Kodiak Island Borough Assembly Work Session Thursday, October 13, 2016, 6:30 p.m. Borough Conference Room

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1 Kodiak Island Borough Assembly Work Session Thursday, October 13, 2016, 6:30 p.m. Borough Conference Room Page Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda packet and seek or receive information from staff. Although additional items not listed on the work session agenda are discussed when introduced by the Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal Assembly action are placed on regular Assembly meeting agenda. Citizen s comments at work sessions are NOT considered part of the official record. Citizen s comments intended for the official record should be made at a regular Assembly meeting. 1. CITIZENS COMMENTS (Limited to Three Minutes per Speaker) 2. AGENDA ITEMS 4-16 a. Kodiak Affordable Housing Project Low Income Tax Credit (LIHTC) Project Based On Restricted Rents Presentation Kodiak Affordable Housing Project LIHTC project - Pdf b. Complete Packet Item-Ordinance No. FY Property Disposal Process Discussion of Title 18 Changes - Pdf c. Kodiak Island Borough School District's Request To Schedule Joint Work Sessions, Formation Of a Joint Committee Of Both Bodies, And Discussion Of Other Items Of Interest Of Both Bodies KIBSD Request for meeting schedule Output Document (AS ) - Pdf 3. PACKET REVIEW a. PUBLIC HEARING Ordinance No. FY Rezoning Lot 13, Block 16, Tract A, Larsen Bay Subdivision From R1-Single-Family Residential District To B-Business District (P&Z Case No ). Ordinance No. FY Amending The 2008 Comprehensive Plan By Changing The Future Land Use Designation Of Lot 4, Block 3, Port Lions Subdivision From Public Land To Residential (P&Z Case No ). Ordinance No. FY Rezoning Lot 4, Block 3, Port Lions Visit our website at Page 1 of 41

2 Subdivision From PL-Public Use Lands District To R2-Two- Family Residential District (P&Z Case No ). UNFINISHED BUSINESS Ordinance No. FY Amending Sections of Kodiak Island Borough Code Title 18 Borough Real Property, Chapter Real Property Disposal - In General To Address Certain Methods and Means of Borough Land Disposal Process. Resolution No. FY Adopting A Capital Improvement Projects Priority List For The State Legislative Session. NEW BUSINESS CONTRACTS Contract No. FY G Kodiak Island Borough Legislative Consultant During the 2017 and 2018 Legislative Sessions Contract No. FY B Second Amendment Of KIB Contract FY Expanding the Salvage Timber Sale Area To Include The Chiniak School Site And Providing For Alternative Harvest Standards. RESOLUTIONS Resolution No. FY Ratifying And Certifying The Results Of The Municipal Election Held On October 4, Resolution No. FY Authorizing The Assessor To Assess The Kodiak Affordable Housing Project Low Income Tax Credit (LIHTC Project Based On Restricted Rents OTHER ITEMS Declaring A Seat On The Assembly Vacant (Assembly Member Dan Rohrer). Presentation To Outgoing Assembly Members. Presentation To Outgoing Mayor. Administration of Oath of Office to Newly Elected Officials. EXECUTIVE SESSION Attorney Client Privileged Communications To Obtain Legal Advice Regarding An Ongoing Investigation By The Alaska Department of Labor, Occupational Safety And Health Section. Matters Involving Negotiations With The IBEW. Borough Manager's Evaluation Approval Of The Scoping Comments Letter For The EIS On The GTBM Action To Be Sent To The Sustainable Fisheries Division, Alaska Region NMFS. 4. MANAGER S COMMENTS 5. CLERK S COMMENTS Visit our website at Page 2 of 41

3 6. MAYOR S COMMENTS 7. ASSEMBLY MEMBERS COMMENTS Visit our website at Page 3 of 41

4 AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH AGENDA STATEMENT OCTOBER 13, 2016 ASSEMBLY WORK SESSION TITLE: Kodiak Affordable Housing Project Low Income Tax Credit (LIHTC) Project Based On Restricted Rents Presentation ORIGINATOR: Bill Roberts FISCAL IMPACT: Yes 21, FUNDS AVAILABLE: Account Number: Amount Budgeted: SUMMARY STATEMENT: This is to discuss a resolution that was requested by the Borough Assessor and the mayor which proposes an exception in assessment valuation of the Kodiak Affordable Housing Project LIHTC project. The assessment exception will cause the valuation of a Kodiak Affordable housing project to be based on restricted rents and not market value. The owners of the project are in the process of applying for LIHTC funding from AHFC and are seeking approval of this valuation exception before tax credits are awarded. A resolution will be presented on Thursday, October 20 regular meeting which would approve the tax exception for this project. PURPOSE, ACTION, OR RECOMMENDED MOTION: Presentation from John Legrue of Intrepid, LLC. Kodiak Island Borough Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 4 of 41

5 AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH 2016 LOW INCOME HOUSING TAX CREDIT REQUEST FOR ENTITLEMENT DETERMINATION AS Alaska Statute provides that an owner of property that qualifies for a low income housing credit under 26 U.S.C. may be entitled to an assessed valuation based on actual income derived from the property, exclusive of the tax credits. Application shall be made to the assessor before May 15 of each year in which the exception from full and true value determination is desired. The Assembly will approve or disapprove of the exception by Borough Resolution. Applicant Name: Swell, LLC AJ>olicant Title: Project Name: Kodiak Affordable Housina Project Legal Description(s): Lot 2A 1, Block 1, Allman Addition, plat #87-38, Kodiak Recording District Mailing Address: 1113 West Fireweed Lane, #202, Anchorage, Alaska Telephone (davtime):907 2n 2663 Fax: glenn.gellert@amail.com Qualification Information: Check the box next to the document (s) that you have included as support for your application. D Reservation Document D Carry-Over Document D l.r.s Form # Certification of End of Project D No Documentation Available: Explain below We are in the process of applying for LIHTC funding from AHFC. AHFC would like to know how the Borough of Kodiak will value this project before they award tax credits because it has a significant impact on the proforma operating statement and the amount of debt that the property can carry. Please see the attached operating statements showing the impact of the tax valuation options. Based on the information provided, the Assessor will determine eligibility for this entitlement. Additional income information will be request if entitlement is granted. - D Project meets entitlement requirements. D Project does not meet entitlement requirements. C:\Users\Public\Documents\Glenn\2016 Docs and Spreadsheets\Kodiak\Kodiak LIHTC tax application.docx Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 5 of 41

6 AGENDA ITEM #2.a. ' GOAL 2008: Section IV. M 4. V' kc, t- ~ r c4-> ~s ytv\ t,a.. 4-,, ---- PROJECT INCOME AND EXPrNsE DATA (PRO-FORMA STATEMENT) Enter the number of units and the monthly rent per unit.., Kodiak Rental Income: #of Units Mo.Rent Annual Revenue Efficiency Units: Market Rate units 0 $0.00 $ % of median (LIHTC, HOME) 0 $0.00 $0.00 Units@50% of median (LIHTC, HOME,' MF/SN/CL) 0 $0.00 $0.00 Units@30% of median (LIHTC, HOME) 0 $0.00 $0.00 Total (Efficiency Units) 0 $0.00 One Bedroom Units: Market Rate units 0 $ $0.00 Units@ 60% of median (LIHTC, HOME) 0 $ $0.00 Units@50% of median (LIHTC, HOME, MF/SN/CL) 0 $ $0.00 Units@30% of median (LIHTC, HOME) 0 $ $0.00 ITotal (One Bedroom Units) 0 $0.00 Two Bedroom Units: Market Rate units 3 $1, $43, of median (LIHTC, HOME) 0 $ $0.00 Units@50% of median (LIHTC, HOME, MF/SN/CL) 13 $ $125, % of median (LIHTC, HOME) 0 $ $0.00!Total (Two Bedroom Units) 16 $ Three Bedroom Units: Market Rate units 1 $1, $18, Units@60% of median (LIHTC, HOME) 0 $1, $0.00 Units@50% of median (LIHTC, HOME, MF/SN/CL) 3 $ $33, Units@ 30% of median (LIHTC, HOME) 0 $ $0.00 ITotal (Three Bedroom Units) 4 $51, Four Bedroom Units: Market Rate units 0 $0.00 $0.00 Units@60% of median (LIHTC, HOME) 0 $0.00 $0.00 Units@50% of median (LIHTC, HOME, MF/SN/CL) 0 $0.00 $ % of median (LIHTC, HOME) 0 $0.00 ITotal (Four Bedroom Units) 0 $0.00 Five Bedroom Units: Market Rate units 0 $0.00 $ % of median (LIHTC, HOME) 0 $0.00 $0.00 Units@50% of median (LIHTC, HOME, MF/SN/CL) 0 $0.00 $0.00 Units@30% of median (LIHTC, HOME) 0 $0.00 $0.00 Total (Five Bedroom Units) 0 $0.00 Total Number of Units 20 Laundrv Income at Full Occuoancv 20 $0.00 $0.00 Other Income ( soecifv source & calculation method): $0.00 TOT AL Annual Rental and Laundrv Income $219,960 Less Vacancv & Uncollectible Rent <use 7% minimum) 7.00% $ EFRErTTVF. GROSS INrOME l~?n.t A::.-;:2Jm E nter t h e annua l overatmft exvenses Operating Expenses: Annual Utilities (attach calculation method, i.e., monthly cost per unit type for each of the following): Expenses Electric $ Natural Gas or Oil $0.00 Water and Sewer $ Garba!!:e Removal (attach auote from annlicable collection service) $ Prooertv Insurance (attach insurance ouote from insurance carrier) $ Prooertv Taxes: ~ - Estimated Prooertv Value \ lq:') 'i00,000 ~ A X Area Mil Rate 1.28% v C- KodiakGOALmarketassess.xls Proforma-Loan Amounts 10/3/2016 Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 6 of 41

7 AGENDA ITEM #2.a. GOAL 2008: Section IV Annual Prooertv Taxes $31.875!Annual Routine Maintenance/Repairs $ % of Effective Gross Income (EGI) 11.00% On-Site Mana1!ement: Monthly Salary + Benefits $0.00 $0.00 Monthlv Rental Char!!e Abatement $0.00 $0.00 Total Annual On-Site Manag:ement Exnense $ Annual Professional Property Management Expense $ % of Effective Gross Income <EGn 6.01% Annual Administration Exnense $ % of Effective Gross Income <EGI) 2.44% Tenant Services (if annlicable detail below): 0 TS Type: $0.00 TS Tvoe: $0.00 AHFC Audit Fee $0.00 Other (Soecifv): Audit/Le!!al Fees $ Other (Soecifv): Land Lease $1.00 Annual Per Unit Reserve Expense (Use $300 per unit minirnium) $ Total Annual Reolacement Reserve Exoense $6.000 TOT AL OPERA TING EXPENSES AND RESERVES $ NRT OPERATING I;;.. 11ME leffectivll' C.ross ln""mll' les1: Oner11tina Exnenses & R-ervP1: '1:51 8R7 DEBT SERVICE:!Debt Coverage Ratio on First 1.40 Amount Available for debt Service (Net Operating Income Divided by Debt Coverage Ratio) $37,0~ 1st Deed of Trust (AHFC) Loan Amount Enter Term of Loan (in months) ~..mu Enter Interest Rate (input as 7.625%, for example) 5.38%!Annual 1st DOT Debt Service Exoense $ Cash Flow After First Deed of Trust $ nd Deed of Trust (JEDC Soft 2nd Loan) Loan Amount (If 2nd Deed of Trust not needed enter zero in Cell D93) $0.00 Enter Term of Loan (in years) 0 Enter Interest Rate 3.00% Annual 2nd DOT Debt Service Exnense $0.00 Debt Coverae:e Ratio on 1st and 2nd rd Deed of Trust Solar Lease Loan Amount $0.00 Enter Term of Loan (in months) 0 Enter Interest Rate (input as 7.625%, for example) 5.00% Annual 3rd DOT Debt Service Exoense 1.40 $0.00 4rd Deed of Trust Loan Amount $0.00 Enter Term of Loan (in months) 30 Enter Interest Rate (input as 7.625%, for example) 1.00%!Annual 4th DOT Debt Service Exoense $0.00 ( ~551, PROJECT CASH FLOW (Net Operating Income less Debt Service) 1$14, I -~!Maximum Amount of Debt Capacity 11$551, KodiakGOALmarketassess.xls Proforma-Loan Amounts 10/3/2016 Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 7 of 41

8 AGENDA ITEM #2.a. GOAL 2008: Section IV SOURCES OF FUNDS TABLE DO NOT ENTER DATA INTO SHADED AREAS 0 Commitment Federal Received Funds* Source Yes No Yes No Owner/Sponsor Cash Owner/Sponsor Land Contribution HOME Funds - State Portion HOME Funds - Federal Portion x x Other Grant Funds (specify): Rasmuson x x Energy Credit x x Service Coordinator Donation Value of Donated Labor LIHTC Sale Proceeds Anticipated x x 1st Deed of Trust (source: AHFC ) x x 2nd Deed of Trust (source: JEDC ) x x 3rd Deed of Trust (source: ) x x 4th Deed of Trust (source: ) Other (specify): TOTAL SOURCES OF FUNDS *Use of federal funds for tax credit deals may reduce the total amount of tax credit available to the project. Amount($) Kodiak $0.0 $0.0 $0.0 $0.00 $300,000.0 $50,000 $0.0 $0.0 $6,189,276.3 $551,546.2 $0.0 $0.0 $0.0 $0.0 $7, Do the Sources of Funds Equal the Total Development Cost? If No, how much is the difference? Which is larger? Total Development Cost fv.j1~~ ~ C< P KodiakGOALmarketassess.xls Sources of Funds 10/3/2016 Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 8 of 41

9 AGENDA ITEM #2.a. GOAL 2ooa: section 1v l I rf Tl fa )c A-s kc;s ~ f- c:::.project INCOME AND EXPENSE DATA (PRO-FORMA STATEMENT) Enter the number of units and the monthly rent per unit Kodiak Rental Income: #of Units Mo. Rent Annual Revenue Efficiency Units: Market Rate units 0 $0.00 $ % of median (LIBTC, HOME) 0 $0.00 $0.00 Units@ 50% of median (LIBTC, HOME, MF/SN/CL) 0 $0.00 $ % of median (LIBTC, HOME) 0 $0.00 $0.00 Total (Efficiency Units) 0 $0.00 One Bedroom Units: Market Rate units 0 $ $ % of median (LIBTC, HOME) 0 $ $ % of median (LIBTC, HOME, MF/SN/CL) 0 $ $ % of median (LIBTC, HOME) 0 $ $0.00 Total (One Bedroom Units) 0 $0.00 Two Bedroom Units: Market Rate units 3 $1, $43, % of median (LIBTC, HOME) 0 $ $ % of median (LIBTC, HOME, MF/SN/CL) 13 $ $125, % of median (LIBTC, HOME) 0 $ $0.00 Total (Two Bedroom Units) 16 $ Three Bedroom Units: Market Rate units 1 $1, $18, % of median (LIBTC, HOME) 0 $1, $ % of median (LIBTC, HOME, MF/SN/CL) 3 $ $33, % of median (LIBTC, HOME) 0 $ $0.00 Total (Three Bedroom Units) 4 $ Four Bedroom Units: Market Rate units 0 $0.00 $ % of median (LIBTC, HOME) 0 $0.00 $ % of median (UHTC, HOME, MF/SN/CL) 0 $0.00 $ % of median q_,ibtc, HOME) 0 $0.00 Total (Four Bedroom Units) 0 $0.00 Five Bedroom Units: Market Rate units 0 $0.00 $ % of median (LIBTC, HOME) 0 $0.00 $ % of median (LIHTC, HOME, MF/SN/CL) 0 $0.00 $ % of median (LIHTC, HOME) 0 $0.00 $0.00 Total (Five Bedroom Units) 0 $0.00 Total Number of Units 20 Laundrv Income at Full Occupancy 20 $0.00 $0.00 Other Income ( soecifv source & calculation method): $0.00 TOT AL Annual Rental and Laundrv Income $ Less Vacancy & Uncollectible Rent (use 7% minimum) 7.00% $ li'ff1"1 11v~~ GRO~~ INf'OME C?IU. Ct;;') RI\ Et n er th e annua I overa 1m! exvenses Operating Expenses: Annual Utilities (attach calculation method, i.e., monthly cost per unit type for each of the following): Expenses Electric $ Natural Gas or Oil $0.00 Water and Sewer $ Garbage Removal (attach Quote from aoolicable collection service) $ Prooertv Insurance (attach insurance auote from insurance carrier) $ Prooertv Truces: 1 Estimated Prooertv Value {,...-- $800-:000/ \"-. X Area Mil Rate r.zl)/ o ~ ) V&. LtH.- KodiakGOALHOME xls Proforma-Loan Amounts s Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 9 of 41

10 AGENDA ITEM #2.a. ' GOAL 2008: Section IV Annual Property Taxes $ Annual Routine Maintenance/Repairs $ % of Effective Gross Income (EGI) 11.00% On-Site Management: Monthly Salary + Benefits $0.00 $0.00 Monthlv Rental Charn:e Abatement $0.00 $0.00 Total Annual On-Site Management Exnense $ Annual Professional Property Management Expense $ % of Effective Gross Income <EGD 6.01% Annual Administration Exoense $ % of Effective Gross Income <EGI) 2.44% Tenant Services (if annlicable detail below): 0 TS Tvoe: $0.00 TS Tvoe: $0.00 AHFC Audit Fee $0.00 Other (Soecifv): Audit/Le1ml Fees $ Other (Soecifv): Land Lease $1.00 Annual Per Unit Reserve Exoense <Use $300 ner unit minimium) $ Total Annual Replacement Reserve Exoense $6.000 TOT AL OPERA TING EXPENSES AND RESERVES $ NET OPll'R A. TING INrOME feffedive C.roso; IncomP less Oneratino Exn"nS"'S & Reserves '1\73 56? DEBT SERVICE:!Debt Coverage Ratio on First 1.40 Amount Available for debt Service (Net Operating Income Divided by Debt Coverage Ratio) $52, st Deed of Trust (AHFC) Loan Amount ~7.05 Enter Term of Loan (in months) Enter Interest Rate (input as 7.625%, for example) 5.38% Annual 1st DOT Debt Service Exnense $ Cash Flow After First Deed of Trust $ ~nd Deed of Trust (JEDC Soft 2nd Loan) Loan Amount (If 2nd Deed of Trust not needed enter zero in Cell D93) $0.00 Enter Term of Loan (in years) 0 Enter Interest Rate 3.00% Annual 2nd DOT Debt Service Exoense $0.00 Debt Coveral!e Ratio on 1st and 2nd rd Deed of Trust Solar Lease Loan Amount $0.00 Enter Term of Loan (in months) 0 Enter Interest Rate (input as 7.625%, for example) 5.00%!Annual 3rd DOT Debt Service Exoense 1.40 $0.00 4rd Deed of Trust Loan Amount $0.00 Enter Term of Loan (in months) 30 Enter Interest Rate (input as 7.625%, for example) 1.00% Annual 4th DOT Debt Service Exoense $0.00 PROJECT CASH FLOW (Net Operating Income less Debt Service) 1$21, I i'... lj aximum Amount of Debt Capacity 1$781, KodiakGOALHOME xls Proforma-Loan Amounts 10/3/2016 Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 10 of 41

11 AGENDA ITEM #2.a. GOAL 2008: Section IV SOURCES OF FUNDS TABLE [DO NOT ENTER DATA INTO SHADED AREAS 0 Commitment Federal Received Funds* Source Yes No Yes No Owner/Sponsor Cash Owner/Sponsor Land Contribution HOME Funds - State Portion HOME Funds - Federal Portion x x Other Grant Funds (specify): Rasmuson x x Energy Credit x x Service Coordinator Donation Value of Donated Labor LIHTC Sale Proceeds Anticipated 1st Deed of Trust (source: AHFC ) x x x x 2nd Deed of Trust (source: JEDC ) x x 3rd Deed of Trust (source: ) x x 4th Deed of Trust (source: ) Other (specify): TOTAL SOURCES OF FUNDS *Use of federal funds for tax credit deals may reduce the total amount of tax credit available to the project. Amount($) Kodiak $0.0 $0.0 $0.0 $0.00 $300,000.0 $50,000 $0.0 $0.0 $6,188,395.9 $781,947.0 $0.0 $0.0 $0.0 $0.0 $7,320,342.9 Do the Sources of Funds Equal the Total Development Cost? YES If No, how much is the difference? Which is larger? KodiakGOALHOME xls Sources of Funds 10/3/2016 Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 11 of 41

12 AGENDA ITEM #2.a Method of determining the assessed value of property that qualifies for a low-income housing tax credit under 26 USC 42. A. In accordance with AS (d)(1), the full and true value of all property within the Kodiak Island Borough that first qualifies for low-income housing tax credit under 26 USC 42 before January 1, 2001, shall be based on the actual income derived from the property and may not be adjusted based on the amount of any federal income tax credit for the property. B. Pursuant to AS (d)(2), the full and true value of all property within the Kodiak Island Borough that first qualifies for a low-income housing credit under 26 USC 42 on or after January 1, 2001, shall be exempt from the requirement that the value be based on the actual income derived from the property. For property that first qualifies for a low-income housing credit under 26 USC 42 on or after January 1, 2001, the assembly may determine, by parcel, whether the property shall be assessed based on AS (a) or on the basis of actual income derived from the property without adjustment based on the amount of any federal income tax credit given for the property. Once the manner of assessment of the property has been determined under this subsection, the assembly may not change the manner of assessment of that parcel of property if debt relating to the property incurred in conjunction with the property qualifying for the low-income housing tax credit remains outstanding. C. To secure an assessment based upon the actual income derived from the property under this section, an owner of property that qualifies for the low-income housing tax credit under 26 USC 42 shall apply to the assessor before May 15th of each year in which the assessment is desired. The property owner shall submit an application on forms prescribed by the assessor and shall include information that may reasonably be required by the assessor to determine the entitlement of the applicant and to assess the property under this subsection. All such applications shall be forwarded to the assembly for determination, by resolution, of the manner of assessment. [Ord. FY , 2014; Ord. FY , 2012]. Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 12 of 41

13 AGENDA ITEM #2.a KODIAK ISLAND BOROUGH 7 RESOLUTION NO. FY 200X-XX 8 Introduced by: Borough Assessor Requested by: Borough Assessor Drafted by: Borough Assessor Introduced on: 10/13/2016 Adopted on: 9 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 10 AUTHORIZING THE ASSESSOR TO ASSESS THE KODIAK AFFORDABLE HOUSING 11 PROJECT LOW INCOME TAX CREDIT (LIHTC) PROJECT BASED ON RESTRICTED 12 RENTS WHEREAS, The Kodiak Island Borough is in dire need for affordable housing, and WHEREAS, The Kodiak Island Borough Assembly has made it a priority to encourage 17 construction of affordable housing, and WHEREAS, AS (d), requires the borough assembly to determine by ordinance, 20 whether the projects that qualify after January 1, 2001 shall be assessed based on actual 21 income from restricted rents derived from the property; and WHEREAS, if the assembly determines that such property is exempt from the requirement 24 that the assessment be based on restricted rents, it can by parcel authorize the Borough 25 Assessor to assess the projects at either full and true value or based on actual income derived 26 from the property; and WHEREAS, the assembly passed Ordinance No. FY on May 3, 2012 stating that all 29 such applications shall be forwarded to the assembly by resolution for a determination of the 30 assessment manner; and WHEREAS, the owner of the Kodiak Affordable Housing Project has applied for assembly 33 consideration on the method of valuation; and WHEREAS, the owner has filed a timely application by May 15, 2017 with the Assessor and 36 the project is being considered by Alaska Housing Finance Corporation to be a low-income 37 housing tax credit project under U.S.C. 42 qualifying after January 1, 2001; and WHEREAS, following are the values that would be attributed to the property using the two 40 different value techniques: FULL AND TRUE VALUE 2017 RESTRICTED RENT VALUE $ 2,500,000 $ 800, WHEREAS, that in accordance with AS (D), the Kodiak Island Borough Assembly 47 finds that valuing this project based on the actual income derived from the property best serves 48 the interests of the borough by potentially increasing the affordability and availability of low 49 income housing. 50 Kodiak Island Borough Resolution No. FY200X-XX Page 1 of 3 Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 13 of 41

14 AGENDA ITEM #2.a. 51 NOW, THEREFORE BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND 52 BOROUGH that the assembly authorizes the assessor to value the Kodiak Affordable Housing 53 Project based on the actual income derived from the property without adjustment based on the 54 amount of any federal tax credit given the property. This resolution will become effective upon 55 approval by Alaska Housing Finance Corporation for the project as a low-income housing tax 56 credit project under U.S.C Kodiak Island Borough Resolution No. FY200X-XX Page 2 of 3 Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 14 of 41

15 AGENDA ITEM #2.a. 59 BE IT FURTHER RESOLVED that this resolution takes effect immediately upon enactment ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 62 THIS DAY OF 200X KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor ATTEST: Nova M. Javier, MMC, Borough Clerk X Kodiak Island Borough Resolution No. FY200X-XX Page 3 of 3 Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 15 of 41

16 AGENDA ITEM #2.a. Presentation Outline 1.) Introduce Swell and its Projects (show pics) a.) 20 years of housing development experience b.) 1,000 affordable housing units developed throughout the state. c.) Largest affordable housing developer in state 2.) Need for affordable housing in Kodiak a.) Overall vacancy rate.5% b.) No new affordable housing in Kodiak in many years (Fir Terrace was a remodel) c.) 30 person waiting list at Fir Terrace d.) Rents climbing in Kodiak, pricing many out of the market 3.) Our Proposal a.) 20 units of 2 and 3 bedroom units primarily catering to those making 50% or less of median income. b.) Rents: 2 beds : $700 to $775 (market rate $1,100), 3 beds $800 to $1,000 (market rate $1,400). c.) Construction budget over $5 million. Construction jobs created including an apprenticeship program. Ongoing property management work also created. d.) Use LIHTC to cover the gap between development costs and debt carrying capacity. This is how apartments are built today. Without LIHTC s apartment construction is not feasible. e.) What are LIHTC s? A public private partnership. IRS thru AHFC provides tax credits in an annual funding competition. The winners, 4 out of 16 applicants, sell the tax credits to banks. The proceeds from the sale are used to pay a large part of the cost to develop. Investor becomes a partner in the development for 15 years. 4.) How are LIHTC projects different than Market rate projects? a.) Rents restricted b.) Development costs are subsidized c.) Close AHFC and IRS oversite with additional audit and management fees if an ineligible tenant occupies the property, the tax credits can be pulled by the IRS d.) Limited resale possibilities during the compliance period. 5.) Property Tax Valuation a.) State statute b.) State statute is followed in all jurisdictions that we work in. 6.) Why is State LIHTC property tax treatment needed? a.) Without income valuation approach, project has a $200K funding gap and loses 4 points in the AHFC funding competition. The project can only carry $550K in debt versus $760K if the state statute is followed. 7.) How is this LIHTC project different than Fir Terrace? a.) This is new housing and not a remodel of an existing project b.) Fir Terrace is a USDA project with several additional subsidies. 1.) debt 1% with 50 year amortization 2.) operating subsidy the USDA requires that units be rented to tenants making 50% of median income. The tenants pay 30% of their income for rent, after that the USDA covers all operating expenses, mortgage pmts, and reserve payments. Landlords get an 8% dividend on their equity c.) Our project only receives a development subsidy. All operating risks are carried by the owner, just like if the project were a market rate project. d.) We get the same loan terms as any AHFC multi family borrower 5.38% for 30 years Kodiak Affordable Housing Project Low Income Tax Credit (LIH... Page 16 of 41

17 AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH AGENDA STATEMENT OCTOBER 20, 2016 ASSEMBLY REGULAR MEETING TITLE: Ordinance No. FY Amending Sections of Kodiak Island Borough Code Title 18 Borough Real Property, Chapter Real Property Disposal - In General To Address Certain Methods and Means of Borough Land Disposal Process. ORIGINATOR: Duane Dvorak FISCAL IMPACT: No FUNDS AVAILABLE: No Account Number: Amount Budgeted: SUMMARY STATEMENT: *** public hearing item This ordinance has been recommended to the assembly by the Borough Lands Committee (BLC) in order to address certain matters related to borough land disposal and land sales. The BLC established a subcommittee of its members in order to delve into the various provisions of KIBC Chapter Real Property Disposal - In General. The subcommittee met over the course of several months to consider all provisions of KIBC In the end, the subcommittee recommended a fairly limited range of recommended amendments. This recommendation was subsequently reviewed by the full BLC and forwarded on to the assembly with the committee's recommendation. Staff sought a legal review of the ordinance and the proposed changes were summarized and a version 2 of the ordinance was drafted. Both are attached in the packet. It is recommended that the Assembly amends the original ordinance by substitution. As a result of the August 25 work session a correction was made to increase the rebate percentage from 10% to 25% and is Version 3. On September 1, 2016, the Assembly postponed this Ordinance to the October 20, 2016 meeting. Note: This item was referred by staff to the Borough Lands Committee at its September 14, 2016 regular meeting. The BLC did not wish to make further changes to the recommended amendments. The BLC requested staff return this item to the assembly agenda "as-is". The recommended changes in this ordinance are considered by the BLC as necessary preparation for a spring land sale. The issue of alternative land disposal methods for disposals not by land sale will be addressed at another time after the preparations for a land sale have been completed. PURPOSE, ACTION, OR RECOMMENDED MOTION: The motion to adopt Ordinance No. FY , Version 3 is on the floor. A public hearing was held on September 1. If substantial changes are to be made, the Assembly may want to advance this again to public hearing. Kodiak Island Borough Page 17 of 41

18 AGENDA ITEM #2.b SUBSTITUTED VERSION VERSION 3 Introduced by: Borough Manager Requested by: Lands Committee Drafted by: Resource Manager Introduced: 08/18/2016 Public Hearing: 09/01/2016 Adopted: 6 KODIAK ISLAND BOROUGH 7 ORDINANCE NO. FY AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND 10 BOROUGH AMENDING SECTIONS OF KODIAK ISLAND BOROUGH 11 CODE TITLE 18 BOROUGH REAL PROPERTY, CHAPTER REAL PROPERTY DISPOSAL - IN GENERAL TO ADDRESS 13 CERTAIN METHODS AND MEANS OF BOROUGH LAND DISPOSAL 14 PROCESS WHEREAS, the Kodiak Island Borough Lands Committee has created a subcommittee 17 to consider potential changes to the land disposal process in order to prepare for a future 18 land sale; and WHEREAS, the subcommittee, after several meetings, has narrowed down a limited and 21 focused number of recommended amendments to KIBC Real Property Disposal In 22 General; and WHEREAS, the full Borough Lands Committee has received the recommendation of the 25 subcommittee and now has added its own recommendation of the full Committee in 26 forwarding this ordinance to the Kodiak Island Borough Assembly; and, NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 29 BOROUGH that: Section 1: This ordinance is of a general and permanent nature and shall be codified Section 2: The following sections of KIBC are hereby amended as indicated Election required The sale, lease or other permanent disposal of borough land valued at $250, $1,000,000 or more per parcel to any single individual, partnership or corporation by 39 means other than outcry auction shall, in addition to conforming to this title, be subject to 40 approval by ordinance ratified by a majority of the qualified voters voting at a regular or 41 special election at which the question of the ratification of the ordinance is submitted. 42 Notice of the election shall be given in accordance with KIBC Title Qualifications of applicants and bidders. 45 A. An applicant or bidder for a disposal of borough land is qualified if the applicant or 46 bidder is: 47 Kodiak Island Borough, Alaska Ordinance No. FY Page 1 of 2 Page 18 of 41

19 AGENDA ITEM #2.b A. A citizen of the United States or has filed a declaration of intention to 49 become a citizen, and is 18 years of age or over; B. A group, association, or corporation which is authorized to conduct business 51 under the laws of Alaska; or C. Acting as an agent for a person qualified under subsection A or B of this 53 section and has filed with the manager or designee, prior to the time set for the 54 disposal, a proper power of attorney or a letter of authorization creating such 55 agency. The agency shall represent only one principal, to the exclusion of 56 himself. 57 B. An applicant or bidder for a disposal of borough land is not qualified if the 58 applicant or bidder is currently in default on the payment of any amounts 59 owed to the borough Disposal for fair market value A. Except as otherwise provided by this title or another provision of law, all disposal of 64 borough land shall be for the fair market value of the interest disposed of. The 65 borough may accept in exchange for borough land any consideration of sufficient 66 value not prohibited by law. 67 B. The borough may dispose of borough land to the United States, the state of 68 Alaska, or any political subdivision thereof, or a nonprofit corporation or 69 association, for less than the fair market value of the interest disposed of, upon a 70 finding by the assembly that the disposal will allow the use of the land for a public 71 purpose beneficial to the borough. It may do so by direct negotiation with the 72 organization acquiring the land, without conforming to KIBC through , unless otherwise directed by the assembly. 74 C. Notwithstanding the other requirements of this section, the assembly may 75 auhorize a 10 up to a 25 percent rebate of the purchase price for land so long 76 as, within 36 months of the sale date, the purchaser has constructed a 77 residential dwelling upon the property, and has obtained all legal 78 authorization required to occupy it ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 81 THIS DAY OF KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor 88 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY Page 2 of 2 Page 19 of 41

20 AGENDA ITEM #2.b. SUMMARY OF CHANGES FROM THE ORIGINAL VERSION (INTRODUCED ORDINANCE) TO THE PROPOSED SUBSTITUTED VERSION (VERSION 2) Lines 56 to 58 of the original version ORIGINAL LANGUAGE A. An applicant or bidder for a disposal of borough land is not qualified if the applicant or bidder is currently in breach or default on any contract, lease, deposit, or payment in which the borough has an interest. The change below would amend the provision in such a way that it applies only to those instances in which a prospective purchaser is currently in default on any payment owed to the Borough. NEW SUBSTITUTED LANGUAGE A. An applicant or bidder for a disposal of borough land is not qualified if the applicant or bidder is currently in default on the payment of any amounts owed to the borough. Lines 60 to 76 of the original version ORIGINAL LANGUAGE The language below was inserted in Section Land disposal method. A. Offer a 10% rebate of the purchase price for land if a residential dwelling is established and legally occupied within 36 months of the land purchase. It appears that the proposed revision should probably be treated as an exception to the Borough s fair market value requirement, and would therefore more properly be located in as a standalone provision. NEW SUBSTITUTED LANGUAGE A. Notwithstanding the other requirements of this section, the assembly may auhorize a 10 percent rebate of the purchase price for land so long as, within 36 months of the sale date, the purchaser has constructed a residential dwelling upon the property, and has obtained all legal authorization required to occupy it. Page 20 of 41

21 AGENDA ITEM #2.b SUBSTITUTED VERSION VERSION 2 Introduced by: Borough Manager Requested by: Lands Committee Drafted by: Resource Manager Introduced: 08/18/2016 Public Hearing: 09/01/2016 Adopted: 6 KODIAK ISLAND BOROUGH 7 ORDINANCE NO. FY AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND 10 BOROUGH AMENDING SECTIONS OF KODIAK ISLAND BOROUGH 11 CODE TITLE 18 BOROUGH REAL PROPERTY, CHAPTER REAL PROPERTY DISPOSAL - IN GENERAL TO ADDRESS 13 CERTAIN METHODS AND MEANS OF BOROUGH LAND DISPOSAL 14 PROCESS WHEREAS, the Kodiak Island Borough Lands Committee has created a subcommittee 17 to consider potential changes to the land disposal process in order to prepare for a future 18 land sale; and WHEREAS, the subcommittee, after several meetings, has narrowed down a limited and 21 focused number of recommended amendments to KIBC Real Property Disposal In 22 General; and WHEREAS, the full Borough Lands Committee has received the recommendation of the 25 subcommittee and now has added its own recommendation of the full Committee in 26 forwarding this ordinance to the Kodiak Island Borough Assembly; and, NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 29 BOROUGH that: Section 1: This ordinance is of a general and permanent nature and shall be codified Section 2: The following sections of KIBC are hereby amended as indicated Election required The sale, lease or other permanent disposal of borough land valued at $250, $1,000,000 or more per parcel to any single individual, partnership or corporation by 39 means other than outcry auction shall, in addition to conforming to this title, be subject to 40 approval by ordinance ratified by a majority of the qualified voters voting at a regular or 41 special election at which the question of the ratification of the ordinance is submitted. 42 Notice of the election shall be given in accordance with KIBC Title Qualifications of applicants and bidders. 45 A. An applicant or bidder for a disposal of borough land is qualified if the applicant or 46 bidder is: 47 Kodiak Island Borough, Alaska Ordinance No. FY Page 1 of 2 Page 21 of 41

22 AGENDA ITEM #2.b A. A citizen of the United States or has filed a declaration of intention to 49 become a citizen, and is 18 years of age or over; B. A group, association, or corporation which is authorized to conduct business 51 under the laws of Alaska; or C. Acting as an agent for a person qualified under subsection A or B of this 53 section and has filed with the manager or designee, prior to the time set for the 54 disposal, a proper power of attorney or a letter of authorization creating such 55 agency. The agency shall represent only one principal, to the exclusion of 56 himself. 57 B. An applicant or bidder for a disposal of borough land is not qualified if the 58 applicant or bidder is currently in default on the payment of any amounts 59 owed to the borough Disposal for fair market value A. Except as otherwise provided by this title or another provision of law, all disposal of 64 borough land shall be for the fair market value of the interest disposed of. The 65 borough may accept in exchange for borough land any consideration of sufficient 66 value not prohibited by law. 67 B. The borough may dispose of borough land to the United States, the state of 68 Alaska, or any political subdivision thereof, or a nonprofit corporation or 69 association, for less than the fair market value of the interest disposed of, upon a 70 finding by the assembly that the disposal will allow the use of the land for a public 71 purpose beneficial to the borough. It may do so by direct negotiation with the 72 organization acquiring the land, without conforming to KIBC through , unless otherwise directed by the assembly. 74 C. Notwithstanding the other requirements of this section, the assembly may 75 auhorize a 10 percent rebate of the purchase price for land so long as, within months of the sale date, the purchaser has constructed a residential 77 dwelling upon the property, and has obtained all legal authorization required 78 to occupy it ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 81 THIS DAY OF KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor 88 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY Page 2 of 2 Page 22 of 41

23 AGENDA ITEM #2.b KODIAK ISLAND BOROUGH ORDINANCE NO. FY AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING SECTIONS OF KODIAK ISLAND BOROUGH CODE TITLE 18 BOROUGH REAL PROPERTY, CHAPTER REAL PROPERTY DISPOSAL - IN GENERAL TO ADDRESS CERTAIN METHODS AND MEANS OF BOROUGH LAND DISPOSAL PROCESS WHEREAS, the Kodiak Island Borough Lands Committee has created a subcommittee to consider potential changes to the land disposal process in order to prepare for a future land sale; and WHEREAS, the subcommittee, after several meetings, has narrowed down a limited and focused number of recommended amendments to KIBC Real Property Disposal In General; and WHEREAS, the full Borough Lands Committee has received the recommendation of the subcommittee and now has added its own recommendation of the full Committee in forwarding this ordinance to the Kodiak Island Borough Assembly; and, NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that: Section 1: Section 2: Election required. Introduced by: Requested by: Drafted by: Borough Manager Borough Lands Committee Resource Management Office Introduced: 08/18/2016 Public Hearing: Adopted: This ordinance is of a general and permanent nature and shall be codified. The following sections of KIBC are hereby amended as indicated. The sale, lease or other permanent disposal of borough land valued at $250,000 $1,000,000 or more per parcel to any single individual, partnership or corporation by means other than outcry auction shall, in addition to conforming to this title, be subject to approval by ordinance ratified by a majority of the qualified voters voting at a regular or special election at which the question of the ratification of the ordinance is submitted. Notice of the election shall be given in accordance with KIBC Title alifications of applicants and bidders. A. An applicant or bidder for a disposal of borough land is qualified if the applicant or bidder is: Kodiak Island Borough, Alaska Ordinance No. FY Page 1 of 2 Page 23 of 41

24 AGENDA ITEM #2.b A. A citizen of the United States or has filed a declaration of intention to become a citizen, and is 18 years of age or over; 2. B. A group, association, or corporation which is authorized to conduct business under the laws of Alaska; or 3. C. Acting as an agent for a person qualified under subsection A or B of this section and has filed with the manager or designee, prior to the time set for the disposal, a proper power of attorney or a letter of authorization creating such agency. The agency shall represent only one principal, to the exclusion of himself. B. An applicant or bidder for a disposal of borough land is not qualified if the applicant or bidder is currently in breach or default on any contract, lease, deposit, or payment in which the borough has an interest Land disposal methods. The assembly may select any of the following disposal methods: A. Where specifically permitted under this title, direct negotiations with interested parties who seek to acquire borough land; B. Invite sealed bids for borough land, specifying the time and place for receiving bids and the minimum acceptable bid; C. Offer borough land for sale at public auction, specifying a minimum acceptable bid; or D. Invite proposals to purchase borough land. The invitation shall specify the basis upon which proposals shall be evaluated, which may include but need not be limited to the proposed acquisition price, the quality of proposed development of land and its benefit to the community, the qualifications and organization of the proposer, the value of the proposed improvements to the land and the rents or resale prices to be charged by the proposer. E. Offer a 10% rebate of the purchase price for land if a residential dwelling is established and legally occupied within 36 months of the land purchase. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY Page 2 of 2 Page 24 of 41

25 In AGENDA ITEM #2.b. Introduced by: Mayor Friend Requested by: Borough Lands Committee Drafted by: RMO Dvorak introduced on: 7/20/16 Adopted on: KODIAK ISLAND BOROUGH LANDS COMMITTEE RESOLUTION NO. FY A RESOLUTION OF THE OF THE KODIAK ISLAND BOROUGH LANDS COMMITTEE RECOMMENDING THE AMENDMENT OF CERTAIN PROVISIONS OF KIBC CHAPTER REAL PROPERTY DISPOSAL IN GENERAL WHEREAS, Kodiak Island Borough Code (KIBC) created the Borough Lands Committee to review all borough lands in order to address a wide range of land issues, including the identification of lands surplus to the borough's need; and WHEREAS, the Committee has established a subcommittee to look at code issues related to the borough land disposal process; and, WHEREAS, the subcommittee, after several meetings, has developed a limited number of recommended changes to KIBC Chapter 18.20, that should it believes should be implemented by the assembly prior to the next land sale; and, WHEREAS, the full Borough Lands Committee hereby recommends the code amendments set forth in the attached draft ordinance that it believes will help refine the land disposal process and provide better tools in the borough land disposal process. NOW, THEREFORE, BE IT RESOLVED BY THE KODIAK ISLAND BOROUGH LANDS COMMITTEE THAT: Section1: The Kodiak Island Borough Lands Committee, in accordance with KIBC Power and Duties, hereby recommends to the Kodiak Island Borough Assembly that the proposed code amendments to KIBC Chapter Real Property Disposal General, as set forth in the attached draft ordinance, should be adopted by the assembly and codified into the borough code. ADOPTED BY THE KODI K ISLAND BOROU THIS 2 0* DAY or fu H LANDS COMMITTEE 2016 Jerrol Friend, Borough Mayor Kodiak Island Borough Lands Committee Resolution No. FY2017-O1 Page 1 of 2 Page 25 of 41

26 AGENDA ITEM #2.b SO W471 Nova M. Javier, MMC, BbroughClerk Kodiak Island Borough Lands Committee Resolution No. FY Page 2 of 2 Page 26 of 41

27 AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH AGENDA STATEMENT OCTOBER 13, 2016 ASSEMBLY WORK SESSION TITLE: ORIGINATOR: Nova Javier FISCAL IMPACT: Account Number: FUNDS AVAILABLE: Amount Budgeted: SUMMARY STATEMENT: The packet item for Ordinance No. FY is attached. This discussion was requested during agenda setting. PURPOSE, ACTION, OR RECOMMENDED MOTION: This is for the Assembly to have discussion on the Title 18 Changes. Kodiak Island Borough Page 27 of 41

28 AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH AGENDA STATEMENT OCTOBER 20, 2016 ASSEMBLY REGULAR MEETING TITLE: Ordinance No. FY Amending Sections of Kodiak Island Borough Code Title 18 Borough Real Property, Chapter Real Property Disposal - In General To Address Certain Methods and Means of Borough Land Disposal Process. ORIGINATOR: Duane Dvorak FISCAL IMPACT: No FUNDS AVAILABLE: No Account Number: Amount Budgeted: SUMMARY STATEMENT: *** public hearing item This ordinance has been recommended to the assembly by the Borough Lands Committee (BLC) in order to address certain matters related to borough land disposal and land sales. The BLC established a subcommittee of its members in order to delve into the various provisions of KIBC Chapter Real Property Disposal - In General. The subcommittee met over the course of several months to consider all provisions of KIBC In the end, the subcommittee recommended a fairly limited range of recommended amendments. This recommendation was subsequently reviewed by the full BLC and forwarded on to the assembly with the committee's recommendation. Staff sought a legal review of the ordinance and the proposed changes were summarized and a version 2 of the ordinance was drafted. Both are attached in the packet. It is recommended that the Assembly amends the original ordinance by substitution. As a result of the August 25 work session a correction was made to increase the rebate percentage from 10% to 25% and is Version 3. On September 1, 2016, the Assembly postponed this Ordinance to the October 20, 2016 meeting. Note: This item was referred by staff to the Borough Lands Committee at its September 14, 2016 regular meeting. The BLC did not wish to make further changes to the recommended amendments. The BLC requested staff return this item to the assembly agenda "as-is". The recommended changes in this ordinance are considered by the BLC as necessary preparation for a spring land sale. The issue of alternative land disposal methods for disposals not by land sale will be addressed at another time after the preparations for a land sale have been completed. PURPOSE, ACTION, OR RECOMMENDED MOTION: The motion to adopt Ordinance No. FY , Version 3 is on the floor. A public hearing was held on September 1. If substantial changes are to be made, the Assembly may want to advance this again to public hearing. Kodiak Island Borough Page 28 of 41

29 AGENDA ITEM #2.b SUBSTITUTED VERSION VERSION 3 Introduced by: Borough Manager Requested by: Lands Committee Drafted by: Resource Manager Introduced: 08/18/2016 Public Hearing: 09/01/2016 Adopted: 6 KODIAK ISLAND BOROUGH 7 ORDINANCE NO. FY AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND 10 BOROUGH AMENDING SECTIONS OF KODIAK ISLAND BOROUGH 11 CODE TITLE 18 BOROUGH REAL PROPERTY, CHAPTER REAL PROPERTY DISPOSAL - IN GENERAL TO ADDRESS 13 CERTAIN METHODS AND MEANS OF BOROUGH LAND DISPOSAL 14 PROCESS WHEREAS, the Kodiak Island Borough Lands Committee has created a subcommittee 17 to consider potential changes to the land disposal process in order to prepare for a future 18 land sale; and WHEREAS, the subcommittee, after several meetings, has narrowed down a limited and 21 focused number of recommended amendments to KIBC Real Property Disposal In 22 General; and WHEREAS, the full Borough Lands Committee has received the recommendation of the 25 subcommittee and now has added its own recommendation of the full Committee in 26 forwarding this ordinance to the Kodiak Island Borough Assembly; and, NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 29 BOROUGH that: Section 1: This ordinance is of a general and permanent nature and shall be codified Section 2: The following sections of KIBC are hereby amended as indicated Election required The sale, lease or other permanent disposal of borough land valued at $250, $1,000,000 or more per parcel to any single individual, partnership or corporation by 39 means other than outcry auction shall, in addition to conforming to this title, be subject to 40 approval by ordinance ratified by a majority of the qualified voters voting at a regular or 41 special election at which the question of the ratification of the ordinance is submitted. 42 Notice of the election shall be given in accordance with KIBC Title Qualifications of applicants and bidders. 45 A. An applicant or bidder for a disposal of borough land is qualified if the applicant or 46 bidder is: 47 Kodiak Island Borough, Alaska Ordinance No. FY Page 1 of 2 Page 29 of 41

30 AGENDA ITEM #2.b A. A citizen of the United States or has filed a declaration of intention to 49 become a citizen, and is 18 years of age or over; B. A group, association, or corporation which is authorized to conduct business 51 under the laws of Alaska; or C. Acting as an agent for a person qualified under subsection A or B of this 53 section and has filed with the manager or designee, prior to the time set for the 54 disposal, a proper power of attorney or a letter of authorization creating such 55 agency. The agency shall represent only one principal, to the exclusion of 56 himself. 57 B. An applicant or bidder for a disposal of borough land is not qualified if the 58 applicant or bidder is currently in default on the payment of any amounts 59 owed to the borough Disposal for fair market value A. Except as otherwise provided by this title or another provision of law, all disposal of 64 borough land shall be for the fair market value of the interest disposed of. The 65 borough may accept in exchange for borough land any consideration of sufficient 66 value not prohibited by law. 67 B. The borough may dispose of borough land to the United States, the state of 68 Alaska, or any political subdivision thereof, or a nonprofit corporation or 69 association, for less than the fair market value of the interest disposed of, upon a 70 finding by the assembly that the disposal will allow the use of the land for a public 71 purpose beneficial to the borough. It may do so by direct negotiation with the 72 organization acquiring the land, without conforming to KIBC through , unless otherwise directed by the assembly. 74 C. Notwithstanding the other requirements of this section, the assembly may 75 auhorize a 10 up to a 25 percent rebate of the purchase price for land so long 76 as, within 36 months of the sale date, the purchaser has constructed a 77 residential dwelling upon the property, and has obtained all legal 78 authorization required to occupy it ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 81 THIS DAY OF KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor 88 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY Page 2 of 2 Page 30 of 41

31 AGENDA ITEM #2.b. SUMMARY OF CHANGES FROM THE ORIGINAL VERSION (INTRODUCED ORDINANCE) TO THE PROPOSED SUBSTITUTED VERSION (VERSION 2) Lines 56 to 58 of the original version ORIGINAL LANGUAGE A. An applicant or bidder for a disposal of borough land is not qualified if the applicant or bidder is currently in breach or default on any contract, lease, deposit, or payment in which the borough has an interest. The change below would amend the provision in such a way that it applies only to those instances in which a prospective purchaser is currently in default on any payment owed to the Borough. NEW SUBSTITUTED LANGUAGE A. An applicant or bidder for a disposal of borough land is not qualified if the applicant or bidder is currently in default on the payment of any amounts owed to the borough. Lines 60 to 76 of the original version ORIGINAL LANGUAGE The language below was inserted in Section Land disposal method. A. Offer a 10% rebate of the purchase price for land if a residential dwelling is established and legally occupied within 36 months of the land purchase. It appears that the proposed revision should probably be treated as an exception to the Borough s fair market value requirement, and would therefore more properly be located in as a standalone provision. NEW SUBSTITUTED LANGUAGE A. Notwithstanding the other requirements of this section, the assembly may auhorize a 10 percent rebate of the purchase price for land so long as, within 36 months of the sale date, the purchaser has constructed a residential dwelling upon the property, and has obtained all legal authorization required to occupy it. Page 31 of 41

32 AGENDA ITEM #2.b SUBSTITUTED VERSION VERSION 2 Introduced by: Borough Manager Requested by: Lands Committee Drafted by: Resource Manager Introduced: 08/18/2016 Public Hearing: 09/01/2016 Adopted: 6 KODIAK ISLAND BOROUGH 7 ORDINANCE NO. FY AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND 10 BOROUGH AMENDING SECTIONS OF KODIAK ISLAND BOROUGH 11 CODE TITLE 18 BOROUGH REAL PROPERTY, CHAPTER REAL PROPERTY DISPOSAL - IN GENERAL TO ADDRESS 13 CERTAIN METHODS AND MEANS OF BOROUGH LAND DISPOSAL 14 PROCESS WHEREAS, the Kodiak Island Borough Lands Committee has created a subcommittee 17 to consider potential changes to the land disposal process in order to prepare for a future 18 land sale; and WHEREAS, the subcommittee, after several meetings, has narrowed down a limited and 21 focused number of recommended amendments to KIBC Real Property Disposal In 22 General; and WHEREAS, the full Borough Lands Committee has received the recommendation of the 25 subcommittee and now has added its own recommendation of the full Committee in 26 forwarding this ordinance to the Kodiak Island Borough Assembly; and, NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 29 BOROUGH that: Section 1: This ordinance is of a general and permanent nature and shall be codified Section 2: The following sections of KIBC are hereby amended as indicated Election required The sale, lease or other permanent disposal of borough land valued at $250, $1,000,000 or more per parcel to any single individual, partnership or corporation by 39 means other than outcry auction shall, in addition to conforming to this title, be subject to 40 approval by ordinance ratified by a majority of the qualified voters voting at a regular or 41 special election at which the question of the ratification of the ordinance is submitted. 42 Notice of the election shall be given in accordance with KIBC Title Qualifications of applicants and bidders. 45 A. An applicant or bidder for a disposal of borough land is qualified if the applicant or 46 bidder is: 47 Kodiak Island Borough, Alaska Ordinance No. FY Page 1 of 2 Page 32 of 41

33 AGENDA ITEM #2.b A. A citizen of the United States or has filed a declaration of intention to 49 become a citizen, and is 18 years of age or over; B. A group, association, or corporation which is authorized to conduct business 51 under the laws of Alaska; or C. Acting as an agent for a person qualified under subsection A or B of this 53 section and has filed with the manager or designee, prior to the time set for the 54 disposal, a proper power of attorney or a letter of authorization creating such 55 agency. The agency shall represent only one principal, to the exclusion of 56 himself. 57 B. An applicant or bidder for a disposal of borough land is not qualified if the 58 applicant or bidder is currently in default on the payment of any amounts 59 owed to the borough Disposal for fair market value A. Except as otherwise provided by this title or another provision of law, all disposal of 64 borough land shall be for the fair market value of the interest disposed of. The 65 borough may accept in exchange for borough land any consideration of sufficient 66 value not prohibited by law. 67 B. The borough may dispose of borough land to the United States, the state of 68 Alaska, or any political subdivision thereof, or a nonprofit corporation or 69 association, for less than the fair market value of the interest disposed of, upon a 70 finding by the assembly that the disposal will allow the use of the land for a public 71 purpose beneficial to the borough. It may do so by direct negotiation with the 72 organization acquiring the land, without conforming to KIBC through , unless otherwise directed by the assembly. 74 C. Notwithstanding the other requirements of this section, the assembly may 75 auhorize a 10 percent rebate of the purchase price for land so long as, within months of the sale date, the purchaser has constructed a residential 77 dwelling upon the property, and has obtained all legal authorization required 78 to occupy it ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 81 THIS DAY OF KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor 88 ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY Page 2 of 2 Page 33 of 41

34 AGENDA ITEM #2.b KODIAK ISLAND BOROUGH ORDINANCE NO. FY AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING SECTIONS OF KODIAK ISLAND BOROUGH CODE TITLE 18 BOROUGH REAL PROPERTY, CHAPTER REAL PROPERTY DISPOSAL - IN GENERAL TO ADDRESS CERTAIN METHODS AND MEANS OF BOROUGH LAND DISPOSAL PROCESS WHEREAS, the Kodiak Island Borough Lands Committee has created a subcommittee to consider potential changes to the land disposal process in order to prepare for a future land sale; and WHEREAS, the subcommittee, after several meetings, has narrowed down a limited and focused number of recommended amendments to KIBC Real Property Disposal In General; and WHEREAS, the full Borough Lands Committee has received the recommendation of the subcommittee and now has added its own recommendation of the full Committee in forwarding this ordinance to the Kodiak Island Borough Assembly; and, NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that: Section 1: Section 2: Election required. Introduced by: Borough Manager Requested by: Borough Lands Committee Drafted by: Resource Management Office Introduced: 08/18/2016 Public Hearing: Adopted: This ordinance is of a general and permanent nature and shall be codified. The following sections of KIBC are hereby amended as indicated. The sale, lease or other permanent disposal of borough land valued at $250,000 $1,000,000 or more per parcel to any single individual, partnership or corporation by means other than outcry auction shall, in addition to conforming to this title, be subject to approval by ordinance ratified by a majority of the qualified voters voting at a regular or special election at which the question of the ratification of the ordinance is submitted. Notice of the election shall be given in accordance with KIBC Title alifications of applicants and bidders. A. An applicant or bidder for a disposal of borough land is qualified if the applicant or bidder is: Kodiak Island Borough, Alaska Ordinance No. FY Page 1 of 2 Page 34 of 41

35 AGENDA ITEM #2.b A. A citizen of the United States or has filed a declaration of intention to become a citizen, and is 18 years of age or over; 2. B. A group, association, or corporation which is authorized to conduct business under the laws of Alaska; or 3. C. Acting as an agent for a person qualified under subsection A or B of this section and has filed with the manager or designee, prior to the time set for the disposal, a proper power of attorney or a letter of authorization creating such agency. The agency shall represent only one principal, to the exclusion of himself. B. An applicant or bidder for a disposal of borough land is not qualified if the applicant or bidder is currently in breach or default on any contract, lease, deposit, or payment in which the borough has an interest Land disposal methods. The assembly may select any of the following disposal methods: A. Where specifically permitted under this title, direct negotiations with interested parties who seek to acquire borough land; B. Invite sealed bids for borough land, specifying the time and place for receiving bids and the minimum acceptable bid; C. Offer borough land for sale at public auction, specifying a minimum acceptable bid; or D. Invite proposals to purchase borough land. The invitation shall specify the basis upon which proposals shall be evaluated, which may include but need not be limited to the proposed acquisition price, the quality of proposed development of land and its benefit to the community, the qualifications and organization of the proposer, the value of the proposed improvements to the land and the rents or resale prices to be charged by the proposer. E. Offer a 10% rebate of the purchase price for land if a residential dwelling is established and legally occupied within 36 months of the land purchase. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2016 KODIAK ISLAND BOROUGH Jerrol Friend, Borough Mayor ATTEST: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY Page 2 of 2 Page 35 of 41

36 In AGENDA ITEM #2.b. Introduced by: Mayor Friend Requested by: Borough Lands Committee Drafted by: RMO Dvorak introduced on: 7/20/16 Adopted on: KODIAK ISLAND BOROUGH LANDS COMMITTEE RESOLUTION NO. FY A RESOLUTION OF THE OF THE KODIAK ISLAND BOROUGH LANDS COMMITTEE RECOMMENDING THE AMENDMENT OF CERTAIN PROVISIONS OF KIBC CHAPTER REAL PROPERTY DISPOSAL IN GENERAL WHEREAS, Kodiak Island Borough Code (KIBC) created the Borough Lands Committee to review all borough lands in order to address a wide range of land issues, including the identification of lands surplus to the borough's need; and WHEREAS, the Committee has established a subcommittee to look at code issues related to the borough land disposal process; and, WHEREAS, the subcommittee, after several meetings, has developed a limited number of recommended changes to KIBC Chapter 18.20, that should it believes should be implemented by the assembly prior to the next land sale; and, WHEREAS, the full Borough Lands Committee hereby recommends the code amendments set forth in the attached draft ordinance that it believes will help refine the land disposal process and provide better tools in the borough land disposal process. NOW, THEREFORE, BE IT RESOLVED BY THE KODIAK ISLAND BOROUGH LANDS COMMITTEE THAT: Section1: The Kodiak Island Borough Lands Committee, in accordance with KIBC Power and Duties, hereby recommends to the Kodiak Island Borough Assembly that the proposed code amendments to KIBC Chapter Real Property Disposal General, as set forth in the attached draft ordinance, should be adopted by the assembly and codified into the borough code. ADOPTED BY THE KODI K ISLAND BOROU THIS 2 0* DAY or fu H LANDS COMMITTEE 2016 Jerrol Friend, Borough Mayor Kodiak Island Borough Lands Committee Resolution No. FY2017-O1 Page 1 of 2 Page 36 of 41

37 AGENDA ITEM #2.b SO W471 Nova M. Javier, MMC, BbroughClerk Kodiak Island Borough Lands Committee Resolution No. FY Page 2 of 2 Page 37 of 41

38 AGENDA ITEM #2.c. Kodiak Island Borough School District's Request To Schedule... Page 38 of 41

39 AGENDA ITEM #2.c. KODIAK ISLAND BOROUGH AGENDA STATEMENT OCTOBER 13, 2016 ASSEMBLY WORK SESSION TITLE: Kodiak Island Borough School District's Request To Schedule Joint Work Sessions, Formation Of a Joint Committee Of Both Bodies, And Discussion Of Other Items Of Interest Of Both Bodies. ORIGINATOR: Nova Javier FISCAL IMPACT: Account Number: FUNDS AVAILABLE: Amount Budgeted: SUMMARY STATEMENT: Attached to the packet is a later dated September 23, 2016 from KIBSD Board President Duncan Fields. PURPOSE, ACTION, OR RECOMMENDED MOTION: Develop a response to the request submitted. Kodiak Island Borough Kodiak Island Borough School District's Request To Schedule... Page 39 of 41

40 AGENDA ITEM #2.c. Kodiak Island Borough School District's Request To Schedule... Page 40 of 41

41 AGENDA ITEM #2.c Kodiak Island Borough January Sunday Monday Tuesday Wednesday Thursday Friday Saturday New Year s Day, Observed LEPC R $ Martin Luther King, Jr. Day P&Z R R $ P&R R 31 P&Z W W W PPE PPE PPE February Sunday Monday Tuesday Wednesday Thursday Friday Saturday R $ JWS P&Z R R $ President s Day P&R R P&Z W W PPE W PPE Sewards Day March Sunday Monday Tuesday Wednesday Thursday Friday Saturday R $ P&Z W P&Z R R $ W P&R R W 31 $ PPE PPE April Sunday Monday Tuesday Wednesday Thursday Friday Saturday LEPC P&Z W W $ JWS P&Z R P&R R W $ R R 1 PPE PPE May Sunday Monday Tuesday Wednesday Thursday Friday Saturday P&Z W W $ P&Z R P&R R W $ Memorial Day R R 4 PPE PPE June Sunday Monday Tuesday Wednesday Thursday Friday Saturday W $ P&Z W PPE PPE JWS P&Z R $ P&R R R R W July Sunday Monday Tuesday Wednesday Thursday Friday Saturday August Sunday Monday Tuesday Wednesday Thursday Friday Saturday September Sunday Monday Tuesday Wednesday Thursday Friday Saturday PPE R $ $ Independence Day R $ P&Z W W PPE Labor Day R PPE JWS LEPC P&Z W W PPE P&Z R R $ P&Z W W $ P&Z R R $ P&R R PPE P&Z R R PPE P&R R W PPE W P&R R W $ October Sunday Monday Tuesday Wednesday Thursday Friday Saturday E LEPC P&Z W W $ JWS P&Z R Alaska Day P&R R W $ R R 5 PPE PPE November Sunday Monday Tuesday Wednesday Thursday Friday Saturday Veteran s Day P&Z W $ W Observed Thanksgiving Borough $ Day Holiday P&R R 1 P&Z R R R W 2 PPE PPE December Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 PPE R $ P&Z W PPE JWS P&Z R R $ Christmas Day, 31 Observed P&R R W PPE W R W Assembly Meetings Regular Meeting Worksession JWS Borough/City Joint Work Session Planning & Zoning Meetings Regular Meeting Worksession P&Z R P&Z W Other Meetings P&R R Parks & Recreation Regular Meeting LEPC Local Emergency Planning Committee PPE Pay Period Ending Pay Day $ Elections E Municipal Election Kodiak Island Borough School District's Request To Schedule... Page 41 of 41