Chapter 3.36
ACQUISITION AND DISPOSAL OF MUNICIPAL PROPERTY

Sections:

Article I. Acquisition of Real Property

3.36.010    Acquisition and ownership – Authority.

3.36.020    Acquisition – Form.

3.36.030    Ownership – Form.

3.36.040    Acquisition and ownership – Rights and powers.

3.36.050    Real property as security.

3.36.060    Eminent domain.

3.36.070    Adverse possession.

Article II. Real Property Sales by the City

3.36.110    Power to dispose of real property.

3.36.120    Sale or disposal – Form.

3.36.130    Sale or disposal – Rights and powers.

3.36.140    Public sale.

3.36.150    Exceptions to public bidding.

3.36.160    Disposal procedures.

3.36.170    Minimum acceptable offer.

3.36.180    Conditions of sale.

3.36.190    Sale or lease to benefit City function.

3.36.200    Reservation of easements and rights-of-way.

3.36.210    Tax foreclosure land.

Article III. Lease of City Lands

3.36.310    Property available for leasing.

3.36.320    Terms of lease.

3.36.330    Adjustment of rental.

3.36.340    Transfer of lessee’s interest.

3.36.350    Renewal of lease.

3.36.360    Improvements and chattels.

3.36.370    Inspection of lease property.

3.36.380    Condemnation of property – Lease termination.

3.36.390    Rejection of bids.

Article IV. Disposal of City-Owned Personal Property

3.36.410    Disposal of personal property.

Article I. Acquisition of Real Property

3.36.010 Acquisition and ownership – Authority.

A. The City may acquire, own and hold real property within or outside the City boundaries by purchase, gift, device, grant, dedication, 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 or conveyances.

B. The City Manager may provide by regulation for the procedures and forms as to applications, surveys, appraisals, auction, bidding, form of substance or purchase agreement, or any other matter involving the sale or disposition of City property not inconsistent with and to implement the intent and purpose of this title. The absence of a regulation or an inconsistent resolution shall not invalidate any public sale procedure, or conveyance executed or to be executed by the City, where the requirements of this title have been otherwise satisfied. [Ord. 508-06 § 3, 2006].

3.36.020 Acquisition – Form.

A. The City may acquire, own and hold real property by warranty or quitclaim deed, easement, grant, permit, license deed of trust, mortgage contract of sale of real property, plat dedication, lease, tax deed, will, or any other lawful method or mode of conveyance or grant. Real property shall be held in the name of “The City of Whittier.” Any conveyance document, other than a plat in which a property owner other than the City dedicates an easement or right-of-way to the City or to the public, requiring execution by the City shall be signed by the City Manager and attested by the City Clerk or notarized by any notary commissioned in Alaska.

B. Except as set forth in subsection (C) of this section, all acquisitions of any interest in real property shall be approved by the City Council by resolution. The resolution shall set forth the terms, conditions and manner of acquisition.

C. Council approval is not required to acquire any easement, permit, license, or other interest in real property dedicated to the public’s use through the platting action.

D. Prior to approval of any acquisition of real property for which City Council approval is required, the City Manager is to furnish the City Council with an abstract of title, the value assessed by the City Tax Assessor, or other appraisal of the real property. The failure to furnish the Council any such material shall not affect the validity of any acquisition or purchase of real property.

E. Unless otherwise provided by Council, the City shall purchase marketable title. Unless otherwise provided by ordinance or resolution, upon Council approval of an acquisition, the City Manager is authorized to obtain title insurance, to execute any instruments necessary to complete the acquisition. [Ord. 508-06 § 3, 2006].

3.36.030 Ownership – Form.

The City may acquire and hold real property as sole owner or as tenant in common or other lawful tenancy, with any other person or governmental body for any public purpose. The City may hold real property in trust for any public purpose. [Ord. 508-06 § 3, 2006].

3.36.040 Acquisition and ownership – Rights and powers.

The City shall have and may exercise all rights and powers in the acquisition and ownership of real property as if the City were a private person. [Ord. 508-06 § 3, 2006].

3.36.050 Real property as security.

The City may pledge, mortgage, or otherwise secure City real property for the payment of City bonded or other indebtedness when required, as authorized by law. [Ord. 508-06 § 3, 2006].

3.36.060 Eminent domain.

The City may, only within its boundaries, exercise the powers of eminent domain and declaration of taking in the performance of an authorized power or function of the municipality, in accordance with AS 09.55.240 through 09.55.460 and other applicable law. [Ord. 508-06 § 3, 2006].

3.36.070 Adverse possession.

The City cannot be divested of title to real property by adverse possession. [Ord. 508-06 § 3, 2006].

Article II. Real Property Sales by the City

3.36.110 Power to dispose of real property.

The City may sell, convey, exchange, transfer, donate, dedicate, direct or assign to use, or otherwise dispose of City-owned real property by any lawful means or conveyances. [Ord. 508-06 § 3, 2006].

3.36.120 Sale or disposal – Form.

The City may sell or dispose of real property by warranty or quitclaim deed, easement, grant, permit, license, deed of trust, exchange, mortgage, contract of sale of real property, plat dedication, lease, tax deed, vacation, or any other lawful method or mode of conveyance or grant. Any instrument requiring execution by the City shall be signed by the City Manager and attested by the City Clerk or notarized by any notary commissioned in Alaska. [Ord. 508-06 § 3, 2006].

3.36.130 Sale or disposal – Rights and powers.

The City may sell or dispose of any interest in real property, including property acquired or held for or dedicated to a public use, except as outlined in WMC 3.36.150, when in the judgment of the City Council it is no longer required for municipal purposes. [Ord. 508-06 § 3, 2006].

3.36.140 Public sale.

Unless otherwise provided in this chapter, the City shall dispose of any interest in real property no longer required for municipal purposes through public bidding. [Ord. 508-06 § 3, 2006].

3.36.150 Exceptions to public bidding.

Public bidding is not required for the following disposals:

A. Grants for Federal and State Programs. The Council may dispose of an interest in real property to the United States, the State of Alaska, another local government, or an agency of any of these governments, for a consideration agreed upon between the City and the grantee without public bidding if the disposal is in the public interest.

B. Change of Use. Real property acquired or purchased for one City purpose may be appropriated, transferred, assigned or directed without public sale to another City purpose, whenever the City Council determines that the purpose for which the property was acquired or purchased no longer exists, or the property is no longer used or useful for the initial purpose for which the property was acquired, or if the City Council determines that using the property for a different purpose is in the public interest.

C. Release of Easements. The City Manager may, at the direction of the City Council, convey, quitclaim, release, cancel, vacate or otherwise relinquish any real property easement, permit or license the City may have or hold for the purpose of installing, constructing, or maintaining a public improvement, whenever the interest is no longer used or useful for that purpose.

D. Vacation of Rights-of-Way. Vacation of any right-of-way shall be made without public bidding.

E. Property Exchanges. The Council may approve after public notice the conveyance and exchange of a parcel of City property for a parcel of property owned by another person subject to such conditions as Council may impose on the exchange, whenever in the judgment of the City Council it is advantageous to the City to make the property exchange.

F. Tidelands and Submerged Lands. Interests of the City in tidelands or submerged lands may be disposed of in accordance with the City’s regulations governing such disposals. [Ord. 508-06 § 3, 2006].

3.36.160 Disposal procedures.

Any interest in real property of the City that is required by this chapter to be disposed of through a public sale shall be disposed of as follows:

A. Appraisal. An estimated value of the property by a qualified appraiser shall be made. Any appraisals must be done within one year of the proposed disposal.

B. Planning Commission Review. The parcels of land to be disposed of shall be reviewed by the Planning Commission which shall make recommendations to the City Manager concerning desirable uses of the property, including projected need, if any, of the land for present or future recreational or other public use. Such recommendation shall be by resolution after public hearing.

C. City Manager Recommendation. After review of the Planning Commission’s recommendations, the City Manager shall make a written recommendation to the Council. If the City Manager believes it is in the best interests of the City to do so, such recommendation shall set out the development of the property, and the estimated value of the property as made by a qualified appraiser and the recommended terms and conditions of sale.

D. Civil Action. After receipt of the recommendations, the Council may, by resolution, direct the disposal of an interest of the City in the real property under such terms and conditions as it requires.

E. Notice. Notice of the proposed disposal shall be given by whatever means are considered reasonable by the City Manager. The notice must contain a brief description of the land, its area and general location, proposed use, term, computed annual minimum rental or minimum offer, limitations, if any and time and place set for the auction or bid open if applicable.

F. Land Valued at $100,000 or More. Any disposal of an interest in real property of the City valued at $100,000 or more shall be approved by ordinance instead of by resolution. [Ord. 508-06 § 3, 2006].

3.36.170 Minimum acceptable offer.

Any disposal of a fee simple interest in real property disposed of pursuant to this chapter shall be for the appraised value of the interest being disposed of unless:

A. The Council finds that a particular disposition for less than appraised value shall be in the public interest. Public interest for the purposes of this subsection shall include a public or quasi-public purpose and use. Public interest shall not include a purpose to return property to private ownership, or to return property to the tax rolls, or to make property available for a desirable private enterprise or development, or other similar purposes; or

B. The real property was acquired under a tax foreclosure in which case the Council, by resolution, may reduce the minimum acceptable offer to an amount not less than the sum of all back taxes, penalties and interest due or which would have been due if the property had remained in private ownership up to the date of sale, plus all cost of foreclosure, sale, and development incurred by the City; or

C. The interest being disposed of is an interest in tide or submerged land and the disposal is made in accordance with the City Manager’s regulations governing disposal of tidelands. [Ord. 508-06 § 3, 2006].

3.36.180 Conditions of sale.

If the interest of the City in any real property is being disposed of through public bidding, the Council in the resolution or ordinance authorizing the disposal shall set forth the terms and conditions of the disposal. The Council may reserve the right to reject any and all bids received if the highest bid is below the appraised value and costs of sale or is not made by a responsible bidder. The City Council shall approve any purchase agreement prior to its execution by the City. The approval of any disposal through public bidding authorizes the City Manager to take all steps and execute all instruments to complete the disposal. [Ord. 508-06 § 3, 2006].

3.36.190 Sale or lease to benefit City function.

Notwithstanding requirements of this title relating to terms, conditions, procedures or other requirements for the sale, lease or other disposal of City real property or an interest therein, including the financing of such sales, upon a determination by the Council that a particular use or class of uses of a parcel would benefit or complement a municipal function, the Council may, by resolution, authorize a disposal of municipal real property by negotiation or other means the Council determines will be in the interest of the City. The resolution must include:

A. Reference to this section;

B. The identity of the property to be disposed of;

C. The municipal function that will be benefited or complemented;

D. The use or class of uses to which the parcel or parcels may be put that will benefit or complement the municipal function;

E. The procedures for the disposal of the parcel or parcels;

F. The minimum terms of the disposal, if any; and

G. Other terms or conditions as may be appropriate.

The actual terms of a sale, lease or other disposal of real property under this section must be approved by the Council before the disposal may become effective. [Ord. 508-06 § 3, 2006].

3.36.200 Reservation of easements and rights-of-way.

The City may reserve any easement and right-of-way to be used for public improvements and purposes before selling or disposing of City-owned real property. A lease of tide and submerged lands shall include such reservation of rights-of-way as are necessary to provide reasonable access to public waters. [Ord. 508-06 § 3, 2006].

3.36.210 Tax foreclosure land.

Real property acquired by tax foreclosure may be disposed of in the manner provided in AS 29.45.290 through 29.45.500. [Ord. 508-06 § 3, 2006].

Article III. Lease of City Lands

3.36.310 Property available for leasing.

All property, including tide and submerged lands, which the City owns, or in which the City has right, title and interest, or to which the City may become entitled, may be leased by the City as provided in this chapter. The term “property” as used in this chapter includes any and all interests in real property. [Ord. 508-06 § 3, 2006].

3.36.320 Terms of lease.

A. Unless otherwise provided in this chapter, the City Council shall approve the lease of any interest in real property by resolution. No lease shall be for a term of more than 20 years unless the City Council determines from the purpose of the lease or the nature of improvements which may be placed thereon that a longer term would benefit the City. Any renewal period or option to renew the lease period shall be included in the term of the lease in computing the 20-year period of time.

B. The City Manager may, with prior notification of the City Council, issue a “use permit” or “license” for use of City land, not to exceed 180 days. Such use permits or licenses may or may not be for consideration. [Ord. 508-06 § 3, 2006].

3.36.330 Adjustment of rental.

A lease having a term of more than five years shall provide for adjustment of rentals at specified intervals during the term of lease, and the intervals shall be every five years unless the lease provides for a longer interval, not to exceed 10 years. [Ord. 508-06 § 3, 2006].

3.36.340 Transfer of lessee’s interest.

A lease shall provide that a lessee may sublease or assign the lease only upon approval in writing by the City. [Ord. 508-06 § 3, 2006].

3.36.350 Renewal of lease.

The renewal or extension of an existing lease shall be considered a new lease and subject to all provisions of this chapter then in effect, provided however, a renewal or extension of an existing lease shall not require a new appraisal. [Ord. 508-06 § 3, 2006].

3.36.360 Improvements and chattels.

A lease shall provide terms and conditions for the removal or reversion of leasehold improvements or chattels after the termination of the lease. [Ord. 508-06 § 3, 2006].

3.36.370 Inspection of lease property.

A lease shall provide that a lessee shall allow an authorized representative of the City to enter the lease property for inspection at any reasonable time. [Ord. 508-06 § 3, 2006].

3.36.380 Condemnation of property – Lease termination.

Upon condemnation of the lease property or any part thereof by the State or Federal government or an agency thereof, including inverse condemnation, the lease shall terminate without any liability to the City. [Ord. 508-06 § 3, 2006].

3.36.390 Rejection of bids.

Before the signing of a formal lease, the City may reject all bids for such a lease when the best interests of the City justify this action. [Ord. 508-06 § 3, 2006].

Article IV. Disposal of City-Owned Personal Property

3.36.410 Disposal of personal property.

A. Personal property no longer needed for municipal purposes shall be disposed of in one or more than one of the following manners:

1. By public outcry auction to the highest bidder;

2. By public sealed bid auction to the highest bidder;

3. To the best qualified proposal who responds to a request for proposal to acquire the property;

4. To an educational, religious, charitable or nonprofit association or corporation providing service to residents of Whittier; or

5. To the United States, the State of Alaska or an Alaska municipal corporation or any agency or department thereof.

B. The City Council shall, by resolution, determine which method or methods specified in this section shall be used to dispose of personal property valued at less than $25,000.

C. The City Council shall, by ordinance, determine which method or methods specified in this section shall be used for disposal of personal property valued at more than $25,000.

D. Personal property not disposed of by the preceding options will be held for future disposal, or if deemed appropriate, taken to the landfill. [Ord. 508-06 § 3, 2006].