Chapter 13.04
ACQUISITION, INVENTORY, RETENTION, AND DISPOSAL Revised 7/18

Sections:

13.04.004    Acquisition and ownership. Revised 7/18

13.04.008    Dedication by plat.

13.04.012    Sites for beneficial new industries.

13.04.016    Federal and state aid.

13.04.020    Methods of acquisition.

13.04.024    Inventory – Review and recommendation.

13.04.030    Retention and management.

13.04.040    Disposal authorized.

13.04.050    Minimum bid.

13.04.060    Disposal methods.

13.04.070    Ordinance of sale or exchange.

13.04.075    Deposit to permanent fund.

13.04.080    Utility easements.

13.04.090    Conveyance.

13.04.100    Unsold land.

13.04.110    Limitation per individual.

13.04.120    Outcry auction.

13.04.130    Sealed bid auction.

13.04.140    Lottery sale.

13.04.150    Over-the-counter sale.

13.04.160    Negotiated sale or exchange. Revised 7/18

13.04.170    Sales and exchanges to mitigate effects of public emergency.

13.04.180    Settlement of claims.

13.04.004 Acquisition and ownership. Revised 7/18

A. The city shall have and may exercise all rights and powers in the acquisition, ownership, and holding of real property within and outside the city boundaries as if the city were a private person.

B. All real property acquired or held by the city shall be acquired and held in the name of “City of Utqiaġvik, Alaska.” The city may acquire and hold real property as sole owner or as tenant in common or other lawful tenancy, with any person or governmental body for any public purpose. The city may hold real property in trust for any public purpose. (Ord. 02-2017 §2(part); Ord. 88-7 §3(part): Ord. 86-13 §3, 1986)

13.04.008 Dedication by plat.

The city may not acquire any real property by means of a dedication by plat unless the dedication of real property is accepted in a writing signed by the mayor pursuant to a resolution of the council. (Ord. 88-7 §3(part): Ord. 86-13 §4, 1986)

13.04.012 Sites for beneficial new industries.

The city may acquire, own, and hold real property, either inside or outside the city boundaries, as sites available for new industries which will benefit the city. (Ord. 88-7 §3(part): Ord. 86-13 §5, 1986)

13.04.016 Federal and state aid.

The city may apply for, contract with, and do all things necessary to cooperate with the United States government and the state for the acquisition, holding, improvement, or development of real property inside and outside the city boundaries. (Ord. 88-7 §3(part): Ord. 86-13 §6, 1986)

13.04.020 Methods of acquisition.

A. The city may acquire real property by purchase, gift, devise, grant, warranty, quitclaim, tax, or trustee’s deed, contract of purchase and sale, lease, dedication, permit, license, deed of trust, exchange, redemption, purchase of equity of redemption, operation of law, tax or lien foreclosure, adverse possession, condemnation or declaration of taking, annexation, or by any other lawful means of conveyance.

B. The city may not acquire real property unless the council first adopts a resolution approving the acquisition and specifying the terms, conditions, and manner of acquisition.

C. Prior to council approval of a resolution providing for the acquisition of real property, the mayor shall furnish the council with an abstract of title, an appraisal or a copy of the North Slope Borough’s assessment of the real property, and a review of any anticipated problems which may be encountered in acquisition or ownership of the property. The mayor’s failure to furnish the council with any such information shall not affect the validity of any acquisition of real property which complies in all other respects with this chapter.

D. No council approval is necessary to acquire any easement, right-of-way, permit, or license, if necessary for a public improvement which has been authorized and approved by the council.

E. Unless otherwise provided by the council, the city shall purchase marketable title in real property. Unless otherwise provided by ordinance or resolution, or upon council approval of a purchase, the mayor is authorized to execute any instruments, and the mayor is authorized to obtain title insurance and to take all steps necessary to complete and close the purchase and acquisition of the real property.

F. Any instrument requiring execution by the city shall be signed by the mayor and attested by the clerk. The form of any conveyance shall be approved by the city attorney. (Ord. 88-7 §3(part): Ord. 86-13 §7, 1986)

13.04.024 Inventory – Review and recommendation.

A. Within one year after the adoption of the ordinance codified in this section, the mayor shall inventory and evaluate all real property owned by the city on the date of adoption of the ordinance codified in this section, considering desirable uses of the property, including projected need, if any, of the land for present or future recreational or other public use. If the city hereafter acquires any real property, the mayor shall evaluate the property within six months of the acquisition.

B. The mayor shall report to the council his findings and any recommendations for retention and management or disposal of city-owned property. The mayor’s report shall specifically identify those lands which, in his opinion, are suitable for residential use. (Ord. 88-7 §3(part): Ord. 86-13 §8, 1986)

13.04.030 Retention and management.

A. The city will retain ownership of and manage:

1. Those lands which the council determines are or may be required for public use;

2. Those lands which are archeologically and/or historically significant or are potentially significant;

3. Those lands which are unsuitable for any private use due to the absence of desirable characteristics or the presence of geophysical hazards, such as slumping, flooding, or erosion hazard, or other characteristics which might cause the lands, in the judgment of the city council, to be dangerous to the public health, safety, or welfare; and

4. Those lands which, in the opinion of the council, may be disposed of by the city at some future time on terms more favorable to the city than are likely to be obtained at present, or in a manner or for uses more beneficial to the public than at present, unless the council determines that the benefits available to the public from immediate disposal of the property outweigh the future benefits which would or might result if the property were retained by the city.

B. Any real property acquired by tax foreclosure may be devoted to public use by the city after review and recommendation by the city council, approval of the council by a resolution declaring such real property devoted to public use or declaring that such real property is reserved for a projected city requirement, and stating such use or requirement.

C. Real property acquired or purchased for one city purpose may be appropriated, transferred, assigned, or directed without public sale to another city purpose for which the property was acquired or purchased no longer exists, or that the property is no longer used or useful for the purpose, or that the public would benefit if the property were devoted to some other use. (Ord. 90-21 §3, 1990: Ord. 88-7 §3(part): Ord. 86-13 §9, 1986: Ord. 82-10 §3(part): prior code §3.30.030)

13.04.040 Disposal authorized.

A. The city may dispose of any real property, including property acquired or held for or devoted to public use, when the council determines that the property is no longer required for present or future city purposes and is suitable for use by a private party or by another governmental entity, or when the council determines that ownership and use of the property by a private party or another governmental entity will result in greater benefits to the public than will continued ownership and present or future use by the city.

B. The council declares that it is the policy of the city that city-owned real property suitable for residential use and not required by Section 13.04.030 to be retained be disposed of to the general public for construction of residential dwellings. Land suitable for residential uses shall not be disposed of for any other purpose unless the city council first finds that unique circumstances require disposal in a manner contrary to this general policy.

C. The city may sell, exchange, grant, dedicate, donate, or otherwise dispose of city-owned real property, subject to the requirements of this chapter, as soon as the land proposed for sale has been inventoried as provided in Section 13.04.024. (Ord. 88-7 §3(part): Ord. 86-13 §10, 1986: Ord. 86-1 §3(A); Ord. 82-10 §3(part): prior code §3.31.010)

13.04.050 Minimum bid.

In an ordinance of sale, the city council shall adopt either the North Slope Borough’s assessed valuation or an appraisal by an independent appraiser as the minimum bid acceptable for the sale in question. If the minimum bid is based upon an independent appraisal, a copy of the appraisal must be filed with the city clerk for public inspection prior to sale. (Ord. 88-7 §3 (part): Ord. 86-1 §3(B); Ord. 82-10 §3(part): prior code §3.31.020)

13.04.060 Disposal methods.

The city may dispose of municipal lands using one or more of the following methods:

A. Public outcry auction, pursuant to Sections 13.04.040, 13.04.050 and 13.04.070 through 13.04.120;

B. Public sealed-bid auction, pursuant to Sections 13.04.040, 13.04.050, 13.04.070 through 13.04.110 and 13.04.130;

C. Public lottery sale, pursuant to Sections 13.04.040, 13.04.070 through 13.04.110, and 13.04.140;

D. Over-the-counter sale to the public, pursuant to Sections 13.04.040, 13.04.070 through 13.04.110 and 13.04.150;

E. Negotiated sale or exchange, pursuant to Sections 13.04.040, 13.04.070 through 13.04.090, and 13.04.160;

F. Sale to or exchange with identified persons or entities, to mitigate the effects of a public disaster or threat to public health or safety, pursuant to Sections 13.04.040, 13.04.070 through 13.04.110, and 13.04.170; and

G. Grant, dedication or donation to the United States or an agency of the United States, to the state of Alaska, an agency of the state of Alaska, or a subdivision of the state of Alaska for a public use. (Ord. 88-7 §3(part): Ord. 88-4 §3C: Ord. 86-13 §11, 1986; Ord. 82-10 §3(part): prior code §3.31.030)

13.04.070 Ordinance of sale or exchange.

The city council shall by noncode ordinance fix the terms of all land disposals, except that the city council may fix the terms of utility easement disposals by noncode ordinance or by resolution pursuant to Section 13.04.080. The ordinance shall recite the assessed and/or appraised value of each parcel of land or interest in land to be sold or exchanged. The ordinance may also include the date of sale, the method or methods of sale, minimum qualifications of buyers, the sale price or minimum bid, if any, for each parcel or interest, the method of payment required, and such other terms or conditions of sale or exchange as the city council may deem appropriate to the particular sale or exchange. (Ord. 90-06 §3(B), 1990: Ord. 88-7 §3(part): Ord. 88-4 §3D: Ord. 86-1 §3(C); Ord. 82-10 §3(part): prior code §3.31.040)

13.04.075 Deposit to permanent fund.

At least fifty percent of the net proceeds from each sale of real property by the city, and at least fifty percent of the cash or other liquid assets, if any, received by the city in any exchange of real property, shall be deposited in the city permanent fund account. (Ord. 88-7 §3(part): Ord. 88-4 §3E: Ord. 86-13 §12)

13.04.080 Utility easements.

A. When the city has been requested to grant an easement across city land for the purpose of allowing the convenient provision of utility services to lands owned by the city or any other person, the mayor shall determine the fair market value of the easement or of the city land which would be burdened by the easement. The value shall be deemed to be equal to the area of the easement divided by the total area of the parcel of city land within which the easement is to be located, times the assessed or appraised value of the parcel upon which the easement is to be located, excluding the value of any improvements.

B. If the mayor has determined that the value of a proposed utility easement or of the city land which would be burdened by the easement is not more than two thousand five hundred dollars, the conveyance of the easement may be authorized by the council by resolution.

C. The conveyance of the easement may be made to any person without consideration; provided, that the conveyance contains the condition precedent that the conveyance is made for so long as the easement is used to provide continuous utility service, and if use of the easement to provide utility service at any time ceases or is interrupted for a period of two years, then, without any notice and without any action by the city the easement shall revert to the city and the conveyance shall thereafter be null and void. (Ord. 90-14 §3(A), 1990)

13.04.090 Conveyance.

When the buyer or other transferee of any parcel of land or any interest in land has been identified, and has fully demonstrated his or her qualification to purchase or otherwise receive city land, if required, and has either paid the purchase price or required portion thereof or delivered the required consideration, or has indicated that he or she is prepared to immediately do so, the mayor and city clerk shall execute the appropriate statutory quitclaim deed or other conveyance required by the ordinance of sale or exchange. No deed, corrective deed, or other conveyance may be executed pursuant to this section unless its form has first been approved by the city attorney. In the event of any discrepancy in the legal description, form of acknowledgment or other formalities associated with the conveyance, the mayor and city clerk are authorized to execute such corrective instruments as may be required by the buyer or any title insurance company or financing institution taking a trust deed on the property as security. (Ord. 88-7 §3(part): Ord. 88-4 §3F: Ord. 82-10 §3(part): prior code §3.31.060)

13.04.100 Unsold land.

Lands not sold at any sale shall be held by the city and shall be subject to disposal at any subsequent sale according to the terms determined by the city council at that time. (Ord. 88-7 §3(part): Ord. 82-10 §3(part): prior code §3.31.070)

13.04.110 Limitation per individual.

The city council may, in the ordinance of sale, set limitations on the number of parcels which may be obtained by individuals that the city council in its discretion deems necessary and proper to a fair and equitable disposal of its lands to the public. (Ord. 88-7 §3(part): Ord. 86-1 §3(E); Ord. 82-10 §3(part): prior code §3.31.080)

13.04.120 Outcry auction.

The city may dispose of municipal lands or interests in land by use of an outcry auction. The buyer shall be the highest qualified bidder whose bid is equal to or higher than the minimum bid, if any, specified pursuant to Section 13.04.050, and who complies with all other requirements of the ordinance of sale. (Ord. 88-7 §3(part): Ord. 88-4 §3G: Ord. 82-10 §3(part): prior code §3.32.010)

13.04.130 Sealed bid auction.

The city may dispose of municipal lands or interests in land by use of a sealed bid auction. The buyer shall be the highest qualified bidder whose bid is equal to or higher than the minimum bid, if any, specified pursuant to Section 13.04.050, and who complies with all other requirements of the ordinance of sale. (Ord. 88-7 §3(part): Ord. 88-4 §3H: Ord. 82-10 §3(part): prior code §3.32.020)

13.04.140 Lottery sale.

The city may dispose of municipal lands or interests in land by use of a lottery sale. The price at which each parcel of land or interest in land shall be offered for sale in any lottery shall be specified in the ordinance of sale. No more than one application to purchase any specific parcel or interest shall be accepted from any applicant. The ordinance of sale may specify a nonrefundable application fee to be paid by the applicant for each lottery application filed. At a time specified in the ordinance of sale, cards or slips bearing the names of all applicants for the first parcel or interest to be sold shall be combined in a single receptacle, and one card or slip shall be drawn at random. The buyer of the parcel or interest shall be the person whose name is drawn, unless that person is not a qualified buyer or indicates that he or she does not desire to purchase the parcel or interest, in which case another name shall be drawn. After the buyer for the first parcel or interest has been identified, the same procedure shall be followed to identify the buyer of any other parcels or interests to be sold. (Ord. 88-7 §3(part): Ord. 88-4 §3I)

13.04.150 Over-the-counter sale.

The city may sell lands or interests in land by use of an over-the-counter sale. The price at which each parcel of land or interest in land shall be offered for over-the-counter sale shall be specified in the ordinance of sale. The buyer of each parcel of land or interest in land shall be the first qualified person who appears at the place and during the time period designated in the ordinance of sale and offers to immediately pay the purchase price or required portion thereof and to immediately deliver to the city any other required consideration. (Ord. 88-7 §3(part): Ord. 88-4 §3K)

13.04.160 Negotiated sale or exchange. Revised 7/18

A. The city may sell land or an interest in land to the United States or any agency thereof, the state of Alaska or any agency or subdivision thereof, or any nondenominational charitable nonprofit organization which provides services of a type normally provided by a governmental body to the public in the city, when the council finds that the buyer will devote such land to a use which will significantly promote the health, safety or welfare of the residents of the city. If the sale is for less than the assessed or appraised value as determined pursuant to Section 13.04.150, lands or interests in land sold pursuant to this subsection shall be sold subject to a condition subsequent providing that the land or interest shall revert to the city if the grantee fails to use the property for the identified use or at any time devotes the property to any other use. Such conditions shall be stated clearly on the face of the conveying documents.

B. The city may exchange lands or interests in land with the United States or any agency thereof, the state of Alaska or any agency or subdivision thereof, or any charitable nonprofit organization which provides services of a type normally provided by a governmental body to the public in the city, when the council finds that the exchange would be advantageous to the city.

C. The ordinance of sale or of exchange shall refer to assessments or independent appraisals of the real estate to be exchanged, which shall be on file with the city clerk for public inspection. If the sale or exchange is (1) with a nongovernmental entity, (2) the value of the property obtained is less than the property given up in the exchange and (3) such deficit is more than twenty-five thousand dollars, notice of the ordinance shall be published by the city clerk in accordance with Sections 2.08.054 and 2.12.090(A)(3). (Ord. 15-2017 §17; Ord. 88-7 §3(part): Ord. 88-4 §3J, M(part): Ord. 86-1 §3(G); Ord. 82-10 §3(part): prior code §3.32.040)

13.04.170 Sales and exchanges to mitigate effects of public emergency.

A. Subject to the restrictions described in subsections D and E of this section, the city may sell land or an interest in land to, or exchange lands or interests in land, identified persons or entities who are directly affected by a public disaster or by a serious threat to public health or safety, if the council, in an ordinance adopted by unanimous vote, first makes the findings set out in subsection B of this section.

B. No sale or exchange may be made pursuant to this section unless the council makes findings to the effect that:

1. A public disaster has occurred or a serious threat to public health or safety exists; and

2. The effects of the disaster or the extent of the threat can be mitigated if certain city lands or interests in land are made available for sale to or exchange with those persons or entities directly affected by the disaster or threat; and

3. The benefit to the city and/or to the public of retaining the identified city lands or interests in land in city ownership, of making those lands available for public sale, or of devoting those lands or interests to some other use is outweighed by the public benefit to the residents of the city as a whole which will result from making the lands or interests available for sale to or exchange with the persons or entities directly affected by the disaster or threat.

C. Findings satisfying the requirements of subsection B of this section, together with the specific factual bases for such findings, shall be set out in the ordinance of sale or exchange.

D. All persons or entities directly affected by the disaster or threat shall be provided a fair and equal opportunity to obtain each parcel or interest made available by the city pursuant to this section.

E. No land or interest in land may be sold or exchanged pursuant to this section which is in excess of the minimum amount of land or the minimum interest in land which is reasonably required to mitigate the effect of the disaster or threat. (Ord. 88-7 §3(part): Ord. 88-4 §3M(part))

13.04.180 Settlement of claims.

Notwithstanding Sections 13.04.040 and 13.04.050, the city council may, by ordinance of sale, convey land to an individual or nongovernmental entity if ordered to do so by a court of competent jurisdiction, or in settlement of a valid and legally sufficient claim against the city under such circumstances and for such price as it deems appropriate and in the best interests of the city. This section may be invoked only to settle legitimate claims, and may not be used to circumvent the requirements of this chapter. (Ord. 88-7 §3(part): Ord. 88-4 §3B: Ord. 86-1 §3(I))