CHAPTER 23.10: REAL PROPERTY MANAGEMENT

Section

23.10.010    Authorization

23.10.020    Assembly approval of disposal

23.10.030    Requirements for sale or long-term lease

23.10.040    Conditional disposals

23.10.050    Public notice [Repealed]

23.10.060    Considerations

23.10.070    Conditions of disposal

23.10.080    Applications

23.10.090    Qualifications of applicants and bidders

23.10.100    Permits

23.10.110    Easements and rights-of-way

23.10.120    Material sales

23.10.130    Forest management [Repealed]

23.10.140    Grazing leases

23.10.150    Agricultural land sales

23.10.160    Management agreements

23.10.170    Remote parcels programs

23.10.180    Leases

23.10.190    Auctions

23.10.200    Lotteries

23.10.210    Over-the-counter

23.10.220    Tax foreclosed real properties

23.10.230    Agreements by application

23.10.240    Homestead program

23.10.250    Dedication for public purpose

23.10.260    Competitive agreements by request for proposal

23.10.270    Acquisition and exchange [Repealed]

23.10.275    Acquisition or exchange

23.10.280    Conveyance for public purpose

23.10.010 AUTHORIZATION.

(A)    All real property in which the borough has an interest may be sold, leased, or otherwise disposed of as provided in this title, when such sale, lease, or other disposal is in the best interest of the borough.

(B)    The manager is authorized to manage and control the borough-owned real property in accordance with the provisions of this title and requirements of law. The manager may take such action as may be necessary and lawful to use, manage, or control borough-owned real property and to enforce the laws or policies of the borough. The manager may delegate authority and responsibility for real property management functions.

(C)    The manager is authorized to approve all third party assumptions, assignments or subleases for interests in borough-owned real property.

(94-069AM1, § 3 (part), 1994)

23.10.020 ASSEMBLY APPROVAL OF DISPOSAL.

(A)    The manager is authorized to approve all disposal of interest in borough-owned real property (except as otherwise restricted in this title) that has a fair market value equal to or less than $25,000 per transaction; any single disposal transaction with the fair market value in excess of $25,000 shall be approved by assembly ordinance.

(B)    When disposing of any borough-owned real property having a fair market value equal to or less than $25,000 the manager shall comply with the public notice requirements and all other applicable requirements of this title, and at least two weeks prior to the disposal shall inform the assembly by informational memorandum of the proposed action. The informational memorandum shall include, at a minimum the following:

(1)    the identity of the applicant;

(2)    all essential sale or lease terms;

(3)    the price of the transaction; and

(4)    comments received from the public and affected community council, if any.

(C)    The assembly upon receipt of the informational memorandum may, by approved motion, require the action to proceed by the applicable procedure established for disposal having a fair market value in excess of $25,000.

(D)    The manager is authorized to approve, in accordance with adopted policy and procedure and without additional assembly approval, the sale of borough-owned real property, ten acres in size or smaller, with a pre-existing Alaska Division of Lands (ADL) lease to the lessee at fair market value.

(Ord. 98-107, § 2, 1998; 94-069AM1, § 3 (part), 1994)

23.10.030 REQUIREMENTS FOR SALE OR LONG-TERM LEASE.

(A)    Unless otherwise provided by ordinance, no borough-owned real property (except natural resources) may be sold, leased for a term of ten years or longer, or exchanged, unless the same have met all requirements of the borough code regarding division of lands and subdivisions. The applicant shall bear all costs of surveying, platting, or other subdivision processes.

(B)    Leases for a term of ten years or more, regardless of value, shall be approved by the assembly by ordinance.

(Ord. 16-100, § 12, 2016; 94-069AM1, § 3 (part), 1994)

23.10.040 CONDITIONAL DISPOSALS.

(A)    The borough may conditionally sell, lease, or otherwise enter into agreements to dispose of interests in land it selects under various state land grants and programs upon the state of Alaska issuing a final decision and prior to actual receipt of title to such lands.

(B)    When entering into an agreement to conditionally dispose of interests in land under this subsection, the borough shall disclose to the other party that it does not have title and cannot guarantee that it will receive title. A party entering into an agreement with the borough regarding a conditional disposal shall acknowledge in writing that it has been informed that the borough does not have title to the lands in question and that the borough cannot guarantee that it will receive title.

(C)    The borough shall not enter into such conditional agreements unless it has good cause to believe that it will acquire title to the land in question within ten years of entering into the agreement.

(D)    In the event that the borough does not acquire title to the land within ten years from the date of the agreement, either the borough or the other party to the agreement may cancel the agreement upon 30 calendar days’ written notice to the other party. In the event the borough does not acquire title to the real property, and there is no written settlement with regard to final disposition of the monies received, all monies received by the borough in connection with the agreement shall be considered as rent, and shall be retained by the borough.

(Ord. 16-100, § 13, 2016; Ord. 96-044, § 5, 1996; IM 96-021, page 1, presented 4-2-96; 94-069AM1, § 3 (part), 1994)

23.10.050 Public notice. [Repealed by Ord. 06-034]

23.10.060 CONSIDERATIONS.

(A)    Unless otherwise provided by a best interest finding pursuant to MSB 23.05.030(G), no borough-owned real property may be sold, leased, exchanged, or otherwise disposed of for less than its fair market value.

(B)    Fair market value shall be based on one of the following:

(1)    a third party appraisal pursuant to the criteria set forth in the Uniform Standards of Professional Appraisal Practice (USPAP) as published by the Appraisal Foundation; or

(2)    with the approval of the manager, the value assigned by the certified tax roll of the borough; or

(3)    determination by a broker’s opinion of value; or

(4)    with the approval of the manager, the fair market value of easements may be established by either:

(a)    a percentage of the value assigned by the certified tax roll of the borough; or

(b)    by an appraisal; or

(c)    by a fee schedule adopted by resolution of the assembly; or

(5)    with the approval of the manager, the fair market value of resource sales may be established by either the fee schedule which sets the minimum prices or by market price trends, the per acre price trends based on past timber sales, or both.

(C)    Pursuant to a best interest finding, the minimum fee to be paid to the borough for a sale or lease at less than fair market value shall be as follows:

(1)    A sale at less than fair market value shall be the greater of $500 or a range between 50 percent and 90 percent of the market value which shall be determined by the assembly.

(2)    A lease at less than fair market value shall be an annual rate of the greater of $500 or:

(a)    five percent of fair market value for beneficial or commercial enterprise; or

(b)    Two and one-half percent of fair market value for public health, safety, and welfare or public purposes.

(Ord. 16-100, § 14, 2016; Ord. 99-177, § 2, 1999; 94-069AM1, § 3 (part), 1994)

23.10.070 CONDITIONS OF DISPOSAL.

Any sale or other disposition of borough-owned real property or interest therein shall be subject to terms and conditions in this title, adopted procedures, or terms and conditions set forth in assembly ordinance or resolution when assembly approval is required by this title.

(94-069AM1, § 3 (part), 1994)

23.10.080 APPLICATIONS.

(A)    All applications for purchase or use of borough-owned real property shall be filed with the manager according to the procedures adopted by assembly resolution. Each application shall be accompanied by the appropriate fee. The filing of an application shall not in any way vest any right to the applicant in the real property or to the use of the real property applied for. The fee may be waived in accordance with MSB 23.05.060(B).

(B)    Except as otherwise provided under this title, the applicant will be provided notice of acceptance or rejection 30 calendar days after receipt of the application.

(Ord. 16-100, § 15, 2016; Ord. 96-044, § 6, 1996; 94-069AM1, § 3 (part), 1994)

23.10.090 QUALIFICATIONS OF APPLICANTS AND BIDDERS.

(A)    A bidder at auction or an applicant to otherwise purchase, lease, or use borough-owned real property must be a legally competent person under the laws of the state of Alaska. A person acting as agent for an applicant or bidder must also be a legally competent person, and must, prior to placing a bid or submitting an application, file with the manager a duly executed power of attorney or other evidence of such agency acceptable to the manager.

(B)    A person is not a qualified applicant or bidder if:

(1)    the person has failed to pay a deposit or payment, including interest at the legal rate, due to the borough in relation to borough-owned real property in the previous five years; or

(2)    the person is currently in breach or default on any contract or lease for real property transactions in which the borough has an interest; or

(3)    the person has failed to perform under a contract or lease involving borough-owned real property in the previous five years and the borough has acted to terminate the contract or lease or to initiate legal action; or

(4)    the person has failed to perform under or is in default of a contract with the borough; or

(5)    the person is delinquent in any tax payment to the borough; or

(6)    the manager has good cause to believe that the person is unlikely to make payment or responsibly perform under the lease or other contract.

(C)    No borough-owned real property, nor any interest therein, may be sold, leased, or otherwise transferred to any person who is delinquent in the payment of any obligation to the borough, nor may the borough process the application for the sale, lease, or other disposal of real property, or any interest therein.

(94-069AM1, § 3 (part), 1994)

23.10.100 PERMITS.

(A)    In accordance with policies and procedures adopted by assembly resolution and subject to fee payment, the manager may:

(1)    grant permits for miscellaneous use of borough-owned real property for a period not to exceed five years;

(2)    grant permits for personal use activities on borough-owned land designated by the manager for the collection of cordwood, small quantities of gravel or other earth materials, garden plots, harvesting natural vegetation, or other similar activity for a period not to exceed one year;

(3)    revoke a permit issued under this section when it is in the best interest of the borough to do so, or due to failure to comply with permit requirements.

(B)    Unless otherwise provided in the permit, the cost of relocation of any utility line or other facility located pursuant to a valid permit as required by the borough for a public purpose shall be borne by the borough. Any relocation required as a result of a violation of permit conditions, or required for a facility without a valid permit or required because the facility does not otherwise meet the requirements of this title shall be borne by the utility or other responsible party.

(94-069AM1, § 3 (part), 1994)

23.10.110 EASEMENTS AND RIGHTS-OF- WAY.

(A)    In accordance with policies and procedures adopted by assembly resolution, the manager may negotiate the grant reservation, or dedication of permanent easements or rights-of-way for roads, pipelines, electric transmission lines, telecommunication facilities, trails, pathways, alleys, or similar facilities. Within 30 calendar days of receipt of the easement or right-of-way application, the manager shall approve, reject, or notify the applicant of the discovery of additional requirements of the proposed easement or right-of-way.

(B)    Easements or rights-of-way created under this section shall be dedicated, vacated, or terminated in accordance with the provisions of MSB code and applicable state law.

(Ord. 16-100, § 16, 2016: Ord. 96-044, § 7, 1996; 94-069AM1, § 3 (part), 1994)

23.10.120 MATERIAL SALES.

(A)    In accordance with policies and procedures adopted by assembly resolution, the manager may negotiate the sale of, or conduct an auction for, and execute an agreement for, the disposal of earth materials from a single parcel of land when the fair market value of the disposal is equal to or less than $25,000 per transaction.

(B)    Material sales or auctions in excess of a fair market value of $25,000 per transaction shall be approved by the assembly.

(Ord. 05-148 § 2, 2005; 94-069AM1, § 3 (part), 1994)

23.10.130 Forest management. [Repealed by Ord. 07-065(AM), § 2, 2007]

23.10.140 GRAZING LEASES.

(A)    In accordance with policies and procedures adopted by assembly resolution, the manager may negotiate and execute grazing permits for up to 40 acres for up to a five-year period.

(B)    Grazing leases, whether negotiated or awarded through a competitive process, for more than 40 acres or for longer than five years, shall be approved by the assembly by resolution.

(94-069AM1, § 3 (part), 1994)

23.10.150 AGRICULTURAL LAND SALES.

(A)    In accordance with policies and procedures adopted by assembly resolution, the manager may conduct agricultural land sale programs.

(B)    Land offered for agriculture will be classified or zoned solely for agricultural purposes and the conveyance of agricultural parcels will be by fee simple title.

(C)    The manager may establish conditions of sale which are best designed to promote the agricultural use and development of the subject lands.

(94-069AM1, § 3 (part), 1994)

23.10.160 MANAGEMENT AGREEMENTS.

(A)    In accordance with policies and procedures adopted by assembly resolution, the manager may enter into a management agreement with the state for purposes of joint use planning or management of borough-owned real property, or for sales, leases, or transfer of borough-owned real property and resources to the general public, private persons, or other agencies, and to manage borough-owned real property or to conduct such sales, leases, and transfers in accordance with procedures set forth under Alaska statutes.

(B)    No management agreement shall be binding upon the borough which shall take away the right of the borough to make selection of vacant, unappropriated, unreserved lands within the borough or which sets aside the borough’s right to make final determination in regard to its selected lands or which does not afford the borough an opportunity to terminate such agreement upon proper notice.

(C)    In accordance with policies and procedures adopted by assembly resolution, the manager may enter into management agreements with a managing authority for the purposes of joint-use planning or management of borough-owned real property. No management agreement may be entered into with a managing authority if there exists delinquent obligations to the borough by the managing authority or if the managing authority is financially incapable of performing the terms of the management agreement.

(D)    The manager may direct borough departments to enter into interagency agreements for the management of borough-owned real property in accordance with policies and procedures adopted by the assembly by resolution.

(E)    The period covered by any management agreement shall be for a period not to exceed five years unless otherwise expressly approved by the assembly by ordinance.

(F)    The manager may enter into a multiple-use management agreement for the management of borough lands in accordance with policies and procedures adopted by the assembly by resolution.

(Ord. 16-100, § 17, 2016; 94-069AM1, § 3 (part), 1994)

23.10.170 REMOTE PARCELS PROGRAMS.

(A)    The assembly may provide by ordinance for the disposal of one or more remote parcels of borough-owned real property.

(B)    Remote parcel programs under this section shall be conducted by the manager in accordance with policies and procedures adopted by assembly resolution.

(C)    The sale or lease of remote parcels for fair market value shall be conducted in accordance with the adopted policies and procedures for the method of disposal used.

(94-069AM1, § 3 (part), 1994)

23.10.180 LEASES.

(A)    Leases shall be subject to all requirements and conditions applicable to disposal under this title.

(B)    All provisions, stipulations, and conditions contained in any pre-existing lease of borough-owned real property, entered into by the Alaska State Division of Lands acting as agent for the borough, prior to July 1, 1974, shall be binding in all respects on all parties.

(C)    Application for a lease for public purposes shall be made in the same manner as other applications and shall contain a plan for development and use of the real property requested. The manager shall, in each case, determine that the proposed usage of borough-owned real property is for worthwhile public service, and that there will be no discrimination in providing service. The manager may make such other requirements as deemed proper before the issuance of such leases. Failure to carry out such plan as submitted and agreed upon may result in revocation of the lease.

(D)    The annual rent on a lease for a public purpose to a governmental agency or a not-for-profit corporation formed for the purpose of carrying on a public service may be at less than fair market value in accordance with MSB 23.05.030(G) and 23.10.060(C).

(E)    The manager may solicit business for new leases on borough-owned land through a real estate broker licensed by the state of Alaska and in accordance with procedures adopted by assembly resolution.

(Ord. 16-100, § 18, 2016; 94-069AM1, § 3 (part), 1994)

23.10.190 AUCTIONS.

Public auctions shall be held by the manager. At the completion of the auction of each parcel, the manager shall indicate the apparent high bidder. The manager may reject any or all bids.

(94-069AM1, § 3 (part), 1994)

23.10.200 LOTTERIES.

(A)    The assembly may provide by ordinance the disposal of one or more parcels of borough-owned real property by gaming or non- gaming lotteries.

(B)    Lotteries shall be conducted by the manager in accordance with procedures adopted by assembly resolution.

(94-069AM1, § 3 (part), 1994)

23.10.210 OVER-THE-COUNTER.

(A)    The manager may maintain an inventory of real properties for sale, lease, or other disposal over-the-counter. Each parcel in the inventory must meet the following criteria:

(1)    the parcel must have previously been made available in a competitive bid proposal program in which no acceptable offers or bids were received for the purchase of the parcel, or if accepted, the transaction failed to close; and

(2)    notice of the previous disposal availability was made in accordance with the notice provisions of this title.

(B)    Nothing in this section shall require the manager to include all real properties eligible for over-the-counter disposal in the over-the-counter inventory.

(Ord. 16-100, § 19, 2016; 94-069AM1, § 3 (part), 1994)

23.10.220 TAX FORECLOSED REAL PROPERTIES.

(A)    Tax foreclosed real properties shall be retained or disposed of in accordance with state law and as provided by the assembly by ordinance.

(B)    Unless otherwise provided by ordinance, tax foreclosed real properties where repurchase rights have been extinguished will be sold at public auction in accordance with policies and procedures adopted by assembly ordinance. The minimum bid for tax foreclosed real properties shall be established by the manager. Tax foreclosed real properties which do not sell at auction may be included in the over-the-counter disposal inventory.

(Ord. 98-095(AM), § 2, 1998; 94-069AM1, § 3 (part), 1994)

23.10.230 AGREEMENTS BY APPLICATION.

(A)    The manager may, with the approval of the assembly by ordinance when required by this title, approve a sale or lease of borough-owned real property by application if one of the following conditions exists:

(1)    the application is:

(a)    by a public utility or public agency for facilities serving the general public; or

(b)    [Repealed by Ord. 01-049 (AM) § 2, 2001]

(c)    [Repealed by Ord. 01-049 (AM) § 2, 2001]

(d)    for an adjacent property owner for access or to address a substandard or unusable lot condition; or

(e)    for use for a nonprofit organization; or

(f)    for a disposal where the assembly has determined it is in the best interest of the borough to process the application based on economic development incentives or is a beneficial industrial or commercial enterprise.

(2)    all other requirements and conditions applicable to sales or leases under this title are met.

(Ord. 16-100, § 20, 2016; Ord. 01-049(AM) § 2, 2001; 94-069AM1, § 3 (part), 1994)

23.10.240 HOMESTEAD PROGRAM.

(A)    In accordance with policies and procedures adopted by assembly resolution, the manager may conduct a homestead program.

(B)    The homestead program shall only be conducted on lands classified as “homestead lands” in accordance with procedures adopted by assembly resolution.

(94-069AM1, § 3 (part), 1994)

23.10.250 DEDICATION FOR PUBLIC PURPOSE.

In accordance with policies and procedures adopted by assembly resolution, the manager may dedicate lands for public purposes.

(94-069AM1, § 3 (part), 1994)

23.10.260 COMPETITIVE AGREEMENTS BY REQUEST FOR PROPOSAL.

In accordance with policies and procedures adopted by assembly resolution, the manager may dispose of borough property by competitive request for proposal.

(94-069AM1, § 3 (part), 1994)

23.10.270 Acquisition and exchange. [Repealed by Ord. 16-100, § 20, 2016]

23.10.275 ACQUISITION OR EXCHANGE.

(A)    In accordance with this title and the policy and procedures adopted by assembly resolution, the manager may through solicitation or through negotiation acquire or exchange land or interest therein when for public purpose.

(Ord. 16-100, § 21, 2016)

23.10.280 CONVEYANCE FOR PUBLIC PURPOSE.

(A)    The transfer of borough land or resources may be made to a state or federal agency, or municipality within the borough, without limit or consideration, for public purposes if:

(1)    approved by the assembly and the manager ensures, by regulation, deed restriction, covenant, or otherwise, that transfers of land under this section serve a public purpose and are in the public interest; and

(2)    the borough retains a reversionary interest on each conveyance granted under this section.

(Ord. 04-160, § 4, 2004)