Submitted by: Prepared by: For Reading: ANCHORAGE,ALASKA AO No

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1 CLERK'S OFFICE APPROVED Dle.!k;;z,// -.!...!-_--.: Submitted by: Prepred by: For Reding: ACHORAGE,ALASKA AO o Chir ofthe Assembly tthe Request ofthe Myor Rel Estte Deprtment Mrch 29, A ORDIACE AUTHORIZIG DISPOSAL VIA SOLE SOURCE SALE OF A 2 PARCEL COMPRISIG THE WEST 7.5 FEET OF LOT, BLOCK 1, 3 ORIGIAL TOWSITE, TO PEACH IVESTMETS, LLC WHEREAS, the Municiplity of Anchorge (MOA) owns the western 7.5 feet of Lot, Block 1, Originl Townsite; nd WHEREAS, the subject prcel hs no mrketble vlue except to n djcent property owner; nd WHEREAS, the djcent lndowner (Pech Investments, LLC) desires to cquire this strip of lnd tht runs long the western boundry of their property nd hs offered to py MOA the pprised vlue for the property; nd WHEREAS, n gency review conducted by RES to determine ny municipl need for the subject prcel resulted in no requests to retin sid property for ny foreseeble municipl purpose; nd WHEREAS, the offer by Pech Investments, LLC to purchse the subject prcel for pprised vlue hs been reviewed nd endorsed by the dministrtion; now therefore, THE ACHORAGE ASSEMBLY ORDAIS: Section 1. The West 7.5 feet of Lot, Block 1, Originl Townsite, is pproved for sole source sle to Pech Investments, LLC, t pprised vlue. Section 2. pprovl. ATTEST: This ordinnce shll be effective immeditely upon pssge nd ED AD APPROVED 'l,211. by the Anchorge Assembly this I" dy of -fu..j... Chir of the Assembly

2 MUICIPALITY OF ACHORAGE Summry of Economic Effects - Generl Government AO umber: 211- Title: A ORDIACE AUTHORIZIG DISPOSAL VIA SOLE SOURCE SALE OF A PARCEL COMPRISIG THE,WEST 7.5 FEET OF LOT, BLOCK 1, ORIGIAL TOWSITE, TO PEACH IVESTMETS, LLC. Sponsor: Prepring Agency: Others Impcted: MAYOR Rel Estte Deprtment CHAGES I EXPEDITURES AD REVEUES: FY11 (Thousnds of Dollrs) FY12 FY13 FY1 FY15 Operting Expenditures 1 Personl Services 2 Supplies 3 Other Services Debt Service 5 Cpitl Outly TOTAL DIRECT COST 6 IGCs FUCTIO COST: REVEUES: 1 CAPITAL: POSITIOS: FT/PT nd Temp. PUBLIC SECTOR ECOOMIC EFFECTS: Sle of this lot will dd it to the municipl tx bse. PRIVATE SECTOR ECOOMIC EFFECTS: Sole source sle to Pech Investments, LLC, will dd vlue to owner's djcent lot nd llow for improvements nd upgrdes to downtown historic property. Prepred by: Tmmy ROswld Rel Estte Dept, Acting Director Telephone:

3 MUICIPALITY OF ACHORAGE ASSEMBLY MEMORADUM AM o From: SUbject: MAYOR Meeting Dte: Mrch 29, 211 A ORDIACE AUTHORIZIG DISPOSAL VIA SOLE SOURCE SALE OF A PARCEL COMPRISIG THE WEST 7.5 FEET OF LOT, BLOCK 1, ORIGIAL TOWSITE, TO PEACH IVESTMETS, LLC. The Municiplity of Anchorge owns prcel leglly described s the West 7.5 feet of Lot, Block 1, Originl Townsite (TID # ) locted djcent to the th Avenue Thetre in downtown Anchorge (See mp, Appendix A). Since its cquisition of the th Avenue Thetre, Pech Investments hs expressed interest in cquiring this strip of lnd referred to s "breezewy" tht runs long the western edge of the property. Pech Investments formlly pproched MOA in 21 nd requested purchsing the MOA prcel djcent to their prcel. A municipl gency review ws conducted by the Rel Estte Services Division (RES) in Jnury 211 to determine if there ws pre-existing need or potentil public use for the subject prcel; RES received no requests to retin this property for ny municipl purpose. An pprisl nd risk nlysis of the subject prcel ws submitted by certified ppriser on Jnury 26, 211, evluting the lnd t $1, (Appendix B), nd on Februry 17, 211, Pech Investments submitted written offer to purchse the property t the pprised vlue. The dministrtion hs reviewed the offer nd endorses the sole source sle to Pech Investments. The prcel hs no mrketble vlue except to n djcent property holder nd serves no municipl purpose. THE ADMIISTRATIO RECOMMEDS ASSEMBLY APPROVAL OF A ORDIACE AUTHORIZIG DISPOSAL VIA SOLE SOURCE SALE OF A PARCEL COMPRISIG THE WEST 7.5 FEET OF LOT, BLOCK 1, ORIGIAL TOWSITE, TO PEACH IVESTMETS, LLC. Prepred by: Rel Estte Services Division, Rel Estte Deprtment Approved by: Tmmy R. Oswld, Acting Director, Rel Estte Dept. Concur: Dennis A. Wheeler, Municipl Attorney Concur: George J. Vklis, Municipl Mnger Respectfully submitted: Dniel A. Sullivn, Myor

4 AM - Sole Source Sle of Remnnt Prcel Pge 2 of2 1 Appendices: 2 Appendix A-Are Mp by McSwin Assocites 3 Appendix B-Jnury 26, 211 McSwin Assocites Summry Apprisl 5

5 APPEDIX A West 7.5 feet of Lot, Block 1, Originl Townsite Anchorge, Alsk g z 5 9"37"W '" _.- 3,\". -- 3D -2!' West th Avenue WEST -- - g39 58'JO"W 36.1 " -..." '-- 3D '5: -5OO ' ', e 1,Apprised Pr,c;l el... I :/'.,,:.,'.:..:..." Bf Y. };i CIJ.. " '" CIJ.. e "" : : 6 5 '" : u J!2 1 w.n A io --- w /1 -.;.. wo OO.UU 5.D.1'1 -" '23" 2,15 <j$>'''''' rn :i' co I '" 5. o 2 : '" IS 11 I la '" g : (C-29) (2fX!(}-W8) 9A r: BkJJ21 Pub Use [tml Pg JJ I '" " J!2 ;1 g 1>. 2 ''''o. ". 3 1D. 89"S8'38"W '----. West 5 th Avenue WEST > EAST J6.6 " "<{t'v Ii! ot - ",r'o""",,', \l,m./',"

6 APPEDIX B IMcSwln Assocites LLCI DteofReport: Jnury 26,211 Appriser: Steve McSwin, MAl The crux of this new ssignment is re-evlution of the risk nlysis tht reconciles with n opinion of vlue. The prior report determined the multitude of fctors tht increse buyer risk nd uncertinty support discount of6 to SO-percent from the mrket rte of $75 per squre foot for djoining or lterntive CBD lnd. ew dt provided the pprisers pertining to higher thn nticipted ssemblge costs nd the elimintion of probble buyer is mrket impetus to chnge the upper end ofthe discount to 9-percent. The following tbles provide the vlue rnge forthe subject lnd bsed on n updted risknlysis. DIIeo..t: 9% 57.5/SF $3./SF 975SF x 57.5ISF 975 SF x $3.ISF = 57, ,25 After nlysis, we re of the opinion the mrket vlue flls within the lower end ofthe indicted rnge becuse of the severity of mitigting fctors. Specificlly, filctors tht crete high buyer risk nd uncertinty nd diminish mrketbility re s follows... on-conformnce withminimum lnd re requirements ofb2 A zoning district.. Restriction ofsubsurfce rights i ".1/.. Encrochment of improvements by bothdjoining properties Ir6.. Limited buyers when compred to the mrket forcbd lnd. I.,... Libility of unuthorized useoflnd bypublic ;.. Issue ofdverse possession.. Differing legl interprettions of property entitlements grnted in the 19I5 conveynce document.. Possible rejection ofre-plt by Municipl Assembly.. Elimintion ofone oftwo probble buyers from mrket eqution.. Higher thn nticipted engineering costsssocited withssemblge In conclusion, we estimte the mrket vlue of the 975-squre foot subject lnd, s ofaugust 23,21, is $1,. Mrket Vlue ofapprised Lud 51, / /-2/6$: Breezewy Prcel, Anchorge. A/tuk

7 A211.W Content 1: 997 Type: Ordinnce - AO A ORDIACE AUTHORIZIG DISPOSAL VIA SOLE SOURCE SALE OF Title: A PARCEL COMPRISIG THE WEST 7.5 FEET OF LOT, BLOCK 1, ORIGIAL TOWSITE, TO PEACH IVESTMETS, LLC. Author: mglguijp Inititing Dept: ReLEstte o Iptl' Sle of downtown Anch. remnnt prcel to djcent property owner (Pech escr on. Investments) Keywords: Sole Source Sle Lot, Block1, Originl Townsite Dte Prepred: 3/8/11 2:25 PM Director me: Tmmy R. Oswld Assembly 3/29/11 Meeting Dte: Public Hering /12/11 Dte: LegLSubWorkflow Finnce_SubWorkflow AllOrdinnceWorkflow COSET AGEDA - ITRODUCTIO