The Kenai City Council approved a public outcry auction during its meeting on Wednesday, Sep. 18, for 11 city-owned properties. The properties are intended for residential use and have access to improved streets, have water and sewer utility access or are of adequate size for onsite water and wastewater systems, and come with a residential zoning designation.
According to the ordinance documentation, “to expedite and facilitate the sale, the City Manager is authorized to accept terms for sales and may accept a note secured by a deed of trust for a portion of the purchase price.”
Proposed terms for the purchase of the properties include a 15% down payment, a fixed interest rate of prime plus 2%, and a maximum term of 10 years.
The properties going up for sale are:
1. KPB Parcel 06361018, Lot 3, Block 2, Salty Dog Heights Subdivision Part 1
2. KPB Parcel 04521047, Lot 6, Doyle Subdivision
3. KPB Parcel 04513025, Lot 2, Bloc 1, Kaknu Korners Subdivision
4. KPB Parcel 04317003, Government Lot 128 T6N R11W Sec 31
5. KPB Parcel 04310039, Lot 1, Block 3, Evergreen Subdivision Kim Addition
6. KPB Parcel 03910109, Lot 2, Block 7, Mommsen’s Subdivision Replat Addition No. 1 & 2
7. KPB Parcel 03910111, Lot 4, Block 7, Mommsen’s Subdivision Replat Addition No. 1 & 2
8. KPB Parcel 03910112, Lot 5, Block 7, Mommsen’s Subdivision Replat Addition No. 1 & 2
9. KPB Parcel 03906309, Lot 9, Block 11, Carl F. Ahlstrom Subdivision
10. KPB Parcel 03906310, Lot 10, Block 11, Carl F. Ahlstrom Subdivision
11. KPB Parcel 03906311, Lot 11, Block 11, Carl F. Ahlstrom Subdivision
Several of the properties listed were put up for auction in 2007 without much success.
“[During] the last land auction we had was in 2007. A fair number of these properties were involved in that auction and didn’t sell at that time,” said Kenai City Manager Terry Eubank. “So you know that means we’ve been sitting on them for 17 years without generating tax revenue or anything as well.”
When the question was raised as to whether or not the properties, if purchased, would be developed or potentially held by purchasers for speculative purposes, Eubank said he believed that, based on demand, they are likely to be developed for residential use as intended.
“We had long conversations about this but I think the chance for speculation on these 11 is relatively low. There’s a lot of demand right now for buildable lots [right now], and there’s been a lot of activity in the city,” said Eubank.
The proposed ordinance outlines a more effective and efficient approach that adheres to the sale methods outlined in the City Lands Code.
According to a memo provided with the ordinance, “By authorizing the sale of these parcels, setting clear sale terms, and providing necessary professional services, the City will promote residential development, facilitate the successful disposal of surplus land, support community development, and uphold its commitment to supporting veterans.”
The properties are also eligible for the City’s veterans discount of 25%.