Except where state statute, the Charter or this Code establishes a specific mandatory procedure for disposing of municipal land, the municipality may dispose of municipal land in any manner not prohibited by law.
(AO No. 79-170)
A.
Except as required or provided otherwise by law, the municipality may dispose of municipal land or any interest therein only by ordinance.
B.
For purposes of this section, an interest in municipal land means any estate in real property or improvements thereon, including an interest in mineral, wind, solar, or water rights, but excluding the following if found by the assembly to be without substantial value to the municipality:
C.
Revocable permits or licenses, rights-of-way, or easements are deemed to be without substantial value to the municipality if the agreement meets the following conditions:
D.
Any conveyance, disposal, contract, or other agreement that transfers or conveys substantial or total control over the operation or use of a municipal property or facility shall be treated as a disposal for purposes of this subsection and require an ordinance, excluding the following:
1.
Short term rental or use agreements for less than 90 days, including options and renewals.
2.
Rental or use agreements limited to a small portion of a facility, such as a room or rooms, or a particular area for a designated use.
4.
Operating agreements and similar agreements to the extent the agreement is competitively procured under Title 7 and is subject to assembly approval and public process under Title 7.
E.
Subsequent material amendments to the scope, term, or control of a disposal under subsection D shall also require assembly approval of an ordinance.
F.
An ordinance disposing of municipal land formally dedicated to permanent or long-term park or recreational purposes is valid only upon approval by a majority of those voting on the questions at a regular or special election. When municipal land disposal requires voter approval, public notice of the proposed disposal of municipal land shall meet the requirements of section 25.30.025 prior to assembly action authorizing the ballot proposition.
(AO No. 79-170; AO No. 80-48(S); AO No. 2007-102, § 1, 8-14-2007; AO No. 2015-47, § 2, 5-14-2015; AO No. 2023-107, § 1, 12-5-2023; AO No. 2024-28, § 3, 3-27-2024)
A.
A proposed disposal of municipal park land shall be first noticed at least 14 days prior to action before the Parks and Recreation Commission.
B.
Public notice of municipal hearings and actions, including hearing and action before the parks and recreation commission and the assembly, shall be by publication, mail, and posting. Public notices shall describe the nature and purpose of the proposed disposal and the location of the land proposed for disposal. Public notice shall include the legal description of the land proposed for disposal, reference to local streets or other landmarks, and a diagram of the vicinity identifying the location of the land proposed for disposal. A statement of the date, time, and location for public hearing or other public response to the proposal shall be included.
C.
Notice by publication and posting. Notice shall be published in one or more newspapers of general circulation in the municipality. Notice shall also be posted on the municipal website.
D.
Notice by signage. A sign shall be placed upon the land proposed for disposal. The sign shall be easily visible to the public and shall generally identify the proposed disposal, specify when the proposed disposal will be submitted to the voters for approval, and include the information specified in section 25.30.025B.
E.
Notice by mail shall include the information specified in section 25.30.025B and be given to:
1.
The community council for the area where the land is located, including individual members of the board of supervisors, as well as any other community council which requests notice; these community councils shall be given an opportunity to provide public comment prior to the assembly or parks and recreation commission taking any action;
2.
All persons listed in the records of the municipal assessor as owners of land abutting the parcel proposed for disposal and all owners of the parcels of property within 500 feet of the outer boundary of the; or the 50 parcels nearest the outer boundary of the parcel, whichever is the greater number of parcels, at the addresses of record according to the municipal assessor; and
3.
All persons requesting general notice of any action when disposal of municipal land requires voter approval.
(AO No. 2007-102, § 2, 8-14-2007; AO No. 2018-117, § 1, 12-18-2018)
A.
Any instrument pertaining to the conveyance of municipal land and requiring execution by the municipality shall be executed by the mayor or his or her designee and attested by the municipal clerk.
B.
The disposal of any municipal interest in rights-of-way and utility or other easements may be accomplished in accordance with the provisions of section 21.15.130.
(AO No. 79-170; AO No. 80-48(S))
Properties to which the municipality has obtained a clerk's deed by reason of tax foreclosure may be retained for a public purpose or disposed of pursuant to this section.
B.
In accordance with AS § 29.45.460(a), the municipality may, by ordinance, elect to retain a tax-foreclosed property for a public purpose. The process for proposing retention of a property shall include the following steps:
1.
Prior to submittal of an ordinance for the sale or disposal of tax-foreclosed properties, the real estate department shall circulate a list of foreclosed properties eligible for sale or retention to all municipal departments, including the assembly and school district, and all municipal utilities and authorities.
2.
All departments, including the assembly, the school district, and all municipal utilities and authorities, shall have at least 30 days to review the properties on the list prior to introduction of an ordinance calling for sale of the properties.
3.
Upon recommendation of a municipal department, the assembly, school district, municipal utility or authority that a particular property should be retained for a public purpose, the department shall prepare an ordinance for introduction by the mayor and determination by the assembly whether property shall be retained. The recommendations shall be appended to the ordinance. Public purposes include but are not limited to parks, wetlands, transportation, schools, affordable housing, planning or community development goals, utility uses, and resale or lease subject to conditions designed to serve a public purpose. The department in consultation with the municipal clerk shall send notice of the hearing on the ordinance to the former record owner as required by AS § 29.45.460.
4.
If a property is retained for a public purpose, within 60 days after adoption the municipality shall send written notice to the former record owner(s) at the last address of record with a copy of the attested ordinance. The written notice shall advise that the former record owner is entitled to the excess value of the property, the calculations for determining property value and excess value under this section, the procedure to claim it, the date after which claims are barred, the right to appeal the property and excess value determination, and that the right to repurchase ceased. On presentation of a proper claim, the municipality shall remit the excess value to the former record owner. A claim for the excess filed more than six months after of the date of the notice is forever barred.
a.
The value of the tax-foreclosed property being retained for a public purpose shall be determined by taking the assessed value of the property in the year it is being retained and multiplying it by the average percentage of assessed value that properties sold for in the last three years that the municipality held tax foreclosure sales, as determined by the real estate department. In determining the average percent of assessed value that properties sold for in prior tax foreclosure sales, the department may omit from the average calculation the sales at the highest and lowest percentages of assessed values, and properties with unusually high costs to the municipality of maintaining the property, to keep the average demonstrative of actual sales averages.
b.
The municipality shall determine the amount owed on the property due to unpaid taxes and the foreclosure action, as of the date the assembly authorizes the retention of the tax-foreclosed property for a public purpose. The total amount owed the municipality on the property is the sum of:
i.
The full amount applicable to the property under the judgment and decree,
ii.
Post judgment interest the judgment amount the amount equal to taxes that would have been assessed and levied as though the property had continued in private ownership,
iii.
Penalty, interest, and costs to the municipality of foreclosing and retaining the property, and
iv.
Costs to the municipality of maintaining and managing the property that exceed amounts received by the municipality for the use of the property.
(AO No. 79-170; AO No. 93-111(S), § 1, 8-3-1993; AO No. 2024-122(S), § 1, 2-25-2025)
A.
Except as provided in section 21.15.130 and in subsections B, C and D of this section, all disposals of municipal land shall be for the fair market value of the interest disposed of. The municipality may accept in exchange for municipal land any consideration of sufficient value not prohibited by law.
B.
The municipality may dispose of municipal land to the United States, the state or any political subdivision thereof, or a nonprofit corporation or association for less than the fair market value of the interest disposed of, upon a finding by the assembly that the disposal will allow the use of the land for a public purpose beneficial to the municipality.
C.
The municipality may lease municipal land at less than fair market where, pursuant to the lease, a commercial or industrial facility or use will be established or maintained on the leased land, but only if the assembly first finds:
1.
The rent reduction substantially increases the likelihood that the facility will be located or maintained in the municipality;
2.
The operation of the facility in the municipality will confer a net economic benefit upon the municipality or the citizens of the municipality; and
3.
No equivalent benefit may be obtained by leasing the land at its fair rental value.
A lease entered into pursuant to this subsection may be renewed only for a fair market rental value.
D.
Notwithstanding the provisions of subsection C of this section, municipal land managed by the Airports and the Don Young Port of Alaska may be leased at less than fair market value upon a finding by the assembly that:
1.
The proposed use of the premises under the provisions of the lease furthers an operational objective of the managing agency; and
2.
But for the rent reduction there exists a substantial likelihood that the premises would not be used in a manner consistent with the overall objectives of the managing agency.
In presenting a proposed lease to the assembly for approval under this subsection, the managing agency shall specify the amount of the rent reduction and the objectives to be served by the establishment or maintenance of the proposed use.
E.
A lease providing for rent at a rate less than fair market value under the authority set forth in subsections C and D of this section shall provide for an immediate rent adjustment to fair market value:
1.
If the specified use or facility is not established within a time specified in the lease;
2.
If the specified use or facility is not continuously maintained except for such periods as are set forth in the lease; or
3.
As to any portion of the premises that are subject to any action in eminent domain.
(AO No. 79-170; AO No. 2017-122(S), § 8, 10-24-2017; AO No. 2022-40(S), § 8, 3-22-2022; AO No. 2023-81, § 9, 1-9-2024)
In addition to the other provisions of this chapter, all disposals by lease shall conform to the following requirements:
A.
No lease may be assigned without the approval of the municipality.
B.
No lease of municipal land may be for a term of more than 55 years unless approved by the assembly upon a finding that the purpose of the lease, the use of the premises and the nature of the improvements to be placed thereon would be beneficial to the municipality.
C.
A lease having a term of more than two years shall be subject to a rental adjustment at intervals of no more than two years unless the lease specifies longer intervals. When not otherwise specified by the terms of the lease, all rental adjustments shall be for the fair market rental value of the premises.
D.
A lease may grant the lessee a right of renewal upon the expiration of the initial term, provided that the renewal, or any extension of the lease, shall be treated as a new lease and shall be subject to all provisions of this Code then in effect.
E.
Every lease of municipal land shall provide that the municipality retains the right to designate or grant rights-of-way or utility easements across the leased premises without compensation, provided that the lessee shall be compensated for the taking or destruction of any improvements and provided further that the lessee at his or her option may terminate the lease or may demand a rental adjustment to reflect any reduction in value of the leased premises.
F.
In each instance in which the municipality proposes to enter into a lease of property that permits development of the property as a hotel and from which the municipality will derive revenue, the municipality shall make it a material condition of submission of a responsive bid for the development or use, if a request for bids is issued, and, in any case, shall require as a condition precedent for entering into the lease and as an ongoing material term of the lease, that the lessee and any entities selected by the lessee to operate all or part of the hotel, enter into and maintain a labor peace agreement covering the hotel component of the property with each labor organization which represents, or reasonably might represent, workers on the project, requiring the labor organization, on behalf of itself and its members, to forego its right to strike, picket, boycott, or take other economic action detrimental to the hotel project or operations.
(AO No. 79-170; AO No. 2015-47, § 2, 5-14-2015; AO No. 2018-91(S), § 3, 12-4-2018)
Where the municipality reasonably expects to own real property, it may contract to dispose of that real property prior to receiving title thereto. The municipality's obligation to dispose of the property shall be conditioned upon its receipt of title thereto.
(AO No. 79-170)
A.
Where, under section 25.30.040A, the municipality disposes of land for fair market value, it shall dispose of the land in accordance with sections 25.30.080 through 25.30.100.
B.
Where the municipality, under section 25.30.040B, C or D, disposes of land for less than fair market value, or where an interest in land is relinquished or transferred in connection with an agreement to compromise and settle pending litigation, it may do so by direct negotiation with the person acquiring the land.
(AO No. 79-170)
A.
Prior to the disposal of an interest in municipal land under section 25.30.040A, the real estate services division shall determine the fair market value of the land.
B.
Where it is determined that municipal land shall be offered for disposal at a public auction or through the solicitation of sealed bids or proposals, notice of the proposed disposal shall be published in the manner which the real estate services division deems most likely to elicit the maximum number of responsive bids or proposals. At a minimum, the notice shall describe the municipal land, the terms upon which it may be disposed of, the method of disposal, the time and place for submitting bids or proposals, and the minimum acceptable price for the land.
(AO No. 79-170; AO No. 90-31; AO No. 2005-156, § 1, 11-8-2005)
For disposals of land under section 25.30.040A, the real estate services division may select any of the following disposal methods:
A.
The real estate services division may enter direct negotiations with interested parties who seek to acquire municipal land.
B.
The real estate services division may invite sealed bids for municipal land, specifying the time and place for receiving bids and the minimum acceptable bid.
C.
The real estate services division may offer municipal land for sale at public auction, specifying a minimum acceptable bid, or specifying that if no higher price is offered the land shall be sold pursuant to a preexisting contract for sale for the minimum bid amount.
D.
The real estate services division may invite proposals to purchase municipal land for a fixed price. The invitation shall specify the basis upon which proposals shall be evaluated, which may include but need not be limited to the quality of proposed development of the land and its benefit to the community, the qualifications and organization of the proposers, the value of the proposed improvements to the land and the rents or resale prices to be charged by the proposer.
(AO No. 79-170; AO No. 90-31; AO No. 2005-156, § 1, 11-8-2005)
A.
Municipal land disposals under section 25.30.040A shall be awarded by the assembly, after considering the recommendation of the real estate services division. The assembly shall make the award to the best bidder or proposer in accordance with the criteria set forth in the invitation for bids or proposals.
B.
If the assembly finds it to be in the best interest of the municipality to do so, it may reject all bids or proposals.
(AO No. 79-170; AO No. 90-31; AO No. 2005-156, § 1, 11-8-2005)
[1]
Editor's note — Former § 25.30.110, Disposal of lands used by Anchorage Telephone Utility, was repealed.
Prior history: AO No. 91-173(S); AO No. 2005-156, 11-8-2005.