unless it has been appraised within the prior six (6) months.
M. Report Type. The borough manager will specify the type of appraisal report that is to be supplied for any given appraisal assignment.
N. Delays in Setting Rents. Delays in setting or adjusting lease rents due to the appraisal process shall not change the effective date of the lease rent change. In the case of renewals, the new rent shall apply retroactively to the date the lease expired. In the case of rent adjustments during a lease, the new rent shall apply retroactively to the date of rent adjustment as set out in the lease.
P. Payment of Rents. Rent payments shall be paid in advance, unless the lease stipulates otherwise. The borough manager will determine whether payments will be on a monthly, quarterly, semi-annual, or annual basis.
Q. Dispute Resolution. In the event the lease applicant or lessee refuses to pay the appraised market rent or appraised market rent adjustment, the lease applicant or lessee may request a second appraisal paid for solely by the lease applicant or lessee. After reviewing both appraisals, the borough manager shall make a recommendation to the assembly for the lease rent or adjustment. The decision of the assembly shall be final and the lease applicant or lessee shall immediately begin payment of the rent or rental adjustment approved by the assembly.
R. Notwithstanding any provision in this chapter, the assembly, in its sole discretion, may enter a lease or adjust the market rent of a lease, by negotiating the amount of the lease with the lease applicant or negotiating the amount of the rental adjustment with the lessee, on the condition the negotiated lease or the lease adjustment exceeds the market rent as defined in Section 16.01.030(D).
(Ord. 20-13, Added, 05/21/2020)